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REPORT 


OF  THE 


EFFICIENCY  AND  ECONOMY 
COMMITTEE 


CREATED  UNDER  THE  AUTHORITY  OF  THE 
FORTY-EIGHTH  GENERAL  ASSEMBLY 


STATE  OF  ILLINOIS 


SENATORS 

WALTER  I.  MANNY,1Chairman       -  Mt.  Sterling 

W.  DUFF  PIERCY     ...        -  Modnt  Vernon 

LOGAN  HAY -    Springfield 

CHARLES  F.  HURBURGH      -        -  -      Galesburg 


REPRESENTATIVES 

CHARLES  F.  CLYNE,  Secretary     -        -  Aurora 

SPEAKER  WILLIAM  McKINLEY  -        -  Chicago 

JOHN  M.  RAPP Fairfield 

EDWARD  J.  SMEJKAL     ....  Chicago 


JOHN  A.  FAIRLIE,  Director    - 
1915 


THE  WINDKRMKRE  PRESS,  CHICAGO 
191 


CONTENTS. 

PART  I. 

Page 

Present  Organization  of  State  Government 7 

State  Offices,  Boards  and  Institutions 8 

Creation  of  the  Committee 11 

Methods  of  Investigation 13 

Meetings  and  Public  Hearings 15 

Defects  of  the  present  arrangements 18-24 

Lack  of  correlation 19 

Scattered  offices 20 

No  standards  of  compensation 20 

Overlapping  functions  20 

Irregularity  of  reports 21 

Ineffective  supervision  21 

No  budget  system 22 

Imperfect  accounts  23 

Inadequate  advice  in  legislation 23 

Irresponsible  government  24^ 

Tendencies  towards  concentration 24-28 

In  Illinois  24 

In  other  states  25 

Efficiency  and  Economy  Commissions 26 

Municipal   Administration    27 

The  United  States  Government 27 

Foreign  Countries  28 

General  Principles  and  Purposes  of  the  Committee's  Plans 28-32 

Proposed  Departments   28 

General  Considerations  30 


PART  11. 

Finance  Administration  33-39 

Present  Arrangements 33 

Inefficient  Results   33 

In  other  States  and  Countries 35 

Proposed   Finance   Commission 35 

Local  Administration  36 

Financial   Results    37 

Proposed   Finance   Bill 37 

Accounting   38 

Contracts,  Printing  and  Supplies 38 

Charitable  and  Correctional  Institutions 39-44 

Present  Management  39 


/ 


flOfiOfiCi 


Advantages  of  Central  Board 41 

In  Other  States 42 

Board  of  Prison  Administration 43 

Educational  Agencies  44-49 

Present  Organization  44 

In  Other  States  and  Countries 47 

Recommendations    48 

Administration  of  Labor  Laws 49-53 

Existing  Authorities   49 

Reorganization  in  Other  States 51 

Department  of  Labor  and  Mining 52 

Results  Anticipated   53 

Proposed  Bill  S3 

Agricultural  Agencies  53-57 

Existing  Arrangements  53 

In  Other  States  and  Countries 55 

Proposed  Organization   56 

Public  Health  Administration 57-60 

Present  Authorities    57 

In  Other  States 59 

Recommendations  59 

Public  Works,  Parks  and  Buildings 60-65 

Public  Works  and  Parks 61 

Public  Buildings  and  Monuments 63 

Recommendations 64 

State  Supervision  of  Corporations 66-69 

Present  Conditions 66 

In  Other  States  and  Countries 67 

Proposed  Organization   68 

LavkT  Officers  69 

Military  Administration   70 

Elections   71 

Civil  Service  Law^s 71 

Proposed  Bills  73 

PART   III. 

Results  to  be  Expected 74-77 

Correlation  and  Supervision 74 

Assistance  in  Legislation 74 

Responsible   Government    75 

Budget  and  Accounts 75 

Economy  Expected  75 

Need  for  Further  Investigation ^^ 

Supplemental   Statements    79-80 


APPENDICES. 

Revenue  and  Finance  Administration, 

by  John  A.  Fairlie ^^'^^ 

The  Accounts  of  the  State  of  Illinois, 

by  George  E.  Frazer,  C.  P.  A 185-248 

Accounting  Administration  for  Correctional  Institutions, 

by  Spurgeon  Bell 249-340 

Charitable  and  Correctional  Institutions, 

by  James  W.  Gamer 3U-W^ 

Educational  Administration, 

by  John  M  Mathews 4UJ-4«0 

Labor  and  Mining  Agencies, 

byW.  F.  Dodd "^^^-^^^ 

Agricultural  Agencies, 

by  James  W.  Gamer 5yi-tW^ 

Public  Health  Administration, 

by  John  M.  Mathews Mi-Wb 

Supervision  of  Corporations, 

by  Maurice  H.  Robinson W/-/b^ 

Public  Works,  Parks  and  Buildings, 

by  C.  O.  Gardner 753-866 

Military  Administration, 

by  Quincy  Wright iib7-\)W) 

Civil  Service  Laws, 

by  A.  C  Hanford ^^^-^'^^ 

Secretary  of  State  and  Law  Officers 939-970 

Efficiency  and  Economy  Commissions  in  other  States, 

by  A.  C.  Hanford 971-998 

Fire  Insurance  Rates, 

by  Maurice  H.  Robinson yyy-iu^o 

Comjparative  Statement  of  Appropriations, 

compiled  by  Thomas  P.  Waters 1029-1051 

CHARTS 

State  Executive  Organization  in  Illinois,  to  face 

Proposed  State  Executive  Organization  in  Illinois,  to  face 30 


EFFICIENCY  AND  ECONOMY  COMMITTEE 
STATE  OF  ILLINOIS. 

PART  I. 

To  the  Forty-ninth  General  Assembly. 

PRESENT   ORGANIZATION    OF   STATE   GOVERNMENT. 

The  Constitution  of  Illinois  provides  for  three  main  departments  of 
State  government — legislative,  executive  and  judicial.  The  judicial 
powers  are  vested  in  an  organized  series  of  courts  created  by  the  Con- 
stitution and  by  statutes.  The  legislative  power  is  vested  in  a  General 
Assembly,  consisting  of  a  Senate  and  a  House  of  Representatives, 
elected  by  the  people,  whose  acts  are  subject  to  a  limited  power  of  veto 
by  the  Governor.  The  executive  department  consists  of  a  Governor, 
Lieutenant-Governor,  Secretary  of  State,  Auditor  of  Public  Accounts, 
Treasurer,  Superintendent  of  Public  Instruction  and  Attorney  General, 
provided  for  by  the  Constitution  and  elected  by  popular  vote;  and  of 
more  than  a  hundred  other  State  offices,  boards  and  commissions, 
created  by  statute,  and  in  most  cases  appointed  by  the  Governor,  by 
and  with  the  advice  and  consent  of  the  Senate. 

The  number  of  State  offices,  boards  and  commissions  has  been 
rapidly  increasing;  and  every  session  of  the  General  Assembly  sees  the 
origin  of  new  authorities.  Less  than  a  fourth  of  those  now  in  exis- 
tence were  established  before  1870;  and  more  than  a  third  of  the 
present  number  have  been  created  during  the  last  decade.  These 
executive  departments,  offices  and  institutions  now  employ  about  6,000 
persons  and  expend  annually  about  $19,000,000. 

Along  with  this  increase  in  State  authorities  has  been  an  equally 
significant  increase  in  appropriations  and  expenditures.  From  1909  to 
1913,  34  new  State  agencies  were  created.  In  the  same  period  the 
biennial  appropriations  increased  from  $19,857,576  to  $37,915,417. 


EBFlCIEjN'CY  AND  ECONOMY  COMMITTEE. 

STATE  OFFICES,  BOARDS  AND  INSTITUTIONS^^^ 

(In  chronological  order  of  their  creation.) 
1809     Governor 

Secretary;  1818,  Secretary  of  State 
Attorney  General — 1848;  revived  1867 
1812     Auditor  of  Public  Accounts 

Treasurer 
1818     Lieutenant-Governor 
1827     State  Penitentiary  (Alton)— 1857 
1839     School  for  the  Deaf(2) 
1847     Central  Hospital  for  the  Insane (2) 
1849     School  for  the  Blind^^) 
1851     State  Geologist 

1854     Superintendent  of  Public  Instruction 
1857     State  Board  of  Education  (Normal  University) 

State  Penitentiary  (Joliet) 
1865     Asylum  for  Feeble  Minded  Children^-^ 

Soldiers'  Orphans'  Home^^) 

Charitable  Eye  and  Ear  Infirmary^^) 
1867     Canal  Commissioners 

Illinois  Industrial  University  (University  of  Illinois) 

State  Entomologist 

State  Reformatory 

State  Board  of  Equalization 

Commissioners  of  the  State  Library 
1869     State  Board  of  Public  Charities— 1909 

Southern  Hospital  for  the  Insane^^) 

Northern  Hospital  for  the  Insane^^) 

Southern  Illinois  Normal  University 

Lincoln  Park  Commissioners 

West  Chicago  Park  Commissioners 

1871  Railroad  and  Warehouse  Commission — 1913 
Chief  Grain  Inspector 

1872  State  Board  of  Agriculture 
State  Canvassing  Board 

Soldiers'  Monument  Committee  (Mound  City)^^) 

1874  Printer  Expert 
Commissioners  of  State  Contracts 

1875  Fish  Commissioner — 1879 
1877     State  Board  of  Health 

Commission  of  Claims — 1889 

Southern  Illinois  Penitentiary 

Eastern  Hospital  for  the  Insane^^) 

Humane  Agents 

State  Laboratory  of  Natural  History 

Natural  History  Museum 

Douglas  Monument  Committee   (Chicago)  ^^^ 

(1)     This  list  dots  not  Includ*  a  consldtrablt  numbtr  of  minor  and   ttmporary 
boards  and  commlsslona  craaUd  from  tlma  to  tlma. 


REPORT  OF  THE  COMMITTEE. 

1879     Commissioners  of  Labor 

Adjutant  General 

Board  of  Fish  Commissioners — 1913 
1881     State  Board  of  Pharmacy 

Board  of  Dental  Examiners 

State  Veterinarian 

1883     State  Mining  Board 
Mine  Inspectors 

1885     Live  Stock  Commission 

State  Game  Warden— 1899 
Soldiers'  and  Sailors'  Home^^) 

1887     Industrial  Home  for  the  Blind(2) 

Trustees  of  the  Lincoln  Homestead 
Logan  Monument  Committee^^) 

1889     Court  of  Claims 

State  Historical  Library- 
Asylum  for  Insane  Criminals  (2) 
Gettysburg  Monument  Committee^^) 

1893     Superintendent  of  Insurance 
Factory  Inspector 
Training  School  for  Girls^^^ 
Chickamauga  Monument  Committee (^) 

1895     Illinois  Farmers'  Institute 

Eastern  Illinois  Normal  School 
Northern  Illinois  Normal  School 
Western  Hospital  for  the  Insane 
General  Hospital  for  the  Insane (2) 
Soldiers'  Widows'  Home^^) 
State  Board  of  Arbitration 
Lincoln  Monument  Trustees 
Lovejoy  Monument  Committee (^> 

1897     State  Board  of  Pardons 
State  Water  Survey 
Board  of  Law  Examiners 
Examiners  of  Architects 
Shiloh  Battlefield  Monument  Committee^^^ 

1899     State  Food  Commissioner 

State  Game  Commissioner — 1913 
State  Architect 
Free  Employment  Offices 
Western  Illinois  Normal  School 
Board  of  Veterinary  Examiners 

1901     St.  Charles  School  for  Boys(2) 

Louisiana  Exposition  Committee  (^^ 
Pan-American  Exposition  Committee  (^^ 


(2)  Now  under  the  Board  of  Administration. 

(3)  Temporary. 


10  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

1903     Board  of  Prison  Industries 

Examiners  of  Certified  Public  Accountants 
Voting  Machine  Commissioners 
Fort  Massac  Trustees 

1905     Civil  Service  Commission 

State  Highway  Commission — 1913 
Internal  Improvement  Commission — 1911 
State  Geological  Commission 
Commissioners  of  the  Department  of  Justice. 

1907     Board  of  Examiners  of  Registered  Nurses 
Food  Standard  Commission 
Penitentiary  Commission 
Commission  on  Uniformity  of  Legislation 
Andersonville  Monument  Committee ^^^ 
George  Rogers  Clark  Monument  Committee (^^ 

1909  Board  of  Administration 
Charities  Commission 
State  Fire  Marshal 
Barbers'  Examining  Board 
Stallion  Registration  Board 
State  Art  Commission 
Library  Extension  Commission 

Chief  Inspector  of  Private  Employment  Agencies 
Perry  Centennial  Commission  ^^^ 
Vicksburg  Military  Park  Committee^^^ 

1910  Mine  Rescue  Station  Commission 

1911  Board  of  Fish  Commissioners — 1913 
Rivers  and  Lakes  Commission 
Illinois  Park  Commission 

State  Inspector  of  Apiaries 
Kenesaw  Mountain  Monument  Committee^^) 
Edwardsville  Historical  Monument  Committee^^) 
General  Michael  Kelly  Lawler  Monument  Committee^^) 
Panama-Pacific  Exposition  Commissions^) 

1913     Public  Utilities  Commission^*) 
State  Highway  Commission 
Game  and  Fish  Conservation  Commission 
Industrial  Board 

Miners'  and  Mechanics'  Institutes 
Miners'  Examining  Board 
Illinois  Centennial  Commissions^) 
Anniversary  of  Negro  Emancipation  Committee^^) 
John  P.  Altgeld  Monument  Committee^^) 
Fort  Edwards  Monument  Committees^) 
Thomas  Carlin  Monument  Committee S^) 
Legislative  Reference  Bureau. 


(4)     This  took  over  the  work  of  the  Railroad  and  Warehouse  Commission. 

(B)     This  consolidated  the  work  of  Fish   Commission   and   Game  Commissioner. 


REPORT  OF  THE  COMMITTEE.  11 

The  organization  and  functions  of  these  executive  officials  are  for 
the  most  part  controlled  by  the  General  Assembly.  It  is  true  that  the 
general  powers  of  the  Governor  and  Lieutenant-Governor  are  defined 
in  the  Constitution;  but  many  specific  powers  of  the  Governor,  and 
the  scope  of  his  authority  over  other  officers  is  determined  to  a  large 
extent  by  the  General  Assembly;  and  his  direct  control  over  the  ad- 
ministration is  less  than  is  often  supposed.  The  primary  functions  of 
the  other  elective  constitutional  officers  are  suggested  by  their  titles  but 
their  powers  and  duties  are  for  the  most  part  defined  by  statute ;  and 
under  existing  laws  their  authority  is  in  some  respects  less  than  is  in- 
dicated by  their  titles;  while  in  other  respects  they  have  powers  not 
directly  related  to  their  primary  functions. 

Over  the  offices,  boards  and  commissions  created  by  statute,  the 
General  Assembly  has  full  authority.  In  practice,  in  the  confusion  of 
legislative  sessions,  new  boards  and  offices  have  usually  been  created 
with  little  reference  to  previously  existing  authorities,  either  as  to 
forms  of  organization  or  the  scope  of  their  powers.  Most  of  them  are 
substantially  independent  of  each  other,  and  are  subject  to  no  control, 
except  the  nominal  supervision  of  the  Governor,  through  his  powers 
of  appointment  and  removal.  The  constitutional  officers  and  some  of 
those  created  by  statute  are  not  even  subject  to  this  nominal  super- 
vision. 

As  a  result  of  these  conditions  the  executive  authorities  of  the 
State  lack  any  semblance  of  systematic  organization.  At  the  same  time 
the  numerous  list  of  State  officials  covers  a  wide,  varied  and  ever  in- 
creasing range  of  activities ;  and  are  constantly  touching  the  life  of  the 
community  at  more  and  more  points.  That  these  offices,  boards  and 
commissions  should  be  efficiently  and  economically  organized  and  con- 
ducted is  of  the  highest  importance  to  the  State. 

CREATION   OF  THE   COMMITTEE. 

In  his  inaugural  address.  Governor  Dunne  recommended  "the  ap- 
pointment of  a  joint  committee  of  both  houses  of  the  Legislature  to 
examine  into  the  condition  of  the  public  institutions  of  the  State,  and 
to  confer  with  the  Board  of  Administration  to  ascertain  if  it  is  not 
possible  to  reduce  the  expenditures  of  the  same  without  impairing  the 
efficiency  of  these  institutions." 

Subsequently,  resolutions  were  introduced  in  the  Forty-eighth 
General  Assembly  by  Senators  Hurburgh,  Denvir,  Keller,  Tossey,  and 
Jones,  to  provide  for  an  investigation  of  State  offices,  boards  and  insti- 
tutions ;  and  a  similar  resolution  had  been  introduced  by  Senator  Hur- 
burgh in  the  previous  General  Assembly. 


12  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

By  Senate  Joint  Resolution  No.  22,  the  Forty-eighth  General  As- 
sembly directed  an  investigation  of  the  State  boards,  commissions  and 
bureaus,  in  order  to  determine  whether  greater  efficiency  and  economy 
could  be  secured  by  a  reorganization  and  consolidation  of  administra- 
tive machinery.     This  resolution  provided  as  follows : 

Whereas,  The  General  Assembly  of  the  State  of  Illinois  has  from 
time  to  time  created  various  commissions,  boards  and  bureaus  and  other 
additions  to  the  State  Government;  and, 

Whereas,  The  duties  of  these  various  commissions,  boards,  and 
bureaus  in  many  cases  overlap  and  conflict,  one  with  another;  and, 

Whereas,  The  duties  of  these  various  commissions,  boards  and 
bureaus,  etc.,  can  in  many  instances  be  more  efficiently  and  more  economi- 
cally performed  by  combining  these  various  departments  and  abolishing  those 
which  are  an  unnecessary  drain  on  the  public  treasury;  and, 

Whereas,  Owing  to  the  marvelous  growth  of  our  State  in  all  the 
departments  of  its  government  a  thorough  reorganization  with  a  view  to 
greater  efficiency  and  greater  economy  is  demanded ;  now,  therefore,  be  it 

Resolved,  By  the  Senate  of  the  State  of  Illinois,  the  House  of  Repre- 
senatives  concurring  therein.  That  a  joint  committee  of  eight  (8)  be 
appointed,  composed  of  four  (4)  Senators  and  four  (4)  Representatives, 
who  shall  have  full  power  and  authority  to  investigate  all  departments  of 
the  State  government,  including  all  boards,  bureaus  and  commissions  which 
have  been  created  by  the  General  Assembly,  such  investigations  to  be  made 
with  a  view  of  securing  a  more  perfect  system  of  accounting,  combining  and 
centralizing  the  duties  of  the  various  departments,  abolishing  such  as  are 
useless  and  securing  for  the  State  of  Illinois  such  reorganization  that  will 
promote  greater  efficiency  and  greater  economy  in  her  various  branches  of 
government ; 

Resolved,  That  the  Committee  shall  have  whole  power  and  authority  to 
subpoena  witnesses  and  to  examine  and  compel  the  production  of  books, 
papers  and  documents; 

Resolved,  That  the  committee  shall  have  full  authority  to  employ 
expert  accountants,  attorneys,  stenographers  and  other  assistants  necessary 
to  carry  on  their  investigations  and  make  their  report; 

Resolved,  That  the  expenses  of  said  committee  and  employees  shall 
be  paid  out  of  any  appropriation  made  therefor  by  the  General  Assembly 
upon  voucher  properly  drawn  upon  the  Auditor  of  Public  Accounts,  prop- 
erly itemized  and  signed  and  approved  by  the  chairman  and  secretary  of 
the  joint  committee.  The  committee  shall  conduct  its  investigations  and 
report  its  findings  and  make  its  recommendations,  together  with  such  bill 
or  bills  that  it  may  deem  proper  to  submit  to  the  Forty-ninth  General  As- 
sembly of  the  State  of  Illinois. 

The  Forty-eighth  General  Assembly  also,  by  Item  68  of  House  Bill 
895,  appropriated  for  the  expenses  of  the  Committee  appointed  under 
Senate  Joint  Resolution  No.  22,  the  sum  of  $40,000. 

The  Committee  appointed  consisted  of  Senators  Walter  I.  Manny, 
of  Mt.  Sterling;  W.  Duff  Piercy,  of  Mt.  Vernon;  Logan  Hay,  of 
Springfield;  and  Charles  F.  Hurburgh,  of  Galesburg;  and  of  Repre- 
sentatives, Speaker  William  McKinley,  of  Chicago ;  Charles  F.  Clyne, 
of  Aurora;  John  M.  Rapp,  of  Fairfield,  and  Edward  J.  Smejkal  of 
Chicago. 


REPORT  OF  THE  COMMITTEE.  13 

The  Committee  met  in  Springfield,  Illinois,  on  August  1,  1913,  and 
organized  by  the  election  of  Walter  I.  Manny  as  Chairman,  and  Charles 
F.  Clyne  as  Secretary.  At  a  subsequent  meeting  Speaker  William  Mc- 
Kinley  was  elected  as  Vice-Chairman. 

The  resolution  creating  the  Committee  imposed  on  it  two  main  du- 
ties:  (1)  to  secure  a  more  perfect  system  of  accounting;  and  (2)  to 
propose  a  general  reorganization  and  consolidation  of  State  offices, 
boards  and  commissions.  After  due  consideration  the  Committee 
agreed  that  the  plan  of  administrative  re6rganization  should  precede 
the  introduction  of  a  comprehensive  system  of  accounting.  The  latter 
is  necessarily  dependent  on  the  system  of  organization ;  and  to  prepare 
a  complete  system  of  accounting  would  require  a  more  detailed  inves- 
tigation than  was  possible  with  the  funds  and  the  time  at  the  disposal 
of  the  Committee.  The  Committee  have,  therefore,  given  their  main 
attention  to  the  problem  of  administrative  reorganization  and  consoli- 
dation. At  the  same  time  a  preliminary  study  has  been  made  of  the 
present  accounting  methods ;  and  a  general  basis  for  a  proposed  ac- 
counting system  has  been  prepared,  which  has  been  worked  out  in 
detail  for  the  correctional  institutions  of  the  State  as  a  concrete  illus- 
tration of  the  general  plan. 

METHODS  OF  INVESTIGATION. 

The  members  of  the  Committee,  by  reason  of  their  service  in  the 
Forty-eighth  and  preceding  General  Assemblies,  and  particularly  by 
reason  of  their  service  on  appropriation  committees,  were  familiar 
with  the  lack  of  systematic  organization  among  the  numerous  State 
offices,  boards  and  commissions,  and  were  aware  that  new  authorities 
had  at  times  been  created  when  the  powers  and  duties  of  such  authori- 
ties might  have  been  more  effectively  organized  in  connection  with 
already  existing  departments.  They  were  also  acquainted  with  the 
confusion  resulting  from  this  defective  organization  and  with  the  dif- 
ficulties of  exercising  adequate  control  over  appropriations  and  expen- 
ditures. 

The  Committee  believed,  however,  that  it  should  have  as  a  basis  for 
its  work  a  more  thorough  and  exact  knowledge  than  was  possessed  by 
its  members,  of  the  existing  State  offices,  boards  and  commissions,  of 
the  laws  under  which  they  operated,  and  of  their  internal  organization, 
appropriations  and  work  performed.  After  making  some  preliminary 
study  of  the  situation  in  Illinois  and  neighboring  states,  the  Committee 
employed  John  A.  Fairlie,  Professor  of  Political  Science  in  the  Uni- 
versity of  Illinois,  as  Director  of  its  investigational  work. 

For  this  investigation,  the  numerous  State  offices,  boards  and  com- 
missions were  combined  into  a  number  of  groups  into  which  they 
naturally  fell,  on  the  basis  of  their  general  functions,  as  follows : 


14  EFFICIENCY  AND  ECONOMY   COMMITTEE.' 

Finance  Administration 

Education  (including  Libraries  and  Scientific  Surveys) 

Charitable  and  Correctional  Institutions 

Public  Works  and  Buildings 

Agricultural  Agencies 

Labor  and  Mining  Agencies 

Public  Health 

Control  of  Corporations  and  Public  Service  Business 

Law  Officers 

State  Militia 

The  Committee  directed  that  the  offices,  boards  and  commissions 
as  thus  grouped  be  investigated  and  reported  upon  w^ith  reference  to 
the  statutes  under  which  each  is  organized ;  its  powers,  duties  and 
internal  organization,  as  provided  by  law  and  as  in  fact  exercised ;  its 
appropriations  and  expenditures ;  its  relations  with  other  offices,  boards 
and  commissions  in  law  and  in  fact ;  the  manner  in  which  its  activities 
are  exercised ;  and  how  far  its  powers  and  duties  as  imposed  by  law 
or  in  fact  exercised,  overlap  and  duplicate  the  powers  and  duties  as 
imposed  by  law  upon  or  exercised  in  fact  by  other  offices,  boards  and 
commissions ;  and  also  the  similar  laws  and  their  operation  in  other 
states  and  countries ;  with  recommendations  for  reorganization  and 
consolidation. 

In  carrying  out  these  investigations  expert  assistants  have  been  em- 
ployed, from  the  staff  of  the  University  of  Illinois,  from  other  uni- 
versities and  from  those  with  practical  experience  in  similar  investiga- 
tions. Each  division  of  the  work  has  been  in  direct  charge  of  some 
one  with  special  knowledge  and  fitness  for  the  particular  problem.  In 
making  their  investigations,  the  Director  and  the  other  investigators 
have  consulted  freely  with  the  State  officers,  boards  and  commissions, 
and  with  other  persons  and  organizations  affected  by  or  interested  in 
the  working  of  such  services. 

The  Director  and  these  special  investigators  have  made  a  series  of 
valuable  reports  to  the  Committee,  which  will  be  published  separately 
and  as  appendices  to  this  report.  It  is  believed  that  these  contain  the 
most  comprehensive  survey  ever  made  of  the  organization,  powers  and 
duties  of  the  executive  administration  of  any  State  government.  These 
special  reports  include  the  following: 

Revenue  and  Finance  Administration, 

by  John  A.  Fairlie,  Professor  of  Political  Science,  University  of  Illinois. 
The  Accounts  of  the  State  of  Illinois, 

by  George  E.  Frazer,  C.  P.  A.  and  Comptroller  of  the  University  of 
Illinois. 


REPORT  OF  THE  COMMITTEE.  15 

Accounting  Administration  for  Correctional  Institutions,  by  Spurgeon  Bell, 
formerly  Secretary  of  the  Chicago  Commission  on  City  Expenditures. 

Charitable  and  Correctional  Institutions,  by  James  W.  Garner,  Professor  of 
Political  Science,  University  of  Illinois. 

Educational  Administration  by  John  M  Mathews,  University  of  Illinois. 

Labor  and  Mining  Administration,  by  W.  F.  Dodd,  Associate  Professor  of 
Political  Science,  University  of  Illinois. 

Agricultural  Agencies,  by  James  W.  Garner,  Professor  of  Political  Science, 
University  of  Illinois. 

Public  Health  Administration,  by  John  M.  Mathews,  University  of  Illinois. 

Supervision  of  Corporations,  by  Maurice  H.  Robinson,  Professor  of  In- 
dustry and  Transportation,  University  of  Illinois. 

Public  Works,  Parks  and  Buildings,  by  C.  O.  Gardner,  Municipal  Reference 
Bureau,  Cincinnati. 

Military  Administration,  by  Quincy  Wright,  University  of  Illinois. 

Civil  Service  Laws,  by  A.  C.  Hanford,  University  of  Illinois. 

Valuable  assistance  in  drafting  bills  has  also  been  given  by  Elmer 
M.  Liessmann,  attorney  of  Chicago;  F.  D.  Bramhall,  of  the  University 
of  Chicago;  and  C.  E.  Woodward,  of  Ottawa,  formerly  in  the  office  of 
the  Attorney  General. 

MEETINGS    AND    PUBLIC    HEARINGS. 

Following  its  first  meeting,  a  month  after  the  adjournment  of  the 
General  Assembly,  the  Committee  has  held  numerous  sessions,  increas- 
ing in  frequency  as  the  reports  of  investigations  were  submitted  for 
consideration.  Meetings  have  been  held  on  the  average  twice  each 
month,  frequently  at  weekly  intervals,  and  the  later  sessions  have  often 
continued  for  two  days  at  a  time. 

As  a  result  of  the  discussion  of  reports  and  recommendations  dur- 
ing the  first  half  of  1914,  a  series  of  tentative  plans  for  the  reorganiza- 
tion of  State  offices,  boards  and  commissions  were  provisionally 
approved  by  the  Committee.  On  June  18,  1914,  a  brief  preliminary 
report  was  issued  by  the  Committee,  stating  in  general  terms  the  exist- 
ing conditions  and  the  broad  outlines  of  the  Committee's  plans  to  com- 
bine and  consolidate  the  numerous  authorities  into  a  limited  number  of 
executive  departments. 

Following  the  publication  of  this  preliminary  report  a  series  of  pub- 
lic hearings  were  held  by  the  Committee,  in  Chicago  and  Springfield, 
for  the  further  consideration  of  the  tentative  plans.  Notice  of  these 
hearings  was  given  in  the  public  press ;  and  special  notices  were  sent 
to  the  State  officers,  and  to  organizations  and  individuals  known  to  be 
interested  in  the  work  of  particular  groups  of  authorities. 


16  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

At  these  public  hearings,  the  following  State  officials,  representa- 
tives of  associations  and  organizations  and  others  have  appeared  before 
the  Committee,  and  discussed  the  proposed  plans  for  the  reorganization 
of  State  administration  in  Illinois : 

Edward  F.  Dunne,  Governor. 

Patrick  J  Lucey,  Attorney  General. 

George  E.  Cole,  of  the  Constitutional  Convention  League. 

Charles  E.  Richards,  of  the  Chicago  Association  of  Commerce  and  the 
Chicago  Real  Estate  Board. 

A.  L.  Strauss,  of  the  Chicago  Real  Estate  Board. 

S.  M.  Singleton,  of  the  Chicago  Citizens'  Association. 

Peter  White,  of  the  City  Club  of  Chicago. 

H.  E.  Keeler,  Director  of  the  Chicago  Bureau  of  Public  Efficiency. 

George  C.  Sikes,  Secretar>'  of  the  Chicago  Bureau  of  Public  Efficiency. 

Douglas  Sutherland,   Secretary  of  the  Chicago  Civic  Federation. 

Russell  Whitman,  President  of  the  Chicago  Civil  Service  Reform  Associa- 
tion. 

R.  E.  Blackwood,  Secretary  of  the  Illinois  and  Chicago  Civil  Service  Reform 
Associations. 

J.  H.  Burdett,  Chairman  of  the  Civil  Service  Commission. 

William  B.  Moulton,  member  of  Civil  Service  Commission. 

Ward  R.  Robinson,  Secretary  of  the  Civil  Service  Commission. 

F.  S.  Dickson,  Adjutant  General. 

Penal  and  Reformatory  Administration. 

Archie  L.  Bowen,  Executive  Secretary  of  the  Charities  Commission. 

Fred  J.  Kern,  Thomas  O'Connor,  Frank  D.  Whipp  and  James  Hyland, 
members  of  the  Board  of  Administration. 

Albert  Gravenhorst,  Chairman  of  the  Board  of  Managers  of  the  Illinois 
State  Reformatory. 

William  C.  Graves,  General  Superintendent  of  the  Illinois  State  Reforma- 
tory. 

William  V.  Choisscr,  Warden  of  the  Southern  Illinois  Penitentiary'. 

Thomas  M.  Kilbride,  Clerk  of  the  State  Board  of  Pardons. 

Educational  Administration. 

Francis  G.  Blair,  State  Superintendent  of  Public  Instruction. 

Dr.  David  Felmley,  President  of  the  State  Normal  University  at  Normal. 

Walter  P.  Morgan,  President  of  the  State  Normal  School  at  Macomb. 

A.  R.  Crook,  Curator  of  the  State  Natural  History  Museum. 

Mrs.  Laura   M.   Evans,  member  Board   of  Trustees  of  the  University  of 

Illinois. 
Professor  Stephen  A.  Forbes,  State  Entomologist. 
Dr.   Otto   L.    Schmidt,    President   of  the    Illinois    State   Historical   Library 

Board  of  Trustees. 
C.  H.  Rammelkamp,  member  of  the  Illinois  State  Historical  Library  Board 

of  Trustees. 
Mrs.  Jessie  Palmer  Weber,  Secretary  of  the  Illinois  State  Historical  Society 

and  Librarian  of  the  Illinois  State  Historical  Library. 
J.  Stanley  Brown,  member  of  the  State  Board  of  Education  and  Principal 

of  the  township  high  school  at  Joliet. 
H.  E.  Legler,  Librarian  Chicago  Public  Library. 
F.  W.  De  Wolf,  Director  of  the  State  Geological  Survey. 
Edward  P.  Bartow,  Director  of  the  State  Water  Survey. 
Paul  Hansen,  of  the  State  Water  Survey. 
Corporation  Administration. 

James  E.  Quan,  Chairman  of  the  State  Public  Utilities  Commission. 
Archibald  McKinley,  Attorney  for  the  Insurance  Department. 


17 
REPORT  OF  THE  COMMITTEE.  *' 

Labor  and  Mining  Administration.  .  •  i  r^^.H 

Judge  J.  B.  Vaughn,  Chairman  of  the  Industrial  Board. 
John  Bohlander,  President  of  the  State  Mming  Board. 
Oscar  Cartlidge,  Mine  Rescue  Station  Manager. 
Thomas  H.  Devlin,  State  Mine  Inspector. 
J.  W.  Starks,  State  Mine  Inspector.  ,     r    a  k-f.ot;^„ 

Lewis  McGovem,  member  of  the  State  Board  of  Arbitration^ 
Leo  J.  Winniecki,  member  of  the  State  Board  of  Arbi  ration. 
John  H.  Walker,  President  of  the  State  Federation  of  Labor. 
Duncan  McDonald.   Secretary  of  the  Illinois  Mine  Workers. 
J.  A.  Gulp,  of  the  Brotherhood  of  Locomotive  Lngineers. 
J.  O'Connor,  of  the  Switchmen's  Union. 

Agricultural  Administration.  ,     r  t>>-      *     .  „f  ♦!,- 

Ralph  Allen  and  C.  C.  Pickett,  members  of  the  Board  of  Directors  of  the 

Illinois  Farmers'  Institute.  .     -n.^.^.^. 

H.  E.  Young,  member  of  the  Board  of  Directors  of  the  Ilhnois  Farmers 

Institute  and  Editor  of  the  Farmers'  Review. 
H.  A.  McKeene,  Secretary  of  the  Illinois  Farmers    Institute. 
A.  N.  Kildow,  State  Inspector  of  Apiaries. 
Mr.  Stone,  of  the  State  Beekeepers'  Association. 
Finance  Administration.  ,        .     j.  r    t5  ur 

John    K.    Segrave,    Chief    Clerk    in    the    office    of    the    Auditor    of    Public 

W.    E^^SScer,    Marion   Watson   and   H.    F.    Nightingale,   members   of   the 

State  Board  of  Equalization. 
J.  Frank  Higgins,  Printer  Expert.  ^.        •     r-  >    offi^^ 

Edmund  J.  Roche,  Department  and  Institution  Auditor  in  Governors  Uttice. 

Public  Works  Administration.  .    . 

Arthur  W.  Charles,  Chairman  of  the  Rivers  and  Lakes  Commission. 
Le  Roy  K.  Sherman,  member  of  the  Rivers  and  Lakes  Commission. 
James  B.  Dibelka,  State  Architect. 

James  P.  Wilson  and  S.  E.  Bradt,  members  of  the  State  Highway  Com- 
mission. 
Health  Administration. 

Dr.  John  A.  Robinson,  President  of  the  State  Board  of  Health 

Dr.  C.  St.  Clair  Drake,  Secretary  of  the  State  Board  of  Health. 

Thomas  Hogan,  Attorney  for  the  State  Board  of  Health. 

W.  Scott  Matthews,  State  Food  Commissioner. 

John  B.  Newman,  Assistant  State  Food  Commissioner. 

Fred  C.  Dodds,  Secretary  of  the  State  Board  of  Pharmacy 

James  A.  Ahem,  President  of  the  Barbers'  Examining  Board. 

Thomas  Notter,   Secretary  of  the  Barbers'  Examining  Board. 

Thomas  Casey,  Treasurer  of  the  Barber's  Examining  Board. 

Miss  Adelaide  M.  Walsh,  President  of  the  State  Board  of  Nurse  Exammers. 

Dr.  Thomas  H.  Whalen,  President  of  the  Chicago  Medical  Society.  . 

Dr.  W.  M.  Honn,  of  the  Legislative  Committee  of  the  Illinois  Homeopathic 

Medical  Association. 
Dr.  J.  V.  Fowler,  of  the  Chicago  Medical  Society. 
Dr.  N.  M.  Eberhardt,  of  the  Chicago  Medical  Society. 
Dr.  C.  D.  Pence,  of  the  Illinois  State  Medical  Society. 

Dr.  J.  S.  Nagel,  of  the  Chicago  College  of  Medicine  and  Surgery.  . 

Dr.    Mrs.    R.    P.    Barstow,    of   the    Legislative    Committee    of    the    Illinois 

Homeopathic  Medical  Association.  .         tt        *  i 

Dr.  H.  T.  Hazleton,  Superintendent  of  the  German-American  Hospital. 
As  a  result  of  these  conferences  additional  information  was  secured 
as  to  the  operation  of  the  present  machinery  of  State  government. 
The  tentative  plans  of  the  Committee  were  further  considered  in  the 
light  of  this  information  and  the  discussion  at  these  meetings;  and 
some  changes  have  been  made  in  the  tentative  proposals 


18  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

In  its  inquiries,  investigations  and  public  hearings,  the  Committee 
has  not  found  it  necessary  to  exercise  its  authority  to  subpoena  wit- 
nesses, or  to  compel  the  production  of  books,  papers  and  documents. 
It  has  in  the  main  found  the  State  officers  and  their  agents  ready  to 
appear  voluntarily,  and  to  discuss  the  present  organization  and  pro- 
posed changes,  and  to  furnish  information  both  orally  and  from  their 
official  records  and  reports. 

It  should  be  clearly  understood  that  the  work  of  the  Committee  has 
not  been  undertaken  with  a  view  to  the  personal  criticism  either  of 
particular  officials  or  of  present  or  past  administrations.  No  single 
official  or  administration  can  be  held  responsible  for  the  existing  condi- 
tions as  a  whole.  The  fundamental  difficulty  lies  in  the  defective  or- 
ganization provided  by  law.  So,  too,  the  findings  and  recommendations 
of  the  Committee  are  made  without  reference  to  any  personal  or  poli- 
tical results ;  but  solely  with  reference  to  the  inherent  defects  in  the 
existing  machinery  and  plans  for  a  permanent  reorganization  of  the 
State  administration  on  a  basis  of  efficiency  and  economy. 

DEFECTS  OF  THE  PRESENT  ARRANGEMENTS. 

As  a  result  of  its  investigations,  the  Committee  finds  that  a  condi- 
tion of  disorganization  and  confusion  exists  in  the  executive  depart- 
ments of  the  State  government  which  necessarily  produces  inefficiency 
and  waste  in  the  State  services.  The  chart  of  State  executive  organiza- 
tion in  Illinois,  submitted  herewith,  will  indicate  this  situation  to  some 
extent.  This  chart  has  been  reduced  to  the  simplest  terms  possible,  in 
order  to  convey  some  definite  impression.  Any  attempt  to  indicate 
differences  of  internal  organization  and  all  the  inter-relations  between 
different  offices  would  have  resulted  in  an  utterly  unintelligible  diagram. 
But  it  is  believed  that  the  chart  does  emphasize  the  confusing  number 
of  separate  offices  directly  related  to  the  Governor;  and  the  lack  of 
any  effective  system  of  correlation  or  supervison. 

The  main  points  in  the  indictment  may  be  briefly  summarized : 
There^is  unnecessary  duplication  of  positions  and  salaries;  not  only  in 
the  chief  officers  of  each  separate  bureau  or  board,  but  still  more  in  their 
staffs  of  clerks  and  employees.  But  this  is  the  smallest  part  of  the  loss. 
The  work  that  is  undertaken  is  not  well  done ;  and  costs  much  more  for 
the  results  obtained  than  with  a  more  efficient  organization.  Supplies 
in  many  cases  are  purchased  in  small  quantities  for  each  office  or 
institution,  which  could  be  secured  at  lower  prices  if  purchased  in 
larger  quantities  on  contracts  based  on  competitive  bids,  as  is  done  by 
the  Board  of  Administration  for  the  charitable  institutions.  The  ab- 
sence of  definite  correlation  and  cooperation  between  the  most  closely 


REPORT  OF  THE  COMMITTEE. 


19 


UUl    bpcii. 


gib3[gg][g[T][T]ig[r][7]^[T]a[V][7][7]^g[T]Er] 


0       0       0       0       0 
0       0 


1 105 1  |l04| 


0 B 

0       0       0 


S        0 
0 


State  Executive  ORG>^NiZATtON  .in  Illinois 


Governor 

Lieutenant  Governor 
Secretary  of  State 

I  Automobile  Department 
State  Treasurer 
Auditor  of  Public  Accounts 
Attorney  General 

I  Inlieritance  Tax  Office 
Superintendent  of  Public  Instrut 
Trustees  University  of  Illinois 
State  Board  of  Equalization 
State  Tax  Levy  Board 
State   Board   of   Contracts 
Printer  Expert 
Court  of  Claims 
Stiitc  Canvassing  Board 
Voting  Machine  Commission 
Civil  Sen-ice  Commission 
Adjutant  General 
State  Library  Commission 
Library  Extension  Commission 
Legislative   Reference  Bureau 


21  Trustees  State  Historical  Library 

22  State  Water  Survey 

23  State  Geological  Commission 

24  Natural  History  Survey 

25  State  Entomologist 

26  State  Board  of  Education 

27  Trustees  Southern  Illinois  Normal  Unii 

28  Trustees  Northern  Normal  School 

29  Trustees  Eastern  Normal  School 

30  Trustees  Western  Normal  School 

31  Corporation  Department 

32  Banking  Department 

33  Insurance  Department 

34  State  Firemen's  Association 

35  State  Fire  Marshal 

36  Public  Utilities  Commission 

37  Grain  Inspection  Department 

38  Charities  Coi       '    ' 

39  Board  of  Adn 
a-t  Charitable  Ir 

40  Commissioners  Illinois  State  Penitentiary 

41  Commissioners   Illinois  Southern  Penitent 


42  Managers  Illinois  State  Reformatory 

43  Board  of  Prison  Industries 

44  New  Penitentiary  Commission 

45  State  Board  of  Pardons 

46  State  Highway  Commission 

47  Canal  Commissioners 

48  Rivers  and  Lakes  Commission 

49  Game  and   Fish  Conservation   Commission 

50  Illinois  Park  Commission 

51  State  Architect 

52  State  Art  Commission 
53-56  Monument  Commissions 

57  Board  of  Architects  Examiners 

58  Commissioners  of  Labor 

59  Chief  Inspector  of  Private  Employment  Agencies 
60-67  Superintendents  of  Free  Employment  Agencies 

68  Factory  Inspector 

69  Industrial  Board 

70  State  Board  of  Health 


74  Board  of  Pharmacy 

75  Board   of   Dental   E 

76  Board  of  Nu 

77  Board  of  Barbers'  Examiners 

78  State  Mining  Board 

79  Miners'  Examining  Board 

80  Mine  Rescue  Station  Commission 

81  Mining  Investigation  Commission 
82-89  Mine  Inspectors 

90  State  Veterinarian 

91  Live  Stock  Commission 

92  Board  of  Veterinary  Examiners 

93  Stallion   Registration  Board 


95  Illinois  Farmers' 

96  Illinois  Horticultural  Society 

97  Illinois   State  Poultry    ' 

98  Illinois  State  Dairymen 

99  Illinois  State  Live  Stock  Breeders'  Assc 

100  Illinois  State  Bee  Keeper's  Association 

101  Inspector  of  Apiaries 
102-105  Humane  Agents 


REPORT  OF  THE  COMMITTEE.  19 

related  offices,  necessarily  leads  to  loss  and  inefficient  work.  The 
only  supervision  provided  by  law  over  most  of  the  executive  offices, 
boards  and  commissions,  burdens  the  Governor  with  a  mass  of  un- 
necessary detail  which  no  single  individual  can  effectively  handle,  and 
at  the  same  time  does  not  afford  him  either  the  time  or  the  facilities 
for  the  proper  determination  of  the  more  important  questions  of  ad- 
ministrative and  legislative  policy.  The  present  arrangements  also 
fail  to  provide  the  General  Assembly  with  adequate  information  or 
advice  to  enable  it  to  perform  its  work  wisely,  either  in  making  ap- 
propriations or  in  enacting  substantive  legislation.  And  while  reports 
are  made  and  published,  they  are  so  numerous  and  poorly  organized 
that  the  general  public  fails  to  receive  satisfactory  information  of  the 
work  that  is  done,  and  has  no  satisfactory  means  for  fixing  responsibil- 
ity, or  of  discriminating  between  those  officials  who  perform  their  work 
well  and  those  who  perform  it  poorly  or  not  at  all. 

Lack  of  Correlation. 

Under  the  existing  arrangements  inefficiency  and  waste  necessarily 
arise  from  the  lack  of  correlation  and  cooperation  in  the  work  of  dif- 
ferent offices  and  institutions  which  are  carrying  out  similar  or  closely 
related  functions.  There  are  separate  boards  for  each  of  the  State 
penitentiaries  and  reformatory  and  for  each  of  the  State  normal 
schools.  There  are  half  a  dozen  boards  dealing  with  agricultural  in- 
terests ;  and  about  a  score  of  separate  labor  agencies,  including  four 
boards  dealing  with  mining  problems  and  eight  free  employment  of- 
fices, each  substantially  independent  of  each  other.  State  finance  ad- 
ministration is  distributed  between  a  number  of  elective  and  appointive 
officials  and  boards  without  concentrated  responsibility.  The  super- 
vision of  corporations  and  of  banks,  insurance  companies  and  public 
utilities  is  exercised  by  a  series  of  distinct  departments.  State  con- 
trol of  public  health  is  divided  between  various  boards  with  no  efifective 
means  of  coordination.  Nor  is  there  any  official  authority  for  har- 
monizing the  work  of  the  numerous  educational  agencies. 

The  division  of  the  public  service  in  some  fields  has  even  affected 
the  authority  of  the  State  officials,  provided  by  the  constitution,  where 
in  some  cases  unrelated  functions  are  placed  under  the  same  official. 
The  title  of  the  Auditor  of  Public  Accounts  indicates  that  he  should 
control  the  auditing  of  all  public  accounts  in  the  State ;  but  his  author- 
ity in  this  field  is  limited ;  on  the  other  hand,  he  has  supervision  over 
banks  and  building  and  loan  associations,  a  function  quite  distinct 
from  the  audit  of  public  accounts.  So,  too,  the  Attorney  General 
should  be  the  chief  legal  officer  for  all  State  offices  and  departments; 
but  special  counsel  and  attorneys  have  been  provided  for  various  de- 


18  EFFICIENCY  AND  ECONOMY   COMMITTEE. 


REPORT  OF  THE  COMMITTEE.  19 

related  offices,  necessarily  leads  to  loss  and  inefficient  work.  The 
only  supervision  provided  by  law  over  most  of  the  executive  offices, 
boards  and  commissions,  burdens  the  Governor  vi^ith  a  mass  of  un- 
necessary detail  which  no  single  individual  can  effectively  handle,  and 
at  the  same  time  does  not  afford  him  either  the  time  or  the  facilities 
for  the  proper  determination  of  the  more  important  questions  of  ad- 
ministrative and  legislative  policy.  The  present  arrangements  also 
fail  to  provide  the  General  Assembly  with  adequate  information  or 
advice  to  enable  it  to  perform  its  work  wisely,  either  in  making  ap- 
propriations or  in  enacting  substantive  legislation.  And  while  reports 
are  made  and  published,  they  are  so  numerous  and  poorly  organized 
that  the  general  public  fails  to  receive  satisfactory  information  of  the 
work  that  is  done,  and  has  no  satisfactory  means  for  fixing  responsibil- 
ity, or  of  discriminating  between  those  officials  who  perform  their  work 
well  and  those  who  perform  it  poorly  or  not  at  all. 

Lack  of  Correlation. 

Under  the  existing  arrangements  inefficiency  and  waste  necessarily 
arise  from  the  lack  of  correlation  and  cooperation  in  the  work  of  dif- 
ferent offices  and  institutions  which  are  carrying  out  similar  or  closely 
related  functions.  There  are  separate  boards  for  each  of  the  State 
penitentiaries  and  reformatory  and  for  each  of  the  State  normal 
schools.  There  are  half  a  dozen  boards  dealing  with  agricultural  in- 
terests ;  and  about  a  score  of  separate  labor  agencies,  including  four 
boards  dealing  with  mining  problems  and  eight  free  employment  of- 
fices, each  substantially  independent  of  each  other.  State  finance  ad- 
ministration is  distributed  between  a  number  of  elective  and  appointive 
officials  and  boards  without  concentrated  responsibility.  The  super- 
vision of  corporations  and  of  banks,  insurance  companies  and  public 
utilities  is  exercised  by  a  series  of  distinct  departments.  State  con- 
trol of  public  health  is  divided  between  various  boards  with  no  effective 
means  of  coordination.  Nor  is  there  any  official  authority  for  har- 
monizing the  work  of  the  numerous  educational  agencies. 

The  division  of  the  public  service  in  some  fields  has  even  affected 
the  authority  of  the  State  officials,  provided  by  the  constitution,  where 
in  some  cases  unrelated  functions  are  placed  under  the  same  official. 
The  title  of  the  Auditor  of  Public  Accounts  indicates  that  he  should 
control  the  auditing  of  all  public  accounts  in  the  State;  but  his  author- 
ity in  this  field  is  limited ;  on  the  other  hand,  he  has  supervision  over 
banks  and  building  and  loan  associations,  a  function  quite  distinct 
from  the  audit  of  public  accounts.  So,  too,  the  Attorney  General 
should  be  the  chief  legal  officer  for  all  State  offices  and  departments; 
but  special  counsel  and  attorneys  have  been  provided  for  various  de- 


20 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


partments,  independent  of  the  Attorney  General  and  not  subject  to  his 
control;  while  this  officer  has  been  given  supervision  over  inheritance 
tax  administration,  which  should  be  primajily  a  financial  rather  than 
a  legal  matter. 
Scattered  Offices. 

The  lack  of  correlation  between  different  State  offices  is  further 
indicated  and  emphasized  by  the  physical  location  of  their  offices. 
Thirty  State  officials  and  commissions  have  offices  in  Chicago,  at  a  cost 
for  rent  and  other  expenses  of  $72,000  a  year.  These  offices  are  scat- 
tered in  different  buildings,  even  in  the  case  of  departments  whose 
functions  are  most  closely  related  to  each  other.  The  present  arrange- 
ments cause  an  unnecessary  expenditure  of  funds  for  offices,  reduce 
the  efficiency  of  the  State  service  in  their  dealings  with  each  other, 
and  add  greatly  to  the  inconvenience  of  the  general  public  in  tran- 
sacting business  with  these  offices. 
No  Standards  of  Compensation. 

Under  existing  legislation  the  compensation  of  State  officers  lacks 
any  approach  to  uniformity  on  the  basis  of  work  done.  Not  only  are 
there  boards  and  officials  who  receive  no  salary,  others  paid  on  a  per 
diem  basis,  and  still  others  paid  a  fixed  salary;  but  within  each  of 
these  classes  there  is  no  attempt  to  adjust  the  compensation  to  the 
time  given  to  the  public  service  or  to  the  duties  performed.  The  State 
Food  Commissioner  and  the  Chief  Inspector  of  Private  Employment 
Agencies  each  receive  $3,600  a  year ;  while  the  more  important  offices 
of  Secretar}^  of  the  State  Board  of  Health  and  Chief  Factory  Inspector 
receive  only  $3,500  and  $3,000.  The  Commissioners  of  Labor  each 
receive  $150  a  year;  while  the  members  of  the  Board  of  Arbitration 
each  receive  $1,500  a  year,  and  the  members  of  the  State  Board  of 
Pardons  $3,500  a  year.  Inspectors  in  different  departments  doing  a 
similar  type  of  work  receive  salaries  ranging  from  $1,200  in  one  de- 
partment to  $1,800  in  another.  The  same  variations  in  compensation 
for  similar  work  exist  for  subordinate  positions,  where  the  salaries  are 
specified  in  the  appropriation  acts. 
Overlapping  Functions. 

Even  where  there  is  no  direct  duplication  of  work,  the  present  laws 
frequently  give  powers  to  several  departments  under  which  each  em- 
ploy agents  for  purposes  which  could  be  more  efficiently  and  economic- 
ally performed  by  one  agent  at  the  same  time.  Thus  the  inspectors  of 
the  State  Board  of  Health,  the  State  Food  Commissioner  and  the 
Chief  Factory  Inspector  may  each  visit  the  same  place  for  different 
purposes,  and  perhaps  give  conflicting  orders;  while  a  single  thorough 
inspection  for  all  of  these  offices  would  be  more  effective  and  less 
expensive. 


REPORT  OF  THE  COMMITTEE.  21 

Irregularity  of  Reports. 

One  source  of  confusion  in  the  operation  of  the  numerous  State 
offices,  boards  and  commissions  is  the  complete  absence  of  uniformity 
or  regularity  as  to  their  reports.  Most  officers  are  required  to  report 
to  the  Governor ;  but  in  several  cases  reports  are  made  directly  to  the 
General  Assembly,  and  in  some  cases  no  authority  is  specified.  There 
seems  to  be  no  rule  followed  in  requiring  reports  to  be  made  annually 
or  biennially  or  at  other  intervals.  Reports  are  required  to  be  made 
by  some  authority  in  every  month  in  the  year  except  April ;  and  cover 
widely  varying  periods  of  time. 

The  separate  publication  of  reports  for  each  minor  office  and  the 
lack  of  central  control  over  the  printing  of  such  reports  adds  much  to 
the  expense  of  printing,  which  now  amounts  to  over  $500,000  for  the 
biennium.  A  large  proportion  of  this  could  be  saved  by  a  more  con- 
centrated organization  and  control  over  the  official  reports. 
Ineffective  Supervison. 

As  a  result  of  the  absence  of  any  systematic  organization  of  related 
services,  there  is  no  effective  supervision  and  control  over  the  various 
State  offices,  boards  and  commissions.  It  is  true  that  the  greater  num- 
ber of  these  are  under  the  nominal  supervision  of  the  Governor, 
through  his  power  of  appointment  and  removal.  But  the  very  number  of 
separate  offices  makes  impossible  the  exercise  of  any  adequate  control. 
To  a  very  large  extent  each  authority  is  left  to  determine  its  own 
action ;  conflict  of  authority  between  two  or  more  offices  is  often  pos- 
sible; and  if  harmony  and  cooperation  is  secured  it  is  by  voluntary 
compromise  rather  than  by  the  advice  or  decision  of  a  superior  author- 
ity. Under  the  present  arrangements  too  many  independent  authori' 
ties  have  power  to  make  expenditures  subject  to  no  effective  central- 
ized control  or  responsibility.  This  situation  necessarily  leads  to 
waste  and  extravagance. 

At  the  same  time,  the  number  of  matters  necessarily  brought  to  the 
attention  of  the  Governor — owing  to  the  absence  of  intermediate  super- 
vising officers — has  burdened  him  with  such  a  mass  of  details  that  he 
has  been  unable  to  exercise  adequate  supervision  over  such  matters, 
while  the  very  volume  of  such  business  brought  to  his  attention  takes 
time  from  more  important  questions  of  general  policy. 

Moreover  a  number  of  the  important  departments  and  services  arc 
not  even  under  this  limited  supervision  of  the  Governor.  This  is  true 
of  the  officers  provided  for  by  the  constitution ;  and  also  of  a  number 
of  boards  chosen  by  election  or  by  other  methods,  as  the  State  Board 
of  Equalization,  the  Trustees  of  the  University  of  Illinois,  and  the 
State  Board  of  Agriculture.     In  the  case  of  the  constitutional  officers 


22  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

this  lack  of  control  extends  not  only  to  their  primary  functions,  but 
also  to  other  unrelated  powers  and  duties  imposed  on  them  by  statute. 

No  Budget  System. 

One  of  the  most  serious  defects  arising  from  the  lack  or  correla- 
tion and  effective  supervision  over  the  subordinate  authorities  is  the  ab- 
sence of  any  satisfactory  budget  of  estimates  as  a  basis  for  appropria- 
tions. The  need  for  improvement  in  this  respect  was  indicated  in  the 
act  of  the  last  General  Assembly  creating  the  Legislative  Reference  Bu- 
reau, which  imposed  on  that  bureau  the  duty  of  compiling  estimates  of 
appropriations.  Under  the  procedure  which  has  hitherto  been  followed, 
appropriations  have  been  based  in  the  main  upon  estimates  and  re- 
quests made  by  the  head  of  each  office,  bureau  or  board,  most  of  which 
officials  have  not  been  charged  with  a  sufficient  degree  of  responsibility 
to  make  them  careful  and  sparing  in  their  requests.  The  General  As- 
sembly has  been  compelled  to  act  upon  these  requests  without  sufficient 
time,  means  or  opportunity  for  adequate  investigation.  The  result  has 
been  that  unnecessary  appropriations  have  been  made  in  some  cases; 
while  in  other  cases  needed  funds  for  important  public  services  have 
not  been  provided. 

The  State  Constitution,  in  Article  V,  paragraph  7,  provides  that  the 
Governor  at  the  commencement  of  each  regular  session  of  the  General 
Assembly  shall  "present  estimates  of  the  amount  of  money  required  to 
be  raised  by  taxation  for  all  purposes."  So  far  as  your  Committee  is 
aware,  no  Governor  has  heretofore  ever  complied  with  this  important 
constitutional  duty.  The  failure  to  do  so  has  undoubtedly  been  due  in 
the  main  to  the  fact  that  the  executive  authorities  as  organized  have 
not  afforded  the  Governor  the  facilities  needed  to  perform  this  duty. 
Just  as  the  number  of  minor  offices  and  boards  under  his  nominal  sup- 
ervision prevents  any  effective  control  over  their  action ;  so  too  it  pre- 
vents any  adequate  examination  of  their  requests  for  appropriations  on 
which  the  Governor  can  base  his  recommendations. 

The  compilation  of  estimates  for  appropriations  requested  to  be 
prepared  by  the  Legislative  Reference  Bureau  is  a  step  in  the  right 
direction ;  but  this  can  hardly  be  considered  an  entirely  satisfactory 
budget  system. 

In  the  opinion  of  the  Committee,  the  constitutional  provision  re- 
ferred to  above  contemplates  that  the  Governor  shall  present  to  the 
General  Assembly  a  detailed  budget  of  appropriations  recommended  by 
him  for  the  ensuing  biennium,  togetlier  with  an  estimate  of  the  reven- 
ues of  the  State  from  sources  other  than  direct  taxation  during  the 
biennium,  and  a  statement  as  to  the  amount  to  be  met  by  taxation. 
The  careful  preparation  of  such  a  budget  would  be  a  potent  factor  in 


REPORT  OF  THE  COMMITTEE.  23 

securing  economy  and  efficiency  throughout  the  executive  departments. 
But  to  make  this  possible  requires  not  only  new  methods  of  preparing 
and  analyzing  estimates,  but  also  extensive  reorganization  and  con- 
solidation of  the  executive  departments,  so  that  the  estimates  from  each 
group  of  related  services  may  be  based  on  adequate  consideration  by 
competent  officials.  A  new  Governor  will  not  be  able  to  present  such 
a  budget  at  the  beginning  of  the  regular  session  of  the  General  As- 
sembly; but  he  could  do  so  probably  by  March  1. 

Imperfect  Accounts. 

As  a  result  largely  of  the  absence  of  a  proper  budgetary  system,  the 
accounts  of  most  of  the  various  State  authorities  are  entirely  inade- 
quate. The  accounts  kept  by  the  Auditor  of  Public  Accounts  cover 
all  that  is  required  by  law,  and  appear  to  be  carefully  administered; 
but  they  are  limited  to  records  of  cash  transactions  and  to  keeping  dis- 
bursements within  the  authorized  appropriations.  There  is  no  record 
for  the  State  as  a  whole  or  for  most  of  the  State  offices  of  estimated 
revenues  or  outstanding  obligations;  and  no  attempt  at  preparing  a 
balance  sheet  of  assets  and  liabilities.  Accounts  and  financial  state- 
ments even  for  similar  institutions  and  offices  (such  as  the  peniten- 
tiaries) are  so  radically  different  that  comparison  and  deductions  are 
impossible.  Without  an  adequate  system  of  accounting  along  similar 
lines  there  can  be  no  effective  control  over  appropriations  or  expendi- 
tures. 

Inadequate  Advice  on  Legislation. 

With  the  existing  lack  of  efficient  executive  organization,  both  the 
Governor  and  the  General  Assembly  fail  to  receive  proper  information 
and  advice  as  to  needed  legislation.  The  constitution  provides  that 
the  Governor  shall  recommend  to  the  General  Assembly  such  measures 
as  he  shall  deem  expedient.  But  no  machinery  has  been  provided  by 
which  the  recommendations  and  proposals  for  legislation  from  the 
numerous  list  of  officers,  boards  and  commissions  can  be  carefully 
weighed  and  sifted  by  Officials  charged  with  responsibility  over  a  large 
field  of  administration.  Conflicting  measures  are  often  proposed  by 
different  State  authorities ;  and  many  proposals  are  presented  from 
outside  sources  both  on  subjects  within  and  without  the  jurisdiction  of 
existing  executive  officials.  As  a  result  there  is  no  harmonious  legis- 
lative policy  even  formulated;  and  the  measures  enacted  not  only  lack 
coherence,  but  at  times  acts  are  passed  at  the  same  session  which  con- 
tain directly  contradictory  provisions.  There  is  clear  need  for  an 
executive  organization  which  will  make  possible  a  well  defined  admin- 
istration program  of  legislation. 


24  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Another  result  of  the  present  methods  of  legislation  has  been  the 
creation  of  many  new  and  independent  authorities,  at  an  increased 
expense  to  the  State,  where  in  many  cases  the  work  might  have  been 
more  efficiently  and  economically  organized  in  connection  with  some 
existing  agency.  For  example,  a  Fish  Commission  was  established  in 
1879,  and  a  separate  office  of  Game  Commissioner  in  1889.  In  1913, 
these  two  authorities  were  consolidated  under  the  Game  and  Fish  Con- 
servation Commission ;  and  the  appropriations  for  this  body  were  $50,- 
000  less  than  those  made  two  years  before  for  the  two  separate 
authorities. 

Irresponsible  Government. 

Finally  under  the  present  arrangements  while  the  general  public  is 
deluged  with  printed  reports,  it  fails  to  receive  reliable  information  in 
digestible  form  as  to  the  conduct  of  the  State  administration,  and  is 
unable  to  locate  definite  responsibility  for  negligence  or  misconduct  in 
public  business.  Public  opinion  usually  considers  the  Governor  re- 
sponsible for  the  conduct  of  the  State  government ;  but  with  the  lack 
of  effective  executive  control  over  the  subordinate  officials  this  opinion 
is  not  fully  justified.  At  the  same  time,  the  popular  conception  of  the 
Governor's  responsibility,  in  the  opinion  of  this  Committee,  is  based  on 
a  sound  and  just  principle;  and  the  machinery  of  State  administration 
should  be  so  organized  as  to  enable  this  conception  to  be  adequately 
realized. 

TENDENCIES   TOWARDS   CONCENTRATION. 

In  Illinois. 

During  the  past  few  years  several  laws  have  been  enacted  in  Illinois 
which  show  some  realization  of  the  need  for  a  more  efficient  organiza- 
tion of  State  administration  and  suggest  the  lines  on  which  a  more  com- 
prehensive readjustment  may  be  brought  about. 

Of  special  significance  was  the  reorganization  in  the  management 
of  the  State  charitable  institutions,  which  consolidated  one  of  the  larg- 
est and  most  important  branches  of  State  work  under  the  Board  of 
Administration.  Under  the  former  methods  when  each  of  the  seventeen 
institutions  was  under  a  separate  board  of  trustees,  the  lack  of  ef- 
fective organization  and  supervision  resulted  in  waste  and  inefficiency 
in  the  management  of  the  institutions,  and  in  constant  rivalr}'  between 
the  several  institutions,  while  neither  the  Governor  nor  the  General 
Assembly  had  the  information  or  means  to  exercise  adequate  control. 

By  the  Act  of  1909,  all  of  the  charitable  institutions  were  organized 
in  a  single  department  under  the  Board  of  Administration  directly 
responsible  to  the  Governor.     The  experience  under  this  system  has 


REPORT  OF  THE  COMMITTEE.  25 

clearly  demonstrated  its  greater  efficiency  and  economy  in  the  admin- 
istration of  these  institutions.  In  the  first  year,  there  was  a  saving  of 
$250,000;  and  even  with  increasing  prices  the  expenses  for  the  four 
years  under  this  system  show  a  reduction  of  $400,000  from  the  per 
capita  cost  for  the  last  year  under  the  former  methods.  This  concen- 
trated organization  has  not  only  enabled  the  Governor  to  control  their 
management,  but  it  has  also  given  greater  assistance  to  the  General 
Assembly,  both  in  regard  to  appropriations  and  in  legislation  for  these 
institutions,  and  still  further  it  has  given  the  general  public  more 
definite  and  reliable  information  as  to  the  purposes  and  work  of  the 
State  charitable  institutions. 

Other  illustrations  of  the  tendency  towards  a  more  concentrated 
organization  may  be  seen  in  the  Game  and  Fish  Conservation  Com- 
mission, established  in  1913,  which  has  combined  two  closely  related 
services;  and  in  the  Public  Utilities  Commission  of  1913,  which  has 
united  the  functions  of  the  former  Railroad  and  Warehouse  Commis- 
sion with  similar  powers  over  other  public  utilities.  The  State  Aid 
Road  law  has  also  established  an  administrative  organization  for  con- 
necting the  work  of  the  State  Highway  Commission  with  the  local 
highway  officials  by  means  of  the  new  county  superintendents  of  high- 
ways. 

In  Other  States. 

This  tendency  toward  a  more  efficient  and  concentrated  adminis- 
trative organization  is  also  to  be  seen  in  most  of  the  other  states ;  and 
in  many  states  it  has  already  gone  much  further  than  in  Illinois.  More 
than  half  of  the  states  have  consolidated  the  management  of  their 
charitable  or  correctional  institutions;  and  in  many  states  both  of 
these  classes  of  institutions  have  been  united  under  one  control.  A 
number  of  states  have  reorganized  their  educational  authorities,  con- 
solidating the  management  of  state  institutions.  Many  states  have  a 
more  concentrated  organization  of  agricultural  authorities  than  in  Illi- 
nois; and  several  states  (New  York,  Ohio,  and  Washington)  have  in 
recent  years  established  a  comprehensive  and  consolidated  department 
of  agriculture.  Several  states  (  New  York,  Ohio,  Kansas,  and  Wis- 
consin) have  combined  the  various  labor  authorities  into  a  single  de- 
partment. About  two-thirds  of  the  states  have  concentrated  their  tax 
administration  under  the  control  of  a  small  appointive  tax  commission. 

Such  reorganization  and  consolidation  has  thus  far,  for  the  most 
part,  been  accomplished  in  particular  branches  of  state  administration ; 
and  has  been  urged  by  those  interested  in  each  field,  apparently  without 
any  conscious  effort  at  a  general  reorganization  of  state  administra- 
tion.    Nevertheless,  the  tendencies  have  been  more  marked  in  some 


26  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

States ;  and  in  tliose  there  has  perhaps  been  some  interaction  and  inter- 
relation between  those  at  work  in  different  fields. 

New  York  State,  the  largest  and  with  the  most  extensive  adminis- 
trative organization,  has  perhaps  done  most  in  this  direction.  During 
the  past  ten  or  fifteen  years  there  have  been  organized  in  that  state 
comprehensive  departments  of  education,  agriculture,  labor  and  health. 
Ohio  has  established  consolidated  departments  of  agriculture,  labor 
and  charitable  and  correctional  institutions,  and  has  gone  further  than 
any  other  state  in  centralizing  tax  and  finance  administration.  Wis- 
consin has  consolidated  the  administration  of  labor  laws,  charitable 
and  correctional  institutions  and  state  revenues.  Many  other  states 
have  established  consolidated  departments  in  one  or  more  fields. 

Efficiency  and  Economy  Commissions. 

Within  the  past  two  or  three  years  a  more  definite  effort  has  been 
undertaken  in  this  and  a  number  of  other  states  to  plan  and  work  for 
a  more  comprehensive  reorganization  and  consolidation  of  state  ad- 
ministration ;  with  a  view  to  greater  economy  and  efficiency.  Commis- 
sions or  committees  for  this  purpose  were  established  in  Massachu- 
setts and  New  Jersey  in  1912;  and  in  New  York,  Pennsylvania,  Min- 
nesota, and  Iowa  in  1913,  as  well  as  in  Illinois ;  and  the  problem  has 
also  been  attacked  in  a  less  official  manner  in  California,  and  perhaps 
in  other  states.  With  these  active  efforts,  all  aimed  in  the  same 
general  direction,  the  isolated  tendencies  have  begun  to  develop  into  a 
distinct  movement  for  a  general  reorganization  of  state  administration. 

The  Massachusetts  and  New  Jersey  Commissions  have  each  issued 
several  partial  reports,  proposing  the  consolidation  of  several  groups 
of  related  bureaus.  The  most  important  of  these  has  been  the  plan  of 
the  Massachusetts  Commission  for  the  reorganization  of  the  adminis- 
tration of  charitable  and  correctional  instituions.  The  New  York 
Committee,  appointed  by  Governor  Sulzer,  proposed  a  consolidation 
of  the  prison  authorities,  and  urged  the  need  for  reorganizing  the  man- 
agement of  the  charitable  institutions  in  that  state. 

In  Iowa  and  Minnesota  much  more  comprehensive  plans  have  been 
prepared.  The  investigators  employed  by  the  Iowa  Legislative  Com- 
mittee have  submitted  a  report  proposing  a  radical  reorganization  of 
state  government,  including  constitutional  as  well  as  statutory  changes. 
In  general  this  proposes  a  small  number  of  executive  departments  each 
with  a  single  official  at  the  head. 

The  Minnesota  Commission,  appointed  by  Governor  Eberhard,  has 
also  prepared  a  general  plan  of  reorganization,  limited,  however,  to 
those  changes  which  can  be  made  by  the  legislature.  This,  like  the 
Iowa  plan,  is  based  on  a  limited  number  of  departments,  for  most  of 


REPORT  OF  THE  COMMITTEE.  27 

which  there  is  proposed  a  single  salaried  director  and  an  unpaid  ad- 
visory board,  but  there  are  some  modifications  from  this  general  plan. 
A  Board  of  Civil  Service  and  budget  system  are  also  included  in 
the  general  scheme.  This  plan  will  be  presented  to  the  Minnesota 
legislature  in  January  1915,  in  a  single  bill  for  a  civil  administration 
code. 
Municipal  Administration. 

Recent  developments  in  the  reorganization  of  municipal  govern- 
ment in  the  United  States  also  show  a  strong  movement  towards  the 
more  systematic  and  efficient  organization  of  the  administrative  services. 
This  general  tendency  can  be  seen  in  nearly  all  of  the  various  new 
forms  of  government  proposed.  It  can  be  seen  in  the  city  charters 
and  general  laws  which  concentrate  authority  in  the  mayor,  as  in  the 
Cleveland  "federal  plan"  of  1891,  the  New  York  law  of  1898  for 
cities  of  the  second  class,  and  in  the  more  recent  charters  of  Cleve- 
land and  St.  Louis.  In  the  various  types  of  commission  government 
for  cities,  the  most  common  feature  is  the  organization  of  municipal 
services  in  a  small  number  of  departments  (generally  five,  sometimes 
three  or  seven)  each  under  the  direction  of  a  single  commissioner. 
The  still  more  recent  city  manager  plan  of  municipal  government  pro- 
vides for  the  same  organization  of  administrative  services  under  a  few 
.department  heads  responsible  to  the  city  manager. 

The  United  States  Government. 

The  National  Administration  of  the  United  States  Government  has 
been  organized  from  the  beginning  on  a  more  systematic  plan  than 
that  of  the  states.  There  are  now  ten  executive  departments,  each 
dealing  with  a  more  or  less  closely  related  group  of  services ;  and 
together  looking  after  substantially  the  whole  system  of  national  ad- 
ministration, which  in  magnitude,  importance  and  expense  far  exceeds 
that  of  any  of  the  states.  The  head  of  each  department  is  appointed 
by  the  President,  by  and  with  the  advice  and  consent  of  the  Senate, 
and  these  department  heads  form  collectively  an  unofficial  cabinet  of 
advisers  to  the  President,  which  meets  regularly  for  consultation  on 
matters  of  special  importance  and  common  interest,  and  in  which 
there  is  discussed  the  larger  questions  of  administrative  and  legislative 
policy.  These  departments  and  their  chief  officials  are  as  follows : 
Department  of  State  Secretary  of  State 

Treasury  Department  Secretary  of  the  Treasury 

Department  of  War  Secretary  of  War 

Department  of  Justice  Attorney  General 

Postoffice  Department  Postmaster  General 

Department  of  the  Navy  Secretarj'-  of  the  Navy 

Department  of  the  Interior  Secretary  of  the  Interior 

Department  of  Commerce  Secretary  of  Commerce 

Department  of  Labor  Secretary  of  Labor 


28  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

This  organization  as  a  whole  stands  in  marked  contrast  with  that  of 
the  State  administration  in  Illinois  and  other  states;  and  there  can  be 
no  doubt  that  the  greater  efficiency  of  the  national  administration  than 
that  of  the  states  is  in  large  measure  due  to  the  more  systematic  or- 
ganization, the  more  definite  correlation  of  related  services,  and  the 
more  effective  supervision  of  the  various  bureaus  and  divisions  by 
the  department  officials. 

Foreign  Countries. 

Practically  all  of  the  civilized  governments  in  the  world  have  like- 
wise organized  their  public  administration  in  a  limited  number  of 
important  departments,  each  under  a  single  official,  who  has  super- 
vision over  the  various  related  services  in  his  department.  This  general 
plan  is  followed  in  the  central  government  of  all  of  the  most  important 
countries,  as  in  France,  Germany,  Great  Britain,  Russia,  Italy,  and 
Spain.  It  is  followed  in  the  various  states  in  the  German  Empire,  and 
in  the  large  British  self-governing  colonies — as  in  Prussia,  Bavaria, 
Saxony,  Canada,  Australia,  and  South  Africa;  and  in  the  British  Do- 
minions it  is  also  used  in  the  several  Australian  States  and  Canadian 
Provinces.  It  is  also  the  plan  of  organization  adopted  in  the  less 
important  countries  of  Europe  and  in  South  America — as  in  Switzer- 
land, Holland,  Belgium,  Portugal,  Brazil,  Argentine,  and  Chili. 

For  example,  in  France,  the  highly  centralized  administrative  sys- 
tem is  organized  under  the  direction  of  a  cabinet  of  twelve  ministers,  as 
follows:  Foreign  Affairs,  Justice,  Interior,  Finance,  Public  Instruc- 
tion and  Fine  Arts,  Public  Works,  War,  Marine,  Commerce,  Agricul- 
ture, Colonies,  and  Labor. 

Even  in  Great  Britain,  where  there  is  a  good  deal  of  the  same  ten- 
dency as  in  the  American  states  towards  the  multiplication  of  separate 
authorities,  the  central  administration  is  under  the  general  control  of  a 
cabinet  of  twenty  ministers ;  and  many  of  the  offices  commonly  sup- 
posed to  be  independent  are  under  some  supervision  by  the  Treasury 
or  one  of  the  other  important  departments. 

GENERAL  PRINCIPLES  AND  PURPOSES  OF  THE  COMMITTEE'S  PLANS. 

Proposed  Departments. 

In  order  to  secure  efficiency  and  economy  in  the  executive  organi- 
zation, the  Committee  proposes  to  apply  to  the  State  services,  so  far  as 
can  be  done  under  the  present  State  constitution,  the  general  principles 
followed  in  the  organization  of  the  executive  departments  of  the 
United  States  Government.  These  principles  are  also  followed  in 
the  administrative  organization  of  all  the  important  governments  in 
the  world,  in  the  recent  plans  for  the  reorganization  of  State  and  munic- 


REPORT  OF  THE  COMMITTEE. 


29 


ipal  governments  in  this  country,  and  in  large  private  business  enter- 
prises. To  secure  this  result  will  involve  the  reorganization  and  con- 
solidation of  the  more  than  a  hundred  separate  State  offices,  boards 
and  commissions  into  a  limited  number  of  executive  departments,  the 
chief  authority  in  each  department  to  be  appointed  by  the  Governor, 
with  the  advice  and  consent  of  the  Senate,  and  to  be  responsible  to 
the  Governor  for  the  conduct  of  the  department. 

The  proposed  departments  and  their  principal  divisions  and  bu- 
reaus, with  their  chief  officials,  are  as  follows: 

Department  of  Finance,  under  a  State  Finance  Commission,  to 
consist  of  a  State  Comptroller,  Tax  Commissioner,  and  Revenue  Com- 
missioner, to  be  appointed  by  the  Governor  and  Senate,  with  the  Audi- 
tor of  Public  Accounts  and  State  Treasurer  ex  officio.  Each  of  these 
officials  will  be  in  charge  of  a  particular  division,  with  the  finance 
commission  exercising  specified  powers  of  supervision  over  the  whole 
system  of  finance  administration.  The  Comptroller  will  be  charged 
with  the  preparation  of  a  budget,  and  with  supervision  over  expendi- 
tures and  the  installation  of  accounts  of  State  officers.  The  Tax 
Commissioner  will  deal  with  the  assessment  of  property  for  taxation ; 
and  the  Revenue  Commissioner  will  administer  the  inheritance  tax, 
automobile  licenses  and  perhaps  other  State  revenues.  The  Auditor 
and  Treasurer  will  in  the  main  continue  their  present  functions,  with 
the  Auditor's  auditing  powers  increased. 

Department  of  Charities  and  Corrections,  to  include  the  present 
Board  of  Administration  for  charitable  institutions,  a  Board  of  Prison 
Administration  for  the  penitentiaries  and  reformatory,  and  the  Chari- 
ties Commission  with  powers  of  inspection  and  recommendation  over 
both  classes  of  institutions. 

Department  of  Education,  to  include  the  State  Superintendent  of 
Public  Instruction,  a  single  Normal  School  Board,  the  board  of  trus- 
tees for  the  University  of  Illinois,  the  State  Library,  a  commission  on 
natural  resources,  and  a  general  board  of  education  with  advisory  pow- 
ers to  coordinate  and  harmonize  the  several  educational  agencies  of  the 
State. 

Department  of  Public  Works  and  Buildings,  under  a  Public  Works 
Commission  of  three  members,  one  to  be  Commissioner  of  Highways, 
one  Commissioner  of  Waterways  and  one  Fish  and  Game  Commis- 
sioner; with  bureaus  for  each  of  these  services,  and  also  other  bureaus 
under  the  Superintendent  of  Buildings  and  Grounds,  the  Superintend- 
ent of  State  Parks  and  the  State  Art  Commission. 

Department  of  Agriculture,  under  a  Secretary  of  Agriculture,  with 
bureaus  under  a  Superintendent    of    the    State  Fair,  a  Director  of 


30  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Farmers'  Institutes,  a  Live  Stock  Commissioner  (who  should  have 
supervision  over  the  State  Veterinarian,  the  board  of  veterinary  exam- 
iners, the  humane  agents  and  the  registrar  of  pedigrees)  and  the  In- 
spector of  Apiaries  and  Nurseries. 

Department  of  Public  Health,  under  a  salaried  Health  Commis- 
sioner, and  an  unpaid  State  Board  of  Health,  with  a  food  inspection 
bureau  under  the  Food  Commissioner  (or  inspector),  with  examining 
and  licensing  boards  for  physicians,  pharmacists  and  dentists. 

Department  of  Labor  and  Mining,  under  a  Commissioner  of  Labor 
and  two  deputies,  who  should  act  as  a  board  in  adopting  rules  and 
regulations  and  in  deciding  appeals,  with  bureaus  of  statistics,  employ- 
ment, inspection  and  compensation,  and  a  mining  division  under  the 
State  Mining  Board. 

Department  of  Trade  and  Commerce,  to  include  bureaus  under  a 
Commissioner  of  Corporations,  a  Commissioner  of  Banking,  the  Insur- 
ance Superintendent  and  the  Public  Utilities  Commission — the 
Chairman  of  the  Public  Utilities  Commission  to  act  as  head  of  the 
department. 

Department  of  Law,  under  the  Attorney  General,  with  provision 
for  counsel  and  attorneys  for  particular  departments  to  be  appointed  by 
the  Attorney  General  with  the  consent  of  the  Governor. 

Department  of  Military  Affairs,  continuing  the  present  organiza- 
tion of  the  State  militia. 

The  several  election  boards  now  provided  by  law  should  also  be 
consolidated  into  a  single  board  of  elections;  and  this  with  the  Secre- 
tary of  State  and  Civil  Service  Commission  will  be  outside  of  the  main 
executive  departments  above  outlined. 

The  Committee  also  recommends  a  revision  of  the  laws  relating 
to  state  contracts  and  to  official  reports,  the  latter  to  require  reports 
from  all  State  officers,  boards,  commissions  and  departments  before 
the  regular  session  of  the  General  Assembly,  and  to  provide  for  a  sum- 
mary of  these  reports  with  other  information  relating  to  the  State  gov- 
ernment to  be  prepared  and  carefully  edited  for  publication  in  an  of- 
ficial State  Manual  or  Blue  Book. 

General  Considerations. 

The  organization  of  each  of  these  proposed  departments  will  be 
discussed  more  fully  in  the  second  part  of  this  report  with  more 
specific  references  to  the  changes  from  the  present  arrangements.  It 
seems  advisable,  however,  to  present  here  some  of  the  general  consid- 
erations underlying  the  proposed  plan  as  a  wTiole,  in  order  to  make 
clear  the  main  purposes  of  the  Committee. 


REPORT   OF   THE   COMMITTEE.  31 

In  the  first  place  this  comprehensive  scheme  of  reorganization  has 

. .^ -^ , ti — i^j  _i-_    j__i: u.  ..^j^i^ 

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PROPOSED    STATE    EXECUTU'E    ORGANIZATION    IN 


GOVEBNOR 

Lieutenant   Governor 

Secretary  of  State 

Auditor  of  Public  Accounts 

State  Treasurer 

Attorney-General 

Superintendent  of  Public  Instruction 

Board  of  Elections 

Legislative  Reference  Bureau 

Civil  Service  Commission 

Depahtment  of  Finance  (State  Finai 

State  Comptroller 

Tax  Commissioner 

Revenue  Commissioner 

Superintendent  of  Printing 

DEPA2TMENT  OF  TraDE  AND   COMMERCi 

Commissioner  of  General  Corpor; 
Commissioner  of  Banking 
Commissioner  of  Insurance 
State  Fire  Marshal 

Public  Utilities  Commission 


INDEX. 

Grain  Inspection  Department 
Department  of  Labor  and  Minin 
Bureau  of  Statistics 
Bureau  of  Employment 
Bureau  of  Inspection 
Bureau  of  Compensation 
State  Mining  Board 


Depa 


He 


Bureau  of  Vital  Statistics 
Bureau  of  Food  and  Drug  Inspection 
Board  of  Examiners  of  Physicians 
Board  of  Pharmacy 
Board  of  Dental  Examiners 
Department  of  Military  Affairs  (Adjutant  General) 
Surgeon  General 
Judge  Advocate 


Depa 


Superintendent  of  State  Fair 
Director  of  Farmers'  Institute 
Inspector  of  Nurseries  and  Apiaries 
Live  Stock  Commissioner 


State  Veterinarian 

Stallion  Registrar 

Humane  Agent 
Department  of  Public  Works  (Board  of  Public  Wi 

Commissioner  of  Highways 

Commissioner  of   Water   Resources 

Commissioner  of   Fish   and   Game 

Superintendent  of  State  Parks 

State  Art  Commission 

Superintendent  of  Public  Buildings 
Department  of  CH.\RmEs  and  Correction 
(State  Charities  Commission) 

Board  of  Administration 

State  Charitable  Institutions 

Board  of  Prison  Administration 

State  Correctional  Institutions 
Department  of  Education  (State  Board  of  Educatic 

Trustees  of  University  of  Illinois 

Normal  School  Board 

State  Commission  on  Natural  Resources 

State  Library 

Historical  Commission 


REPORT   OF   THE   COMMITTEE.  31 

In  the  first  place  this  comprehensive  scheme  of  reorganization  has 
been  formulated  in  preference  to  a  more  limited  plan  dealing  only  with 
some  groups  of  offices  and  departments,  in  the  belief  that  the  general 
survey  is  more  likely  to  take  all  factors  into  consideration,  while  a 
partial  study  might  lead  to  proposals  for  the  offices  considered  which 
would  conflict  with  the  best  arrangements  for  other  offices  not  taken 
into  consideration. 

In  the  second  place,  this  general  plan  has  been  prepared  with  refer- 
ence to  the  existing  authorities  and  their  present  powers  and  duties. 
There  has  been  no  attempt  to  formulate  an  ideal  scheme  of  State  activi- 
ties, or  to  propose  extensive  changes  in  the  substantive  law.  In  some 
cases  where  existing  authorities  seem  to  be  clearly  of  no  value,  their 
abolition  is  recommended.  But  for  the  most  part  provision  is  made 
for  continuing  the  present  services  under  what  it  is  believed  to  be  a 
more  effective  organization. 

Nor  has  a  strictly  uniform  plan  of  organization  been  proposed  for 
each  department  or  group  of  services,  such  as  characterizes  the  French 
system  of  administration.  This  might  be  advisable  in  organizing  an 
entirely  new  system ;  and  may  be  worthy  of  consideration  at  some  time 
in  the  future,  with  the  further  development  of  State  administration  in 
Illinois.  But  some  variation  in  the  organization  for  different  purposes 
seems  better  suited  to  existing  services  and  present  conditions  in  this 
State.  At  the  same  time  the  confusing  complexity  of  the  present  chaos 
of  organization  may  be  materially  simplified;  and  it  is  believed  that 
the  variations  in  organization  proposed  are  adapted  to  the  different 
lines  of  work. 

The  plans  proposed  include  single  officials  for  some  purposes,  and 
boards  or  commissions  for  others.  The  number  of  boards,  however, 
are  much  fewer  than  at  present;  and  the  boards  proposed  will  be 
either  composed  of  salaried  members  giving  full  time  to  the  service, 
or  of  unpaid  members,  with  a  few  cases  of  ex  officio  membership. 
Boards  whose  members  are  paid  small  salaries  and  are  expected  to 
give  only  part  of  their  time  to  their  public  duties  are  not  recommended ; 
and  it  is  proposed  that  such  boards  be  either  abolished  or  merged  with 
other  authorities. 

Nor  does  the  Committee  approve  of  statutory  provisions  requiring 
the  representation  of  more  than  one  party  on  administrative  boards 
and  commissions.  Such  a  requirement  tends  to  bring  about  bi-par- 
tisan rather  than  non-partisan  appointments ;  it  makes  it  possible  for  a 
Governor  by  the  use  of  patronage  to  exert  influence  over  the  minority 
party  in  the  General  Assembly;  and  at  the  same  time  il  reduces  the 
responsibility  of  the  Governor  for  the  acts  of  such  boards,  without 
definitely  fixing  responsibility  on  the  minority  members,  or  their  party. 


30  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Farmers'  Institutes,  a  Live  Stock  Commissioner  (who  should  have 
supervision  over  the  State  Veterinarian,  the  board  of  veterinary  exam- 
iner-  '■^~  *- 

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REPORT   OF   THE   COMMITTEE.  31 

In  the  first  place  this  comprehensive  scheme  of  reorganization  has 
been  formulated  in  preference  to  a  more  limited  plan  dealing  only  with 
some  groups  of  offices  and  departments,  in  the  belief  that  the  general 
survey  is  more  likely  to  take  all  factors  into  consideration,  v^hile  a 
partial  study  might  lead  to  proposals  for  the  offices  considered  which 
would  conflict  with  the  best  arrangements  for  other  offices  not  taken 
into  consideration. 

In  the  second  place,  this  general  plan  has  been  prepared  with  refer- 
ence to  the  existing  authorities  and  their  present  powers  and  duties. 
There  has  been  no  attempt  to  formulate  an  ideal  scheme  of  State  activi- 
ties, or  to  propose  extensive  changes  in  the  substantive  law.  In  some 
cases  where  existing  authorities  seem  to  be  clearly  of  no  value,  their 
abolition  is  recommended.  But  for  the  most  part  provision  is  made 
for  continuing  the  present  services  under  what  it  is  believed  to  be  a 
more  effective  organization. 

Nor  has  a  strictly  uniform  plan  of  organization  been  proposed  for 
each  department  or  group  of  services,  such  as  characterizes  the  French 
system  of  administration.  This  might  be  advisable  in  organizing  an 
entirely  new  system ;  and  may  be  worthy  of  consideration  at  some  time 
in  the  future,  with  the  further  development  of  State  administration  in 
Illinois.  But  some  variation  in  the  organization  for  different  purposes 
seems  better  suited  to  existing  services  and  present  conditions  in  this 
State.  At  the  same  time  the  confusing  complexity  of  the  present  chaos 
of  organization  may  be  materially  simplified;  and  it  is  believed  that 
the  variations  in  organization  proposed  are  adapted  to  the  different 
lines  of  work. 

The  plans  proposed  include  single  officiails  for  some  purposes,  and 
boards  or  commissions  for  others.  The  number  of  boards,  however, 
are  much  fewer  than  at  present;  and  the  boards  proposed  will  be 
either  composed  of  salaried  members  giving  full  time  to  the  service, 
or  of  unpaid  members,  with  a  few  cases  of  ex  officio  membership. 
Boards  whose  members  are  paid  small  salaries  and  are  expected  to 
give  only  part  of  their  time  to  their  public  duties  are  not  recommended ; 
and  it  is  proposed  that  such  boards  be  either  abolished  or  merged  with 
other  authorities. 

Nor  does  the  Committee  approve  of  statutory  provisions  requiring 
the  representation  of  more  than  one  party  on  administrative  boards 
and  commissions.  Such  a  requirement  tends  to  bring  about  bi-par- 
tisan rather  than  non-partisan  appointments ;  it  makes  it  possible  for  a 
Governor  by  the  use  of  patronage  to  exert  influence  over  the  minority 
party  in  the  General  Assembly ;  and  at  the  same  time  it  reduces  the 
responsibility  of  the  Governor  for  the  acts  of  such  boards,  without 
definitely  fixing  responsibility  on  the  minority  members,  or  their  party. 


32  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

On  some  boards,  such  as  the  Charities  Commission  or  unpaid  educa- 
tional boards,  it  is  especially  desirable  that  appointments  shall  be  made 
without  reference  to  party  affiliations;  but  it  is  believed  that  this 
result  can  be  better  attained  by  custom  and  the  force  of  public  opinion 
than  by  an  express  provision  in  the  law. 

The  purpose  of  the  Committee  has  also  been  to  propose  boards  only 
for  functions  where  consultation  and  consideration  of  several  persons 
is  advisable;  and  single  officials  are  recommended,  in  all  cases  to  be 
in  charge  of  distinctly  executive  work.  When  boards  are  authorized 
the  Chairman  should  be  designated  by  the  Governor  or  by  law. 

From  another  point  of  view,  the  plans  proposed  also  fall  between 
two  possible  extremes.  While  they  call  for  a  large  number  of  impor- 
tant changes,  they  are  not  presented  merely  as  a  scheme  for  the  distant 
future.  They  have  been  framed  with  reference  to  present  conditions 
in  this  State;  and  it  is  believed  they  are  adapted  to  prompt  adoption 
and  execution.  At  the  same  time  it  is  recognized  that  some  of  the 
proposals  may  meet  with  serious  opposition,  and  it  may  not  be  feasible 
to  carry  out  all  the  changes  at  the  next  session  of  the  General  As- 
sembly. But  it  is  believed  that  a  substantial  part  of  this  program 
should  be  carried  out  at  once;  and  the  remainder  should  be  put  into 
force  at  as  early  a  date  as  practicable. 

After  a  more  specific  discussion  of  the  present  authorities  and  the 
proposed  plans  for  reorganization  for  each  of  the  groups  of  State 
agencies,  there  will  be  considered  in  Part  III  the  results  in  the  way 
of  greater  efficiency  and  economy  to  be  expected  from  the  general 
system  of  organization  herein  proposed. 


PART    II. 

FINANCE     ADMINISTRATION. 

Present  Arrangements. 

Under  the  existing  laws  of  Illinois  the  machinery  for  the  assess- 
ment and  collection  of  taxes  and  other  State  revenues,  and  for  the  con- 
trol over  expenditures,  is  divided  between  a  large  number  of  State  and 
local  officials,  with  no  systematic  organization  or  supervision  of  finance 
administration  as  a  whole.  General  property  taxes  are  for  the  most 
part  assessed,  and  are  entirely  collected,  by  local  officials,  subject  to  no 
effective  supervision;  and  the  assessment  and  collection  of  the  inheri- 
tance tax  is  also  largely  in  the  hands  of  local  officers.  A  considerable 
number  of  State  officials  have  powers  and  duties  of  some  importance 
in  this  field — including  the  Governor,  the  Auditor  of  Public  Accounts, 
the  State  Treasurer,  the  Secretary  of  State  (as  receiver  of  corporation 
fees  and  automobile  licenses,)  the  Attorney  General  (in  supervising 
the  inheritance  tax)  and  the  Superintendent  of  Insurance  (as  receiver 
of  insurance  fees  and  taxes.)  The  State  Board  of  Equalization  is  a 
cumbersome  body  of  26  members,  elected  by  congressional  districts, 
with  limited  powers.  There  is  also  an  ex  officio  State  Tax  Levy 
Board,  and  a  Court  of  Claims;  while  the  department  and  institution 
auditor  acts  as  the  agent  of  the  Governor  in  approving  certain  bills 
before  payment.  The  Legislative  Reference  Bureau  is  authorized  to 
compile  requests  for  appropriations  from  the  various  State  departments 
and  institutions. 
Inefficient  Results. 

With  the  present  arrangements,  the  assessment  of  property  for 
taxation  is  notoriously  inefficient  and  unequal ;  the  collection  of  public 
revenues  is  lax  and  the  cost  of  collection  is  unequal ;  there  is  no  ade- 
quate machinery  for  preparing  a  comprehensive  budget  of  estimated 
revenues  and  proposed  expenditures  as  a  basis  for  appropriations ;  and 
there  is  no  satisfactory  system  of  accounting. 

As  to  the  assessment  of  property  for  taxation,  the  valuations  of  real 
estate  have  lagged  far  behind  the  increase  in  true  values,  and  the  aver- 
age valuation  of  lands  in  some  counties  are  double  the  proportion  of 
true  value  assessed  in  other  counties,  as  estimated  by  the  U.  S.  Census ; 
the  assessment  of  tangible  personal  property  is  largely  guesswork  and 
for  some  classes  of  such  property  is  not  more  than  five  per  cent  of 
reliable  estimates  of  true  value;  while  the  assessment  of  intanf^ble 


34  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

property  in  most  parts  of  the  State  can  fitly  be  called  a  farce.  This 
general  situation  is  true,  both  of  the  assessments  by  local  assessors 
and  by  the  State  Board  of  Equalization;  and  causes  excessive  rates 
of  taxation  and  gross  inequalities  in  distributing  the  burden  of  taxation. 

The  fees  for  extending  taxes  on  the  collector's  books  are  roughly 
estimated  at  $600,000  a  year.  A  large  part  of  this  could  be  saved  by 
eliminating  unnecessary  columns  showing  in  detail  the  several  valua- 
tions and  the  taxes  for  each  taxing  district  against  each  tax  payer  or 
piece  of  real  estate  and  reducing  the  fees  accordingly. 

Commissions  allowed  tax  collectors  were  adjusted  at  a  time  when 
the  amount  of  taxes  was  much  lower  than  at  present,  and  the  percent- 
ages allowed  vary  according  to  an  arbitrary  classification  of  "^couftties, 
rather  than  in  proportion  to  the  amount  of  taxes  collected  by  each 
collector.  A  readjustment  of  these  commissions  should  make  possible 
a  considerable  saving  to  the  State  and  to  the  local  taxing  districts. 

The  interest  on  tax  collections  in  the  hands  of  collectors  may  be 
conservatively  estimated  at  $250,000  a  year,  which  should  be  paid  into 
the  public  treasuries. 

A  considerable  percentage  of  taxes  assessed  are  not  collected;  and 
there  is  also  a  good  deal  of  delay  in  making  settlements  and  payments 
to  the  State  Treasury.  The  cost  of  the  local  administration  of  the 
inheritance  tax  has  averaged  more  than  ten  per  cent  of  the  amount  col- 
lected ;  outside  of  Cook  County  the  local  cost  of  collection  has  averaged 
about  twenty  per  cent;  and  in  some  counties  the  cost  of  collection  has 
been  as  much  as  the  tax  assessed.  The  expense  of  administration  of 
the  motor  vehicle  license  fees  has  been  over  15  per  cent  of  the  amount 
collected.  This  is  paid  out  of  the  general  revenue  of  the  State,  while 
the  total  receipts  are  paid  into  the  State  road  fund. 

No  attempt  at  a  carefully  analyzed  budget  of  revenues  and  pro- 
posed expenditures  has  hitherto  been  prepared  in  this  State.  The  com- 
pilation of  estimates  for  appropriations  which  the  Legislative  Reference 
Bureau  has  been  authorized  to  prepare  forms  the  first  step  in  this  di- 
rection. But  in  the  judgment  of  the  Efficiency  and  Economy  Com- 
mittee, a  satisfactory  budget  statement  should  include  a  classified 
analysis  of  revenues  as  well  as  proposed  expenditures,  which  should 
be  subjected  to  close  scrutiny  by  competent  and  responsible  officials 
charged  with  authority  in  the  administration  of  the  State  finances,  and 
submitted  to  the  General  Assembly  with  the  definite  recommendations 
of  the  Governor. 

The  present  system  of  public  accounts  for  the  State  is  a  record  of 
cash  receipts  by  collection  agencies  and  disbursements  under  approp- 
riation items,  with  a  control  of  disbursements  so  that  warrants  arc  not 


REPORT  OF  THE  COMMITTEE.  35 

issued  beyond  the  amounts  appropriated.  These  records  appear  to  be 
carefully  kept  and  reported.  But  the  present  classification  of  receipts 
and  disbursements  reflects  only  the  legal  responsibilities  of  the  auditor 
and  does  not  adequately  show  the  sources  of  revenue  or  purposes  of 
expenditure.  There  is  no  adequate  audit  of  State  revenues  and  no 
eflfective  control  over  the  expenditures  of  many  State  offices  and  insti- 
tutions. There  are  no  accounts  showing  accrued  revenues  or  liabili- 
ies,  and  no  adequate  inventory  of  permanent  property;  and  without 
these  it  is  impossible  to  prepare  a  balance  sheet  showing  the  financial 
condition  of  the  State. 

Finance  Administration  in  Other  States  and  Countries. 

Most  of  the  other  states  have  established  a  more  efficient  system  of 
tax  administration  under  the  control  of  a  tax  commissioner  or  a  small 
appointive  tax  commission.  The  first  definite  proposal  for  such  a  tax 
commission  was  made  by  the  Illinois  Revenue  Commission  of  1886; 
and  a  similar  plan  was  recommended  by  the  Special  Tax  Commission 
of  1910,  and  has  been  endorsed  by  Governors  Deneen  and  Dunne.  But 
while  all  of  the  larger  and  more  important  states  and  many  of  the 
others  have  now  adopted  this  plan,  as  yet  no  effective  action  in  this 
direction  has  been  taken  in  the  State  where  the  proposal  was  first  made. 
Such  tax  commissions  have  been  especially  successful  in  Wisconsin, 
Michigan,  Kansas,  and  Ohio ;  while  in  Kansas,  and  still  more  in  Ohio, 
the  local  machinery  of  assessment  has  been  still  further  centralized. 

Many  other  states  have  also  in  other  respects  more  effective  meth- 
ods of  finance  administration  than  Illinois,  by  vesting  larger  powers 
over  the  keeping  and  auditing  of  accounts,  and  other  revenues  and 
expenditures  and  providing  improved  budget  methods  under  the  State 
Tax  Commission  or  the  State  Auditor  or  Comptroller. 

In  the  United  States  government  and  in  nearly  all  foreign  countries, 
as  well  as  in  many  American  cities,  there  is  now  provided  a  well  organ- 
ized department  of  finance,  which  exercises  general  supervision  and 
control  over  the  administration  of  public  finances.  While  there  is 
considerably  variation  in  the  internal  organization  of  such  departments, 
they  all  agree  in  the  general  principle  of  a  central  finance  department. 

Proposed  Finance  Commission. 

The  Efficiency  and  Economy  Committee  recommends  the  organiza- 
tion of  a  comprehensive  State  Department  of  Finance,  under  the  gen- 
eral supervision  of  a  State  Finance  Commission,  to  consist  of  a  State 
Comptroller,  a  Tax  Commissioner,  and  a  Revenue  Commissioner,  to  be 
appointed  by  the  Governor,  with  the  advice  and  consent  of  the  Senate, 
and  to  include  also  the  Auditor  of  Public  Accounts  and  the  State 


36  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Treasurer  ex  officio.  This  form  of  organization  is  proposed  so  as  to 
embrace  the  constitutional  elective  officers  in  the  general  system ;  while 
by  this  method  there  is  also  given  recognition  to  the  opinion,  held  by 
some,  that  the  final  authority  in  such  matters  should  not  be  entirely  in 
the  hands  of  appointive  officers. 

It  is  proposed  that  the  Finance  Commission  shall  exercise  in  the 
main  jurisdiction  in  approving  and  prescribing  rules,  regulations,  forms, 
instructions  and  systems  of  accounts;  in  deciding  appeals  and  reviewing 
original  assessments ;  and  in  exercising  the  functions  of  the  present 
Court  of  Claims  and  the  State  Tax  Levy  Board,  as  well  as  some  of  the 
functions  of  the  State  Board  of  Equalization — all  of  which  it  is  pro- 
posed to  abolish. 

Each  member  of  the  commission  will  also  be  given  important  pow- 
ers in  charge  of  a  special  divison.  The  State  Comptroller,  will  be  chair- 
man of  the  Commission,  and  will  be  charged  with  the  preparation  of  a 
budget  of  revenues  and  expenditures  for  submission  to  the  Governor, 
with  supervision  over  salaries  and  other  expenditures,  with  the  prepa- 
ration and  installation  of  accounts,  and  with  inquiries  into  the  business 
methods  of  State  offices  and  institutions.  The  Tax  Commissioner  will 
exercise  supervision  over  local  assessors,  and  will  make  original  assess- 
ments of  railroad  property,  and  the  property  of  other  public  utilities, 
corporations  and  associations,  subject  to  review  by  the  Finance  Com- 
mission. The  Revenue  Commissioner  will  have  direct  control  over 
the  administration  of  the  inheritance  tax  and  automobile  licenses,  to 
which  may  be  added  other  State  revenues. 

The  Auditor  of  Public  Accounts  and  the  State  Treasurer  will  in  the 
main  continue  their  present  functions.  The  Auditor's  powers  should 
be  extended  over  the  auditing  of  all  State  officials,  and  he  should  also 
be  authorized  to  audit  the  accounts  of  county  officials.  The  State 
Treasurer's  control  and  responsibility  for  State  funds  will  also  be  in- 
creased by  requiring  such  funds  to  be  paid  in  to  the  State  Treasury 
more  fully  and  more  promptly  than  under  the  present  system. 
Local  Administration. 

Some  changes  are  also  proposed  in  local  finance  administration.  The 
Committee  believes  that  a  system  of  county  assessment  and  collection 
of  property  taxes  will  be  more  efficient  than  the  present  system  of  town 
assessors  and  collectors  now  established  in  most  counties.  But  its 
definite  proposals  present  only  optional  provisions,  under  which  any 
county  or  any  township  may  transfer  these  functions  to  county  officers. 
At  the  same  time  it  is  proposed  to  centralize  the  assessment  and  collec- 
tion of  the  inheritance  tax  under  the  Revenue  Commissioner. 

It  is  also  proposed  to  establish  county  boards  of  taxation,  to  consist 
of  the  chairman  of  the  county  board,  the  county  clerk  and  the  county 


REPORT  OF  THE  COMMITTEE.  37 

treasurer,  to  take  the  place  of  the  county  boards  of  review  and  to  pass 
on  the  validity  of  local  tax  levies.  In  Cook  County  the  county  board 
of  review  as  now  organized,  will  act  as  the  county  board  of  taxation. 
Provision  is  further  made  for  a  county  controller,  for  installing  a 
system  of  accounts  in  county  offices,  and  for  the  regular  audit  of  such 
accounts  by  the  Auditor  of  Public  Accounts,  and  for  the  release  from 
liability  of  such  officers  and  their  bondsmen  after  such  audit. 
Financial  Results. 

The  abolition  of  the  State  Board  of  Equalization  and  the  Court 
of  Claims  will  offset  the  salaries  of  the  new  officials  proposed;  but 
there  will  be  added  expenses  for  experts  and  clerks  if  the  new  system 
is  to  be  made  thoroughly  efficient.  The  saving  proposed  in  the  ex- 
tension of  taxes,  and  the  interest  on  tax  collections  should  amount  to 
more  than  $500,000  a  year,  and  about  half  of  this  amount  may  be  added 
to  the  State  Treasury.  The  centralization  of  inheritance  tax  adminis- 
tration should  lead  to  a  large  reduction  in  the  present  cost  of  admin- 
istration, which  may  be  roughly  estimated  at  $100,000  a  year.  But  the 
greatest  gains  will  come  from  the  increased  revenues  under  a  more 
efficient  system  of  revenue  administration;  and  the  reduction  m  ap- 
propriations and  expenditures  for  the  State  as  a  whole  under  a  careful 
budget  and  accounting  system  such  as  is  proposed. 
Proposed  Finance  Bill. 

To  carry  out  these  recommendations  will  require  a  large  number  of 
changes  in  the  revenue  law  and  other  laws  relating  to  public  finances. 
It  would  be  difficult,  if  not  impracticable  to  make  all  these  changes  in  a 
single  bill,  or  in  a  series  of  bills,  dealing  only  with  the  administrative 
machinery.  The  Committee  has,  therefore,  had  prepared  a  compre- 
hensive finance  bill  consolidating  and  codifying  the  various  laws  into  a 
single  act.  This  has  the  additional  advantage  of  making  possible  a 
simplification  of  these  laws  by  eliminating  obsolete  and  conflicting  pro- 
visions, and  by  a  rearrangement  of  provisions,  which  should  make  the 
law  more  intelligible,  both  to  the  officials  charged  with  its  enforcement 
and  to  the  general  public.  For  example,  the  complicated  phraseology 
of  the  Juul  law  has  been  rewritten,  so  as  to  make  its  meaning,  as  inter- 
preted by  the  Supreme  Court,  more  readily  understood. 

It  is  of  course  impossible  in  this  revision  of  the  finance  laws  to 
make  any  fundamental  changes  in  the  system  of  taxation,  on  account 
of  the  requirements  of  the  State  constitution  as  to  uniformity.  But 
there  is  proposed  a  further  centralization  in  the  assessment  of  the 
property  of  corporations  and  associations  by  the  Tax  Commissioner,  as 
in  Ohio  and  other  states,  so  as  to  include  the  value  of  the  property  of 
foreign  corporations  and  associations  which  is  not  covered  by  the  pres- 
ent State  assessment  on  the  capital  stock  of  Illinois  corporations. 


38  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Accounting. 

In  addition  to  the  proposals  to  establish  the  administrative  machinery 
and  authority  for  an  adequate  system  of  public  accounting  in  the  State, 
the  Committee  has  had  prepared  a  special  report  on  the  present  ac- 
counting methods,  a  general  basis  for  an  accounting  system,  and  a 
detailed  classification  of  accounts  for  the  penal  institutions  of  the  State, 
as  an  illustration  of  the  general  plan.  These  reports,  by  George  E. 
Frazer,  Certified  Public  Accountant,  and  Spurgeon  Bell,  formerly  Sec- 
retary of  the  Chicago  Commission  on  City  Expenditures,  are  printed 
as  appendices  to  the  report  of  the  Committee ;  and  special  attention  is 
directed  to  them  as  examples  of  what  is  needed  to  provide  satisfactory 
public  accounts.  The  general  basis  for  an  accounting  system  calls 
attention  to  the  requirements  which  should  be  met  by  an  adequate 
accounting  system,  to  be  formulated  under  the  direction  of  the  pro- 
posed finance  commission;  and  the  classification  of  accounts  for  the 
penal  institutions,  which  has  been  based  on  a  comprehensive  survey  of 
the  present  accounts  and  business  methods  of  these  institutions,  is  in 
such  detail  as  to  be  available  for  the  use  of  the  proposed  Board  of 
Prison  Administration,  or  indeed  of  the  existing  boards  of  commis- 
sioners and  managers. 

Contracts,  Printing  and  Supplies. 

The  law  relating  to  the  making  and  execution  of  State  contracts  for 
printing,  binding,  stationery  and  fuel  prescribes  an  extremely  compli- 
cated procedure,  under  which  duties  are  distributed  between  the  Gov- 
ernor, Secretary  of  State,  State  Board  of  Contracts  and  Printer  Ex- 
pert. As  a  result  no  single  authority  can  be  held  responsible  for  mis- 
takes and  inefficient  methods.  Many  of  the  details  in  the  present  law 
prevent  the  most  efficient  and  economical  method  of  securing  such 
supplies.  At  the  same  time  there  is  no  adequate  control  ove^  the 
amount  of  printing,  and  no  provision  for  editorial  supervision  over  the 
material  printed. 

Appropriations  are  made  in  lump  sums  for  printing,  binding, 
paper,  stationery  and  heating  and  lighting;  and  payments  made  out  of 
these  appropriations  do  not  appear  in  the  expenses  of  the  several  offices 
for  which  they  were  incurred.  At  the  same  time,  much  printing,  bind- 
ing, stationery  and  fuel  is  purchased  by  the  several  departments,  offices 
and  institutions,  and  paid  for  out  of  their  separate  appropriations.  As 
a  result  the  reports  of  expenditures  from  appropriations  for  the  several 
offices  and  institutions  do  not  show  all  their  expenses ;  nor  do  the  re- 
ports of  expenditures  from  the  lump  appropriations  for  printing,  bind- 
ing, stationery,  and  heating  and  lighting  show  all  the  expenses  for 
these  purposes. 


EFFICIENCY  AND  ECONOMY  COMMITTEE.  39 

Office  furniture  and  equipment,  telephone  service  and  other  office 
supplies  and  services  are  now  purchased  separately  by  each  office  or 
board.  For  example,  there  are  thirty-five  different  State  offices  in  the 
State  Capitol,  and  there  are  fifteen  other  State  offices  in  the  city  of 
Springfield,  each  of  which  makes  its  own  contract  for  telephone  serv- 
ice. The  regular  rental  for  this  service  amounts  to  $4,600  a  year.  A 
branch  telephone  exchange  for  all  the  State  offices  in  and  near  the  State 
Capitol  would  probably  be  more  economical  and  efficient. 

Responsibility  and  control  over  printing,  binding,  and  stationery 
supplies  should  be  simplified  and  centered  in  a  Superintendent  of  Print- 
ing, who  should  actively  cooperate  with  the  printing  establishment  in  the 
State  Reformatory.  Fuel,  light,  telephone  service  and  office  furniture 
and  equipment  for  State  offices  should  be  concentrated  in  the  Superin- 
tendent of  Buildings.  General  contracts  for  all  of  these  services  and 
supplies  should  be  based  on  competitive  bids,  and  made  by  the  proposed 
State  Comptroller,  with  the  approval  of  the  Governor.  Lump  approp- 
riations to  cover  these  contracts  may  be  continued;  but  the  expense 
incurred  for  each  department  or  office  should  also  be  charged  to  it,  and 
included  in  the  report  of  its  expenses.  There  should  also  be  a  general 
revision  of  the  State  Contract  law,  which  in  many  respects  is  obsolete 
and  inoperative. 

CHARITABLE  AND  CORRECTIONAL  INSTITUTIONS. 

Present  Management. 

The  State  of  Illinois  now  maintains  twenty-two  charitable  and  cor- 
rectional institutions,  for  the  care  of  defective,  delinquent  and  other 
dependent  classes  and  for  the  confinement  of  convicted  criminals ;  and 
several  other  institutions  have  been  authorized  by  the  General  Assem- 
bly. Until  a  few  years  ago  each  of  these  institutions  was  under  the 
control  of  a  separate  board  of  trustees,  managers  or  commissioners, 
with  some  supervision  in  most  cases  by  an  unpaid  State  Board  of 
Public  Charities.  But  by  an  Act  of  1909  all  the  "charitable  institu- 
tions" were  placed  under  the  direct  management  of  a  single  salaried 
Board  of  Administration,  and  subject  to  the  visitation  and  inspection 
of  an  unpaid  State  Charities  Commission;  while  the  correctional  inst- 
tutions  remain  under  the  control  of  separate  boards.  These  two 
classes  of  institutions,  which  are  in  many  respects  similar  in  their  func- 
tions, are  thus  organized  on  radically  opposing  systems  of  management, 
which  permit  of  a  direct  comparison  of  the  results  of  the  different 
methods. 

For  the  "charitable  institutions,"  which  includes  some  institutions  of 
an  educational  and  reformatory  character,  there  is  a  single  board  of 
management,  whose  members  are  paid  to  give  their  full  time  to  the 


40  EFFICIENCY  AND  ECONOMY  COMMIttEE. 

service.  The  State  Treasurer  is  treasurer  for  all  of  these  institutions. 
One  member  of  the  Board  of  Administration,  as  fiscal  supervisor,  is 
business  manager  for  all  of  the  institutions ;  supplies  are  regularly  pur- 
chased for  all  of  the  institutions  on  competitive  bids;  and  a  uniform 
system  of  accounts  and  purchases  is  maintained.  One  member  of  the 
Board  of  Administration  is  required  to  be  a  trained  specialist  in  the 
care  of  the  insane,  who  form  the  largest  group  in  these  State  insti- 
tutions. 

In  addition  to  this  highly  centralized  system  of  administration,  there 
are  elaborate  provisions  for  the  inspection  and  investigation  of  these 
institutions :  first,  by  the  Board  of  Administration  itself ;  secondly,  by 
the  unpaid  Charities  Commission,  which  acts  largely  through  its  execu- 
tive secretary;  and  thirdly  by  local  boards  of  visitors  for  each  insti- 
tution. 

In  marked  contrast,  there  are  no  less  than  six  boards  having  au- 
thority over  the  State  reformatory  and  two  State  penitentiaries.  There 
is  a  separate  board  of  commissioners  for  each  penitentiary  and  a  board 
of  managers  for  the  reformatory,  in  direct  charge  of  their  respective 
institutions.  The  members  of  these  three  boards  collectively  form  a 
Board  of  Prison  Industries.  Another  Commission  has  charge  of  the 
construction  of  a  new  penitentiary  and  hospital  for  insane  criminals. 
There  is  also  a  State  Board  of  Pardons,  which  advises  the  Governor 
on  applications  for  pardons,  and  acts  as  a  board  of  parole  for  the  two 
State  penitentiaries.  Finally  there  is  an  ex  officio  board  of  classifica- 
tion, to  determine  prices  to  be  paid  for  prison  made  articles  by  other 
State  institutions  and  offices.  Except  the  last,  the  members  of  these 
boards  receive  salaries  of  varying  amounts,  which  aggregate  $28,000 
a  year;  but  the  salaries  paid  are  not  sufficient  for,  nor  does  the  law 
require,  the  members  to  give  their  full  time  to  their  public  duties. 

Under  the  present  arrangements,  each  of  these  correctional  institu- 
tions is  organized  independently  of  the  others;  and  in  spite  of  the 
number  of  authorities,  there  is  no  general  system  of  inspection  or  sup- 
ervision over  the  separate  institutions.  There  is  no  uniformity  in  their 
internal  organization,  salaries,  methods  of  administration,  purchase  of 
supplies  or  accounting.  From  the  financial  statements  published,  it 
appears  that  in  one  institution  the  total  expense  for  salaries  is  a  much 
larger  proportion  of  the  total  expense  than  in  the  others.  The  prices, 
quality  and  amount  of  supplies  for  the  three  institutions  vary  widely. 
The  per  capita  cost  of  maintenance  in  the  three  institutions  differs  to  a 
large  extent;  and  is  much  higher  than  in  the  State  hospitals  for  the 
insane.  The  system  of  accounts  is  clearly  inadequate  and  uncompar- 
able;  and  it  is  impossible  to  determine  definitely  either  the  ordinary 
expenses  or  whether  the  prison  industries  yield  a  profit  or  a  loss. 


REPORT  OF  THE  COMMITTEE.  41 

The  State  Board  of  Pardons,  which  also  acts  as  a  board  of  parole 
for  the  State  penitentaries,  is  composed  of  three  members,  each  of 
whom  receives  a  salary  of  $3,500  a  year.  The  Board  also  appoints 
a  clerk  and  stenographer.  It  is  required  to  hold  meetings  once  in 
three  months;  and  in  practice  monthly  meetings  are  held.  Pardon 
cases  appear  to  take  but  a  small  amount  of  time;  and  parole  cases 
(amounting  to  about  1,500  in  1913)  are  said  to  take  about  two  weeks 
of  each  month.  The  Board  of  Managers  of  the  reformatory  acts  as  a 
board  of  parole  for  that  institution. 
Advantages  of  Central  Board. 

In  favor  of  the  single  central  board  system,  the  following  advan- 
tages may  be  urged : 

( 1 )  It  makes  possible  uniformity  in  the  organization  and  adminis- 
tration of  the  various  institutions.  The  central  board  should  be  a 
clearing  house  of  statistical  and  other  information  relating  to  the  sev- 
eral institutions  and  their  inmates ;  and  by  the  standardization  of  serv- 
ices, salaries,  accounts,  methods  and  reports,  it  can  secure  uniformity 
and  equality  between  the  several  institutions,  and  greater  economy  and 
efficiency  in  their  management. 

(2)  It  promotes  economy  by  the  elimination  of  duplicate  officials 
and  employees,  by  establishing  a  more  vigorous  supervision  over 
financial  expenditure,  and  by  centralizing  the  purchase  of  supplies  in 
large  quantities  for  all  the  institutions,  so  that  these  may  be  bought  at 
lower  rates.  An  investigation  of  the  State  charitable  institutions  by  a 
Committee  of  the  General  Assembly  in  1908,  showed  startling  varia- 
tions in  the  prices  paid  for  the  same  supplies  in  different  institutions, 
as  is  pointed  out  in  Professor  Garner's  report.  Under  the  centralized 
system  of  management  established  by  the  Act  of  1909,  there  has  been 
a  marked  saving  in  the  cost  of  maintenance,  even  in  the  face  of  higher 
prices,  as  shown  in  the  following  summary : 

Gross  cost  of  maintenance,  based  on  the  number  of  inmates  in  1910, 

at  the  per  capita  cost  for  1909— 15,705.98@$194.87  per  capita... $  3,060,624.32 

Gross  cost  of  maintenance,  at  per  capita  cost  for  1910 

— 15,705.98@$175.35  per  capita $2,754,043.47 

Expenditures  of  Board  of  Administration  for  1910 58,400.68 

Total   for   1910 2,812,444.15 

Saving  in  1910  under  per  capita  cost  for  1909 $     248,180.17 

Gross  cost  of  maintenance,  based  on  the  number  of  inmates   for 

1910,  1911,  1912,  and  1913,  at  the  per  capita  cost  for  1909 $12,534,960.07 

Gross  cost  of  maintenance,  based  on  the  number  of  inmates  for 
1910,  1911,  1912,  and  1913,  at  the  per  capita  cost  for  each  year, 
plus  the  expenditures  of  the  Board  of  Administration,  and  in- 
creases in  bills  for  repairs  and  improvements $12,116,509.74 

Net  reduction  in  four  years $     418,450.33 


42  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

In  the  penitentiaries  and  reformatory  the  conditions  which  formerly 
prevailed  in  the  charitable  institutions  still  continue.  The  differences 
in  accounting  systems  of  the  several  institutions  make  exact  compari- 
sons difficult.  But  it  is  clear  that  there  is  no  uniformity  of  standards 
as  to  salaries  of  positions,  and  that  there  are  striking  differences  as 
between  the  amount,  quality  and  prices  of  food  and  other  supplies. 
The  estimated  per  capita  cost  of  maintenance  varied  in  1912  from 
$179.84  to  $255.35;  and  the  lowest  of  these  figures  is  nearly  thirty  per 
cent  more  than  the  average  for  the  State  hospitals  for  the  insane 
($140).  While  some  items  of  expenses,  for  guards  and  food  supplies, 
may  reasonably  be  higher  in  the  correctional  institutions;  there  are 
other  items,  as  for  medical  services,  which  are  necessarily  higher  in 
the  charitable  institutions.  The  inmates  of  the  correctional  institu- 
tions are  also  employed  in  prison  industries,  making  goods  which  are 
sold  to  other  State  institutions  and  in  part  on  the  open  market;  and 
the  proceeds  from  these  sales  should  reduce  the  net  cost  to  the  State. 
Nevertheless,  the  per  capita  appropriations  for  the  correctional  institu- 
tions are  higher  than  for  the  charitable  institutions. 

(3)  It  promotes  efficiency  by  the  centralization  of  power  and  re- 
sponsibility. A  single  central  board  giving  its  whole  time  to  its  public 
duties  can  keep  in  close  touch  with  conditions  in  the  different  institu- 
tions and  it  can  compare  these  conditions  and  bring  all  to  a  common 
standard.  By  relieving  the  managing  officers  of  the  institutions  from 
business  and  financial  details,  they  are  left  free  to  devote  their  time  to 
the  care  and  welfare  of  the  inmates. 

Ill  Other  States. 

There  is  a  marked  tendency  in  this  country  towards  the  abolition  of 
separate  local  boards  for  state  institutions,  and  the  substitution  of  cen- 
tral boards  for  the  control  of  ail  institutions  of  each  class.  Kansas 
established  a  central  board  for  its  charitable  institutions  in  1873;  and 
New  York,  in  1877,  consolidated  the  manegement  of  its  state  prisons 
under  a  single  state  superintendent  of  prisons.  Other  states  have 
gradually  centralized  the  management  of  one  or  the  other  or  both  of 
these  classes  of  institutions.  Half  of  the  states  have  now  established 
central  boards  of  control  for  at  least  one  class  of  institutions;  eleven 
of  these  have  placed  both  their  charitable  and  correctional  institutions 
under  a  single  board ;  six  others  have  placed  all  the  charitable  institu- 
tions under  one  board;  seven  have  placed  all  the  correctional  institu- 
tions under  a  single  authority,  and  in  two  of  these  (Kansas  and  Ken- 
tucky) the  charitable  institutions  are  also  under  the  control  of  a  single 
board. 


REPORT  OF  THE  COMMITTEE.  43 

In  eighteen  states  the  management  of  state  correctional  institutions 
is  under  the  control  of  a  single  authority;  and  in  several  others  there 
have  been  established  a  central  supervising  agency  with  substantial 
powers.     These  include  nearly  all  of  the  most  important  states. 

In  the  states  where  the  central  board  system  of  managing  charit- 
able and  correctional  institutions  has  been  established,  this  plan  is  re- 
garded as  a  great  improvement  over  the  former  plan  of  separate  boards 
for  each  institution,  and  there  seems  to  be  no  sentiment  in  favor  of 
returning  to  the  former  methods.  In  1902,  a  Committee  of  the  National 
Prison  Association,  after  an  extended  investigation,  expressed  the  con- 
clusion that  all  penal  and  correctional  institutions  should  be  placed 
under  the  control  of  a  single  administrative  agency. 

State  Boards  of  Pardons  are  provided  in  about  two-thirds  of  the 
states.  In  most  cases  these  are  composed  of  ex  officio  members, 
usually  including  some  of  the  elective  state  officers ;  but  in  Georgia  and 
California  the  Prison  Board  acts  as  a  Board  of  Pardons.  In  a  few 
states  the  Boards  of  Pardon  are  composed  partly  of  ex  officio  members 
and  partly  of  members  specially  appointed  for  this  purpose;  and  in 
seven  states  the  Boards  of  Pardons  are  composed  entirely  of  specially 
appointed  members,  as  in  Illinois.  But  in  most  instances  members  of 
such  State  Boards  of  Pardons  receive  only  a  per  diem  allowance ;  and 
the  only  states  where  they  receive  any  considerable  salary  are  Texas 
($2,000  a  year)  and  Illinois  ($3,500  a  year). 

As  a  rule  State  Boards  of  Pardons  act  also  as  boards  of  parole ;  but 
there  are  a  good  many  exceptions  where  the  Prison  Board  or  prison 
officers  act  as  parole  officers.  No  other  state  finds  it  necessary  to  pay 
any  such  amount  as  does  Illinois  in  connection  with  pardon  and  parole 


Board  of  Prison  Administration. 

From  a  consideration  of  the  experience  in  Illinois  with  the  Board  of 
Administration,  which  is  confirmed  by  the  experience  of  other  states,  it 
seems  clear  that  the  management  of  the  State  penitentiaries  and  the 
reformatory  can  be  made  more  efficient  and  economical  by  being  placed 
under  the  control  of  a  single  responsible  authority.  Two  plans  for 
this  have  been  considered  by  the  Committee.  Under  one  plan,  these 
institutions  would  be  placed  under  the  control  of  the  Board  of  Admin- 
istration. Under  the  other  plan,  which  has  been  approved  and  is 
recommended  by  the  Committee,  it  is  proposed  to  consolidate  the  sev- 
eral penitentiary  and  reformatory  boards  into  a  single  Board  of  Prison 
Administration,  to  consist  of  three  members,  to  be  appointed  by  the 
Governor,  with  the  advice  and  consent  of  the  Senate,  at  annual  salaries 


44  EFFICIENCY  AND  ECONOMY   COMMITTEE, 

of  $5,000  each,  who  are  to  be  required  to  give  full  time  to  the  work  of 
the  Board.  This  Board  is  to  have  similar  powers  over  the  peniten- 
tiaries and  reformatory  as  the  Board  of  Administration  has  over 
charitable  institutions ;  and  is  also  to  have  all  the  powers  of  the  Board 
of  Prison  Industries,  the  new  Penitentiary  Commission  and  the  Board 
of  Pardons.  One  member  of  the  Board  of  Prison  Administration 
will  be  fiscal  supervisor,  in  charge  of  the  fiscal  aflFairs  and  accounts  of 
the  institutions. 

The  salaries  for  the  proposed  Board  of  Prison  Administration  will 
be  less  than  those  now  paid  to  the  members  of  the  present  boards.  The 
more  centralized  organization  should  bring  about  much  greater  ef- 
ficiency in  the  management  of  these  institutions,  and  a  much  larger 
saving  in  the  expenditures.  A  reduction  of  $200,000  a  year  should  be 
made  by  bringing  the  cost  of  maintenance  to  the  same  per  capita  basis 
as  the  State  insane  hospitals.  The  prison  industries  should  be  operated 
on  a  more  efficient  basis,  so  as  to  yield  larger  financial  returns  and 
also  to  secure  better  results  in  the  training  of  prisoners. 

Some  changes  have  also  been  proposed  in  the  law,  as  to  the  age 
limits  for  prisoners  sentenced  to  the  reformatory  and  provision  for  a 
psychologist  at  each  of  the  correctional  institutions. 

No  change  is  proposed  by  this  plan  in  the  organization  and  func- 
tions of  the  Board  of  Administration  or  in  the  management  of  the  State 
charitable  institutions.  But  it  is  proposed  that  the  Charities  Commis- 
sion should  have  the  same  powers  of  inspection  and  supervision  over 
the  penitentiaries  and  reformatory  as  it  now  has  over  the  State  chari- 
table institutions. 

EDUCATIONAL    AGENCIES. 

Present  Organization. 

Public  education  is  the  most  important  service  performed  by  public 
authorities  in  Illinois,  as  in  the  United  States  generally,  as  measured 
either  by  the  number  of  persons  engaged  or  the  amount  of  money  ex- 
pended. Nearly  one-third  of  the  appropriations  made  by  the  General 
Assembly  in  1913  was  for  educational  purposes ;  and  more  than  a  third 
of  the  total  amount  of  property  taxes  levied  by  State  and  local  authori- 
ties in  Illinois  is  for  schools.  This  service  is  carried  on  by  a  series  of 
State  and  local  institutions  under  the  control  of  State  and  local  officials. 
The  public  elementary  and  secondary  schools  are  primarily  directed  by 
local  authorities,  but  under  the  provisions  of  the  State  laws  and  with  a 
more  systematic  supervision  by  higher  officials  than  in  most  fields  of 
public  administration  in  this  country.  Public  institutions  for  higher 
education  are  mainly  under  direct  State  control. 


REPORT  OF  THE  COMMITTEE. 


45 


There  are  now  no  less  than  fifteen  separate  State  boards  and  officials 
in  Illinois  whose  functions  are  primarily  educational.  Most  of  these 
authorities  are  legally  or  substantially  independent  of  each  other ;  and 
there  is  no  official  organ  for  correlating  and  coordinating  the  different 
phases  of  educational  work  in  the  state  into  a  systematic  whole ;  while 
even  some  of  the  branches  of  this  general  field  are  divided  between 
several  distinct  agencies. 

The  Superintendent  of  Public  Instruction  is  provided  for  by  the 
State  Constitution,  and  is  elected  by  popular  vote  for  a  four  year  term. 
He  has  general  supervision  over  the  common  and  public  schools,  with 
advisory  and  quasi-judicial  powers  over  local  authorities,  and  with 
some  administrative  and  financial  powers  to  examine  teachers,  to  con- 
trol the  distribution  of  State  school  funds,  and  to  serve  as  an  ex  officio 
member  on  various  institutional  boards. 

Each  of  the  five  State  normal  schools  is  under  the  control  of  a  sepa- 
rate board  of  trustees,  whose  members  are  appointed  by  the  Governor 
with  the  consent  of  the  Senate,  with  the  Superintendent  of  Public  In- 
struction serving  ex  officio  on  each  board.  Four  of  these  boards  con- 
sist of  six  members ;  while  the  Board  for  the  State  Normal  University 
at  Normal  has  fifteen  members.  The  normal  schools  have  not  been 
well  articulated  with  the  rest  of  the  state  educational  system ;  and  with 
a  separate  board  for  each  institution  there  has  been  a  greater  diversity 
of  methods  than  is  necessary  or  desirable.  Under  the  present  arrange- 
ments there  is  no  central  responsibility  for  adjusting  the  requests  of 
these  institutions  for  appropriations  ;  there  is  no  uniformity  in  the  items 
of  appropriations  or  the  accounts  for  these  schools,  so  as  to  permit  a 
comparison  of  their  financial  statements.  Each  institution  has  its  own 
system  of  fees,  and  has  its  own  system  of  educational  standards,  which 
causes  difficulty  when  students  transfer  from  one  school  to  another. 

The  University  of  Illinois  is  managed  by  a  board  of  trustees,  con- 
sisting of  nine  members  elected  by  popular  vote,  with  three  ex  officio 
members.  While  the  University  has  close  relations  with  the  general 
school  system,  there  is  no  official  organization  for  adjusting  these  rela- 
tions; and  the  election  of  trustees,  under  present  conditions,  cannot  be 
considered  as  a  popular  selection,  but  is  likely  to  be  determined  by  the 
trend  pf  party  politics  rather  than  by  educational  interests. 

There  are  now  six  libraries  maintained  by  the  State  in  Springfield, 
each  under  the  control  of  a  separate  authority — the  State  Library,  the 
State  Historical  Library,  the  State  Law  Library,  the  State  Museum 
Library,  the  Library  Extension  Commission  and  the  Legislative  Refer- 
ence Bureau,  These  have  a  total  staff  of  twenty-nine  persons,  and  an 
annual  appropriation  of  $70,000.    There-are  other  libraries  at  the  State 


46  EFFICIENCY  AND   ECONOMY  COMMITTEE. 

University,  the  normal  schools,  the  appellate  courts  and  in  some  other 
state  institutions  and  offices.  The  several  small  libraries  in  Spring- 
field, each  under  separate  control,  involve  more  or  less  duplication  of 
work;  they  do  not  always  actively  cooperate  with  each  other;  and 
none  of  them  is  of  sufficient  importance  to  command  the  services  of 
a  thoroughly  qualified  and  trained  librarian. 

A  number  of  scientific  bureaus  are  maintained  by  the  State,  most  of 
these  having  some  connection  in  law  or  in  practice  with  the  State 
University.  These  include  the  Agricultural  Experiment  Station,  the 
Engineering  Experiment  Station,  the  State  Laboratory  of  Natural  His- 
tory, the  State  Entomologist,  the  State  Water  Survey,  the  State  Geo- 
logical Survey,  and  the  State  Museum  of  Natural  History.  All  of 
these  are  primarily  engaged  in  investigational  and  educational  work 
with  reference  to  the  natural  resources  of  the  State,  closely  related  on 
the  one  hand  to  the  University,  and  at  the  same  time  to  other  branches 
of  State  government  and  to  the  general  public.  In  nearly  every  in- 
stance, however,  there  is  a  different  form  of  organization ;  and  no 
definite  policy  has  been  established  as  to  the  status  of  these  services, 
and  their  relations  with  each  other  and  with  other  State  agencies. 

The  local  administration  of  school  affairs  is  also  unduly  complex  ; 
and  its  efficiency  and  economy  can  be  increased  by  a  simpler  and  more 
concentrated  organization.  The  management  of  local  school  funds  by 
township  treasurers  costs  more  than  $200,000  a  year ;  and,  outside  of 
Cook  county,  these  expenses  come  to  more  than  a  tenth  of  the  State 
school  fund,  and  about  three-fourths  of  the  income  of  the  township 
school  funds.  A  large  part  of  this  expense  could  be  saved  and  the 
.  work  would  be  done  more  efficiently  by  a  county  officer. 

The  small  school  district  is  also  an  expensive  and  inefficient  system 
for  the  local  management  of  schools.  The  Educational  Commission, 
in  its  report  to  the  Forty-Sixth  General  Assembly,  reported  that  if  "the 
township  were  established  as  the  unit  of  school  organization,  we  should 
have  opened  the  way  to  increased  economy  and  efficiency  in  the  educa- 
tional work  of  the  state.  We  should  have  established  unity,  harmony, 
coordination,  organization,  economy,  and  efficiency,  for  separation, 
disunity,  confusion,  inefficiency  and' waste." 

Surveying  the  whole  field  of  educational  organization,  there  seems 
clear  need  for  a  reorganization  and  a  greater  concentration  of  authori- 
ties. Under  the  present  arrangements  there  are  too  many  distinct  and 
independent  agencies;  and  the  relations  between  the  various  officials 
and  boards  are  often  confusing  and  uncertain;  while  there  is  no  au- 
thority provided  to  bring  about  effective  cooperation  between  the  sev- 
eral agencies  and  to  plan  for  the  systematic  development  of  public 
education  in  its  various  lines. 


REPORT  OF  THE  COMMITTEE.  47 

In  Other  States  and  Countries. 

Each  of  the  important  countries  of  the  world  has  a  central  depart- 
ment of  education  or  pubHc  instruction,  which  exercises  supervision 
over  all  branches  of  public  education,  with  bureaus  dealing  with  each 
subdivision  of  the  general  field — as  elementary,  secondary  and  higher. 

Many  of  the  American  states  have  in  recent  years  reorganized  their 
educational  system,  or  important  parts  of  it,  in  the  general  direction 
of  a  more  concentrated  system.  Most  of  the  states  have  established  a 
state  board  of  education,  which  has  at  least  some  general  powers  of 
supervision,  and  in  some  states  (as  in  Massachusetts  and  Connecticut) 
exercises  considerable  advisory  influence.  In  several  states — such  as 
New  York  and  Indiana — the  state  boards  of  education  have  much 
larger  powers  over  the  general  school  system;  and  in  some  states  (as 
in  Oklahoma  and  Idaho)  they  also  are  the  managing  boards  for  state 
educational  institutions. 

In  most  of  the  larger  states  where  there  are  several  state  normal 
schools  the  management  of  these  schools  is  under  the  supervision  or 
control  of  a  single  authority.  Thus,  Massachusetts,  Connecticut,  New 
Jersey,  Michigan  and  Texas  place  all  the  state  normal  schools  under  the 
direct  control  of  the  state  board  of  education ;  and  Wisconsin  and  Min- 
nesota have  each  placed  its  normal  schools  under  the  control  of  a 
single  board. 

Several  states  have  in  recent  years  placed  the  management  of  all 
the  state  educational  institutions  under  the  control  of  a  single  board,— 
as  in  Florida,  Iowa,  South  Dakota,  Montana,  Oklahoma,  Kansas  and 
Idaho. 

Recent  reports  on  these  tendencies  in  educational  reorganization  in 
this  country,  by  President  Pritchett,  of  the  Carnegie  Foundation  for  the 
advancement  of  teaching,  by  President  Van  Hise,  of  the  University  of 
Wisconsin,  and  by  the  Virginia  Education  Commission,  of  1912,  agree 
in  endorsing  the  consolidation  of  the  management  of  educational  insti- 
tutions of  the  same  class,  and  in  urging  the  need  for  some  method  for 
securing  more  effective  correlation  and  cooperation  between  different 
state  educational  agencies.  There  is  difference  of  opinion  as  to  the 
results  of  the  more  comprehensive  consolidation  of  all  classes  of  educa- 
tional institutions  under  one  board.  In  some  of  the  smaller  states  with 
a  few  institutions  this  plan  seems  to  have  brought  about  improved 
conditions.  But  in  larger  states,  and  especially  where  salaries  have  been 
paid  to  members  of  such  educational  boards,  there  have  been  serious 
difficulties. 


48  EFFICIENCY   AND  ECONOMY   COMMITTEE. 

Recommendations. 

Several  considerations  seem  to  make  it  inadvisable  to  urge  at  this 
time  a  complete  centralization  of  educational  authorities  in  Illinois. 
The  constitutional  provision  requiring  the  popular  election  of  the  State 
Superintendent  of  Public  Instruction  stands  in  the  way  of  a  satisfactory 
method  for  selecting  the  executive  head  for  such  an  organization.  Prac- 
tical experience  also  indicates  that  for  educational  institutions  there  is 
a  distinct  advantage  to  be  gained  by  the  service  of  unpaid  boards ;  and 
tlvs  can  only  be  secured  if  the  amount  of  work  placed  on  one  authority 
is  limited  to  what  can  safely  be  expected  from  unpaid  services.  It  is, 
however,  feasible  to  reduce  the  number  of  separate  authorities,  and  to 
provide  for  their  inter-relations  so  as  to  secure  more  coordination  and 
harmony,  and  greater  efficiency  in  educational  administration 

It  is  therefore  recommended  by  the  committee,  that  there  shall  be 
established  a  State  Board  of  Education,  to  consist  of  the  State  Superin- 
tendent of  Public  Instruction,  the  president  of  the  University  of  Illi- 
nois, a  representative  of  the  normal  schools  appointed  by  the  Normal 
School  Board,  and  two  unpaid  members  to  be  appointed  by  the  Gover- 
nor, with  the  advice  and  consent  of  the  Senate.  This  board  should  have 
general  powers  of  advice  and  supervision  in  regard  to  the  public  school 
system  and  all  the  educational  interests  of  the  State. 

It  is  also  recommended  that  the  five  normal  school  boards  be 
consolidated  into  a  single  board  to  consist  of  the  State  Superintendent 
of  Public  Instruction,  and  eight  unpaid  members,  to  be  appointed 
by  the  Governor,  with  the  advice  and  consent  of  the  Senate,  for  terms 
of  eight  years,  two  members  retiring  each  second  year,  no  member 
10  be  a  resident  of  a  county  in  which  a  normal  school  is  located.  It  is 
believed  that  such  a  board  can  equalize  requests  for  appropriations  and 
can  arrange  for  better  cooperation  and  for  more  uniformity  in  the 
procedure  and  accounts  of  these  schools,  without  attempting  to  make 
all  of  the  schools  identical  in  their  curriculum  and  in  all  other  respects. 

It  is  further  recommended  that  the  board  of  trustees  of  the  Uni- 
versity of  Illinois  shall  consist  of  the  State  Superintendent  of  Public 
Instruction  and  eight  unpaid  members  to  be  appointed  by  the 
Governor  with  the  advice  and  consent  of  the  Senate,  for  terms  of  eight 
years,  two  members  retiring  each  second  year,  no  member  to  be 
a  resident  of  the  congressional  district  in  which  the  principal  part  of 
the  University  is  located. 

With  reference  to  the  scientific  surveys,  it  is  recommended  that 
the  State  Geological  Survey,  the  State  Water  Survey,  the  State  Natural 
History  Survey,  the  scientific  work  of  the  State  Entomologist  and 


REPORT  OF  THE  COMMITTEE.  49 

the  Natural  History  Museum,  be  placed  under  the  general  supervision 
of  a  Commission  on  Natural  Resources,  to  consist  of  the  Governor,  the 
President  of  the  University  of  Illinois  and  three  unpaid  members 
to  be  appointed  by  the  Governor  with  the  advice  and  consent  of  the 
Senate. 

It  is  also  recommended  that  the  State  Library,  the  Library  Exten- 
sion Commission  and  the  State  Historical  Library  be  combined  and 
placed  in  charge  of  a  State  Librarian,  to  be  appointed  by  the  State 
Board  of  Education.  The  staffs  of  the  present  libraries  should  be  con- 
tinued in  the  respective  divisions  of  the  consolidated  State  Library; 
and  the  trustees  of  the  State  Historical  Library  should  be  continued  as 
a  historical  commission,  in  charge  of  historical  research  and  publica- 
tion. 

Some  changes  in  local  school  administration  are  also  urged  to 
secure  greater  efficiency  and  economy: 

It  is  recommended  that  the  management  of  local  school  funds  be 
transferred  from  the  township  treasurers  to  the  county  treasurers, 
under  the  supervision  of  the  county  superintendents  of  schools,  as  a 
means  of  securing  greater  efficiency  and  economy  in  school  finances. 
The  committee  favors  a  change  from  the  school  district  to  the  town- 
ship unit  of  local  school  management,  but  as  a  compulsory  law  may 
not  be  possible,  an  optional  law  permitting  any  township  to  adopt  the 
township  unit  is  proposed  as  a  means  for  allowing  this  change  to  be 
made  wherever  it  is  supported  by  local  sentiment. 

ADMINISTRATION   OF  LABOR  LAWS. 

Existing  Authorities. 

Under  the  present  labor  and  mining  legislation  of  Illinois,  there 
are  nearly  a  score  of  separate  State  agencies,  for  the  enforcement  of 
the  different  laws.    These  may  be  grouped  as  follows : 
The  Board  of  Commissioners  of  Labor. 

Bureau  of  Labor  Statistics. 

Eight  Free  Employment  Offices. 

Inspection  of  Private  Employment  Agencies. 
The  Board  of  Arbitration. 
The  Department  of  Factory  Inspection. 
The  Industrial  Board. 
Mining  Agencies. 

The  State  Mining  Board. 

Twelve  State  Mine  Inspectors. 

The  Miners'  Examining  Board. 

The  Mine  Rescue  Station  Commission. 

Miners'  and  Mechanics'  Institutes. 


50  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

These  agencies  (excluding  the  miners'  and  mechanics'  institute  as 
an  educational  service)  have  a  total  staff  of  more  than  160  persons ; 
and  the  salaries  and  appropriations  for  the  two  years  beginning  July 
1,  1913,  amount  to  $682,185. 

In  addition  to  the  State  authorities,  many  statutory  provisions  re- 
lating to  labor  are  administered  by  local  authorities,  such  as  the  State's 
attorneys,  sheriffs  and  constables,  local  boards  of  health,  municipal 
building  commissioners  and  fire  departments. 

One  of  the  most  significant  features  of  labor  law  administration 
is  the  division  of  power  and  the  absence  of  coordination  between  the 
different  authorities.  Even  the  several  State  agencies  are  substantially 
independent  of  each  other,  and  are  answerable  to  no  common  head, 
except  the  general  supervision  of  the  Governor  and  the  authority  of 
the  General  Assembly  as  expressed  in  the  statutes.  The  eight  free 
employment  agencies  and  the  inspection  of  private  employment  agencies 
are  nominally  supervised  by  the  Commissioners  of  Labor;  but  in  fact 
are  conducted  as  distinct  offices.  So,  too,  the  twelve  State  mining  in- 
spectors, supposedly  under  the  direction  of  the  State  Mining  Board,  are 
practically  under  no  effective  central  control.  It  is  difficult  to  under- 
stand the  need  for  four  separate  boards  for  dealing  with  mining  affairs. 
The  State  Board  of  Arbitration  has  done  little  or  nothing,  and  its 
functions  could  be  better  performed  by  other  means.  As  between 
the  several  State  and  local  authorities,  there  is  an  equal,  if  not  greater 
lack  of  correlation  and  coordination. 

Not  only  is  there  no  approach  to  a  systematic  organization  of  these 
labor  agencies;  but  the  powers  and  duties  of  the  authorities  overlap 
and  conflict  in  a  confusing  manner.  A  striking  example  of  this  con- 
fusion is  in  the  matter  of  accident  reporting.  Accidents  are  required 
to  be  reported  to  the  Bureau  of  Labor  Statistics,  the  State  Mining 
Board,  the  Department  of  Factory  Inspection,  the  Industrial  Board  and 
the  Public  Utilities  Commission.  Different  laws  contain  conflicting 
provisions  in  regard  to  accident  reporting ;  and  while  the  laws  seem  to 
require  reports  of  some  classes  of  accidents  to  be  sent  to  two  or  more 
authorities,  there  is  no  clearing  house  for  the  interchange  of  the 
several  reports,  and  there  is  no  one  authority  to  see  that  all  accidents 
are  reported,  and  that  the  returns  are  compiled  and  analyzed.  As  a 
result  the  reports  received  are  incomplete  and  of  little  value. 

The  labor  laws  often  attempt  to  impose  specific  requirements  in 
minute  detail,  and  often  fall  into  the  opposite  danger  of  vagueness.  The 
specific  details  are  inelastic  and  frequently  literal  enforcement  is  im- 
practicable. Vague  provisions  call  for  "proper,"  "adequate,"  and  "suf- 
ficient" safeguards,  with  no  provision  as  to  what  shall  determine  how 


j  "  REPORT  OF  THR  COM  WTTTITF.  51 

these  requirements  may  be  met.  The  result  of  both  of  these  classes  of 
provisions  is  to  leave  a  wide  discretion  in  practice  to  the  administrative 
officers  or  their  agents  and  inspectors,  subject  to  a  possible  resort  to 
the  courts. 

Several  of  the  labor  agencies  are  organized  under  the  direction 
of  boards,  and  may  thus  seem  adapted  to  exercise  discretionary  powers 
to  meet  such  conditions.  But  powers  of  this  kind  could  be  more 
effectively  exercised'  by  a  single  body,  while  the  executive  authority 
both  for  the  several  branches  of  work  and  for  the  whole  group  of 
related  services  should  be  concentrated  under  the  control  of  single  in- 
dividuals. 

Salaries  vary  widely  even  for  the  same  class  of  work.  The  com- 
pensation of  the  chief  officials  range  from  $150  to  $4,000  a  year;  and 
the  commissioners  of  labor  who  receive  $150  a  year  are  required  to 
do  more  than  the  members  of  the  State  Board  of  Arbitration,  who 
receive  $1,500  a  year.  Inspectors  receive  from  $1,200  a  year  in  one 
service  to  $1,800  a  year  in  another;  while  in  none  of  the  services  are 
salaries  graded  according  to  ability  or  experience.  For  the  technical 
positions  there  are  no  adequate  provisions  to  secure  agents  who  are 
thoroughly  qualified,  or  to  prevent  unnecessary  changes. 

The  net  result  of  these  conditions  is  that  the  administration  of 
labor  laws  in  Illinois  has  been  and  is  far  below  even  a  reasonable  stand- 
ard of  efficiency ;  and  this  means  that  the  expenditure  for  maintaining 
the  present  organization  is  wasteful.  To  secure  a  proper  economy  in 
this  expenditure,  there  is  need  for  a  reorganization  which  will  make 
possible  an  efficient  administration  of  these  laws. 

Reorganisation  in  other  states. 

Within  a  few  years  several  other  states  have  reorganized  their 
labor  agencies  into  comprehensive  and  concentrated  departments.  These 
represent  two  main  types  of  organization.  In  New  York  and  Pennsyl- 
vania there  is  a  single  commissioner  of  labor  as  the  executive  head  of 
the  department,  with  deputy  commissioners  and  single  officials  at  the 
head  of  each  of  the  bureaus  into  which  the  department  is  divided.  In 
Wisconsin  and  Ohio,  there  is  an  industrial  commission  of  three  salaried 
members,  vested  with  all  the  powers  of  the  various  labor  boards  and 
officers ;  and  this  commission  subdivides  the  work  among  its  own  mem- 
bers and  organizjes  such  bureaus  as  it  deems  necessary. 

Of  these  two  types,  that  of  New  York  and  Pennsylvania  provides 
the  most  effective  executive  organization;  while  the  industrial  com- 
missions of  Ohio  and  Wisconsin  are  bodies  better  adapted  for  exer- 
cising quasi-legislative  and  judicial  powers,  and  have  greater  flexibility 


52  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

of  internal  organization.  A  combination  of  these  two  plans  seems  better 
than  either ;  while  it  also  seems  advisable  in  Illinois  to  provide  definitely 
for  the  main  subdivisions  of  work  in  such  a  department. 

Department  of  Labor  and  Mining. 

The  Efificiency  aiid  Economy  Committee,  therefore  recommends 
that  the  several  State  labor  and  mining  bureaus  in  Illinois  be  com- 
bined into  a  Department  of  Labor  and  Mining.  This  Department  should 
have  a  single  commissioner  as  its  executive  head,  and  two  deputy  com- 
missioners, who  with  the  commissioner  should  form  an  Industrial  Com- 
mission, with  power  to  conduct  hearings  and  investigations,  to  adopt 
general  rules  and  regulations,  to  decide  appeals  from  the  various  bureau 
ofificials  and  to  act  as  a  board  of  mediation  and  arbitration. 

It  is  further  proposed  that  the  department  be  organized  with  the 
following  bureaus  or  divisions: 

Bureau  of  Statistics. 

Bureau  of  Inspection,  to  carry  on  the  work  of  the  department  of 
factory  inspection. 

Bureau  of  Employment,  to  control  the  public  employment  offices 
and  to  inspect  private  employment  agencies. 

Bureau  of  Workmen's  Compensation. 

Division  of  Mining. 

Each  bureau  should  be  under  the  direct  control  of  a  single  exec- 
utive officer.  The  division  of  mining  should  have  a  large  measure  of 
autonomy.  It  should  be  under  the  general  direction  of  a  State  Mining 
Board,  constituted  as  at  present.  The  mine  inspectors  should  be  under 
the  direction  of  a  responsible  executive  head.  County  mine  inspectors 
should  be  abolished;  and  the  number  of  State  mine  inspectors  in- 
creased. The  miners'  examining  board  should  continue  and  be  ap- 
pointed as  at  present  and  with  its  present  powers;  but  should  be 
recognized  as  a  bureau  in  the  department  of  Labor  and  Mining. 

Provision  should  be  made  in  the  law  to  secure  competent  officials 
and  inspectors;  and  the  salaries  of  officials  in  the  different  branches 
of  the  proposed  department  should  be  readjusted,  and  graded  with 
reference  to  ability  and  experience.  A  more  definite  and  coherent 
plan  of  accident  reports  should  be  required,  with  provision  for  con- 
centrating, analyzing  and  publishing  comprehensive  data  on  this  subject 
through  the  bureau  of  statistics.  The  enforcement  provisions  of  the 
labor  law  should  be  made  more  effective  and  the  penalties  more  uni- 
form. There  should  also  be  authority  for  the  adoption  of  administrative 
regulations  to  supplement  and  replace  detailed  statutory  requirements, 
except  in  mining  affairs. 


REPORT  OF  THE  COMMITTEE. 


S3 


Results  Anticipated. 

The  reorganization  proposed  for  labor  and  mining  agencies  will 
not  involve  any  large  direct  reduction  of  expenditure.  The  abolition 
of  the  State  Board  of  Arbitration  and  the  Industrial  Board  will  save 
some  salaries,  which  will  take  care  of  the  new  offices  proposed,  and  the 
increased  salaries  suggested  for  the  heads  of  certain  bureaus.  The 
new  organization  should  also  permit  of  some  saving  in  clerical  and 
ofifice  expenses.  But  the  most  important  advantage  of  the  proposed 
plan  will  be  the  greater  efficiency  in  the  administration  of  the  labor 
laws. 

Proposed  Bill. 

To  carry  out  the  recommendations  of  the  committee  it  has  seemed 
advisable,  and  practically  essential,  to  rewrite  and  codify  the  present 
body  of  labor  legislation  into  a  single  comprehensive  statute ;  and  a 
draft  of  a  bill  for  this  purpose  will  be  presented  with  this  report.  This 
method  makes  it  possible  to  provide  definitely  for  the  new  plan  of 
organization,  and  to  adjust  the  duties  of  the  officials  to  the  existing 
law,  and  at  the  same  time  to  make  minor  changes  and  readjustments 
in  the  administrative  provisions  of  the  laws,  such  as  have  been  recom- 
mended. But  care  has  been  taken  not  to  attempt  any  important  changes 
in  the  substantive  law.  Even  in  the  matter  of  detailed  regulations, 
which  the  committee  believes  would  be  better  and  more  effective  if 
made  by  administrative  order,  the  existing  statutory  requirements  will 
for  the  most  part  remain  in  force.  In  the  case  of  mining  legislation  a 
separate  bill  will  be  presented  amending  the  existing  law. 

AGRICULTURAL    AGENCIES. 

Existing  Arrangements. 

For  the  conservation  and  promotion  of  agriculture  and  related 
interests  the  State  of  Illinois  maintains  a  numerous  and  complex  vari- 
ety of  authorities.  There  is  a  series  of  separate  and  independent 
boards,  organized  according  to  different  methods,  some  controlled  by 
private  organizations,  and  each  with  its  own  staff  of  officials  and 
employees.  There  are  other  services  under  the  direction  of  single  of- 
ficials. Some  important  services  are  furnished  through  or  in  connection 
with  the  State  University.  And  there  are  several  private  associations, 
which  receive  some  financial  support  from  the  State.  There  is  no 
unity,  no  efTective  correlation  of  related  services  and  no  responsible 
authority;  and  the  numerous  boards  are  ill  fitted  for  the  exercise  of 
administrative  functions  and  are  wasteful  in  their  results. 


$4  EFFICIENCY  AND  ECONOMY  COMMITTEE.  * 

The  State  Board  of  Agriculture  consists  of  twenty-seven  members, 
chosen  by  the  delegates  from  county  agricultural  societies.  These  are 
self-constituted  associations,  and  in  practice  the  board  is  a  close  corpor- 
ation. It  holds  two  or  three  meetings  a  year,  the  expenses  for  which 
amount  to  $8,000  a  year.  The  total  salaries  and  expenses  of  the  board 
and  its  office  staff  amount  to  $21,200  a  year.  The  only  important  duty 
of  this  board  is  the  management  of  the  State  Fair,  held  annually  in 
Springfield,  and  maintained  partly  from  State  appropriations  (largely 
for  buildings),  and  partly  from  admission  fees  and  concessions  at  the 
fair — the  latter  revenues  not  being  paid  into  the  State  treasury,  but 
being  expended  by  the  State  Board  of  Agriculture  at  its  discretion. 
The  board  also  apportions  the  State  appropriations  for  county  fairs; 
and  the  secretary  of  the  board  issues  licenses  for  the  sale  of  commercial 
fertilizers,  publishes  crop  statistics,  and  receives  reports  from  com- 
missioners of  Canada  thistles.  The  board  has  thus  no  comprehensive 
jurisdiction  in  matters  relating  to  agriculture,  and  is  little  more  than 
a  State  Fair  commission. 

The  Illinois  Farmers'  Institute  is  also  under  the  direction  of  a 
large  and  unwieldy  board  of  directors  of  twenty-nine  members,  most  of 
whom  are  chosen  by  delegates  from  county  institutes,  which  are  volun- 
tary organizations.  This  board  arranges  for  the  annual  meeting  of  the 
institute  and  for  the  publication  of  papers  delivered  there,  and  also 
arranges  for  county  institutes.  It  is  difficult  to  understand  the  need 
for  such  a  cumbersome  organization  to  supervise  the  expenditure  of 
$36,000  a  year  of  State  funds.  County  institutes  are  supported  in  part 
by  county  appropriations  and  private  contributions ;  but  in  a  third  of 
the  counties  in  1913  the  State  grant  was  more  than  a  half  of  the  total 
expenditure  reported.  Fifty  thousand  copies  of  the  report  of  the  Farm- 
ers' Institute  are  printed  and  bound,  out  of  the  general  State  contract. 
This  is  the  largest  single  item  for  binding  paid  by  the  State. 

The  Board  of  Live  Stock  Commissioners  (of  three  members) 
has  control  over  the  suppression  of  contagious  diseases  among  animals, 
including  the  publication  of  bulletins,  the  inspection  and  condemnation 
of  diseased  animals,  and  the  establishment  of  quarantine.  The  per 
diem  and  expenses  of  the  members  of  the  board  amount  to  $13,000  a 
year;  while  the  duties  could  be  more  efficiently  performed  by  a  single 
commissioner,  with  provision  for  the  approval  by  the  head  of  the 
department  in  the  case  of  the  more  important  acts.  The  State  Vet- 
erinarian and  his  assistants,  the  State  Biological  Laboratory,  and  the 
Board  of  Veterinary  Examiners  (of  three  members)  are  under  the 
supervision  of  the  Board  of  Live  Stock  Commissioners. 


REPORT  OF  THE  COMMITTEE.  55 

Aboard  (of  five  members)  of  Registration  of  Stallions  for  Public 
Hire  has  recently  been  established,  whose  members  receive  a  per  diem 
allowance,  and  it  maintains  a  staff  of  employees,  for  which  an  appro- 
priation of  $22,460  has  been  made.  The  duties  of  this  board  are  mainly 
clerical ;  and  could  be  performed  by  a  single  ofificer  with  such  clerical 
assistance  as  may  be  necessary. 

By  an  Act  of  1877  provision  is  made  for  the  appointment  of  four 
officers  to  enforce  the  law  for  the  prevention  of  cruelty  to  animals. 
These  officers,  known  as  humane  agents,  are  located  at  the  stock  yards 
in  Chicago,  Peoria,  and  East  St.  Louis ;  they  each  receive  an  annual  sal- 
ary of  $1,200  a  year,  with  no  appropriation  for  expenses ;  and  they  are 
subject  to  no  supervision  by  any  other  authority. 

An  Inspector  of  Apiaries  has  charge  of  the  official  inspection  of 
bee  hives;  while  the  inspection  of  nurseries,  trees  and  shrubs  is  in 
charge  of  the  State  Entomologist,  whose  primary  function  of  scientific 
investigation  is  to  some  extent  hampered  by  his  police  functions.  The 
inspection  of  nurseries  and  apiaries  might  well  be  consolidated  under 
one  official. 

Appropriations  are  made  by  the  General  Assembly  to  the  Illinois 
State  Horticultural  Society,  the  Illinois  Dairymen's  Association,  the 
Illinois  State  Poultry  Association  and  the  State  Beekeepers'  Associa- 
tion. These  are  substantially  voluntary  organizations,  and  they  are 
not  under  the  supervision  of  any  State  official. 

The  aggregate  appropriations  in  1913  for  the  foregoing  agricul- 
tural boards  and  commissions  amounted  to  $638,000;  and  including 
the  expenditure  from  other  State  Fair  revenues,  the  total  payments  for 
these  agencies  is  about  $950,000  for  the  two  year  period.  Two-thirds 
of  this  amount  is  expended  by  the  State  Board  of  Agriculture,  which 
is  largely  selected  not  by  the  State  but  by  voluntary  private  organiza- 
tions. 

In  Other  States  and  Countries. 

About  one-half  of  the  states  have  organized  departments  of  agri- 
culture which  include  a  number  of  related  services;  and  in  most  of 
these  states  the  department  is  under  the  direction  of  a  single  official. 
This  plan  of  organization  is  followed  in  most  of  the  southern  states,  and 
in  some  states  in  the  east  and  far  west;  but  the  most  important  ex- 
amples of  a  consolidated  department  of  agriculture  in  the  United  States 
are  in  New  York,  Pennsylvania  and  Ohio.  In  each  of  these  three 
states,  the  department  includes  all  the  services  noted  in  this  section  of 
the  report,  and  also  the  work  of  food  inspection,  and  in  Ohio  the 
enforcement  of  fish  and  game  laws.  The  New  York  and  Pennsylvania 
departments  are  organized  under  a  single  official,  with  a  series  of 


56  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

bureaus  each  dealing  with  some  division  of  the  work.  In  Ohio,  there 
is  an  agricultural  commission  of  four  salaried  members  (established 
in  1913)  which  has  power  to  establish  bureaus  and  to  conduct  investi- 
gations and  hearings. 

In  the  United  States  National  Government,  in  the  Dominion  of 
Canada  and  its  provinces,  in  the  Commonwealth  of  Australia  and  the 
several  states,  and  regularly  in  the  governments  of  Europe,  there  are 
consolidated  departments  of  agriculture,  each  under  the  direction  of  a 
single  official,  with  subordinate  bureaus  and  divisions. 

Proposed  Organization. 

The  Efficiency  and  Economy  Committee  recommends  that : 

(1)  The  various  State  boards  and  offices  discussed  in  this  section 
of  the  report  be  consolidated  into  a  Department  of  Agriculture,  under 
the  general  direction  of  a  Secretary  of  Agriculture,  to  be  appointed 
by  the  Governor  with  the  advice  and  consent  of  the  Senate ; 

(2)  This  department  should  be  organized  with  a  number  of 
bureaus,  each  in  charge  of  a- single  executive  officer,  as  follows: 

A  Superintendent  of  the  State  Fair,  to  have  general  management 
of  the  State  Fair,  assisted  by  a  State  Fair  Commission  (to  consist  of 
the  Secretary  of  Agriculture,  the  Superintendent  of  the  State  Fair  and 
three  other  members)  in  awarding  building  contracts  and  in  adopting 
rules  and  regulations  relating  to  premiums  and  the  grant  of  space  con- 
cessions ; 

A  Director  of  Farmers'  Institutes,  to  have  charge  of  arrangements 
for  the  State  and  local  farmers'  institutes  and  the  publication  of  pro- 
ceedings, to  be  assisted  by  an  advisory  committee  of  five  members ; 

A  Live  Stock  Commissioner,  to  have  charge  of  the  enforcement  o\ 
laws  for  the  suppression  of  contagious  diseases  among  animals — his 
actions  in  establishing  quarantine  and  rules  relating  to  the  transporta- 
tion of  live  stock,  and  the  condemnation  of  animals  or  infected  property 
to  be  subject  to  the  approval  of  the  Secretary  of  Agriculture  or  the 
Governor ; 

The  State  Veterinarian  and  his  assistants,  the  State  Biological 
Laboratory  and  the  Board  of  Veterinary  Examiners  should  be  under 
the  supervision  of  the  Live  Stock  Commissioner ;  as  should  be  also  the 
humane  agents  and  a  registrar  of  pedigrees,  who  should  take  the  place 
of  the  Stallion  Registration  Board ; 

An  Inspector  of  Apiaries  and  Nurseries  should  have  charge  of 
enforcing  the  laws  relating  to  the  inspection  of  bee  hives,  trees,  plants 
and  shrubs,  combining  the  functions  of  the  Inspector  of  Apiaries  with 
the  inspection  and  police  duties  of  the  State  Entomologist ; 


REPORT  OF  THE  COMMITTEE.  57 

(3)  Private  associations  dealing  with  agricultural  interests  which 
receive  State  aid  should  be  required  to  report  to  the  Secretary  of  Agri- 
culture; and  their  requests  for  appropriations  should  come  through 
this  officer. 

As  shown  in  Professor  Garner's  report  on  Agricultural  Adminis- 
tration, the  organization  above  outlined  will  require  an  outlay  of  $29,- 
800  a  year  for  official  salaries  and  per  diem,  as  compared  with  $40,800 
a  year  under  the  present  arrangement,  or  a  saving  of  $11,000  a  year. 
But  this  reorganization  should  also  lead  to  a  larger  reduction  of  salaries 
and  eicpenses  for  subordinate  positions;  and  to  a  further  saving  by 
the  more  efficient  management  of  the  services.  It  will  also  bring  under 
State  control  the  State  Fair  and  Farmers'  Institute,  which  are  largely 
supported  by  State  appropriations. 

PUBLIC  HEALTH  ADMINLSTRATION. 

Present  Authorities. 

As  in  other  branches  of  public  administration,  State  control  of 
public  health  in  Illinois  is  exercised  by  a  number  of  separate  authori- 
ties independent  of  each  other.  The  principal  State  agencies  are : 
The  State  Board  of  Health,  the  State  Food  Commissioner,  the  State 
Board  of  Pharmacy,  the  State  Board  of  Dental  Examiners,  the  Bar- 
bers' Examining  Board,  and  State  Board  of  Nurse  Examiners. 

The  State  Board  of  Health  consists  of  seven  members,  appointed 
by  the  Governor  with  the  advice  and  consent  of  the  Senate,  who  receive 
$10.00  per  day  for  their  services  on  the  board.  The  Secretary  of  the 
board  is  its  executive  officer;  and  the  board  also  has  an  attorney,  a 
chief  inspector  of  lodging  houses,  a  chief  sanitary  inspector  and  other 
inspectors  and  clerks.  The  board  holds  examinations  and  licenses 
physicians,  midwives,  "other  practioners"  and  embalmers.  It  has 
general  supervision  over  the  registration  of  births  and  deaths.  It  con- 
ducts investigations  into  health  conditions ;  supervises  sanitary  condi- 
tions in  hotels  and  lodging  houses  in  Chicago ;  and  takes  measures  for 
the  control  of  epidemics  when  the  local  authorities  fail  to  act  properly. 
The  board  is  dependent  to  a  large  extent  on  local  authorities  to  enforce 
the  law;  and  there  is  complaint  that  these  local  officials  are  often  in- 
active.    Even  statistics  of  deaths  are  very  inadequately  reported. 

The  State  Food  Commissioner  is  charged  with  the  enforcement 
of  laws  regarding  the  production,  manufacture  and  sale  and  labelling 
of  food.  The  Food  Standard  Commission  adopts  standards  of  quality 
or  strength  for  food  products.  The  department  staff  includes  a  State 
analyst,  a  bacteriologist  and  an  attorney,  besides  inspectors,  analysts, 
and  clerks.  The  work  of  the  department  includes  the  sanitary  inspec- 
tion of  premises  where  foods  are  manufactured  or  sold,  the  examina- 


St  EFFIClENCT  AND  ECONOMY  COMMITTEE. 

tion  and  analysis  of  samples,  for  adulteration  and  misbranding,  the 
prosecution  of  violations  of  the  food  and  drugs  law,  and  the  license  of 
dealers  in  commercial  food  stufifs. 

The  State  Board  of  Pharmacy  consists  of  five  members  appointed 
by  the  Governor,  with  the  advice  and  consent  of  the  Senate,  who  receive 
$8.00  per  day  for  their  services.  The  Secretary  is  the  executive  officer ; 
and  there  is  a  small  staff  of  other  employees.  The  board  holds  exam- 
inations and  issues  licenses  to  pharmacists,  and  is  charged  with  the 
enforcement  of  laws  regulating  the  sale  of  drugs  and  chemicals. 

The  State  Board  of  Dental  Examiners  consists  of  five  members, 
appointed  by  the  Governor  for  five  year  terms.  One  member  is  chosen 
as  President  and  another  as  Secretary.  The  Secretary  receives  a 
salary  of  $1,200,  and  the  other  members  receive  $10.00  per  day  for 
their  services.  The  board  holds  examinations  and  issues  licenses  to 
dentists,  and  may  revoke  licenses. 

The  State  Board  of  Barbers'  Examiners,  established  in  1909,  con- 
sists of  three  members,  appointed  by  the  Governor  for  two-year  terms. 
Each  member  receives  a  salary  of  $1,200  a  year.  The  board  holds  ex- 
aminations and  issues  certificates  to  licensed  barbers,  and  may  revoke 
such  certificates  for  certain  causes;  and  is  also  authorized  to  adopt 
sanitary  rules  for  barber  shops,  subject  to  the  approval  of  the  State 
Board  of  Health,  and  to  inspect  such  shops. 

The  State  Board  of  Nurse  Examiners  consists  of  five  registered 
nurses,  appointed  by  the  Governor,  with  the  advice  and  consent  of  the 
Senate,  for  three-year  terms.  One  member  is  chosen  as  president  and 
one  as  secretary-treasurer.  The  secretary-treasurer  receives  a  salary 
of  $1,400  a  year ;  and  the  other  members  receive  traveling  expenses  and 
$10.00  per  day  for  their  services.  The  board  holds  examinations  and 
issues  certificates  of  registration  to  licensed  nurses,  and  may  revoke 
such  certificates  for  certain  causes ;  and  is  authorized  to  adopt  rules 
and  to  outline  a  course  of  training  for  accredited  schools  for  nurses 
and  to  inspect  such  schools. 

Other  State  agencies  exercising  some  authority  in  relation  to  sani- 
tation and  public  health  include  the  Rivers  and  Lakes  Commission 
(over  stream  pollution),  the  State  Water  Survey  (which  examines 
public  water  supplies),  the  State  Factory  Inspector  and  the  Live  Stock 
Commission.  Much  of  the  work  of  public  health  administration  is  in 
the  hands  of  local  authorities. 

These  separate  and  independent  authorities  in  this  field  have  to 
some  extent  overlapping  and  conflicting  powers;  while  there  is  no 
means  provided  for  effective  coordination  and  supervision.  The  State 
Board  of  Health  seems  in  the  past  to  have  given  more  attention  to  the 


REPORT  OF  THE  COMMITTEE.  59 

work  of  medical  registration  than  to  sanitary  and  public  health  regula- 
tion. Distinct  systems  of  sanitary  inspection  are  provided  by  the  State 
Board  of  Health,  the  State  Food  Commissioner  and  the  Barbers'  Exam- 
ining Board,  while  one  system  should  be  more  efficient.  There  is  need 
for  more  effective  supervision  over  local  authorities  by  the  State  health 
agencies.  Several  State  authorities  complain  of  difficulty  in  securing 
prosecutions  by  State's  attorneys;  and  two  authorities  have  each  an 
attorney  to  handle  their  own  cases. 

In  Other  States. 

State  boards  of  health  and  other  health  agencies  have  been  estab- 
lished in  all  of  the  states.  In  most  states  there  is  the  same  lack  of 
efficient  organization  as  in  Illinois ;  but  a  number  of  states  have  now 
provided  health  departments  with  larger  powers  and  a  more  efficient 
system  of  administration.  New  York  and  Pennsylvania  have  each  a 
well  organized  health  department,  under  the  executive  direction  of  a 
single  health  commissioner,  with  an  advisory  health  council,  and  sub- 
divided into  a  series  of  bureaus  or  divisions  for  yarious  branches  of 
the  work.  Massachusetts,  Maryland  and  Ohio  have  also  a  well  devel- 
oped service,  under  their  respective  state  boards  of  health.  New 
York,  Pennsylvania  and  Massachusetts  have  been  divided  into  a  num- 
ber of  sanitary  districts,  for  each  of  which  a  district  health  officer  is 
appointed ;  and  in  a  number  of  states  the  state  health  authorities  have 
larger  powers  of  control  over  local  health  authorities  than  in  Illinois. 

In  other  countries,  the  public  health  service  of  the  central  govern- 
ment is  usually  organized  as  a  division  of  one  of  the  main  executive 
departments.  Thus,  in  England  it  is  a  branch  of  the  Local  Government 
Board;  in  France,  it  is  a  division  in  the  Ministry  of  the  Interior; 
and  in  Prussia,  it  is  one  of  the  services  in  the  Ministry  of  Education 
and  Public  Health. 

Recommendations. 

It  is  recommended  by  the  Efficiency  and  Economy  Committee  that 
the  several  health  agencies  be  reorganized  and  combined  into  a  State 
Health  Department.  This  department  should  be  under  the  general 
direction  of  a  salaried  Health  Commissioner,  as  the  responsible  execu- 
tive officer;  with  an  unpaid  State  Board  of  Health  of  five  members,  to 
be  appointed  by  the  Governor,  with  the  advice  and  consent  of  the 
Senate,  this  board  to  act  as  an  advisory  body,  with  power  to  approve 
rules  and  regulations  and  to  decide  appeals  in  specified  cases  from 
bureau  officials.  This  board  should  not  be  entirely  composed  of  physi- 
cians.   The  department  should  be  organized  with  a  number  of  divisions 


60  REPORT  OF  THE  COMMITTEE. 

or  bureaus,  such  as  vital  statistics,  sanitary  inspection,  food  inspection, 
and  laboratories.  The  food  inspection  service  may,  however,  be  placed 
in  the  department  of  Agriculture. 

The  State  Health  Department  should  also  have  supervision  over 
the  examination  and  licensing  of  physicians,  pharmacists,  dentists  and 
nurses  and  the  regulation  of  those  authorized  to  carry  on  other  profes- 
sions and  trades  for  the  protection  of  the  public  health.  A  small  board 
or  committee  should  be  provided  for  each  profession,  to  arrange  for 
examinations  and  to  issue  licenses  and  revoke  them  for  cause.  So  far 
as  practicable,  the  clerical  and  administrative  work  in  connection  with 
such  examinations  should  be  handled  through  one  office ;  and  the  action 
of  the  examining  boards  in  revoking  licenses  should  be  subject  to  review 
by  the  State  Board  of  Health. 

The  Board  of  Barbers'  Examiners  and  the  Board  of  Nurse  Exam- 
iners should  be  abolished ;  but  the  Health  Department  should  exercise 
powers  of  sanitary  control  over  barbers. 

The  substantive  law  relating  to  public  health  interests  seems  to 
be  in  need  of  important  amendments  and  additions.  The  law  for  the 
collection  of  vital  statistics  should  be  made  more  effective;  the  phar- 
macy law  should  be  revised ;  the  cold  storage  of  food  products  should 
be  regulated ;  and  a  State  sanitary  code  should  be  enacted.  But  these 
matters  go  beyond  the  jurisdiction  of  this  Committee;  and  for  this 
reason  no  specific  recommendations  are  made. 

At  the  request  of  the  Committee,  the  United  States  Public  Health 
Service  has  detailed  Dr.  S.  B.  Grubbs  to  make  a  survey  and  report  on 
public  health  administration  in  Illinois.  Owing  to  the  pressure  of  other 
matters,  active  work  on  this  investigation  was  delayed  until  recently; 
but  the  report  of  this  survey  will  be  completed  and  presented  to  the 
General  Assembly  as  soon  as  possible. 

PUBLIC  WORKS,  PARKS  AND  BUILDINGS. 

Under  this  heading  have  been  grouped  the  State  authorities  deal- 
ing with  highways,  water  resources,  fish  and  game  conservation,  public 
buildings  and  monuments  and  State  parks.  These  include  the  State 
Highway  Commission,  the  Illinois  and  Michigan  Canal  Commissioners, 
the  Rivers  and  Lakes  Commission,  the  Game  and  Fish  Conservation 
Commission,  the  State  Architect,  the  State  Art  Commission,  the  Super- 
intendent of  Buildings,  the  Illinois  Park  Commission,  and  a  number 
of  minor  commissions  in  charge  of  public  monuments  and  reservations. 

These  authorities  are  less  actively  related  to  each  other  than  the 
authorities  in  the  other  groups  of  State  agencies.  But  their  functions 
all  relate  to  the  construction  of  public  works,  and  the  conservation  of 


REPORT  OF  THE  COMMITTEE.  61 

public  property  and  resources ;  their  interrelations  are  closer  than  is 
usually  realized ;  and  this  grouping  seemed  more  satisfactory  than  any 
other  to  carry  out  the  general  plans  of  the  Committee. 

Public  Works  and  Parks. 

The  State  Highway  Commission,  established  in  1913,  consists  of 
three  members  appointed  by  the  Governor  and  Senate.  It  is  the  central 
organ  of  highway  administration  in  the  State.  Formerly  road  adminis- 
tration was  thoroughly  decentralized,  at  first  in  county  authorities,  and 
later  in  township  and  road  district  commissioners.  After  1903  there 
was  an  advisory  State  board.  The  new  commission  is  on  a  salary  basis, 
and  has  important  powers  to  investigate  methods  of  road  construction, 
to  collect  statistics  and  other  information,  to  assist  the  local  highway 
officers,  and  to  prescribe  a  system  of  accounts  for  such  offices,  and  to 
supervise  and  control  the  planning,  construction  and  maintenance  of  a 
system  of  State  aid  roads.  The  commission  works  very  largely  through 
its  engineering  staff,  under  the  State  Highway  Engineer;  and  also 
through  the  new  county  superintendents  of  highways,  who  act  as  local 
agents  for  the  State  officials,  as  administrators  of  county  roads  and 
bridges  and  as  general  advisors  for  local  highway  commissioners. 

This  new  road  law  marks  an  important  step  in  the  direction  of 
State  supervision  of  highways,  though  it  may  be  questioned  whether 
even  in  designating  State  aid  roads  and  deciding  on  the  roads  to  be 
improved,  the  balance  of  power  is  not  too  much  in  the  hands  of  the 
local  authorities.  The  functions  of  the  State  authorities  are  for  the 
most  part  acts  of  executive  administration  or  technical  engineering 
work,  which  could  be  more  efficiently  directed  by  a  single  commissioner 
than  by  a  board  of  three  members. 

The  Illinois  and  Michigan  Canal  Commissioners  and  the  Rivers  and 
Lakes  Commission  have  each  important  powers  over  public  waters  in 
Illinois.  The  Canal  Commissioners  have  charge  of  the  Illinois  and 
Michigan  Canal ;  which  is  now  of  little  importance  and  is  not  self  sus- 
taining ;  while  their  jurisdiction  divides  the  control  over  the  route  of  the 
proposed  Lakes  to  the  Gulf  Waterway.  The  Rivers  and  Lakes  Commis- 
sion, estabHshed  in  1911,  has  a  general  jurisdiction  and  supervision  over 
all  the  rivers  and  lakes  of  Illinois,  subject,  however,  to  some  important 
exceptions,  and  with  a  miscellaneous  list  of  specific  powers,  to  collect 
and  publish  information,  to  give  advice  as  to  local  drainage  and  recla- 
mation projects,  to  prepare  plans  for  the  improvement  of  public  waters 
and  their  shores,  to  prevent  the  pollution  of  streams,  to  prevent 
encroachments  on  public  waters,  and  to  construct  flood  protection 
levees,  and  with  authority  to  hold  investigations  and  hearings  and  to 


62  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

issue  orders.  The  powers  of  this  commission  are  too  vague,  and  should 
be  more  clearly  defined.  In  practice,  most  of  the  work  of  original 
investigation  has  been  performed  by  the  State  Water  Survey ;  while  the 
most  important  work  done  by  the  Rivers  and  Lakes  Commission  has 
been  in  the  exercise  of  police  control  to  prevent  encroachments  and 
pollution  of  public  waters,  and  in  the  construction  of  levees. 

Jurisdiction  over  water  resources  is  also  exercised  by  the  State 
Water  Survey,  and  the  Fish  and  Game  Conservation  Commission,  and 
to  a  smaller  extent  by  the  State  Board  of  Health,  the  State  Geological 
Survey,  the  State  Laboratory  of  Natural  History  and  the  Public 
Utilities  Commission. 

More  efficient  administration  can  be  secured  by  consolidating  the 
Illinois  and  Michigan  Canal  Commissioners  and  the  Rivers  and  Lakes 
Commission  into  one  authority  with  general  jurisdiction  over  water- 
ways ;  and  by  placing  the  executive  administration  in  charge  of  a  single 
salaried  commissioner. 

The  Game  and  Fish  Conservation  Commission,  established  in  1913, 
is  a  consolidation  of  the  former  Fish  Commission  and  Game  Commis- 
sioner ;  and,  as  already  noted,  the  appropriations  for  the  combined  com- 
mission were  notably  less  than  those  made  two  years  before  for  the  two 
authorities.  The  new  Commission  consists  of  three  members  appointed 
by  the  Governor  and  Senate.  Its  principal  fvmctions  have  to  do  with 
the  enforcement  of  the  fish  and  game  laws  and  measures  to  conserve 
fish  and  game.  There  are  sixty  deputy  wardens  appointed,  and  also 
temporary  deputy  wardens,  with  police  powers  to  investigate  complaints 
and  to  arrest  violators  of  the  law.  A  fish  hatchery  is  maintained  at 
Havana,  and  fish  preserves  have  been  located  along  the  principal  fish 
streams ;  and  a  State  game  farm  has  been  established  at  Auburn  near 
Springfield.  The  nature  of  these  functions  does  not  require  a  board  of 
three  members ;  and  more  efficient  administration  could  be  obtained  by 
placing  this  service  under  the  control  of  a  single  executive  officer. 

The  Illinois  State  Park  Commission  is  an  unpaid  board  of  three 
members,  appointed  by  the  Governor,  with  jurisdiction  over  Starved 
Rock  Park,  Fort  Chartres  Park  and  Shabonna  Park.  Fort  Massac  Park 
is  under  the  control  of  a  board  of  trustees,  consisting  of  three  State 
officers  ex  officio  and  representatives  of  the  Daughters  of  the  American 
Revolution.  The  Rivers  and  Lakes  Commission  has  also  authority  to 
propose  plans  for  making  reservations  for  park  purposes  along  the 
public  waters  of  the  State. 

As  yet  these  provisions  for  State  parks  are  not  of  large  importance, 
but  more  eflfective  results  will  be  secured  under  the  management  of  a 


REPORT  OF  THE  COMMITTEE.  6S 

single  paid  superintendent,  who  should  have  charge  of  the  maintenance 
of  existing  3tate  parks,  and  the  duty  of  preparing  plans  for  a  more 
comprehensive  system. 
Public  Buildings  and  Monuments. 

The  construction  and  care  of  public  buildings  and  monuments  is 
looked  after  by  a  large  number  of  separate  officials.  Formerly  the  man- 
aging board  of  each  State  institution  had  complete  control  over  the 
buildings ;  and  special  commissions  have  been  established  from  time  to 
time  for  the  construction  of  buildings  of  unusual  importance,  such  as 
the  State  Capitol  and  the  Supreme  Court  Building,  and  a  large  number 
of  such  special  commissions  have  been  created  for  the  construction  of 
monuments.  The  State  Architect,  an  office  created  in  1899,  now  pre- 
pares plans  and  specifications  for  proposed  public  buildings  and 
improvements,  and  is  required  by  law  to  supervise  their  construction. 
He  receives  a  salary  of  $5,000  a  year,  and  not  to  exceed  2j/2  per  cent 
of  the  cost  of  the  work  for  expenses. 

The  State  Architect  provided  some  central  control  over  building 
construction,  at  a  time  when  each  of  the  State  institutions  was  under 
a  separate  board.  But  the  organization  and  functions  of  the  office  in 
Illinois  have  not  been  satisfactory.  Neither  the  State  Architect  nor 
his  staff  have  been  permanent ;  there  has  been  no  provision  for  prepar- 
ing preliminary  plans  as  a  basis  for  appropriations ;  the  method  of  pay- 
ment by  commission  has  not  worked  well ;  and  there  has  been  little  or 
no  inspection  of  construction. 

Since  the  creation  of  the  Board  of  Administration  the  control  of 
the  charitable  institutions  has  been  concentrated  under  one  body.  With 
the  consolidation  of  managing  boards  proposed  in  this  report,  the  con- 
trol of  each  class  of  institutions  will  be  in  charge  of  a  single  authority, 
which  should  have  control  over  the  special  type  of  buildings  needed 
for  the  institutions  under  its  management.  Comparatively  little  in  the 
way  of  new  buildings  seems  likely  to  be  needed  for  some  years.  Under 
these  conditions,  the  office  of  State  Architect  is  unnecessary.' 

The  State  Art  Commission  is  an  unpaid  board  of  six  members, 
appointed  by  the  Governor  and  Senate,  to  act  in  an  advisory  capacity 
on  plans  for  public  buildings  and  works  of  art  which  are  submitted  to 
it.  Before  1913  little  or  nothing  had  been  referred  to  this  body.  It 
has  recently  been  authorized  to  prepare  plans  for  a  Lincoln  and  a 
Douglas  Statue.  It  should  be  consulted  on  all  buildings  and  works  of 
art  erected  by  the  State. 

Numerous  temporary  commissions  and  committees  have  been  es- 
tablished from  time  to  time  for  the  construction  of  monuments  and 
other  memorials  in  different  parts  of  the  state.  No  one  seems  to  be 
responsible  for  the  care  of  most  of  these  monuments. 


64  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Control  over  the  care  of  the  pubHc  buildings  of  the  State  is  vested 
in  various  authorities.  The  Secretary  of  State  has  general  authority 
over  buildings  not  otherwise  provided  for  by  law,  and  appoints  a  Super- 
intendent of  Buildings  and  Grounds  for  the  State  Capitol,  who  has 
charge  of  a  force  of  janitors,  policemen  and  mechanics.  But  the  State 
Treasurer  also  appoints  a  force  of  watchmen;  and  each  office  in  the 
State  Capitol  has  its  own  janitor  service,  and  makes  arrangements  for 
its  own  telephone  service.  Other  state  buildings  in  Springfield  are  each 
under  the  jurisdiction  of  a  separate  official — the  Governor  has  control 
over  the  executive  mansion,  the  Supreme  Court  of  the  supreme  court 
building,  and  the  Adjutant  General  of  the  arsenal.  For  the  care  and 
maintenance  of  public  buildings  in  Springfield,  appropriations  were 
made  in  1913  amounting  to  $259,400  for  the  biennial'  period. 

Thirty  State  offices  in  Chicago  are  under  even  more  decen- 
tralized control.  Each  officer  or  board  arranges  for  his  own  quarters 
on  short  leases  (for  not  more  than  two  years)  in  widely  scattered  local- 
ities, at  an  aggregate  expense  of  $72,000  a  year. 

Efficiency  and  economy  would  be  subserved  by  placing  the  care  of 
all  the  public  buildings  in  Springfield  under  the  control  of  a  single  offi- 
cial, appointed  by  the  Governor,  who  should  also  have  power  to 
arrange  for  a  branch  telephone  system  covering  at  least  all  of  the  offices 
in  the  State  Capitol.  There  will  be  a  similar  advantage  in  assembling 
in  a  centrally  located,  modern,  fire  proof  building  in  Chicago  such  of- 
fices as  the  convenience  of  the  State  may  require  to  be  maintained  in 
that  city,  such  offices  to  be  under  the  supervision  of  the  Superin- 
tendent of  Buildings.  '  The  committee  does  not  recommend  the  con- 
struction of  a  building  in  Chicago  by  the  State. 
Recotnmendations. 

In  discussing  the  various  authorities  in  this  group,  suggestions 
have  been  made  for  substituting  single  officials  in  place  of  some  of  the 
numerous  boards  and  commissions,  and  for  consolidating  certain 
authorities,  such  as  the  Canal  Commissioners  and  Rivers  and  Lakes 
Commission,  and  the  control  over  the  care  of  public  buildings.  Atten- 
tion may  also  be  called  to  the  interrelations  of  these  several  authorities, 
and  the  advantages  of  uniting  them  in  some  general  organization. 

Several  of  these  authorities  are  primarily  engaged  in  engineering 
works  of  a  related  character ;  and  there  will  be  some  advantage  in  plac- 
ing these  engineering  services  in  one  department,  where  active  coopera- 
tion can  be  more  readily  secured,  and  large  problems  of  policy  con- 
sidered in  common.  In  European  countries  the  important  engineering 
works  of  the  government  are  thus  usually  brought  together  in  one 
department,  as  in  France  and  Prussia.    In  several  instances  the  authori- 


REPORT  OF  THE  COMMITTEE.  65 

ties  included  in  this  group  now  have  legal  powers  or  in  fact  exercise 
functions  which  bring  them  in  close  contact  with  each  other.  Thus  the 
Rivers  and  Lakes  Commission  and  the  Game  and  Fish  Conservation 
Commission  are  both  concerned  with  the  question  of  stream  pollution ; 
and  the  Rivers  and  Lakes  Commission  also  has  power  to  propose  plans 
for  park  reservations,  which  relates  to  the  work  of  the  State  Park 
Commission. 

As  already  pointed  out,  for  the  different  fields  of  service  included 
in  this  section  of  the  report,  the  executive  administration  can  be  more 
efficiently  carried  on  under  the  control  of  a  single  official.  There  are, 
however,  some  functions  where  it  will  be  advisable  to  have  a  small 
board — as  in  proposing  or  adopting  general  plans  (for  waterway 
improvement,  State  roads  or  State  parks),  in  approving  rules  and  regu- 
lations, and  in  conducting  hearings  or  deciding  appeals.  These  matters 
can,  however,  be  better  looked  after  by  one  board  than  by  a  separate 
board  for  each  particular  service. 

The  Committee,  therefore,  recommends  that  the  existing  State 
authorities  having  jurisdiction  over  highways,  public  waters,  fish  and 
game  conservation,  State  parks,  and  building  construction  and  main- 
tenance be  combined  into  a  single  executive  department  of  Public 
Works,  Parks  and  Buildings.  It  is  proposed  that  this  department  be 
placed  under  the  general  supervision  of  a  salaried  commission  of  three 
members  to  be  appointed  by  the  Governor,  with  the  consent  of  the  Sen- 
ate— this  commission  to  have  power  to  recommend  or  approve  larger 
questions  of  policy,  to  adopt  general  rules  and  regulations,  to  hear 
appeals  in  specified  cases  from  the  bureau  officials,  and  to  arrange  for 
cooperative  action  between  the  several  bureaus. 

It  is  further  proposed  that  one  of  the  members  of  the  Public 
Works  Commission  shall  be  State  Highway  Commissioner,  one  shall 
be  Commissioner  of  Waterways,  and  one  shall  be  Fish  and  Game  Com- 
missioner. Each  of  these  shall  be  in  direct  charge  of  one  of  the  main 
divisions  of  the  department — the  Commissioner  of  Waterways  com- 
bining the  functions  of  the  Rivers  and  Lakes  Commission  and  the  Canal 
Commissioners. 

Other  bureaus  and  services  should  be  in  charge  of  the  following 
officers :  the  Superintendent  of  State  Parks  and  Monuments,  the  State 
Art  Commission,  and  the  Superintendent  of  Public  Buildings.  The 
office  of  State  Architect  should  be  abolished  and  the  State  Art  Com- 
mission should  have  supervision  over  temporary  monument  commis- 
sions. The  Superintendent  of  Public  Buildings  should  have  charge 
of  the  maintenance  of  all  State  buildings  in  Springfield,  and  should  also 
have  control  over  the  rental  of  State  offices  in  the  city  of  Chicago. 


66  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

STATE  SUPERVISION  OF  CORPORATIONS. 

Present  Conditions. 

In  Illinois  there  are  four  State  officials  who  have  jurisdiction  over 
different  classes  of  business  corporations  and  over  businesses  which  are 
often  conducted  by  corporations.  These  are  the  Secretary  of  State, 
the  Auditor  of  Public  Accounts,  the  Insurance  Superintendent,  and 
the  State  Public  Utilities  Commission. 

The  Secretary  of  State  issues  charters  of  incorporation  to  most 
classes  of  corporations ;  and  exercise's  some  supervision  over  the  great 
number  of  ordinary  business  corporations. 

The  Auditor  of  Public  Accounts  issues  charters  to  State  banks; 
and  has  supervision  over  State  banks  and  banking  institutions,  trust 
companies,  title  guarantee  companies  and  building  and  loan  associa- 
tions ;  and  receives  reports  from  pawner's  societies. 

The  Insurance  Superintendent  charters  all  insurance  companies, 
except  title  guarantee  companies  and  assessment  life  and  accident  com- 
panies ;  and  has  control  over  the  organization  of  the  latter  class  of  com- 
panies. All  insurance  companies  except  title  guarantee  companies  are 
under  his  supervision.  The  State  Fire  Marshal  reports  to  the  Insur- 
ance Superintendent. 

The  State  Public  Utilities  Commission  has  large  powers  of  super- 
vision over  all  public  utilities — including  the  approval  of  stock  and 
bond  issues,  and  control  over  accounts  and  reports,  rates  and  services. 
The  grain  inspection  service  is  supervised  by  the  Public  Utilities 
Commission. 

Under  the  present  arrangements  some  classes  of  corporations  are 
under  the  supervision  of  more  than  one  State  authority.  Public  utility 
corporations,  trust  companies,  title  guarantee  companies,  and  assess- 
ment life  and  accident  insurance  companies  are  all  chartered  by  the 
Secretary  of  State ;  but  are  under  the  supervision  of  the  Public  Utilities 
Commission,  the  Auditor  of  Public  Accounts  or  the  Insurance  Super- 
intendent. Efficiency  and  economy  would  be  promoted  by  having  all 
the  control  exercised  over  each  class  of  corporations  in  the  hands  of 
the  same  authority. 

In  the  main  the  supervision  over  each  main  class  of  companies  is 
under  the  same  authority.  But  title  guarantee  companies  -are  out  of 
place  under  the  Auditor  of  Public  Accounts,  and  should  be  classed  with 
insurance  companies. 

The  incorporation  and  supervision  over  all  classes  of  business  cor- 
porations and  companies  should  be  conducted  to  some  extent  on  the 
same  general  lines;  but  with  the  present  series  of  distinct  and  inde- 
pendent offices  there  is  no  provision   for  uniformfty  of  methods  or 


REPORT  OF  THE  COMMITTEE.  67 

cooperation  in  performing  similar  functions.  Supervision  over  impor- 
tant classes  of  business  corporations  has  been  vested  in  some  of  the  elec- 
tive State  officers,  whose  primary  functions  have  no  close  relation  to 
this  work,  and  the  enforcement  of  these  laws  is  thus  distinctly  removed 
from  the  control  of  the  Governor. 

Illinois  has  the  foundation  for  a  most  efficient  system  of  corporate 
supervision.  The  method  of  granting  charters  provided  by  law  is 
unique ;  it  is  founded  on  correct  principles ;  and  in  the  main  is  uniform 
for  all  kinds  of  corporations.  In  the  case  of  State  banks,  building  and 
loan  associations  and  insurance  companies,  the  system  of  supervision 
is  fairly  efficient,  due  in  part  to  the  fact  that  these  classes  of  companies 
are  chartered  and  supervised  by  the  same  authority,  and  in  part  to  the 
provision  of  a  force  of  special  examiners.  But  the  control  over  the 
incorporation  and  supervision  of  general  business  corporations  has  not 
been  effectively  exercised,  primarily  because  the  staff  of  the  Secretary 
of  State  has  not  been  adequate  for  this  purpose,  but  this  in  turn  has 
been  the  result  of  the  absence  of  definite  efforts  to  secure  the  means 
to  carry  out  the  provisions  of  the  present  laws.  With  more  efficient 
administration,  the  existing  laws  for  the  organization  and  supervision 
of  business  corporations  would  protect  legitimate  investors  and  foster 
honest  projects,  and  would  render  unnecessary  any  so-called  "blue  sky" 
legislation. 

The  expense  of  the  examination  of  banks  and  building  and  loan 
associations  is  more  than  the  fees  collected.  The  scale  of  fees  should 
be  readjusted  so  as  to  cover  the  cost  of  inspection. 

Most  of  the  statutes  relating  to  the  organization  of  corporations  are 
based  on  acts  passed  from  twenty  to  forty  years  ago,  with  many  amend- 
ments and  additions.  The  result  is  that  in  many  branches  the  present 
law  is  confused,  uncertain  and  inconsistent.  A  consolidation  and  revi- 
sion of  the  statutes  relating  to  the  formation  of  corporations  would 
make  the  law  simpler  and  more  easily  understood,  and  would  allow 
inconsistent  and  conflicting  provisions  to  be  harmonized. 
In  Other  States  and  Countries. 

In  most  of  the  other  states  in  this  country,  the  supervision  over 
business  corporations  is  distributed  between  a  number  of  separate  state 
officials,  without  definite  correlation  or  organization.  In  some  states, 
the  control  over  banks  and  insurance  companies  is  vested  in  the  same 
official.  There  has  also  been  a  recent  tendency  to  consolidate  the  pub- 
lic regulation  of  all  public  utilities  under  one  authority,  as  has  been  done 
in  Illinois.  In  Virginia  and  North  Carolina  the  public  control  of  cor- 
porations of  all  kinds  has  been  more  thoroughly  concentrated  in  the 
hands  of  a  single  corporation  commission  in  each  of  these  states. 


68  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  British  Government  has  vested  the  control  over  nearly  all 
classes  of  business  corporations  and  companies  under  a  single  depart- 
ment— the  Board  of  Trade. 
Proposed  Organization. 

The  Committee  recommends  that  the  State  supervision  over  all 
classes  of  business  corporations  and  similar  businesses  be  combined  and 
organized  into  a  single  department  to  be  known  as  the  Department  of 
Trade  and  Commerce.  This  Department  should  include  divisions  or 
bureaus,  dealing  with  general  corporations,  banks  and  building  and 
loan  associations,  insurance,  and  public  utilities.  The  head  of  the 
Department  should  be  the  Chairman  of  the  State  Public  UtiHties  Com- 
mission, who  should  be  given  specified  powers  of  supervision  over  the 
superintendents  or  commissioners  at  the  head  of  the  several  bureaus 
of  general  corporations,  banks  and  insurance,  so  as  to  secure  coopera- 
tion and  such  uniformity  of  methods  as  may  be  desirable. 

Under  this  plan,  the  Public  Utilities  Commission  will  remain  sub- 
stantially with  its  present  organization  and  powers ;  and  the  grain 
inspection  service  will  continue  in  its  present  relations  to  this  Commis- 
sion. The  Insurance  Superintendent  and  the  State  Fire  Marshal  will 
also  remain  in  the  main  with  their  present  powers  and  duties.  If,  how- 
ever, the  State  building  law  proposed  in  the  48th  General  Assembly  is 
passed,  the  office  of  State  Building  Commissioner  should  be  consoli- 
dated with  that  of  the  State  Fire  Marshal. 

The  bureaus  of  general  corporations  and  of  banks  and  building 
and  loan  associations  will  be  transferred  from  the  Secretary  of  State 
and  the  Auditor  of  Public  Accounts,  and  each  placed  under  a  commis- 
sioner or  superintendent,  to  be  appointed  by  the  Governor,  with  the 
advice  and  consent  of  the  Senate. 

Each  bureau  or  division  should  have  charge  of  the  incorporation 
of  all  corporations  subject  to  its  supervision.  Thus  public  utility  com- 
panies should  be  incorporated  by  the  Public  Utilities  Commission ;  and 
assessment  life  and  accident  insurance  companies  by  the  Insurance 
Superintendent.  Provision  should  also  be  made  for  exercising  more 
effectively  the  supervision  now  authorized  by  law  in  regard  to  general 
corporations,  as  to  their  incorporation,  the  issue  of  capital  stock  and 
the  filing  of  annual  reports. 

Along  with  the  administrative  reorganization,  there  should  also 
be  a  consolidation  and  codification  of  the  present  laws  relating  to  the 
incorporation  and  management  of  corporations,  with  such  amendment 
and  revision  as  is  needed  to  harmonize  conflicting  provisions  and  to  sim- 
plify and  make  more  intelligible  the  law  as  a  whole.    Most  of  this  can 


REPORT  OF  THE  COMMITTEE.  69 

be  done  by  a  single  act.  But  the  provisions  relating  to  banks  must  be 
passed  as  a  separate  law,  and  submitted  to  a  referendum  vote,  to  meet 
the  requirements  of  the  State  Constitution. 

The  departmental  organization  here  proposed  is  not  highly  cen- 
tralized; but  leaves  the  separate  bureaus  with  a  large  measure  of 
autonomy  and  independent  power.  Nor  does  this  organization  offer 
any  large  reduction  in  the  number  of  offices  and  salaries.  It  does, 
however,  provide  an  official  organization  for  securing  active  coopera- 
tion and  harmony  of  methods  in  dealing  with  different  phases  of  one 
general  problem.  This  should  lead  to  greater  efficiency  and  greater 
economy  of  administration,  and  also  to  greater  uniformity  in  the  gen- 
eral principles  of  legislation  on  these  related  business  interests. 

LAW  OFFICERS. 

The  Attorney  General  is  ordinarily  considered  the  chief  law  offi- 
cer of  the  State.  In  fact,  the  legal  services  of  the  State  are  performed 
in  considerable  part  by  attorneys  not  connected  with  the  Attorney 
General's  department.  The  Auditor  of  Public  Accounts  has  power,  no 
longer  used,  to  bring  suits  in  the  name  of  the  State,  in  cases  not  other- 
wise provided  for.  The  Insurance  Department  and  the  Public  Utilities 
Commission  have  their  own  attorneys  and  counsel,  authorized  by 
statute.  The  State  Board  of  Health,  the  State  Food  Commissioner,  the 
Chief  Factory  Inspector,  and  the  Rivers  and  Lakes  Commission  have 
appropriations  for  attorneys.  In  other  cases  attorneys  are  employed, 
and  paid  out  of  general  appropriations. 

As  a  result  of  this  situation,  there  is  no  central  responsibility  for 
the  legal  services  and  advice  given  to  all  State  officials,  and  the  way  is 
left  open  for  conflicting  opinions  to  different  State  offices  which  may 
lead  to  unnecessary  litigation  and  expense.  Formerly  the  practice  of 
employing  special  attorneys  by  particular  State  offices  and  boards  was 
more  common ;  but  as  the  result  of  opinions  by  Attorneys  General  Ham- 
lin and  Stead  there  has  been  some  decrease  in  this  tendency.  In  the 
opinion  of  these  former  Attorneys  General,  which  is  also  held  by  Attor- 
ney General  Lucey,  all  of  such  special  attorneys  and  counsel,  are  in  con- 
flict with  the  constitutional  provisions  relating  to  the  office  of  Attorney 
General. 

In  support  of  such  special  attorneys,  it  may  be  said  that  some 
state  departments  and  offices  require  the  whole  time  of  one  or  more 
attorneys,  or  require  attorneys  with  special  knowledge  of  their  prob- 
lems. It  may  also  be  noted  that  with  the  present  system  of  electing 
the  Attorney  General,  that  officer  would  be  in  a  position  to  weaken  the 
control  of  the  Governor  over  departments  dealing  with  important  legal 
questions,  if  he  controlled  the  legal  advice  given  to  the  department. 


70  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

Further  it  is  urged  that  in  conducting  prosecutions,  the  State  depart- 
ments find  it  difficult  to  secure  the  active  assistance  of  the  State's 
attorneys,  and  as  the  Attorney  General  has  no  effective  control  over 
these  officers,  a  special  attorney  for  the  department  is  said  to  be  needed 
to  secure  the  efficient  enforcement  of  certain  laws. 

The  Committee  believes  that  it  is  important  that  there  should  be 
uniformity  and  harmony  in  the  legal  services  performed  for  the  State; 
and  that  this  work  naturally  comes  under  the  supervision  of  the  Attor- 
ney General.  At  the  same  time,  there  seems  to  be  need  for  assigning 
particular  attorneys  to  certain  departments ;  and  there  is  no  adequate 
control  over  the  State's  attorneys.  It  therefore  recommends  that  all 
attorneys  for  particular  departments  or  officers  should  be  appointed  by 
the  Attorney  General,  with  the  approval  of  the  Governor,  and  be  sub- 
ject to  the  supervision  of  the  Attorney  General;  that  the  Attorney 
General  be  given  larger  powers  of  supervision  over  the  State's  attorneys 
in  the  several  counties;  that  State's  attorneys  be  subject  to  removal  for 
cause  by  the  Attorney  General,  with  the  approval  of  the  Governor ;  and 
that  the  Attorney  General  be  made  removable  by  the  Governor  for 
specified  causes. 

MILITARY  ADMINISTRATION. 

The  laws  relating  to  the  State  Militia  and  the  system  of  militia 
organization  have  been  largely  modeled  upon  the  United  States  Militia 
Laws ;  though  in  a  few  points  there  is  not  entire  agreement.  The  Gov- 
ernor is  Commander-in-Chief  of  the  State  Militia.  The  Adjutant  Gen- 
eral is  the  active  head  of  the  organization,  and  acts  ex  officio  as  chief 
of  staff,  inspector  general,  quartermaster  general,  commissary  general, 
paymaster  general  and  chief  of  ordnance. 

From  the  reports  of  the  United  States  inspectors,  it  appears  that 
this  organization  is  in  the  main  satisfactory,  though  there  is  room  for 
improvement  in  discipline  and  military  knowledge.  The  strength  of  the 
Illinois  National  Guard  has  been  declining  in  recent  years ;  and  in  pro- 
portion to  population  is  lower  than  in  most  of  the  other  important 
states. 

The  artillery  corps  and  naval  reserve  are  not  necessary  for  the 
local  uses  of  the  State  Militia;  but  are  maintained  as  part  of  the  policy 
of  the  United  States  Government  to  develop  the  State  Militia  as  a 
reserve  military  force  for  national  purposes.  The  United  States  Gov- 
ernment furnishes  the  special  equipment  for  these  branches  of  the  serv- 
ices ;  and  under  recent  arrangements  supplies  these  branches  with  equip- 
ment which  makes  them  available  for  State  purposes  to  the  same  extent 
as  infantry. 

No  changes  are  proposed  in  the  organization  of  the  State  Militia. 


REPORT  OF  THE  COMMITTEE. 


71 


ELECTIONS. 

Under  the  election  and  primary  election  laws,  provision  is  made 
for  several  State  boards  of  different  membership.  There  is  a  board 
of  appeals  to  decide  questions  relating  to  candidates  for  nomination  at 
primary  elections,  a  board  of  canvassers  for  primary  elections,  and  a 
board  of  State  canvassers  for  the  general  elections.  These  are  all  ex 
officio  boards,  but  the  officers  on  each  board  are  not  identical.  There 
is  also  provision  for  the  appointment  of  voting  machine  commissioners 
to  pass  on  the  suitability  of  voting  machines. 

These  several  State  election  authorities  introduce  confusion  and 
uncertainty  in  the  working  of  elections ;  and  the  administration  would 
be  simplified  and  would  work  more  smoothly  if  these  several  bodies 
were  consolidated.  The  Committee,  therefore,  recommends  that  there 
be  established  a  State  Board  of  Elections,  to  consist  of  the  Governor, 
Secretary  of  State  and  Attorney  General,  to  exercise  the  functions  of 
the  several  election  and  canvassing  boards.  The  voting  machine  com- 
missioners should  be  abolished. 

If  the  recommendations  of  the  Committee  are  adopted,  the  elec- 
tion of  members  of  the  State  Board  of  Equalization  and  Trustees  of 
the  University  of  Illinois  will  be  discontinued;  and  the  ballot  shortened 
to  this  extent.  The  clerks  of  the  appellate  courts  should  also  be  taken 
from  the  elective  list  and  be  appointed  by  the  judges;  and  they  should 
receive  fixed  salaries  in  place  of  fees. 

The  number  of  elections  now  required  causes  a  wasteful  expen- 
diture from  the  treasuries  of  the  local  communities,  and  in  the  time 
of  the  voters.  Including  the  primary  elections,  there  are  from  six  to 
eight  separate  elections  for  State  and  local  officials  within  a  year.  The 
expense  for  these  elections  in  Cook  County  is  more  than  a  million  dol- 
lars a  year ;  and  for  the  entire  state  is  probably  not  less  than  two  mil- 
lion dollars  a  year.  A  large  amount  of  this  could  be  saved  by  holding 
the  various  local  elections  on  the  same  day,  which  should  also  be  the 
primary  election  for  nominating  candidates  for  the  judicial  elections 
in  June.  This  arrangement  would  also  secure  a  more  general  interest 
and  a  larger  vote  at  such  elections. 

CIVIL  SERVICE  LAWS. 

The  civil  service  laws  have  laid  the  foundations  of  the  merit  sys- 
tem for  the  public  service  in  the  State ;  and  the  principles  of  this  sys- 
tem should  be  continued  and  strengthened.  A  study  of  the  several 
local  and  State  laws,  which  have  been  enacted  at  different  times,  shows, 
however,  the  need  for  some  revision  so  as  to  establish  a  more  har- 
monious and  related  system.  And  these  laws  like  the  labor  laws  and 
many  other  laws,  are  in  some  respects  too  rigid  in  their  detailed  pro- 
visions. 


72  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  specific  enumeration  of  all  exemptions  in  the  statute  is  not 
entirely  satisfactory.  Some  of  the  exemptions  named  in  the  State 
law  are  not  justified.  There  may  be  other  positions  which  should  be 
exempted;  and  in  framing  bills  for  the  proposed  reorganization  of  the 
executive  services,  this  committee  has  not  been  able  to  determine,  in 
all  cases,  what  positions  should  be  exempted.  More  flexibility  will  be 
secured  by  reducing  the  exemptions  specified  in  the  law,  and  providing 
a  limited  authority  to  make  other  exemptions.  The  bills  presented 
will  extend  the  merit  system  to  a  considerable  extent,  and  in  some 
cases  also  provide  that  the  Governor  shall  have  power  to  exempt  posi- 
tions of  administrative  responsibility  which  it  is  found  impracticable 
to  fill  by  competitive  examination — a  more  restricted  provision  than 
those  in  the  laws  of  the  United  States,  New  York,  New  Jersey,  Con- 
necticut and  Wisconsin. 

The  requirement  of  a  formal  investigation  in  ever}'-  case  of  re- 
moval also  seems  too  rigid ;  and  it  is  suggested  that  a  provision  author- 
izing investigations  before  or  after  removals  at  the  discretion  of  the 
commission,  with  power  to  make  reinstatements  when  found  advisable, 
should  be  sufficient. 

The  authority  of  the  State  Civil  Service  Commission  over  the 
classification  of  positions  and  salaries  and  the  keeping  of  efficiency 
records  marks  the  beginning  of  central  supervision  over  the  efficiency 
of  the  state  administrative  services.  A  continuous  supervision 
over  the  efficiency  of  the  state  service  is  needed;  and  to  be  ef- 
fective it  should  be  exercised  by  a  permanent  state  authority,  with 
larger  powers  than  are  now  conferred  to  control  salaries  and  other 
expenditures.  It  may  be  questioned,  however,  whether  the  functions 
of  such  a  permanent  efficiency  and  economy  bureau  can  be  most  ef- 
fectively exercised  by  the  Civil  Service  Commission.  This  work  is 
more  properly  a  part  of  the  general  sytem  of  financial  control 
which  it  is  proposed  to  vest  in  the  State  Comptroller,  who  should  co- 
operate with  the  Civil  Service  Commission,  as  this  Commission  is  now 
required  to  co-operate  with  the  Board  of  Administration  in  the  classi- 
fication of  positions  and  salaries  of  state  employees  under  that  Board. 

Counties  and  cities  should  be  given  the  option,  by  popular  vote,  of 
securing  the  benefits  of  the  merit  system,  under  the  State  commission, 
without  requiring  the  additional  machinery  and  expense  of  a  separate 
commission  for  each  local  district.  Existing  local  civil  service  com- 
missions should  also  be  subject  to  some  supervision  by  the  State  com- 
mission, by  requiring  its  approval  of  local  rules  and  regulations,  and 
perhaps  by  authorizing  the  State  commission  to  remove  local  commis- 


REPORT  OF  THE  COMMITTEE.  73 

sioners  for  cause,  after  a  hearing.  There  should  also  be  provided  an 
appeal  from  municipal  fire  and  police  commissioners  to  the  State  civil 
service  commission,  in  cases  of  removals. 

PROPOSED  BILLS. 

As  authorized  by  the  Joint  Resolution  creating  the  Committee,  bills 
are  being  prepared,  and  will  be  introduced  in  the  General  Assembly, 
to  carry  into  effect  the  recommendations  of  the  Committee.  The 
general  method  followed  has  been  to  prepare  a  single  bill  for  each 
of  the  proposed  executive  departments.  These  several  bills  are  closely 
related  parts  of  a  general  plan ;  but  it  has  seemed  advisable  to  present 
a  series  of  bills  so  that  as  much  of  the  whole  reorganization  may  be 
put  into  effect  as  soon  as  possible.  In  some  cases,  a  subdivision  of 
one  of  these  bills  providing  for  the  consolidation  of  several  existing 
authorities  may  be  enacted,  as  a  separate  law,  if  the  whole  bill  as  pre- 
sented cannot  be  passed. 

In  some  instances  the  bills  to  be  presented  will  include  a  re-enact- 
ment and  codification  of  the  existing  substantive  law  relating  to  the 
several  boards  and  bureaus  proposed  to  be  combined.  This  has  seemed 
necessary  on  account  of  the  provisions  of  the  Illinois  State  Constitution 
in  regard  to  the  amendment  of  existing  laws,  which  make  dif^cult 
the  framing  of  bills  simply  providing  the  new  administrative  ma- 
chinery. The  method  adopted  has  the  added  advantage  of  present- 
ing a  partial  revision  and  rearrangement  of  the  existing  laws  on  a  more 
systematic  plan;  and  the  codification  into  a  single  act  of  a  number  of 
detached  laws.  These  results  are  well  illustrated  in  the  case  of  the 
bill  relating  to  public  finances.  It  is  believed  that  this  simplifies  and 
makes  more  intelligible  the  confusing  provisions  of  the  present  revenue 
law,  and  also  correlates  this  law  with  other  finance  laws.  It  should*  be 
clearly  understood,  however,  that  in  this  consolidation  and  codification 
of  the  law  on  these  subjects  there  has  been  no  attempt  to  a  general 
revision  of  the  substantive  provisions ;  and  only  such  changes  have  been 
proposed  as  are  necessary  to  carry  out  the  administrative  reorganiza- 
tion recommended  by  the  Committee. 


PART  III. 

RESULTS  TO  BE  EXPECTED. 

Correlation  and  Supervision. 

The  proposed  organization  of  related  services  into  the  same 
department  will  bring  about  greater  economy  and  efficiency  by 
eliminating  unnecessary  and  duplicate  positions,  and  still  more  by 
bringing  about  greater  harmony  and  cooperation  in  the  work  of 
such  offices.  It  should  also  be  made  easier  to  avoid  overlapping 
of  functions  and  to  promote  cooperation  between  the  several  main 
departments.  The  detailed  plans  will  also  attempt  to  equalize  salaries 
and  to  provide  for  a  more  definite  and  uniform  system  of  re- 
ports. Under  the  proposed  organization  there  should  also  be  little 
or  no  occasion  for  the  creation  of  additional  departments  in  the 
future,  as  new  services  when  needed  can  be  attached  to  some  of  the 
departments  already  established. 

Efficiency  and  economy  should  also  be  secured  under  the  pro- 
posed plan  of  reorganization  by  establishing  a  more  definite  system 
of  supervision  over  the  several  branches  of  State  administration. 
The  head  of  each  department  will  determine  many  matters  hitherto 
brought  to  the  attention  of  the  Governor  or  decided  by  minor  of- 
ficials without  relation  to  other  related  offices ;  while  the  more  im- 
portant questions  will  be  presented  to  the  Governor  with  adequate 
information  and  in  proper  form  for  prompt  action.  By  this  means 
the  Governor  will  be  enabled  to  give  more  attention  and  considera- 
tion to  the  larger  problems  both  of  administration  and  legislation. 

With  regard  to  the  constitutional  elective  officers,  these  cannot 
be  brought  under  the  complete  control  of  the  Governor  without 
changes  in  the  State  constitution.  Under  the  proposed  plans,  how- 
ever, these  officials  will  be  given  authority  and  can  be  held  re- 
sponsible for  all  matters  properly  belonging  to  their  offices;  while 
functions  now  placed  on  these  officers  which  are  not  closely  related 
to  their  primary  duties  will  be  transferred  to  offices  under  the 
supervision  and  control  of  the  Governor. 

Assistance  in  Legislation. 

With  a  well  organized  executive  system,  recommendations 
from  the  several  departments  should  also  be  of  much  assistance 
to  the  General  Assembly  in  matters  of  legislation.    Such  recommenda- 


REPORT  OF  THE  COMMITTEE.  .   75 

tions  should  cover  a  large  part  of  the  important  legislation  needed; 
and  coming  from  officers  responsible  for  its  execution  will  be  more 
carefully  prepared,  both  as  to  substance  and  form  and  with  reference 
to  previous  legislation,  than  proposals  from  other  sources.  By  this 
means  there  should  be  brought  about  greater  harmony  between 
the  executive  and  legislative  branches  of  the  State  government. 

Responsible  Government. 

Moreover,  under  the  proposed  reorganization  the  general  public 
will  be  able  to  learn  more  readily  from  the  reports  of  the  important 
departments  of  the  actual  conduct  of  public  affairs  in  any  of  the 
main  fields  of  State  government.  And,  as  the  Governor  will  have 
authority  over  the  whole  executive  organization,  and  means  for 
enforcing  this  authority,  so  far  as  possible  under  the  present  con- 
stitution, he  may  properly  be  held  responsible  by  public  opinion  for 
its  operation. 

Budget  and  Accounts. 

The  proposed  reorganization  will  also  aid  in  the  preparation 
of  a  proper  budget  of  estimates  as  a  basis  for  appropriations.  Each 
department  will  be  able  to  formulate  a  careful  estimate  of  needed 
appropriations,  considering  the  relative  demands  of  its  several 
bureaus  and  services;  and  these  departmental  estimates  will  be 
compiled  and  analyzed  by  the  State  Comptroller  for  submission  to 
the  Governor,  who  will  recommend  the  aggregate  budget  of  items 
approved  by  him  to  the  General  Assembly.  This  will  place  on  the 
Governor  the  responsibility  for  the  total  amount  requested;  and 
the  General  Assembly  will  hesitate  to  increase  the  appropriations 
beyond  the  amounts  recommended  by  the  Governor. 

A  comprehensive  and  modern  system  of  accounts  (such  as  is 
submitted  in  outline,  and  which  has  been  worked  out  in  detail  for  the 
penitentiaries  and  reformatory)  will  also  aid  in  controlling  and 
fixing  responsibility  for  expenditures  and  in  preparing  close  esti- 
mates for  the  budget. 

Economy  Expected. 

To  measure  accurately  in  statistical  and  mathematical  terms, 
the  expected  improvements  is  more  difficult  than  to  point  out  the 
general  results  likely  to  be  gained.  But  some  estimates  may  be 
made  of  the  direct  financial  advantages.  The  general  plans  of  con- 
solidation and  reorganization  will  directly  reduce  expenditures  for 
salaries  and  expenses  of  officials,  and  for  office  expenses  by  about 
$100,000  a  year.  The  saving  proposed  in  the  extension  of  taxes  and 
the  interest  on  tax  collections  will  amount  to  $500,000  a  year.     The 


76  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

centralization  of  inheritance  tax  administration  should  reduce  the 
cost  of  collection  by  one-half,  or  at  least  $100,000  a  year.  The  man- 
agement of  local  school  funds  by  county  treasurers  instead  of  by  school 
township  treasurers,  should  save  one-half  of  the  present  cost  of  admin- 
istration, or  another  $100,000  a  year.  If  the  consolidation  of  prison 
management  results  in  placing  the  cost  of  maintenance  on  the  same 
per  capita  basis  as  in  the  charitable  institutions,  there  will  be  a  further 
saving  of  $200,000  a  year.  The  more  centralized  organization  proposed 
for  the  rental  and  supervision  of  State  offices  and  for  printing  and  the 
purchase  of  supplies  should  also  bring  about  a  reduction  in  expenses  of 
not  less  than  $100,000  a  year. 

Combining  these  items  it  may  be  roughly  estimated  that  the 
direct  financial  saving,  on  the  basis  of  existing  services,  will  be  not 
less  than  $1,000,000  a  year,  of  which  $600,000  will  be  a  direct  gain  to 
the  State  treasury.  An  effective  budget  system  should  make  pos- 
sible a  still  larger  reduction  of  expenditures.  But  the  most  im- 
portant gains  will,  after  all,  be  in  the  increased  efficiency  of  public 
administration,  which  will  be  equivalent  to  a  large  saving  to  the 
State,  even  if  it  cannot  well  be  measured  in  dollars  and  cents.  A 
more  efficient  revenue  administration,  for  example,  will  produce  a 
larger  revenue  with  a  more  equitable  distribution  of  the  burdens  of 
taxation. 

At  the  same  time,  it  should  be  borne  in  mind  that  with  the 
increase  in  population  and  in  the  demands  for  public  activities — as 
for  education,  good  roads  and  better  treatment  of  the  wards  of 
the  State — the  total  appropriations  and  expenditures  of  the  State 
are  not  likely  to  be  reduced.  Indeed  a  department  which  is  per- 
forming efficiently  a  useful  public  service  may  receive  larger  appro- 
priations than  if  the  work  were  done  poorly. 

But  the  increase  in  State  expenditures  which  must  be  expected 
makes  it  all  the  more  important  to  provide  a  system  of  administra- 
tion which  will  make  possible  and  probable  a  more  efficient  and 
economical  administration  of  the  public  funds.  It  is  with  this  pur- 
pose that  the  investigations  of  the  Efficiency  and  Economy  Com- 
mittee have  been  undertaken,  and  its  plans  for  reorganization  have 
been  formulated. 

The  Committee  is  unanimously  of  the  opinion  that  the  re- 
organization of  the  executive  departments  upon  the  general  lines 
proposed  will  result  both  in  much  greater  efficiency  and  in  greater 
economy  in  the  cohduct  of  State  administration.  Likewise,  it  will  aid 
the  Governor  and  the  General  Assembly  to  perform  their  duties  more 
efTectively  in  the  public  interest;  and  it  will  give  the  general  public 


JlEPORT  OF  THE  COMMITTEE.  77 

more  definite  and  adequate  knowledge  of  the  purposes  and  results  of 
the  administrative  services  of  the  State.  The  several  members  of  the 
Committee  also  concur  in  the  specific  recomendations,  except  in  so 
far  as  dissent  is  indicatd  in  the  supplemental  statements  attached 
hereto.  ^y^yh  for  further  investigation. 

The  investigations  by  this  Committee  and  the  reports  and  plans 
submitted  cover  in  a  comprehensive  way  the  field  of  the  state  executive 
organization  established  and  governed  by  the  Acts  of  the  General  As- 
sembly. There  remain,  however,  other  fields  and  branches  of  state 
and  local  government  in  Illinois  where  a  similar  investigation  would 
develop  that  large  economies  and  greater  efficiency  could  be  secured. 
Such  an  investigation  will  be  of  value  to  future  sessions  of  the  General 
Assembly,  and  will  be  of  particular  value,  in  view  of  the  proposals 
now  being  urged  for  a  convention  to  revise  the  State  Constitution. 

If  constitutional  or  important  statutory  changes  are  likely  to  be 
made  in  the  near  future,  there  should  be  a  careful  and  sytematic  sur- 
vey of  the  governmental  organization  and  of  other  provisions  of  the 
present  constitution,  and  their  practical  operation,  in  comparison  with 
those  of  other  states  and  countries.  This  should  include  an  examina- 
tion of  the  state  executive  officers,  the  judicial  system  and  the  General 
Assembly,  and  of  the  relations  between  these  departments  of  state  gov- 
ernment. There  should  also  be  a  careful  study  of  local  government, 
as  established  by  the  constitution  and  by  statute,  and  of  its  relation  to 
the  central  government  of  the  state.  Still  further  there  should  be  in- 
cluded an  examination  of  the  constitutional  provisions  relating  to  suf- 
frage and  elections,  education,  finance  and  taxation,  corporations  and 
public  utilities  and  the  methods  of  amending  and  revising  the  state 
constitution. 

On  all  of  these  subjects,  there  should  be  available  a  comprehensive 
and  thorough  analysis  of  the  existing  constitutional  provisions  of  Illi- 
nois, and  a  detailed  report  on  how  these  provisions  actually  work.  There 
is  needed,  for  example,  a  scientific  study  of  the  use  of  the  Governor's 
veto  power,  of  the  exercise  by  the  courts  of  the  power  to  declare 
statutes  unconstitutional,  and  of  the  present  systems  of  representation 
in  the  two  houses  of  the  General  Assembly. 

Along  with  this  investigation  of  the  present  governmental  system 
in  Illinois,  there  should  be  a  study  made  of  similar  and  different  meth- 
ods in  other  states,  and  so  far  a.',  practicable  those  of  foreign  countries. 
These  should  include  inquiries  and  reports  on  such  subjects  as  the  re- 
lations of  the  executive  to  the  legislature,  woman  suffrage,  the  initia- 
tive and  referendum,  municipal  and  county  home  rule,  judicial  organi- 
zation, proportional  representation,  and  methods  of  taxation. 


78  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

Such  a  survey  is  essential  in  order  to  make  available  for  the  mem- 
bers of  the  General  Assembly  and  a  Constitutional  Convention  the  data 
which  should  be  at  hand  for  statutory  and  constitutional  changes. 
Something  of  the  kind  has  been  authorized  in  the  State  of  New  York 
to  prepare  for  the  Constitutional  Convention  to  be  held  in  that  State 
in  1915.  To  collect  the  information,  and  to  analyze  and  digest  the  data 
thoroughly,  the  investigation  should  be  commenced  as  soon  as  possible. 
This  Committee,  therefore,  recommends  that  the  Forty-ninth  General 
Assembly  provide  for  a  comprehensive  survey  of  Government  in  Illi- 
nois, to  collect  and  digest  the  materials  bearing  on  the  problems  of 
legislation  and  proposed  changes  in  the  State  Constitution. 
A  further  report  v^ill  follow. 

Walter  I.  Manny,  Chairman, 

W.  Duff  Piercy, 

Logan  Hay, 

Charles  F.  Hurburgh, 

Charles  F.  Clyne, 

William  McKinley, 

John  M.  Rapp, 

December  1,  1914. 


REPORT  OF  THE  COMMITTEE.  79 


SUPPLEMENTAL  STATEMENTS. 


I  heartily  approve  of  the  above  report,  with  one  exception,  I  am 
not  in  favor  of  consolidating  the  Board  of  Pardons  with  the  Prison 
Board,  for  the  following  reasons: 

The  Board  of  Pardons  of  the  State  of  Illinois  is  quasi-judicial  in 
its  functions,  and  the  members  of  this  Board  ought  to  be  selected  by 
the  Governor  not  for  their  especial  fitness  for  administrative  and  execu- 
tive skill  in  managing  the  prisons,  but  for  their  humanitarian  principles 
and  judicial  temperament.  It  is  true,  of  course,  that  the  Governor  has 
the  final  word  as  to  whether  or  not  the  recommendations  of  the  Board 
of  Pardons  shall  be  carried  out,  but  this  is  a  further  reason,  in  my 
judgment,  why  this  Board  of  Pardons  should  have  no  other  duties 
than  passing  upon  the  large  number  of  applications  that  must  neces- 
sarily be  brought  before  them  in  the  State  of  Illinois  as  to  whether  or 
not,  in  their  judgment,  prisoners  should  be  released  from  the  peniten- 
tiaries, and  as  time  goes  on  the  duties  of  this  Board  will  become  more 
difficult,  for  we  are  already  beginning  to  take  a  diflferent  view  of  deal- 
ing with  offenders  against  society,  and  I  believe  that  a  separate  Board 
of  Pardons  would  have  more  opportunity  of  investigating  and  passing 
upon  the  questions  brought  before  them  than  if  they  also  had  to  pass 
upon  executive  management  and  control  of  the  prisons. 

I,  therefore  desire  to  go  on  record  as  in  favor  of  retaining  the 
Board  of  Pardons  as  it  is  now  organized  under  the  law,  rather  than 
consolidating  it  with  the  general  Prison  Board. 

William  McKinley. 

I  heartily  concur  in  the  foregoing  report  and  in  all  the  specific 
recommendations  therein  made.  I  favored  a  recommendation  that 
the  administration  of  the  penal  and  reformatory  institutions  be  vested 
in  the  body  charged  with  the  administration  of  the  charitable  institu- 
tions, and  in  some  cases  I  favored  a  single  official  as  the  head  of  a 
department  when  the  present  report  recommends  a  board  as  the  head 
of  the  department.  These  points  of  difference  are  of  little  importance 
in  comparison  with  the  importance  of  securing  the  unanimous  approval 
of  the  committee  in  support  of  the  report  in  its  entirety  and  I  there- 
fore give  it  my  hearty  approval  in  all  its  details. 

Charles  F.  Hurburgh. 


80  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

In  my  judgment  the  consolidation  of  the  normal  school  boards 
would  be  of  doubtful  wisdom.  The  normal  schools  are  unique.  They 
are  not  analagous  either  to  the  penal  or  to  the  charitable  institutions. 
They  are  not  large  purchasers  df  supplies  and  the  present  local  boards 
receive  no  compensation.  I  am,  therefore,  unable  to  see  any  consider- 
able economy  resultant  from  consolidation,  either  in  the  board  itself, 
or  in  its  business  management  of  the  institutions. 

As  the  normal  schools  grow,  perhaps  in  number  and  certainly  in 
the  volume  of  administrative  supervision,  it  is  not  unlikely  that  the 
work  might  be  too  heavy  for  one  unpaid  board  and  a  paid  board  or 
paid  secretary  would  be  the  logical  outcome.  To  this  I  am  vigorously 
opposed. 

That  a  consolidated  board  might  better  equalize  "requests"  for 
appropriations  among  the  various  normal  schools  I  think  is  true.  But 
this  means  little.  It  is  a  long  jump  from  equality  of  "requests"  to 
equality  of  appropriations. 

I  gravely  doubt  whether  the  General  Assembly  could  constitution- 
ally deprive  certain  counties  of  representation  on  the  consolidated 
board,  as  proposed  by  the  Committee. 

The  tendency  of  a  consolidated  board  would  be  toward  uniformity 
of  curricula  and  educational  endeavor  among  all  the  normal  schools. 
It  is  a  question  how  far  such  uniformity  ought  to  go.  Illinois  is  a 
State  of  peculiarly  heterogeneous  educational  needs.  Variations  of 
climate,  population  and  the  distribution  of  the  same,  industrial  condi- 
tions and  the  like  make  it  so.  The  normal  schools  must  in  a  measure 
be  responsive  to  these  varying  needs.  And  I  am  not  sure  but  that 
local  boards,  resident  each  wholly  in  the  field  of  a  particular  normal 
school,  and  understanding  intimately  the  educational,  social  and  in- 
dustrial needs  of  that  field,  could  make  each  institution  more  efficiently 
serve  the  people  whom  it  is  intended  to  serve,  than  could  a  consolidated 
board.  W.  Duff  Piercy. 

I  concur  with  the  Committee  in  the  foregoing  report,  which  had 
been  agreed  to  in  substance  prior  to  Sept.  10,  1914,  at  which  time  my 
services  as  a  member  of  the  Forty-eighth  General  Assembly  and  of 
the  Committee  terminated.  CHARLES  F.  Clyne. 


,      APPENDICES 

REVENUE  AND  FINANCE  ADMINISTRATION. 
By  John  A.  Fairlie. 

THE  ACCOUNTS  OF  THE  STATE  OF  ILLINOIS. 
By  George  E.  Frazer,  C.  P.  A. 

ACCOUNTING  ADMINISTRATION  FOR  CORRECTIONAL 

INSTITUTIONS. 

By  Spurgeon  Bell. 

CHARITABLE  AND  CORRECTIONAL  INSTITUTIONS. 
By  James  W.  Garner. 

EDUCATIONAL  ADMINISTRATION. 
By  John  M.  Mathews. 

LABOR  AND  MINING  AGENCIES. 
By  W.  F.  Dodd. 

AGRICULTURAL  ADMINSTRATION. 
By  James  W.  Garner. 

PUBLIC  HEALTH  ADMINISTRATION. 
By  John  M.  Mathews. 

SUPERVISION  OF  CORPORATIONS. 
By  Maurice  H.  Robinson. 

PUBLIC  WORKS,  PARKS  AND  BUILDINGS. 
By  C.  O.  Gardner. 

MILITARY  ADMINISTRATION. 
By  Quincy  Wright. 

CIVIL  SERVICE  LAWS. 
By  a.  C.  Hanford. 

THE  SECRETARY  OF  STATE  AND  LAW  OFFICERS. 

EFFICIENCY  AND    ECONOMY    COMMISSIONS  IN  OTHER 

STATES. 

By  a.  C.  Hanford. 


A  REPORT 

ON 

REVENUE  AND  FINANCE 
ADMINISTRATION 

BY 

JOHN  A.  FAIRLIE 

PROFESSOR  OF  POLITICAL  SCIENCE 
UNIVERSITY  OF  ILLINOIS 


CONTENTS 

Page 
I.  Revenue   Administration   in   Illinois 87-145 

A.  Introduction— Historical  Note 87-89 

B.  Administration  of  the  General   Property  Tax 89-133 

1.  Assessment  of   Property 89 

Local   Assessment    89 

County  Review  and  Equalization 91 

Comments  and   Suggestions 92 

State  Assessment 99 

State   Board   of   Equalization 100 

Organization    100 

Equalization    of    Local    Assessments 102 

Assessment  of  Railroad   Property 107 

Assessment  of  Capital   Stock 109 

Proposed   Tax   Commission 113 

2.  Levy  and  Extension  of  Taxes 115 

State   Tax    Rates 115 

Local  Tax  Rates — Juul  Law 118 

Extension  of  Taxes 119 

3.  Collection  of   Taxes 119 

Town  and  District  Collectors 120 

County   Collectors    121 

Notice   of  Judgment    Proceedings 121 

Court    Proceedings    122 

Tax   Sales    122 

Redemption — Tax  Deeds   122 

Final   Settlements    123 

Cost  and   Efficiency  o  f   Collection 124 

Collectors'    Commissions    - 127 

Other  Abatements    128 

Delays   in    Settlements 129 

Conclusions 130 

Need  for  State  Supervision 130 

4.  Summary  of  Property  Tax  Administration 131 

Assessment  of  Property 131 

Levy  and  Extension  of  Taxes 131 

Collection   of   Taxes 132 

Suggested    Reorganization    132 

C.  Administration  of  Other  State  Revenues 133-144 

Illinois  Central  Railroad  Payments 133 

Corporation  and  Other  Fees  Collected  by  the  Secretary  of  State 133 


Page 

Insurance  Fees  and  Taxes 134 

Inheritance  Tax  135 

Cost   of   Administration 137 

United  States  Inheritance  Tax 138 

Miscellaneous   Revenues    143 

D.  General  Comments  and  Suggestions 144-145 

Summary  of  State  Revenues 145 

II.  Finance  Administration  in  Other  States  and  Countries 146-164 

A.  State    Finance    Administration 146-154 

The  State  Treasurer 146 

Auditor  or   Comptroller 148 

Public   Accounting    149 

New  York  State  Comptroller 150 

Pennsylvania   Auditor-General    152 

Ohio  Auditor  of  State 152 

Maryland    Comptroller    153 

B.  State  Tax  Administration ^ 154-159 

Local  Assessments    154 

Equalization  and  Review 154 

State   Assessment    155 

State  Tax  Commissions 156 

C.  Finance  Administration  in  the  United  States  and  Other  Countries  160-164 

United  States  Department  of  the  Treasur>' 160 

The  British  Treasury  Board 161 

French   Ministry   of   Finance 162 

Prussian  Ministrj^  of  Finance 163 

Bavarian  Ministrj-  of  Finance 163 

III.  State  Contracts,  Printing   and   Supplies 165-179 

A.  State  Board  of  Contracts 165-172 

Printer    Expert    166 

Comments 167 

B.  Public  Printing  in  other  States 173-179 

New  York  173 

Pennsylvania 174 

Ohio 175 

Massachusetts 175 

Wisconsin 176 

Iowa 177 

Kansas 177 

California 177 

IV.  Recommendations    180-183 

State   Finance   Commission 180 

Local    Administration    182 

Results  to  be  expected 182 


REVENUE  AND  FINANCE  ADMINISTRATION 

By  John  A.  Fairlie,  University  of  Illinois. 

I.  REVENUE  ADMINISTRATION  IN  ILLINOIS. 

A.    introduction — HISTORICAL  NOTE. 

State  revenues  in  Illinois  are  received  from  various  sources,  and 
the  administration  of  these  revenues  is  carried  on  by  a  number  of 
State  officials  as  well  as  by  a  larger  number  of  local  officials.  A  survey 
of  revenue  administration,  therefore,  involves  a  study  not  only  of 
the  several  State  authorities,  but  also  of  the  local  officials  who  are 
charged  with  the  larger  part  of  the  work,  and  of  the  relations  between 
such  State  and  local  officials.  The  most  important  source  of  State 
revenue  is  that  from  the  State  tax  on  general  property,  which  is 
levied  on  assessed  valuations  made  mainly  by  local  officials,  and 
collected,  along  with  local  taxes,  by  local  collectors.  Certain  duties 
in  relation  to  the  assessment,  levy  and  collection  of  such  taxes  are, 
however,  performed  by  State  officials,  including  the  Auditor  of  Public 
Accounts,  the  State  Treasurer  and  the  State  Board  of  Equalization. 
Other  revenue  is  derived  from  inheritance  taxes,  assessed  on  local 
appraisals  with  the  supervision  of  the  Attorney  General's  office,  and 
collected  by  county  treasurers.  Still  other  revenues,  such  as  corpora- 
tion fees,  insurance  fees  and  taxes  and  license  fees,  are  assessed  and 
collected  by  various  other  officials,  including  the  Secretary  of  State, 
the  Superintendent  of  Insurance  and  a  large  number  of  examining 
boards. 

A  brief  historical  statement  will  serve  to  outline  the  main  features 
in  the  development  of  the  present  revenue  laws.  The  first  State  Con- 
stitution (1818)  definitely  provided  for  taxes  by  valuation;^  but  in 
practical  operation  State  and  local  revenues  were  for  a  time  levied  on 
different  bases.  Under  the  early  laws,  the  State  depended  mainly  on 
a  tax  on  lands;  county  taxes  were  authorized  on  town  lots  and  a  few 
specified  classes  of  personal  property ;  and  town  taxes  were  levied  on 
the  land  value  of  town  lots.^  A  tax  law  of  1839  more  definitely 
classified  property  into  real  and  personal,  and  provided  for  listing  and 
assessing  property  on  the  same  basis  for  both  State  and  local  taxes  by 
the  county  treasurer. 

In  the  second  State  Constitution  (1848)  a  separate  article  on 
revenue  made  more  explicit  the  requirement  for  a  general  property  tax 
on  a  uniform  basis ;  specified  and  thus  limited  the  property  which  might 
be  exempted;  and  also  authorized  certain  special  taxes.  The  Acts 
to  provide  for  township  organization  decentralized  the  assessment  and 


^This  provision  was  more  definitely  stated  than  In  any  previous  State  Consti- 
tution. 

=  R.  M.  Haig;  A.  History  of  the  General  Property  Tax  In  Illinois,  ch.  3,  Uni- 
versity of  Illinois  Studies  in  th*  Social  Sciences,  vol.  3,  nos,  1-2  (1914). 


88  EFFICIENCY  AND  ECONOMY  COMMITTED. 

collection  of  taxes  in  the  hands  of  town  officials  in  counties  which 
adopted  the  township  system.  New  assessment  laws  in  1853  and  1855 
prescribed  in  more  detail  the  rules  for  listing  and  valuing  property 
for  taxation. 

In  the  third  State  Constitution  (1870)  the  article  on  revenue  was 
amended  and  extended.  The  uniform  taxation  of  all  property  was 
again  required;  but  special  taxation  of  insurance,  telegraph  and  express 
business  and  corporations  was  authorized,  as  well  as  special  assess- 
ments in  cities ;  while  limitations  were  placed  on  local  indebtedness  and 
the  county  tax  rate. 

A  general  revision  of  the  revenue  law  of  1872  forms  the  basis  of 
the  present  system  for  the  assessment  and  collection  of  the  general 
property  tax.  This  Act  continued  the  system  of  local  assessment  by 
town  and  county  officers  for  most  property,  elaborated  the  rules  for 
listing  and  valuing  property,  and  provided  for  the  review  and  equali- 
zation of  original  assessments  by  the  county  boards.  It  also  reorgan- 
ized the  State  Board  of  Equalization,  established  in  1867,  and  added 
to  its  power  of  equalizing  county  valuations  the  further  authority  to 
value  for  taxation  railroad  property  and  the  capital  stock  of  Illinois 
corporations.  This  law  was  at  first  energetically  administered;  but  a 
reaction  set  in  at  once,  followed  by  .a  steady  decline  for  25  years. 

A  Revenue  Commission  appointed  in  1885  reported  a  year  later  in 
favor  of  important  changes  in  the  tax  laws  and  their  administration; 
but  without  any  significant  result.  In  1894  the  Bureau  of  Labor 
Statistics  published  an  extended  report  on  taxation,  again  urging  the 
amendment  of  the  revenue  laws.  A  few  years  later,  an  Act  of  1898 
made  some  changes  in  the  local  administrative  machinery  for  the 
assessment  of  property  for  taxation.  This  gave  the  county  treasurer, 
as  supervisor  of  assessments,  larger  powers  of  supervision  over  town 
assessors  in  counties  under  township  organization ;  it  reorganized  and 
increased  the  powers  of  county  boards  of  review,  and  it  established  an 
elective  board  of  assessors  and  board  of  review  for  Cook  County.  It 
also  recognized  the  practice  of  undervaluation  in  assessments,  by  pro- 
viding that  the  "taxable  value"  should  be  one-fifth  of  the  "full  value" 
of  property.  This  Act  led  to  some  increase  in  valuations ;  and  was 
followed  in  1901  by  the  Juul  law  establishing  a  complicated  plan  for 
limiting  the  aggregate  tax  rate.  In  1909  the  legal  basis  for  the  assess- 
ment of  property  was  changed  from  one-fifth  to  one-third  of  full 
value;  and  at  the  same  time  the  maximum  tax  rate  of  the  Juul  law 
was  correspondingly  decreased. 

A  Special  Tax  Commission,  authorized  in  1909,  reported  in  1911 
in  favor  of  a  constitutional  amendment  to  authorize  the  classification 
of  personal  property,  the  creation  of  a  permanent  tax  commission  to 
take  the  place  of  the  State  Board  of  Equalization,  with  supervision 
over  the  local  assessors  and  tax  officials,  and  the  substitution  of  county 
for  town  assessors.  But  thus  far  no  action  has  been  taken  on  these 
recommendations. 

Among  numerous  Acts  of  the  General  Assembly  relating  to  other 
sources  of  revenue,  mention  may  be  made  of  the  following:  A  revis- 
ion of  the  insurance  laws  in  1869  authorized  reciprocal  taxes  on  foreign 
companies;  an  Act  of  1895  established  a  revised  and  sliding  scale  of 


REVENUE  AND  FINANCE. 


89 


corporation  fees;  another  Act  of  1895  imposed  a  tax  on  gifts,  legacies 
and  inheritances,  amended  in  1909  by  imposing  higher  and  progressive 
rates.  These  laws  have  provided  considerable  State  revenue  from 
sources  other  than  the  general  property  tax.  Many  other  acts  pro- 
vide for  examination,  license  and  inspection  fees,  which  yield  little  or 
no  net  revenue  above  the  cost  of  administration. 

In  order  to  secure  a  general  view  of  the  present  revenue  admin- 
istration, it  seems  desirable  to  consider  in  turn  the  main  sources  of 
revenue,  noting  in  connection  with  each  the  officials  employed  and  their 
functions. 

B.    ADMINISTRATION    OF   THE  GENERAL   PROPERTY  TAX. 

In  the  administration  of  the  general  property  tax  there  are  three 
distinct  processes  involved:  First,  there  is  an  official  valuation  or 
assessment  of  the  property  subject  to  taxation;  second,  there  is  the 
determination  of  the  rate  of  taxation,  and  the  calculation  and  exten- 
sion of  the  amount  of  taxes  against  each  piece  of  property  or  each 
property  owner;  and  third,  there  is  the  collection  of  the  taxes.  Each 
of  these  processes  requires  separate  consideration,  and  each  involves 
the  action  of  both  State  and  local  officials. 

/.  Assessment  of  property. 

Most  of  the  work  of  assessing  property  for  taxation  is  performed 
by  local  officials;  but  the  action  of  the  local  officials  is  subject  to  some 
supervision   by    State    officials,    while    some    classes    of    property   are 
directly  assessed  by  the  State  Board  of  Equalization. 
Local  assessment. 

The  local  assessment  of  property  is  performed  in  part  by  county 
and  in  part  by  town  officers ;  but  the  officials  involved  and  their  duties 
vary  to  some  extent  under  the  different  systems  of  local  administra- 
tion in  this  State.  In  all  counties,  certain  duties  are  imposed  on  the 
county  clerks,  the  county  treasurers  and  the  county  boards  of  review, 
and  there  are  also  either  county  or  town  assessors.  The  functions  of 
these  officials  may  best  be  noted  by  following  the  order  in  which  the 
work  of  assessment  is  performed. 

At  the  outset  the  books  and  blanks  required  in  the  assessment 
of  property  and  the  collection  of  taxes  are  procured  by  the  county 
clerk,  at  the  direction  of  the  county  board.^  These  include  separate 
and  duplicate  (in  Cook  County  triplicate)  assessment  books  for  real 
and  personal  property  for  each  township.  For  the  assessment  of  real 
property,  the  county  clerk  is  further  required,  before  April  1  of  every 
fourth  year  (1907,  1911,  etc.)  to  make  up  in  books  a  list  of  lands  and 
lots  to  be  assessed ;  and  each  year  the  same  officer  prepares  a  supple- 
mental list  of  lands  and  lots  not  previously  listed,  or  which  have  been 
sub-divided  and  have  not  been  listed  by  proper  description.  Such  books 
are  called  for  by  the  assessing  officers  in  each  county. 

In  counties  not  under  township  organization  the  county  treasurer 
is  ex  officio  county  assessor.     In  counties  under  township  organization 

nt  is  the  duty  of  the  Auditor  of  Public  Accounts  to  make  out  and  forward  to 
the  county  clerks'  forms  and  instructions,  and  to  give  his  opinion  and  advice  as 
to   the   meaning  of   the  revenue   law. 


90  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

with  less  than  125,000  inhabitants,  the  county  treasurer  is  supervisor 
of  assessments,  and  as  such  it  is  his  duty  to  assemble  the  assessors  and 
deputy  assessors  in  the  county  before  April  1  of  each  year  for  con- 
sultation and  to  give  such  instructions  as  shall  tend  to  uniformity  in 
the  action  of  the  assessors.  In  these  counties  an  assessor  is  elected 
in  each  township  for  a  term  of  two  years-.  In  Capital  Township,  San- 
gamon County,  under  an  optional  law,  the  county  clerk  acts  as  assessor. 
Deputy  assessors  may  also  be  appointed  with  the  approval  of  the 
county  board  or  board  of  town  auditors. 

In  Cook  County,  by  Act  of  1898,  there  is  a  county  board  of  five 
assessors,  elected  for  terms  of  six  years,  one  or  two  assessors  being 
elected  every  second  year.  This  board  also  appoints  deputy  assessors ; 
and  in  each  town  outside  of  Chicago  a  deputy  assessor  is  elected  by  the 
town. 

Every  assessor  and  supervisor  of  assessments  is  required  to 
furnish  bond  that  he  will  diligently,  faithfully  and  impartially  perform 
the  duties  enjoined  by  law.  Every  assessor,  deputy  assessor  and  super- 
visor of  assessments  must  subscribe  to  a  special  oath  of  office ;  and  any 
of  these  officers  who  shall  refuse  or  knowingly  neglect  to  perform  any 
duty  required  by  law,  or  who  connives  at  any  evasion  of  the  revenue 
law,  is,  upon  conviction,  subject  to  fine  and  imprisonment. 

Before  June  1  of  every  fourth  year,  each  assessor  is  required, 
either  himself  or  by  deputy,  actually  to  view  and  determine  as  nearly 
as  practicable  the  value  of  each  tract  or  lot  of  land  listed  for  taxation. 
In  each  intervening  year,  the  assessor  is  required  to  list  and  assess  all 
real  property  not  on  the  general  assessment,  and  to  add  the  value  of 
new  buildings  or  other  improvements,  and  to  n;ake  deductions  for  any 
destruction  or  injury  to  any  tract  or  lot. 

Personal  property  is  required  to  be  listed  under  oath  by  the  owner, 
on  schedules  which  now  specify  thirty-six  items  or  classes  of  such 
property,  including  both  tangible  property  and  intangible  property,  such 
as  credits,  bonds  and  stocks,  subject  to  certain  deductions  from  credits. 
Assessors  are  to  call  at  the  office,  place  of  doing  business  or  residence 
of  each  person  required  to  list  property,  and  to  require  such  person  to 
make  a  sworn  statement  of  his  taxable  property.  Whenever  an 
assessor  fails  to  obtain  such  a  statement  of  personal  property,  it  is  his 
duty  to  ascertain  the  amount  and  value  of  such  property  and  assess 
the  same.  If  any  person  refuses  to  make  a  schedule  under  oath,  the 
assessor  shall  list  the  property  of  such  person  according  to  his  best 
judgment  and  information,  and  shall  add  to  the  valuation  of  such  list 
an  amount  equal  to  fifty  per  cent  of  such  valuation. 

In  assessing  both  real  and  personal  property,  the  fair  cash  value 
shall  be  set  down  in  one  column,  to  be  headed  "full  value,"  and  one- 
third  part  thereof  shall  be  set  down  in  another  column,  which  shall  be 
headed  "assessed  value."  The  one-third  value  of  all  property  so  ascer- 
tained shall  be  the  assessed  value  for  all  purposes  of  taxation,  limita- 
'  tion  of  taxation  and  limitation  of  indebtedness  prescribed  in  the  con- 
stitution or  any  statute. 

On  or  before  June  1,  the  township  assessor  shall  return  the 
assessment  books  to  the  county  supervisor  of  assessments,  verified  by 


REVENUE  AND  FINANCc.  91 

affidavit  of  the  assessor.  The  supervisor  of  assessments  has  the  same 
authority  as  the  township  assessor  to  assess,  make  changes  or  alter- 
ations in  the  assessment  of  property. 

In  Cook  County  the  board  of  assessors  meets  in  June  of  each 
year  for  the  purpose  of  revising  the  original  assessments,  upon  appli- 
cation of  any  tax  payer,  and  the  board  shall  finish  such  revision  on  or 
bfore  July  1. 

When  the  assessment  is  completed,  a  full  and  complete  list  of  the 
assessment  is  required  to  be  published  every  fourth  year,  on  or  before 
July  10,  in  a  newspaper  published  in  the  county;  and  in  the  inter- 
vening years  the  assessment,  of  personal  property  and  changes  in  real 
estate  shall  be  published.  But  in  Cook  County,  the  assessment  of  real 
estate  is  not  published  until  it  has  been  equalized,  revised  or  affirmed 
by  the  board  of  review.  No  report  summarizing  the  work  of  the 
assessors  is  required ;  and  none  seems  to  be  issued. 

County  review  and  equalization. 

The  original  assessments,  as  revised  by  the  county  supervisor  of 
assessment  or  the  board  of  assessors  in  Cook  County,  are  further  sub- 
ject to  review  and  equalization  by  the  county  board  of  review  in  each 
county.  In  counties  not  under  township  organization,  the  county  board 
of  review  consists  of  the  board  of  three  county  commissioners.  In 
counties  under  township  organization  of  less  than  125,000  inhabitants, 
it  consists  of  the  chairman  of  the  board  of  supervisors  and  two  citi- 
zens appointed  each  year  by  the  county  judge,  one  from  each  of  the 
political  parties  polling  the  highest  vote  at  the  preceding  general  elec- 
tion. In  Cook  County,  a  board  of  review  of  three  members  is  elected, 
one  every  second  year  for  a  term  of  three  years. 

On  or  before  the  third  Monday  in  June  of  each  year,  the  county 
board  of  review  shall  meet  for  the  purpose  of  revising  the  assessment 
of  property.  Such  meeting  may  be  adjourned  from  day  to  day,  but 
the  final  adjournment  shall  be  on  or  before  September  7. 

County  boards  of  review  have  the  following  powers  and  duties : 

First :  To  assess  all  property  subject  to  assessment  which  has  not  been 
assessed  by  the  assessors. 

Second :  On  complaint  in  writing  that  any  property  described  in  such 
complaint  is  incorrectly  assessed,  to  review  the  assessment  and  correct  the 
same  as  shall  appear  to  be  just. 

Third :  To  increase  or  reduce  the  entire  assessment  of  either  real  or 
personal  property,  or  of  any  class  included  therein,  if  in  their  opinion  the 
assessment  has  not  been  made  upon  the  proper  basis,  or  equalize  the  assess- 
ment of  real  or  personal  property  by  increasing  or  reducing  the  amount 
thereof  in  any  township,  on  notice  to  property  owners  and  the  board  of 
assessors. 

Fourth :  To  hear  and  determine  the  application  of  any  person  who  is 
assessed  on  property  claimed  to  be  exempt  from  taxation. 

No  intensive  study  has  been  made  of  the  action  of  county  boards 
of  review.  In  Cook  County,  where  there  is  a  special  board  of  sal- 
aried members  with  a  considerable  staff  of  assistants,  there  is  a  good 
deal  of  activity  shown  and  many  changes  made  in  individual  assess- 
ments.    In  other  counties  the  members  of  the  boards  of  review  are 


92  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

changed  frequently  and  have  little  opportunity  to  acquire  experience 
or  develop  a  continuous  policy;  and  the  work  done  seems  to  be  dis- 
tinctly less  eflFective. 

When  the  board  of  review  has  completed  its  work,  the  assess- 
ment books  of  personal  property  and  one  set  of  assessment  books  for 
real  property  are  delivered  to  the  county  clerk,  who  makes  and  trans- 
mits to  the  Auditor  of  Public  Accounts  an  abstract  of  the  assessment. 

Comments  and  suggestions. 

Many  and  frequent  complaints  of  the  local  assessment  of  property 
for  taxation  have  been  made  by  tax  payers  and  private  associations ; 
and  these  complaints  have  been  confirmed  by  criticisms  of  the  assess- 
ment methods  and  results  presented  in  official  reports  by  State  authori- 
ties, such  as  the  Revenue  Commission  of  1886,  the  Bureau  of  Labor 
Statistics  in  1894,  and  the  Special  Tax  Commission  of  1910. 

Thus  it  has  been  shown  that  the  local  valuations  of  property  are 
often  a  much  smaller  proportion  of  the  true  value  than  the  one-third 
recognized  and  authorized  by  the  present  law ;  and  that  such  under- 
valuations are  by  no  means  made  on  an  equal  basis,  but  show  great 
inequalities  in  the  assessment  of  diflferent  classes  of  property  and  the 
property  of  different  tax  payers. 

While  real  property  is  assesed  with  more  approach  to  equality 
than  other  property,  a  comparison  of  assessed  valuations  with  the 
census  estimates  of  true  value  indicates  that  such  property  as  a  whole 
is  assessed  at  not  more  than  one-fourth  of  true  value ;  while  in  different 
counties  the  ratio  of  assessed  to  true  value  of  lands  ranges  from  the 
one-third  provided  for  by  statute  in  some  counties  to  less  than  one- 
sixth  in  other  counties.  Town  lots  are  assessed  at  a  relatively  higher 
rate  than  farm  lands. 

The  rapid  increase  in  the  value  of  farm  lands  since  1900  has  not 
been  reflected  in  the  assessed  valuations.  In  1900,  the  "full  value" 
of  lands  and  improvements  of  the  local  assessors  was  88  per  cent  of 
the  census  estimate  of  the  value  of  farm  lands  and  buildings.  By  the 
census  estimates  for  1910,  the  value  of  farm  lands  in  Illinois  had 
doubled.  But  the  "full  value"  of  the  assessors  at  the  reassessment  in 
1911  had  increased  less  than  a  third  over  the  figures  for  1900,  and  was 
only  59  per  cent  of  the  census  values. 

Nor  does  this  undervaluation  approach  uniformity  in  different 
parts  of  the  State.  As  shown  in  the  table  below,  in  Kankakee  and 
Coles  counties,  the  "full  value"  of  the  assessors  in  1911  was  only  44 
per  cent  of  the  census  values,  and  the  "assessed  value"  was  thus  less 
than  15  per  cent  of  the  census  estimates.  On  the  other  hand,  in  Hardin 
County,  the  "full  value"  of  the  assessors  was  93  per  cent  of  the  census 
estimates;  while  in  Alexander  County,  the  ""full  value"  of  the  assessors 
for  61,264  acres  of  improved  lands  was  more  than  the  census  esti- 
mates for  82,896  acres  of  land  in  farms. 


REVENUE  AND  FINANCE,  93 

ASSESSED  AND  CENSUS  VALUES  OF  LANDS. 

Per  cent 
Lands  and  Improvements.      Census  valuation   column 
Assessed  Full        of  farm  lands  and     2  to 

value  value  buildings         column 

(I)  (2)  (3)  3 

Illinois,    1900    $309,394,797        $1,546,973,983        $1,765. 581,5.S0  88 

Illinois,    1911    690,828,532  2,072,485,596  3,522.792,570  59 

Alexander  Countv,   1911=1..       1,224,604  3,673,812  3,321,001         110 

Hardin    County,    1911 543,939  1,631,817  1,757,502  93 

Winnebago   Countv,   1911..       8,271,201  24,813,603  30,403,422  82 

Coles  County,   19l'l 6,657,477  19,972,431  44,568,563  44 

Kankakee   Countv.   1911....       7,175,888  21,527,664  49,232,564  44 

Knox  Countv,   1911 8,636,622  25,909,866  .54,487,082  48 

Cook  County,  1911 30,567,618  91,702,852  85,543,087 


a.  Assessed  and  "full  value"  for  61,264  acres  of  improved  lands;  census  value 
for  82,896  acres  of  land  in  farms.  If  unimproved  lands  were  included,  the  over 
assessment    would    appear   even    larger. 

Town  lots  show  a  greater  rate  of  increase  in  the  assessed  values 
in  recent  years.  The  "full  value"  of  $1,504,566  in  1900  had  risen  to 
nearly  double, — $2,827,88'4 — in  1911  ;  and  while  the  value  of  lots  was 
about  the  same  as  that  of  lands  in  1900,  it  was  one-half  larger  in  1911. 
The  average  "full  value"  of  lots  has  increased  from  $978  to  $1,524. 

It  is  probable  that  the  total  value  of  town  lots  increased  during 
this  decade  more  than  farm  lands ;  but  this  increase  has  been  to  some 
extent  reflected  in  the  assessed  values.  It  may  be  roughly  estimated 
that  the  assessors'  "full  value"  for  town  lots  is  on  the  average  about 
75  per  cent  of  true  value,  compared  with  59  per  cent  for  lands ;  and 
to  the  extent  of  this  difference  urban  real  estate  now  bears  a  relatively 
greater  portion  than  it  should  of  the  burdens  of  State  and  county 
taxation. 


Number  of 
Lots 

Illinois,  1900   $1,537,823 

Illinois,  1911   1,854,944 

Cook  County,  1900.  726,416 
Cook  County,  1911.  778,328 
Other  Counties,  1900  803,407 
Other  Counties,  1911  1,076,616 

Much  more  serious  deficiencies  and  inequalities  are  obvious  in  the 
assessment  of  personal  property.  As  shown  in  the  following  table, 
the  percentage  of  personalty  assessments  in  the  local  assessments 
steadily  declined  from  27.8  per  cent  in  1851  to  16.5  per  cent  in  1898. 
Under  the  amended  law  of  1898  there  has  been  some  increase  in  the 
proportion  of  personalty  assessments.  But  while  the  amount  of  such 
property  has  increased  more  rapidly  than  real  estate,  and  the  relative 
proportion  should  increase,  the  assessed  valuation  of  personal  property 
is  a  smaller  percentage  of  the  local  assessments  than  before  1873. 


UATION  OF  TOWN   LOTS. 

Average 

"Full 

Assessed 

"Full 

Value" 

Value 

Value" 

per  Lot 

$300,913,328 

$1,504,566,040 

$   978 

942,628,036 

2,827,884,108 

1,524 

192,550,863 

912,754,315 

1,325 

680,159,026 

1,840,477,078 

2,620 

118,362,465 

591.812,325 

737 

262,469,010 

987,407,030 

916 

Percent 

r?onnl  property 

personal 

$     33.335.798 

27.8 

«n  720.918 

25.2 

112,458  194 

23.5 

304,518,340 

25.2 

168.674,777 

229 

143,529  274 

19  6 

114,215.007 

16.5 

1.005.408,720 

22  6 

1.388.157,522 

22.0 

1,528,881,142 

23.2 

94  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

LOCAL  assessments:  real  ESTATE  AND  PERSONAL   FROPERTY,   1851-1913. 

Real  estate 

1851    $     86,512.537 

1861    2.38.8=;8  8.^^ 

1871  364,622.620 

1873 897,615.193 

1881  566,270,710 

1891  592,766.180 

1898  572,373,684 

1901:i  3.440.233,985 

1911a   4,900  369,704 

1913a   5,011,633.002 

a.     "Full   vnliie"   ai;sp.ssments. 

From  the  following  table  showing  the  assessed  valuation  of 
the  separate  items  of  personal  property  for  selected  years,  some  com- 
parisons and  deductions  may  be  made.  Before  the  amended  revenue 
law  of  1^98,  two-thirds  of  the  personalty  assessments  were  on  tangible 
property,  and  about  one-third  on  intangible  propertv.  In  recent  years 
the  proportion  of  assessments  on  tangible  personalty  has  declined  to 
about  one-third  ;  but  the  proportion  assessed  under  the  various  items 
of  intangible  property  has  not  increased  materially.  The  explanation 
is  a  remarkable  increase  in  the  amount  assessed  under  the  heading  "all 
other  property."  from  $2,735,914  in  1898  to  $156,157,636  in  1913. 
Most  of  this  is  in  Cook  County;  and  it  appears  to  be  mainly  lump 
assessments  made  against  those  who  fail  or  refuse  to  file  schedules 
of  personal  property. — thus  including  both  tangible  and  intangible 
property. 

Of  the  various  items  of  tangible  personalty,  comparisons  with 
census  estimates  for  some  items  indicate  that  live  stock  on  the  average 
is  assessed  at  about  the  same  ratio  to  true  value  as  farm  lands ;  but 
agricultural  implements  and  machiner}'-  are  assessed  at  a  lower  ratio ; 
and  manufacturing  machinery  and  implements  are  at  a  still  lower  ratio 
than  agricultural  implements.  Many  items  of  tangible  property  show 
absurdly  small  totals.  The  great  majority  of  assessments  are  on  house- 
hold furniture ;  and  these  assessments  constitute  much  the  greater  part 
of  the  local  assessor's  work  in  most  years.  Yet  the  total  assessment 
for  house  and  office  furniture  in  1913  was  less  than  in  1873;  and  the 
total  "full  value"  assessment  was  less  than  $10  per  capita. 

The  returns  on  specified  items  of  enumerated  tangible  property 
show  the  most  whimsical  variations  in  the  average  values  for  the  same 
items  in  diflferent  counties  and  in  diflFerent  towns  of  the  same  county; 
and  the  totals  for  certain  items  indicate  that  large  amounts  of  such 
property  are  substantially  exempted  by  the  assessors.*  In  the  cities 
personal  property  schedules  appear  to  be  seldom  filed ;  and  personalty 
assessments  are  largely  guesses  by  the  local  assessors. 

Most  glaring  of  all  are  the  inequalities  in  the  assessment  of  intangi- 
ble personal  property,  such  as  moneys  and  credits,  mortgages,  bonds 

*The  avernpe  "full  value"  of  pianos  in  1011  ranged  from  $15.50  in  Perry  County 
to  $119.50  in  Hardin  County;  of  watches  and  oloeks.  from  $2.50  in  Clinton  County  to 
$19.50  In  Rock  Island  Couptv;  only  451  steamboats  and  other  water  craft  were 
assessed  in  the  entire  State,  with  a  "full  value"  of  $750,000. 


REVENUE  AND  FINANCE.  95 

and  stocks.  In  rural  counties  mortgages  appear  to  be  somewhat  better 
assessed  than  in  urban  counties,  in  some  counties,  perhaps  one- fourth 
as  completely  as  real  estate.  But  in  the  cities,  and  especially  in 
Chicago,  the  assessed  valuation  of  moneys,  credits  and  other  intangible 
personalty  is  a  much  smaller  portion  of  the  total  assessment,  and  evi- 
dently only  an  insignificant  part  of  such  holdings  are  reached. 

Detailed  studies  made  by  the  Bureau  of  Labor  Statistics  for  the 
years  1880  and  1887  indicated  that  the  assessed  valuation  of  credits 
was  only  from  one-third  to  one-fourth  of  a  proportionate  assessment 
(on  the  same  basis  as  real  estate)  for  the  amount  of  taxable  mortgages 
in  these  years.  In  Cook  County  the  assessed  value  of  credits  for  1880 
was  about  one-half  of  one  per  cent,  and  for  1887  about  one-tenth  of 
one  per  cent,  of  the  outstanding  mortgages.^ 

Since  then  there  has  been  some  increase  in  the  assessed  value  of 
credits,  especially  in  Cook  County.  But  this  falls  far  short  of  bringing 
the  assessment  of  such  property  to  the  same  basis  as  real  estate;  and 
the  attempt  to  assess  credits  under  the  general  property  tax  is  but  little 
less  of  a  farce  than  it  was  in  the  eighties. 

The  "full  value"  assessed  for  moneys  other  than  that  of  banks 
and  bankers  in  recent  years  is  only  about  a  tenth  of  the  deposits  of 
State  and  National  banks ;  and  in  Cook  County  is  only  about  one  per 
cent  of  such  deposits.^ 

Shares  of  State  and  National  banks  are  more  fully  assessed  than 
other  forms  of  intangible  property;  and  complaints  are  made  of  this 
as  imposing  an  unfair  burden  on  such  holdings ;  and  also  of  inequality 
in  the  assessment  of  the  stock  of  different  institutions. 

These  general  results  of  the  present  methods  of  assessment  are 
not  surprising  in  view  of  the  defects  in  the  system  of  administration. 
Some  of  these  defects  may  be  pointed  out,  for  the  purpose  of  indicating 
the  need  for  a  more  thorough  and  continuous  investigation  and  super- 
vision of  local  assessing  officers  and  their  methods. 

Under  the  present  law  the  assessing  offtcers  are  locally  elected 
for  short  terms,  wath  no  provision  even  aimed  at  securing  competent 
or  trained  officials  for  this  work.  Moreover  the  short  period  of  two 
months  within  which  the  original  assessment  must  be  completed 
appears  to  be  entirely  insufficient  for  the  amount  of  work  to  be  done, 
especially  in  the  cities ;  and  also  makes  difficult  if  not  impossible  the 
organization  of  a  permanent  staff  of  assistants,  which  might  meet  some 
of  the  difficulties  due  to  frequent  changes  in  the  elective  officials.*^ 


6R.  M.  Haig;  A  History  of  the  General  Property  Tax  iu  Illinois,  ch.  8. 

8In  Cook  County,  the  appropriation  for  the  year  1911  provided  for  a  staff  of 
44  men  with  the  Board  of  Assessors,  besides  the  21)  deputy  assessors  of  the  country 
towns,  and  30  men  with  the  Board  of  Keview ;  but  half  of  the  total  appropriation 
for  these  boards  of  §;3!»0,720  was  for  extra  help  during  the  assessment  period.  The 
deputy  assessors  in  the  country  towns  were  allowed  from  $500  to  $2,000  each,  aver- 
aging about  $700.     (Proceedings   of  the  County   Commissioners  1910-1911.) 

In  Sangamon  County  the  town  expenditures  for  the  assessment  of  property  in 
1911-12  aggregated  $22,683.  Of  this  $17.4T8  was  for  the  assessment  of  Capital  Town- 
ship, coextensive  with  the  city  of  Springfield,  where  there  was  a  thorough  re- 
valuation of  property.  The  assessment  expenditures  for  24  country  towns  ranged 
from  $99  to  $100,  aggregating  $5,204  and  averaging  $215.  (O.  R.  Martin;  Report  on 
Town  Finances,  in  J.  A.  Fairlie;   Town  and  County   Government  in  lUiQOis,   p.  210.) 


96 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


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EFFICIENCY  AND  ECONOMY  COMMITTEE. 


ASSESSOR  S      FULL   VALUE." 

1901  1911  1913 

}?o'"f es  $  61,943,355  $105,447, 135  $105,597,908 

Cattle 59,138,655  50,296,803  53,072,850 

Mules  and  asses ^,944,155  13,627,28^  13,951,050 

^lieep   2,297.815  2,361,195  1,469,976 

Hogs    16,109,745 16,269,828  17,313,285 

Live   stock    $145,433,725  $188,002,245  $191,405,169 

Manufacturing     implements     and 

machinery   12,240,265  13,196,145  14,859,607 

Agricultural   implements  and  ma- 
chinery   15,270,420  26,037,237  28,620,526 

Material  and  manufactured  articl     13,408,505  24,710,649  28,967,346 

Merchandise   111,598,585  134,159,157  128,466,789 

Gram  37,288,945  33,683,124  37,181,721 

Carriages  and  wagons 17,972,365  18,343,866  24,349,073 

Steam  engines,  including  boilers. .       6,489,620  9,559,251  9,603,843 

Fire  and  burglar  proof  safes 760,555  819,300  729,571 

Billiard  tables,   etc 148,020  355,932  384,40.s 

Steamboats  and  other  water  craft          850,030  747,087  705,096 

Property   of   pawnbrokers 200,350  386,62o  942,369 

Property      of      corporations      not 

enumerated  9,496,060  15,136,671  10,662,042 

Bridge  property   322,660  445,176  466,281 

Property    of    saloons    and    eating 

houses    930,070  1,546,809  1,611,489 

Total   tangible  productive 

personal  property  $367,430,180  $467,129,274  $478,955,730 

Household  and  office  furniture...     47,313,960  51,334,206  55,443,315 

Pianos    5,952,165  11,076,702  12,082,134 

Melodions  and  organs 1,696,490  803,991  618,378 

Sewing  and  knitting  machines 2,593,015  2,364,930  2,224,266 

Gold  and   silver  plate  and  plated 

ware    550,795  727,794  924,243 

Diamonds   and   jewelry 1,059,910  1,517,925  1,762,803 

Watches  and  clocks 2,649,015  2,141,937  1,908,665 

Total  tangible  non-productive 

personal  property  $  61.815,850  $  69,967,485  $  75,063,804 

Total  tangible  personal  property.  $428,746,030  $537,096,759  $554,019^ 
Money    of    bank,    banker,    broker 

and  stock  jobber $     21,851,655  $     38,293,677  $     48,096.939 

Credits  of  bank,  banker,  etc 12,062,525  25,127,046  26,781,558 

Moneys  other  than  banks,  etc....        81,983,775  106,576,437  105,357,307 

Credit  other  than  banks,  etc 121,358,225  113,314,336  113,551,674 

Bonds  and   stocks 13,964,840  27,385,551  19,422,168 

Shares  of  companies  not  of  this 

State  6,882,940  4,485,285  5,845, 122 

Investments  in  real  estate  and  im- 
provements thereon 2,792,315  3,291.441  2,769,357 

Shares     of     State     and     National 

banks  257,393,210  158,634,105  183,589,410 

Franchises   158,905  346,047  401,8oS 

Annuities  and  royalties 230,570  84,996  360,753 

Patent  rights   31,885  46,806  ■          212,535 

Total  intangible  personal  prop- 

erty   $   518,720,845  $   477,485,727  $   505,378,700 

All  other  property 57,441,845 373,578,036  468,472,908 

Grand  total  personal  property.$l,005,908,720  $1,388,160,522  $1,528,871,142 


REVENUE  AND  FINANCE.  99 

An  examination  of  local  conditions  should  show  to  what  extent 
these  defects  are  realized  or  obviated,  and  how  far,  if  at  all,  improved 
methods  of  assessment  have  been  voluntarily  introduced.  For  example, 
it  would  be  of  interest  to  know  the  number  of  deputy  assessors  and 
their  experience,  what  use  is  made  of  tax  maps  in  the  assessment  of 
land  values,  how  far  a  system  of  unit  values  is  employed,  the  methods 
for  determining  the  value  of  corner  lots  and  irregular  shaped  lots,  the 
process  of  determining  the  value  of  buildings,  the  total  number  of 
persons  assessed  for  personal  property  and  the  number  of  schedules 
filed  in  different  parts  of  the  State. 

Even  in  counties  under  township  organization,  a  large  part  of 
the  work  connected  with  the  assessment  of  property  is  now  performed 
by  county  officials.  But  this  work  is  distributed  among  a  number  of 
officials  acting  independently  of  each  other.  The  county  clerk 
furnishes  the  assessment  books  and  lists  real  property  and  prepares 
abstracts  of  the  assessments;  the  county  treasurer  acts  as  supervisor 
of  assessments ;  the  county  judge  appoints  two  members  of  the  board 
of  review,  and  the  board  of  review  revises  the  local  assessments. 
There  would  seem  to  be  opportunity  for  a  better  organization  and  some 
consolidation  of  this  county  supervision  of  town  assessors,  while  it 
has  also  been  proposed  to  establish  a  county  system  of  assessment  in 
place  of  the  township  officers.  There  should  be  information  available 
as  to  the  work  now  done  by  the  county  officers.  For  example,  what 
are  the  instructions  given  by  the  supervisor  of  assessments  to  the 
town  assessors,  and  to  what  extent  does  he  alter  or  change  the 
original  assessments?  Further,  what  is  the  extent  and  character  of 
the  work  done  by  the  county  boards  of  review,  and  how  far  is  there 
conflict  between  the  action  of  the  supervisor  of  assessments  and  the 
county  board  of  review? 

Some  information  as  to  local  conditions  can  be  secured  by  letters 
of  inquiry  to  county  and  town  officials.  But  there  is  also  need  for 
personal  inspection  and  examination  of  local  offices  and  records. 
While  it  will  not  be  possible  to  make  such  detailed  investigations  of 
local  conditions  at  the  same  time  throughout  all  the  counties  in  the 
State,  they  can  and  should  be  made  from  time  to  time  in  different 
groups  of  counties  illustrating  different  conditions.  For  example,  a 
study  and  report  on  the  assessment  methods  used  in  Cook  County, 
and  also  in  Sangamon  and  St.  Clair  Counties,  where  there  has  been 
some  recent  improvement  in  local  methods,  would  be  of  much  value 
to  other  counties. 

To  make  such  studies  and  investigations  of  local  conditions  sys- 
tematicalh,  so  as  to  make  available  definite  information  as  to  the  oper- 
ation of  the  revenue  laws  will  require  a  permanent  State  authority,  with 
adequate  powers  and  resources. 

State  Assessment. 

Most  of  the  substantive  powers  vested  in  State  authorities  in 
relation  to  the  assessment  of  property  for  taxation  are  conferred  on 
the  State  Board  of  Equalization.  Bu^  under  the  revenue  law,  the 
Auditor  of  Public  Accounts  has  certain  powers  and  duties,  in  connec- 


100  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

tion  both  with  local  assessments  and  the  functions  of  the  State  Board 
of  Equalization ;  and  these  may  be  noted  before  examining  the  reor- 
ganization and  functions  of  the  board. 

It  is  the  duty  of  the  Auditor  to  make  out  and  to  forward  to  each 
county  clerk,  from  time  to  time,  for  the  use  of  such  clerks  and  other 
officers,  suitable  forms  and  instructions ;  and  all  such  instructions  are 
required  to  be  strictly  complied  with  by  the  officers  in  the  performance 
of  their  duties.  Schedules  as  to  the  capital  stock  of  certain  classes  of 
corporations  and  also  as  to  railroad  property  are  also  to  be  made  in 
conformity  to  such  instructions  and  forms  as  may  be  prescribed  by 
the  Auditor  of  Public  Accounts.  The  Auditor  is  also  required  to  give 
his  opinion  on  all  questions  of  doubt  as  to  the  true  intent  and  meaning 
of  the  revenue  law. 

Little  appears  to  be  done  under  these  provisions.  Forms  and 
schedules  have  been  sent  out  at  occasional  intervals  covering  the 
specific  provisions  of  the  revenue  law ;  and  copies  of  the  revenue  law 
have  been  printed  and  distributed— the  latest  Auditor's  edition  appears 
to  have  been  in  1908.  But  no  instructions  have  been  sent  out  for 
many  years;  and  there  is  no  established  practice  of  securing  opinions 
from  the  Auditor  as  to  the  meaning  of  the  revenue,  law. 

Abstracts  of  local  assessments  and  schedules  from  railroads 
and  corporations  are  forwarded  by  the  county  clerks  to  the  Auditor 
of  Public  Accounts;  and  schedules  of  railroad  property  are  also 
returned  directly  to  the  Auditor,  for  presentation  to  the  State  Board 
of  Equalization.  When  this  board  has  completed  its  work,  its  action 
is  reported  and  certified  by  the  Auditor  to  the  several  county  clerks, 
for  use  in  extension  of  taxes. 

The  State  Board  of  Equalisation. 
Organization. 

As  first  constituted  in  1867,  the  State  Board  of  Equalization  con- 
sisted of  the  Auditor  of  Public  Accounts  and  one  member  from  each 
of  the  25  senatorial  districts  in  the  State.  The  first  members  were 
appointed  by  the  Governor  for  a  term  of  two  years;  and  their  suc- 
cessors were  to  be  elected,  one  from  each  senatorial  district,  for  a 
term  of  four  years.  The  board  was  required  to  meet  on  the  first  Tues- 
day in  October,  and  could  continue  in  session  for  fifteen  days,  which, 
was  extended  to  thirty  days  in  1869.  Each  member  received  $8.00 
per  diem,  with  an  allowance  for  mileage  and  stationery.  Under  this 
Act,  the  authority  of  the  board  was  limited  to  the  equalization  of  the 
aggregate  valuations  of  property  made  by  the  local  assessors  in  the 
several  counties. 

In  1872  important  changes  were  made  in  the  constitution  and 
t/owers  of  this  board.  The  number  of  members  was  reduced  to  one 
elected  from  each  congressional  district.  At  the  time  there  were  seven- 
teen of  these  districts;  but  additions  to  the  number  of  Illinois  repre- 
sentatives in  Congress  have  gradually  increased  the  size  of  the  State 
Board  of  Equalization ;  and  since  1904  it  has  the  same  number  (26) 
as  in  the  original  board  of  1867.  Alembers  are  elected  at  the  same 
time  as  presidential  electors  and  serve  for  four  years.     The  date  of 


REVENUE  AND  FINANCE.  iDl 

meeting  of  the  board  was  advanced  in  1872  to  the  second  Tuesday  in 
A.ugust,  and  the  limit  on  the  length  of  their  sessions  was  omitted,  while 
the  compensation  of  the  members  was  reduced  to  $5.00  per  day,  with 
mileage  and  an  allowance  for  stationery.  Beginning  with  the  board 
elected  in  1908,  each  member  of  the  board  receives  $1,000  per  annum, 
with  mileage  and  stationery  allowances.  The  date  for  the  first  meeting 
each  year  has  been  changed  to  the  first  Tuesday  after  the  tenth  day 
of  August. 

By  the  revised  revenue  law  of  1872,  the  authority  of  the  board 
was  enlarged.  In  addition  to  its  former  power  of  equalizing  local 
assessments,  it  was  made  a  board  of  original  assessment  to  value  for 
taxation  the  railroad  track  and  rolling  stock  of  railroads  and  the  capital 
stock  of  corporations  organized  under  the  laws  of  Illinois. 

At  the  first  meeting  of  each  board,  quadrennially,  it  organizes  by 
electing  one  of  its  members  as  chairman,  and  appoints  a  secretary. 
The  Auditor  of  Public  Accounts  is  regularly  elected  as  chairman ;  and 
the  chief  deputy  of  the  Auditor  is  appointed  as  secretary.  The  board 
is  also  authorized  to  select  such  employees  as  may  be  deemed 
necessary;  but  the  number  of  employees  is  limited  by  the  legislative 
appropriation,  which  in  recent  years  has  been  $10,000  a  year.  The  fol- 
lowing statement  of  expenses  for  the  session  of  1912  will  give  some 
indication  of  the  extent  of  the  staff  and  its  activities. 

Salaries  of  members,  each  $1,000 $26,000.00 

Salary  of  secretary 1,000.00 

Per  diem  of  clerks,  committees  and  messengers 7,141.00 

Clerk  hire  after  close  of  session 700.00 

Postage,  express,  etc 400.00 

Postage   for  members 250.00 

Mileage  for  members 765.80 

Total $36,256.80 


In  October,  1913,  there  were  twenty-one  employees  of  the  board, 
consisting  of  clerks,  doorkeepers  and  messengers.  Most  of  these  are 
employed  only  during  the  time  the  board  is  in  session ;  the  clerks  are 
paid  $5.00  per  day,  and  the  messengers  and  doorkeepers  $3.00  per  day. 

The  board  holds  its  first  meeting,  as  required  by  law,  on  the  first 
Tuesday  after  the  tenth  day  of  August  of  each  year.  At  this  meeting, 
it  regularly  appears  that  the  abstracts  of  assessments  from  the  county 
clerks  have  not  been  received  and  compiled ;  and  the  board  adjourns 
for  several  weeks.  From  the  latter  part  of  September  until  December 
the  board  meets  on  one  or  two  days  each  week.  In  1912  meetings  of 
the  board  were  held  on  eighteen  days.  Until  the  end  of  the  session  the 
board  meetings  are  very  brief,  and  the  meetings  are  adjourned  for 
committe  work ;  but  there  is  no  record  of  committee  meetings  or  the 
time  given  to  them.  At  the  later  meetings,  the  reports  of  the  commit- 
tees are  received  and  action  taken  thereon. 


It)2  '    EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Rules  adopted  by  the  board  in  1873  have  been  continued  for  the 
most  part  without  change.  Under  these,  provision  is  made  for  the 
following  six  committees:  on  equalization  of  personal  property,  on 
equalization  of  lands,  on  equalization  of  town  and  city  lots,  on  assess- 
ment of  railroad  property,  on  assessment  of  capital  stock  of  corpora- 
tions and  on  general  equalization.  Each  committee  consists  of  seven 
members.  Under  the  rules,  the  committee  reports  shall  lie  over  for 
two  days ;  but  the  published  proceedings  show  that  these  rules  are 
regularly  suspended,  and  the  committee  reports  adopted,  usually  by  a 
unanimous  vote.  The  work  of  the  board  is  thus  done  by  the  com- 
mittees whose  reports  show  no  indication  of  the  methods  pursued  or 
the  basis  on  which  the  results  are  determined. 

Equalisation  of  local  assessments. 

In  equalizing  the  valuation  of  property  as  listed  and  assessed  in 
different  counties,  the  board  is  required  to  consider  the  following 
classes  of  property  separately,  viz:  personal  property,  railroad  and 
telegraph  property,  lands,  town  and  city  lots ;  and  upon  such  consid- 
eration determine  the  rates  of  addition  to  or  deduction  from  the  listed 
or  assessed  valuation  of  each  class  of  property  in  each  county,  or  to 
or  from  the  aggregate  assessed  value  of  each  of  said  classes  in  the 
State,  as  shall  be  deemed  by  the  board  to  be  equitable  and  just. 

The  board  may  so  lower  or  raise  the  total  assessed  value  of  prop- 
erty in  any  county  as  to  make  the  property  in  such  county  bear  a  just 
relation  to  the  assessed  value  of  property  in  other  counties;  but  the- 
total  ampunt  of  such  decrease  or  increase  shall  not  exceed  ten  per 
cent  of  the  total  assessed  valuation  of  all  property  in  the  State. 

It  is  the  duty  of  the  secretary  of  the  board  to  compile  the  abstracts 
of  assessments  received  from  the  county  clerks  into  tabular  statements. 
These  statements  are  submitted  to  the  board  and  referred  to  the  appro- 
priate committee  on  equalization.  When  the  reports  of  these  com- 
mittees are  submitted,  under  the  rules  of  the  board,  they  are  open  to 
amendment  and  may  then  be  referred  to  the  committee  on  general 
equalization.  It  is  the  duty  of  the  latter  committee  to  equalize  the 
different  classes  of  property  with  each  other,  and  to  report  to  the  board 
for  final  action, 

A  member  of  the  present  board  has  openly  charged  that  the 
committees  to  which  the  work  of  equalization  is  referred  hold  few 
meetings  and  perform  their  work  in  a  perfunctory  manner,  while 
political  motives  are  said  to  control  their  action.  It  also  appears  from 
the  published  proceedings  that  the  rule  providing  that  committee 
reports  shall  lie  over  for  consideration  by  the  board  is  regularly  sus- 
pended, and  the  reports  approved.^ 

The  organization  and  methods  of  the  board  do  not  seem  well 
adapted  to  secure  an  efficient  and  just  equalization  of  local  assessments. 
It  has  been  suggested  that  the  selection  of  members  by  districts  would 
secure  men  acquainted  with  assessment  conditions  in  their  districts. 


'H.  T.   Nightingale  In  The  Evanston  Press,  Dec.  8,  1913. 


REVENUE  AND  FINANCE.  103 

But  this  knowledge  can  hardly  be  assumed  to  come  without  effort ;  and 
there  is  no  indication  that  the  members  make  any  systematic  attempt 
to  inquire  into  local  conditions.  Moreover  the  practice  of  delegating 
work  to  small  committees  is  in  direct  conflict  with  the  view  that  each 
member  reports  on  conditions  in  his  own  district,  and  shows  that  the 
board  itself  recognizes  the  advantages  of  a  smaller  body. 

An  explanation  of  the  failure  to  make  systematic  inquiries  or 
investigations  into  local  assessment  conditions  may  be  offered  in  the 
lack  of  legal  authority  or  financial  support.  But  it  must  also  be  noted 
that  the  board  has  made  no  efforts  to  secure  larger  powers  or  to  call 
attention  to  the  need  for  more  effective  supervision  over  local  assess- 
ments. 

Under  these  conditions,  it  is  not  surprising  that  the  work  of 
equalization  has  been  unsatisfactory  and  in  later  years  of  little  or  no 
importance.  In  the  early  years  of  the  board,  the  local  valuations  were 
subjected  to  considerable  changes.  This  was  most  notable  at  the  first 
session  of  the  reorganized  board  in  1873,  when  the  valuation  of  every 
county  was  altered — in  several  counties  being  more  than  doubled,  and 
in  several  others  reduced  by  more  than  forty  per  cent.  Since  that 
year,  however,  along  with  the  reduction  of  local  valuations,  the  activity 
of  the  State  board  in  equalizing  these  valuations  has  also  declined. 
Since  1900,  changes  by  the  State  board  from  the  local  valuations  have 
become  notably  less  both  in  number  and  amount.  In  this  latter  period 
there  have  been  no  changes  in  local  assessments  for  personal  property, 
except  in  one  county  in  1907;  in  1907,  1908,  1909  and  1910,  there  were 
no  changes  in  the  local  valuations  for  lots;  in  a  few  counties  some 
changes  have  been  made  in  the  valuation  of  lands,  but  in  1909  and 
1910  not  a  single  change  was  made  in  the  local  valuation  of  any  class 
of  property. 

In  several  cases,  charges  have  been  made  that  changes  made  have 
been  for  political  purposes,  and  to  discipline  members  who  have 
objected  to  the  practices  of  the  board.  The  Cook  County  members 
protested  against  additions  to  the  Cook  County  assessments  in  the  early 
years;  and  a  similar  protest  was  made  in  1913. 

It  is  conceivable  that  the  slight  changes  in  the  local  assessments 
made  by  the  board  in  recent  years  is  due  to  a  more  nearly  uniform 
basis  of  assessment  by  the  local  assessors.  But  there  is  strong  evi- 
dence of  marked  inequalities  in  the  local  assessments,  which  there  is 
no  effort  to  overcome  in  the  action  of  the  board.  In  the  case  of 
personal  property  and  lands,  tables  are  prepared  and  presented  to  the 
board  showing  the  additions  or  deductions  necessary  to  make  the  local 
assessments  in  each  county  correspond  to  the  State  average  valuations 
in  the  case  of  enumerated  personal  property,  and  to  a  schedule  of 
classified  values  in  the  case  of  lands.  It  is  by  no  means  clear  that 
these  tables  form  a  satisfactory  basis  for  correcting  local  valuations; 
but  they  present  the  only  data  in  the  published  proceedings  on  which 
any  changes  at  all  can  be  based.  It  is,  therefore,  significant  that  the 
changes  indicated  in  these  tables  are  not  followed  in  the  alterations 
made  by  the  board;  and  where  changes  are  made,  they  do  not  corres- 


104 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


pond  with  those  indicated  in  these  tables.^  Even  more  clearly,  there 
is  no  attempt  to  correct  the  wide  variations  between  the  local  valua- 
tions and  the  census  estimates  of  the  true  value  of  lands; 


sin  1913,  the  statement  of  classified  values  indicated  additions  to  local  assess- 
ments of  lands  in  55  counties,  and  deductions  in  3S  counties.  The  only  addition 
made  was  30  per  cent  for  Lake  County,  where  the  statement  indicated  an  addition 
of  3  per  cent.  Deductions  were  made  in  seven  counties.  The  list  below  shows  the 
contrast  between  the  changes  made  by  the  board  and  the  most  important  changes 
indicated   by    the  statement   of  classified   values: 


EQUALIZATION   OF  LANDS,    1913. 


Classified 
County  Value 

LaSalle    $30.00 

Lake   22.50 

Rock  Island    20.50 

JoDaviess 14.00 

Wayne  9.50 

Massac   9.00 

Saline   9.00 

Gallatin  8.00 

Union   8.00 

Johnson    7.00 

Hardin   5.00 

Pope    4.50 


Per 

cent 

Per  cent 

Assessed 

Indicated 

Determined 

Value 

Add. 

Ded. 

Add.      Ded. 

$27.53 

9 

22.33 

3 

30 

18.69 

9 

15.57 

io 

9.55 

1 

5 

9.22 

2 

10 

10.33 

13 

5 

7.94 

5 

8.88 

•10 

6.73 

4 

io 

5.03 

i 

15 

4.15 

9 

5 

REVENUE  AND  FINANCE. 


105 


CHANGES  IN  LOCAL  ASSESSMENTS  BY  THE  STATE  BOARD  OF 
EQUALIZATION,    1869-1913. 


(Compiled  from  proceedings  of  the  State  Board  of  Equalization.) 

Highest 

'                                      Number  of  Counties  Number  of  Average 

Unchanged  Counties  Percentage 

Personal  In-  De-  Added     De- 
Year                                Property       Lands  Lots    creased  creased  ducted 

1869 1  2  41  

1870 5  4  1  . .     ■ 

1871  10  10  11  

1872 13  17  33  

1873 0  0  1  38  64  152           55 

1874 2  1  0  29  72  129           43 

1875 10  0  1  38  63  122           38 

1876 4  6  4  40  62  116           41 

1877 1  1  5  43  58  141           39 

1878 9  8  9  44  53  104           Zl 

1879 3  4  7  42  55  102           26 

1880 5  10  4  40  58  74           33 

1881 2  3  7  42  59  74           23 

1882 16  5  7  42  55  79           23 

1883 12  4  18  39  57  79           22 

1884 16  4  21  33  65  74           25 

1885 23  12  34  33  61  51           42 

1886 13  5  21  29  70  49           31 

1887 24  8  30  27  68  42           28 

1888 7  4  12  33  66  63           36 

1889 16  3  12  32  67  45     40 

1890 19  8  20  31  68  49     35 

1891 18      7  21  17  82  52  35 

1892 16  10  29  26  72  48     31 

1893 13  9  21  41  55  53     34 

1894 24      9  36  28  68  46  31 

1895 21  18  42  31  56  63     31 

1896 23  10  43  30  64  58    35 

1897 49  38  14  29  64  73     25 

1898 ■ 39  19  42  20  71  45     27 

1899 All      7  56  51  45  28  14 

1900 8      6  1  7  93  16  30 

1901  All  26  99  43  34  32           28 

1902 All  17  98  45  38  24           17 

1903 All  35  79  19  51  20           32 

1904 All  35  11  20  51  20           31 

1905 101  52  83  8  48  18           17 

1906 All  56  83  6  47  11           15 

1907 All  92  All  4  6  6            4 

1908 All  96  All  2  4  5            3 

1909 All  All  All  0  0  0            0 

1910 All  All  All  0  0  0            0 

1911 All  92  98  3  10  1             5 

1912 All  All  101  0  1  0            3 

1913 All  94  95  6  9  14           8 


106 


EFFICIENCVr  AND  ECONOMY  COMMITTEE. 


EQUALIZATION    OF   LOCAL   ASSESSMENTS STATE    OF    ILLINOIS BY    i 

BOARD   OF   EQUALIZATION,    1867-1913. 

(Compiled  from  proceedings  of  the  State  Board  of  Equalization.) 

Total 
Valuation 
By  Local 
Year  Assessors 

1867    $   501,340,350 

1868    471,531,518 

1869    488,195,932 

1870    480,031,703 


1871    499,636,900 

1872    508,875,848 

1873    1,194,687,281 

1874    1,105,658,176 

1875    1,025,428,289 

1876    958,405,803 

1877    892,380,972 

1878    818,887,409 

1879    744,742,846 

1880    739,462,515 

1881    746,034,852 

1882    750,635,758 

1883    756,422,291 

1884    746,547,501 

1885    733,533,951 

1886    726,178,132 

1887    726,078,638 

1888    709,304,506 

1889    711,515,026 

1890    727,549,707 

1891    738,504,791 

1892    745,754,172 

1893    760,837,855 

1894   737,989,016 

1895    743,840,153 

1896   731,215,488 

1897    713,736,999 

1898    693,443,706 

1899    895,869,090 

1900    779,513,078 

1901    891,936,529 

1902   921,817,117 

1903    994,300,650 

1904    993,487,940 

1905    1,008,138,674 

1906    1,033,441,227 

1907    1,138,724,046 

1908    1,139,292,406 

1909   1,944,595,135 

1910    1,990,107,626 

1911    2,104,161,547 

1912    2,122,102,455 

1913    2,188,891,903 


Net  Amounts  Net  Amounts 

Equalized 

Added 

Deducted 

Valuation 

$ ■ 

$ : 

p   504,683,553 
471  550  966 

489,098,133 

480,664,058 

30,145,142 

24,005,631 

505,676,311 

31,614,035 

29,604,035 

510,886,683 

200,900,705 

198,709,881 

1,196,788,105 

179,678,489 

176,902,864 

1,107,893,344 

116,510,133 

116,013,544 

1,025,924,878 

104,834,528 

104,417,062 

958,823,269 

82,862,324 

82,790,951 

892,452,345 

55,768,390 

55,768,109 

818,987,690 

49,303,583 

49,290,919 

744,755,510 

46,198,329 

45,825,725 

739,835,119 

48,610,342 

48,401,048 

746,244,146 

42,746,795 

42,543,628 

750,838,925 

41,582,923 

41,481,025 

756,524,189 

40,985,448 

40,718,234 

746,814,715 

38,914,314 

38,744,382 

733,703,883 

52,915,868 

52,259,180 

726,834,820 

47,536,656 

46,669,790 

726,945,504 

47,489,586 

45,592,168 

711,201,924 

52,607,461 

48,134,943 

715,987,544 

47,136,432 

45,439,662 

729,246,477 

73,218,940 

70,514,548 

741,209,183 

54,936,378 

53,037,836 

747,652,714 

50,464,088 

49,006,144 

762,295,799 

55,070,104 

52,679,093 

740,380,027 

48,257,939. 

43,011,519 

749,086,573 

53,568,912 

51,131,488 

733,652,912 

48,422,435 

45,097,200 

717,062,234 

55,668,294 

49,625,360 

699,486,640 

8,775,694 

29,805,561 

874,839,223 

26,584,298 

79,051,273 

727,046,103 

.    8,595,652 

9,083,635 

891,448,546 

8,246,087 

10,746,500 

919,316,704 

1          3,678,763 

20,764,441 

977,214,968 

1          3,889,753 

20,792,754 

976,584,939 

1,730,966 

20,765,300 

989,104,340 

1,328,911 

19,116,476 

1,015,653,662 

.          1,248,930 

1,350,578 

1,138,622,398 

675,997 

688,814 

1,139,299,589 
1,944.595,135 

1,990,107,626 

412,653 

3,859,082 

2,100,715,118 

199,209 

2,121,903,246 

1         3.081,094 

1,150,098 

2,190,822,899 

a.    Not  Including  city  of  Qolncy. 


REVENUE  AND  FINANCE,  107 

Assessment  of  railroad  property. 

Before  1873  railroad  property  in  Illinois,  except  that  of  the  Illi- 
nois Central  Railroad,  was  assessed  by  local  assessors  in  much  the 
same  way  as  real  estate  and  personal  property  owned  by  individuals. 
Under  the  revenue  law  of  1872,  the  State  Board  of  Equalization  is 
required  to  assess  the  railroad  property  denominated  in  the  Act  as 
"railroad  track"  and  "rolling  stock."  Since  then  the  valuations  by 
the  State  board  for  railroad  track  and  rolling  stock  form  much  the 
greater  part  of  the  assessed  valuation  of  railroad  property,  although 
some  railroad  property  is  still  assessed  by  local  assessors. 

For  purposes  of  taxation  railroad  property  is  classified  under  five 
divisions : 

(1)  The  right  of  way,  including  superstructures  of  main,  side  or  sec- 
ond tracks  and  turnouts,  and  the  stations  and  improvements  of  the  rail- 
road company  in  such  right  of  way,  held  to  be  real  estate  for  purposes  of 
taxation,  and  denominated  "railroad  track."a 

(2)  Movable  property  (locomotives  and  all  manner  of  cars)  belonging 
to  the  railroad  company,  held  to  be  personal  property  for  purposes  of  tax- 
ation, and  denominated  "rolling  stock." 

(3)  Real  estate,  including  stations  and  other  structures,  other  than  that 
denominated  "railroad  track,"  listed  as  lands  or  lots  in  the  local  taxing 
district. 

(4)  Personal  property  other  than  that  denominated  "rolling  stock." 
This  includes  tools  and  material  for  repairs,  office  furniture  and  the  like. 

(5)  The  capital  stock,  or  rather  the  excess  value  of  the  capital  stock 
(if  any)  over  the  valuation  of  the  several  classes  of  tangible  property. 

The  first,  second  and  fifth  classes  are  assessed  by  the  State  Board 
of  Equalization ;  and  the  third  and  fourth  classes  by  the  local  assessors. 

Every  person,  company  or  corporation,  owning,  constructing  or 
operating  a  railroad  in  the  State  is  required  to  make  out  and  file  with 
the  county  clerks  of  the  counties  in  which  the  railroad  may  be  located 
a  statement  showing  the  property  held  for  right  of  way,  and  the  length 
of  all  tracks  in  such  county,  and  in  each  city,  town  and  village  in  the 
county;  also  the  value  of  improvements  located  on  the  right  of  way; 
and  must  annually  report  the  value  of  such  property  and  all  additions 
or  changes  in  such  right  of  way.  A  schedule  with  a  detailed  inventory 
of  the  rolling  stock  is  also  required.  The  county  clerks  are  required 
to  furnish  to  the  Auditor  a  detailed  statement  of  the  "railroad  track" 
and  "rolling  stock"  reported  to  them  by  the  railroads  in  other  coun- 
ties. Personal  property  and  real  estate  other  than  railroad  track  and 
rolling  stock  must  be  listed  and  assessed  in  the  local  taxing  districts. 

At  the  same  time  as  the  returns  to  the  county  clerks,  sworn  state- 
ments or  schedules  are  also  required  to  be  returned  to  the  Auditor  of 
Public  Accounts,  as  follows : 

First:  Of  the  property  denominated  "railroad  track"  giving  the  length 
of  the  main  and  side  or  second  tracks  and  turn  outs,  and  showing  the  pro- 
portion in  each  county,  and  total  in  the  State. 

Second :  The  "rolling  stock,"  giving  the  length  of  the  main  track 
in  each  county,  the  total  in  the  State  and  the  entire  length  of  the  road. 

Third:  Showine  the  number  of  ties  in  track  per  mile  ,the  weights  of 
iron  or  steel  per  yard,  and  in  main  and  side  tracks;  what  joints  or  chains 


a.  There  have  been  a  number  of  Important  judicial  decisions  on  questions 
to  what  is  and  what  is  not  Included  in  "railroad  track."  See  Kales  and  Liessmar 
Illinois  Tax  Laws  and  Decisions,  pp.  58-59. 


108  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

are  used  in  track;  the  ballasting  of  road,  whether  gravel  or  dirt;  the  num- 
ber and  quality  of  buildings  or  other  structures  on  "railroad  track;"  the 
length  of  time'  iron  in  track  has  been  used,  and  the  length  of  time  road 
has  been  built. 

Fourth:  A  statement  or  schedule  showing  the  amount  of  capital  stock 
authorized  and  the  number  of  shares  into  which  it  is  divided;  the  amount 
of  capital  stock  paid  up;  the  market  value;  or  if  no  market  value,  then 
actual  value  of  the  shares  of  stock;  the  amount  of  indebtedness,  except  for 
current  expenses  for  operating  the  road ;  and  the  total  listed  valuation  of 
its  tangible  property  in  the  State. 

The  statements  are  to  be  made  during  the  month  of  April  of 
each  year.  In  case  of  failure  to  make  returns,  the  Auditor  is  required 
to  ascertain  the  necessary  facts  and  lay  them  before  the  State  Board 
of  Equalization.  Any  company  or  person  failing  to  make  the 
required  statements,  shall  forfeit  not  less  than  $1,000  nor  more  than 
$10,000  for  each  offense,  to  be  recovered  in  any  proper  form  of  action. 
The  Auditor  is  to  lay  before  the  State  Board  of  Equalization  the 
statements  and  schedules  required  to  be  returned  to  him ;  and  the  board 
shall  assess  such  property.  The  board  is  given  power,  by  committee 
or  otherw^ise  to  examine  persons  and  papers;  but  it  does  not  have 
power  to  compel  the  attendance  of  witnesses  or  the  production  of 
papers  as  evidence.  The  published  proceedings  of  the  board  give  no 
evidence  as  to  what  extent  the  schedules  are  received  from  the  rail- 
road companies  or  what  other  data  are  presented  to  the  board ;  but  it  is 
known  that  representatives  of  the  companies  appear  before  the  com- 
mittee on  railroad  property.  Under  the  rules  of  the  board,  the  report 
of  this  committee  should  lie  over  for  two  days  before  action ;  but  this 
rule  is  regularly  suspended  and  the  committee  report  adopted  as  soon 
as  presented. 

As  finally  determined,  the  assessed  valuation  of  railroad  property . 
shows  for  each  railroad  separate  valuations  for  main  track,  including 
right  of  way,  for  buildings  on  right  of  way,  for  second  track,  for  side 
or  turnout  tracks  and  for  rolling  stock.  No  information  is  published 
as  to  the  basis  on  which  the  valuations  of  any  of  these  items  or  of  the 
total  is  determined. 

The  assessment  valuations  as  determined  by  the  State  Board  of 
Equalization  are  certified  by  the  Auditor  to  the  county  clerks ;  and  the 
county  clerks  in  like  manner  distribute  the  value  so  certified  by  the 
Auditor  to  the  several  towns,  districts,  villages  and  cities  in  their 
respective  counties.  The  value  of  "railroad  track"  is  listed  and  taxed 
in  the  various  counties  in  the  proportion  that  the  length  of  the  main 
track  in  such  county  or  district  bears  to  the  whole  length  of  road  in 
the  State,  except  the  value  of  side  or  second  tracks  and  turnouts  and 
all  station  houses,  depots,  machine  shops  or  other  buildings,  which 
are  taxed  in  the  district  in  which  they  are  located.  The  valuations  of 
"rolling  stock"  are  also  apportioned  on  the  basis  of  the  mileage  of 
main  track  in  each  district. 

At  the  first  assessment  by  the  State  board  in  1873,  the  valuation  of 
railroad  property  was  more  than  five  times  that  of  the  previous  year, 
while  other  property  was  increased  about  half  as  much.  The  railroad 
valuations  for  this  year  seem  to  have  been  excessive ;  and  there  was  a 
reduction  of  forty  per  cent  in  1874,  followed  by  further  reductions 


REVENUE  AND  FINANCE. 


109 


for  several  years.  After  1879  the  assessed  valuation  of  railroad  prop- 
erty increased  more  than  that  of  other  property  until  1890;  but  since 
1898  the  advance  in  railroad  valuations  has  been  at  a  lov^er  rate  than 
that  of  other  property.  In  1898  the  valuation  of  railroad  property 
vi^as  10  per  cent  of  the  total  valuation  for  the  State;  in  1912,  1913 
and  1914  it  was  was  not  more  than  8  per  cent  of  the  total.  The  per- 
centage of  railroad  taxes  to  earnings  has  declined  from  13  per  cent 
of  net  earnings  in  1890  to  11  per  cent  in  1911,  and  from  4.75  of  gross 
earnings  in  1890  to  less  than  3.5  per  cent  in  1911."  Moreover,  as 
between  the  various  railroads,  the  ratio  of  taxes  to  earnings  shows 
wide  variations.  While  some  roads  show  smaller  gross  earnings  than 
taxes  paid  in  Illinois,  one  of  the  most  important  systems  pays  little 
more  than  2  per  cent  of  gross  earnings  in  taxes,  and  several  important 
roads  pay  only  6  to  7  per  cent  of  net  earnings  in  taxes. 

While  the  assessment  of  railroad  property  by  the  State  Board  of 
Equalization  is  better  than  the  system  of  local  assessments  before  1873, 
the  valuations  in  recent  years  cannot  be  considered  satisfactory. 
Further  information  as  to  the  methods  of  valuation  used  by  the  State 
Board  and  a  more  thorough  study  of  the  value  of  railroad  property, 
would  be  of  service  in  forming  a  more  conclusive  judgment  as  to  the 
efficiency  of  the  assessments  by  the  State  Board  of  Equalization." 

In  most  of  the  other  states  the  assessment  of  the  property  of  other 
public  utilities  as  well  as  of  railroad?  is  centralized  in  a  state  authority. 
But  such  property  in  Illinois  is  assessed  by  local  officers,  except  for  the 
small  amount  assessed  for  the  capital  stock  of  corporations. 

Assessment  of  capital  stock. 

Under  the  revenue  law  of  1872  the  State  Board  of  Equalization 
was  required  to  assess  the  capital  stock  of  each  company  or  corpora- 
tion incorporated  under  the  laws  of  this  State.  Later  amendments, 
have,  however,  excepted  important  classes  of  corporations  from  the 
State  board's  assessment — those  organized  for  purely  manufacturing 
and  mercantile  purposes,  or  for  the  mining  and  sale  of  coal,  or  for 
printing,  or  for  the  publishing  of  newspapers,  or  for  the  improving 
and  breeding  of  stock.    Banks  are  also  excepted.  ' 

Corporations  subject  to  assessment  by  the  State  board  are 
required,  in  addition  to  listing  other  property,  to  make  out  and  deliver 
to  the  local  assessor  a  sworn  statement  of  its  capital  stock,  setting 
forth  particularly: 

First:    The  name  and  location  of  the  company  or  association. 
Second:    The  amount  of  capital  stock  authorized,  and  the  number  of 

shares  into  which  such  capital  stock  is  divided. 

•In  the  United  States  as  a  whole  the  ratio  of  railroad  taxes  to  net  earnings  has 
Increased  from  8  per  cent  in  1902  to  16  per  cent  in  1914. 

lOThe  method  of  apportioning  the  valuation  of  railroad  property  between  Illi- 
nois and  other  states  and  among  the  several  taxing  districts  within  the  State  also 
requires  inve.stigation  and  readjustment.  As  between  taxing  disricts  in  Illinois,  the 
apportionment  is  based  largely  on  main  line  mileage,  a  method  prescribed  in  the 
revenue  law  and  upheld  by  the  Supreme  Court  (205  111.,  206)  ;  and  there  are  indi- 
cations that  the  same  metliod  is  followed  in  determining  the  valuation  for  Illinois 
of  railroad  systems  extending  into  other  states.  This  method,  however,  places  a 
lower  valuation  on  their  property  in  Illinois  for  railroad  systems  extending  into  the 
western  states  than  an  apportionment  based  on  earnings,  traffic  or  cost  of  con- 
struction; and  it  also  discriminates  within  the  State  against  the  cities  and  between 
the  various  towns  and  school  districts— with  the  general  results  of  reducing  the 
amount  of  taxes  paid  by  the  railroads. 


110  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Third :    The  amount  of  capital  stock  paid  up. 

Fourth :  The  market  value,  or  if  no  market  value,  then  the  actual  value 
of  the  shares  of  stock. 

Fifth:  The  total  amount  of  all  indebtedness  for  current  expenses,  ex- 
cluding from  such  expenses  the  amount  paid  for  purchase  or  improvement 
of  property. 

Sixth :    The  assessed  valuation  of  its  tangible  property. 

In  case  of  failure  or  refusal  to  make  such  statement,  it  is  the 
duty  of  the  assessor  to  make  such  return  or  statement  from  the  best 
information  he  can  obtain. 

Such  statements  shall  be  scheduled  by  the  assessor,  and  the  schedule 
and  statements  shall  be  returned  to  the  county  clerk,  and  forwarded 
by  the  clerk  to  the  Auditor,  who  lays  them  before  the  State  Board  of 
Equalization. 

From  the  beginning  many  corporations  have  failed  to  make  the 
required  returns;  and  many  of  those  made  have  been  defective.  The 
local  assessors  have  also  failed  to  make  returns  in  many  of  these  cases. 
In  1873,  and  for  some  years  following,  the  State  board  made  efforts 
to  secure  the  required  information,  but  with  little  or  no  success.  The 
Attorney  General  and  the  Supreme  Court  have  held  that  under  the 
present  law  the  board  has  no  power  to  enforce  the  making  of  returns.** 

The  revenue  law  provides  that  the  capital  stock  of  each  company 
shall  be  so  valued  as  to  ascertain  and  determine  its  fair  cash  value, 
including  the  franchise,  over  and  above  the  assessed  value  of  the  tangi- 
ble property,  and  authorizes  the  board  to  adopt  rules  and  principles  for 
ascertaining  this  value  as  to  it  may  seem  equitable  and  just.  The  rules 
first  adopted  and  continuing  until  1900  provided  for  determining  the 
value  on  the  basis  of  the  market  value  of  stocks  and  bonds,  less  the 
assessed  value  of  tangible  property.  In  practice  the  board  also  equal- 
ized the  value  of  capital  stock  with  the  local  assessments.  In  1900, 
new  rules  were  adopted,  which  were  declared  invalid;  and  in  1901, 
another  set  of  rules  were  adopted  returning  to  the  basis  of  market  value 
of  stocks  and  bonds,  with  other  information  obtained  by  the  board,  and 
definitely  providing  for  equalizing  capital  stock  assessments  with  the 
assessment  of  other  property  throughout  the  State. 

In  operation  the  capital  stock  assessments  have  been  of  little 
importance.  In  1873,  the  board  assessed  207  corporations  for  an 
aggregate  of  $20,730,057 ;  but  this  rapidly  declined  to  33  corporations 
for  an  aggregate  of  only  $1,605,783  in  1877.  From  1880  to  1900  the 
total  valuations  for  capital  stock  ranged  between  $2,000,000  and  $7,- 
000,000,  but  with  some  increase  in  the  number  of  corporations 
assessed.  As  the  result  of  a  suit  begun  by  the  Teachers'  Federation  of 
Chicago  in  1900,  the  State  board  was  compelled  to  make  an  additional 
assessment  on  certain  public  utility  companies  in  Chicago.  Since  then 
the  number  of  corporations  assessed  and  the  assessed  valuation  of 
capital  stock  have  been  increased.  But  both  the  number  of  corpora- 
tions and  the  capital  stock  assessments  have  fluctuated  irregularly. 
In   1909,   the   board   assessed    1,168    corporations    for   the   maximum 

"Proceedings  of  the  State  Board  of  Kiiualization,  1S74,  p.  5.     St.  L.,  V.  &  T.  H. 
Uy.   Co.,  V.   Giirrell,  88  111.,  535    (1878). 


REVENUE  AND  FINANCE.  Ill 

assessment  of  $35,394,441 ;  a  year  later  2,154  corporations  were 
assessed,  but  the  total  amount  was  only  $30,265,148;  in  1913, 
there  were  708  corporations  assessed  for  an  aggregate  of  $29,373,194, 
little  more  than  one  per  cent  of  the  total  assessed  valuation  of  prop- 
erty in  the  State.  Most  of  the  corporations  are  assessed  for  small 
amounts — less  than  $5,000  each — and  the  great  bulk  of  the  capital 
stock  assessments  are  on  a  few  public  utility  companies  in  Chicago. 
In  1912  only  an  even  dozen  corporations  were  assessed  for  as  much 
as  $100,000. 

The  capital  stock  valuations  and  assessments  made  by  the  Illinois 
State  Board  of  Equalization  are  much  below  the  "corporate  excess" 
assessments  in  the  smaller  State  of  Massachusetts,  and  the  amount  of 
capital  stock  reported  to  the  United  States  Commissioner  of  Internal 
Revenue,  from  corporations  with  their  principal  offices  in  Illinois. 

It  has  been  held  by  the  Supreme  Court  that  corporations  excepted 
from  assessment  by  the  State  Board  of  Equalization  are  subject  to 
assessment  on  their  capital  stock  by  the  local  assessors. ^^  But  such 
corporations  are  not  required  to  return  statements  as  to  their  capital 
stock;  and  the  local  assessment  of  capital  stock  is  even  less  efficient 
than  by  the  State  board. 

No  provision  is  made  in  the  revenue  law  for  assessing  the  capital 
employed  in  Illinois  by  corporations  organized  under  the  laws  of  other 
states  and  countries. 

The  failure  to  make  anything  like  adequate  assessments  of  capital 
stock  is  due  in  considerable  part  to  defects  in  the  provisions  of  the 
revenue  law  and  to  the  lack  of  adequate  authority  on  the  part  of  the 
State  board.  But  a  good  deal  may  also  be  ascribed  to  the  organi- 
zation and  methods  of  work  of  the  State  board.  The  large  member- 
ship and  occasional  meetings  of  the  board  are  not  adapted  to  the 
systematic  and  serious  investigation  of  the  problems  before  it,  and  it 
appears  evident  that  the  board  has  for  many  years  ceased  to  make  any 
effort  to  secure  information  other  than  that  voluntarily  submitted. 
Nor  has  the  board  made  any  serious  effort  to  secure  any  additional 
powers  to  carry  out  its  functions  more  effectively. 


i=Consolidated   Coal   Co.,    v.    Miller,   236   111.,   149    (1908)  ;    People   v.    The    National 
Box  Co.,  248  111.,  141  (1911);  People  v.  Federal  Security  Co.,  251  111.,  561  (1912). 


112 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


EQUALIZED    ASSESSED    VALUATION    OF    TAXABLE    PROPERTY    IN    ILLINOIS, 

1873-1914. 

(Compiled  from  proceedings  of  the  State  Board  of  Equalization.) 


1873^    . 

1874  ., 

1875  . 

1876  ., 

1877  ., 

Elqualized 
Valuation 
of  Property 
Assessed 
By  Local 
Assessors 

, .  .$1,209,574,387 
...  1,107,893,344 
...   1,025,924,878 
. . .     958,823,269 
. . .     892,452,345 
, . .     818.987.690 
..'.      744.755,510 
...      739.835,119 

...      746,244,146 
. . .      750,838,925 
..      756,524,189 
. . .      746,814,715 
. . .      733,703,883 
. . .      726,834,820 
. . .      726,945,504 
...      711,201,924 
...      715,987,544 
. . .      729,246,477 

...      741,208,183 
...      747,652,714 
. .      762,295,799 
. . .      740,380,027 
. . .      749,086,573 
. . .      733,652,912 
...      717,062,234 
. . .      699,486,640 
. . .     874,839,223 
. . .      727,046,103 

. . .      891,448,546 
, . .     919,316,704 
...     977,214,968 
....      976,584,939 
...     989,104,340 
...  1,015,653,662 
...   1,138,622,398 
,..   1,139,299,589 
...  1,944,595,135 
...  1,990,107,626 

...  2,100,715,118 
...  2,121,903,246 
...  2,190,822,899 
, . .  2,214,900,530 

Assessed 

R.  R.  Track 

and  Rolling 

Stock 

$  59,317,408 
43,529,716 
32,163,644 
28,819,832 
37,141,180 
36,410,516 
37,649,670 
44,601,815 

51,377.932 
56,758,984 
59,162,102 
60,267,186 
60,987,317 
62,972,101 
66,517,478 
68,620,719 
71,352,453 
72,974,396 

74,626,553 
77,108,390 
79,531,738 
79,276,824 
79,319,385 
78.996,324 
78,582,786 
76,554,845 
75,912,042 
77,878,672 

83,181,778 
85,619,042 
88,321,224 
c88,947,961 
91,748,866 
95,131,416 
100,203,968 
103,425,144 
175,683,593 
177,217,578 

185,045,732 
190,035,709 
199,045,526 
206,353,729 

by  State  Bo: 
Equalization 

Capital 
Stock  of 
Railroads 

$64,611,071 
31,314,175 
22,649,222 
10,106,258 

ard  oi 

Capital 
Stock  of 
Other  Cor- 
porations 

$21,898,451 
11,719,216 
4,802,112 
3,373,751 
1,605,783 
1,837,556 
2,218,370 
2,179.460 

2.191,488 
2,397,986 
2,218,430 
2,087.902 
3.791.623 
3.756,577 
4.289,906 
5.089,231 
4,857.545 
6,671,909 

6,273,693 
6,549,202 
5,363,979 
4,994,777 
4,782,509 
4,030,384 
4,050,833 
2,433,425 
2,348,203 
b4,808,630 

21,497,943 
22,705,627 
15,166,104 
13,032,412 
12.942,970 
12,662,101 
10,608,000 
18,683,448 
35,394,441 
30,265,148 

30,563,450 
27,734,277 
29,373,194 
31,178,125 

Total 

Equalized 

Valuation 

of  Taxable 

Property 

$1,355,401,307 

1,194,456,451 

1,085,539,856 

1,001,123,110 

931,199,308 

1878   .. 

857,235,762 

1879    ., 

784,623.550 

1880    . 

786.616.394 

1881    .. 

799.813.566 

1882  . 

1883  .. 

809,995.895 
817,904,721 

1884    ., 

809,169,803 

1885    ., 

798,482,823 

1886    . 

793,563,498 

1887    ., 

797,752,888 

1888   .. 

784,911,874 

1889    ., 

792,197,542 

1890    . 

808,892,782 

1891    . 

822,109,429 

1892  . 

1893  .. 

831,310,306 
847,191,516 

1894    . 

b^ ..  . 

1895    .  . 

.SS3.''  ' 

1896    . 

816,679,620 

1897    . 

799,695,853 

1898   ., 

778,474,910 

1899  . 

1900  . 

953,099,468 
809,733,405 

1901  ., 

1902  .. 

1903  . 

1904  .. 

1905  . 

1906  . 

1907  . 

1908  .. 

1909  ., 

1910  ., 

1911  . 

1912  . 

1913  . 

1914  .. 

3,103,562 
2,651,062 
2,348,683 
1,906,680 
1,885,381 
3,215,978 
2,539,940 
2,092,306 
2,975,281 
2,111,684 

1,996,062 
3,228,894 
3,120,333 
3,313,415 

9QQ,23 1,829 
1,030,292,435 
1,083,050,979 
c  1,080,471,992 
1.095,681,557 
1,126,663,157 
1,251,974,306 
1,263,500,487 
2,158,648,450 
2,199,701,976 

2,318,333,241 
2,343,673,232 
2,422,361,952 
2,455,745,799 

Including   city   of   Quincy. 
Original  assessment. 
Corrected   figures. 


REVENUE  AND  FINANCE.  113 

Proposed  tax  commission. 

The  State  Board  of  Equalization  thus  appears  clearly  to  be  an 
inefficient  body  in  each  of , the  three  divisions  of  its  work — in  the  equal- 
ization of  local  assessments,  in  the  assessment  of  railroad  property  and 
in  the  assessment  of  the  capital  stock  of  corporations.  This  has  been 
recognized  in  earlier  investigations,  and  recommendations  have  been 
made  for  its  abolition  and  the  establishment  of  a  smaller  and  more 
efficient  body.  The  Revenue  Commission  of  1886  proposed  the  cre- 
ation of  a  small  State  Board  of  Tax  Commissioners."  The  special 
Tax  Commission  of  1910  reported  as  its  opinion  of  the  State  Board 
of  Equalization  that: 

"The  large  membership  of  the  board,  its  elective  character,  its 
inadequate  powers  and  the  short  time  which  is  allotted  to  it  to  perform 
its  duties,  prevent  it  and  would  prevent  any  similar  board  from  becom- 
ing a  very  effective  body  in  the  administration  of  the  tax  laws." 

The  latter  commission  recommended  the  establishment  of  a  per- 
manent Tax  Commission  of  three  members,  to  take  the  place  of  the 
State  Board  of  Equalization  and  with  larger  powers  of  supervision 
over  local  assessors,  and  powders  of  investigation  and  recommendation. 

In  other  states,  state  equalization  or  assessment  of  property  is 
placed  in  the  hands  of  a  single  commissioner  or  of  a  small  board. 
Some  of  the  smaller  states  have  state  boards  of  equalization  composed 
of  ex  officio  members ;  but  in  more  than  half  of  the  states  there  are  now 
salaried  tax  commissioners  or  state  boards  of  assessors.  In  five  states 
there  is  a  single  tax  commissioner — Massachusetts,  Connecticut, 
Vermont,  West  Virginia,  and  Wyoming.  A  small  board  of  tax 
commissioners  was  established  in  Indiana  in  1891 ;  and  similar  boards 
have  been  created  in  New  York  (in  1896),  Michigan  and  Wisconsin 
(in  1899),  New  Jersey,  Texas,  and  Washington  (in  1905),  Minnesota, 
Kansas,  and  Alabama  (in  1907),  Arkansas  and  Oregon  (in  1909), 
Ohio  (in  1910),  California  and  Colorado. 

The  list  of  state  tax  commissions  now  include  all  of  the  states 
east  of  the  Mississippi  and  north  of  the  Ohio  and  Potomac,  except 
Pennsylvania  and  Illinois;  and  in  addition  there  are  such  commissions 
in  Minnesota,  North  Dakota,  Kansas,  and  Colorado  in  the  central  west, 
in  North  Carolina,  Arkansas,  Texas,  and  Arizona  in  the  south  and 
southwest,  and  in  Washington,  Oregon,  and  California  on  the  Pacific 
Coast.^* 

These  boards  of  tax  commissioners  are  usually  composed  of  three 
members,  appointed  by  the  Governor — in  most  cases  with  the  consent 
of  the  Senate — with  salaries  ranging  from  $2,500  a  year  (in  Michigan 
and  Kansas)  to  $5,000  a  year  (in  New  York,  Ohio,  and  Wisconsin). 
The  powders  of  these  boards  vary  to  some  extent  in  the  different 
states;  but  in  general  they  determine  the  assessed  valuation  of  certain 
classes  of   corporate   property ;   they   exercise   supervision   over  local 


I'This  was  the  first  time  such  a  commission  was  proposed  in  the  United  States, 
and  while  the  recommendation  has  been  adopted  in  many  other  states,  as  yet  noth- 
ing has  been  done  in  this  direction  in   the  State  where  it  was  first  presented. 

i*See  later  section  of  this  report  on  Finance  Administration  In  Other  States  and 
Countries. 


114  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

assessors,  and  in  some  cases  decide  on  appeals  from  local  assessments ; 
and  they  have  authority  to  investigate  the  general  system  of  taxation 
throughout  the  state. 

In  the  states  where  these  permanent  tax  commissions  have  been 
established  there  has  been  a  notable  improvement  in  the  administration 
of  the  tax  and  assessment  laws.  Assessed  valuations  have  been  largely 
increased,  both  in  the  case  of  local  assessments  and  still  more  in  that 
of  corporate  property  assessed  by  the  state  board;  and  at  the  same 
time  the  assessments  have  been  made  more  uniform  and  equitable. 
This  has  been  brought  about  not  only  by  the  direct  action  of  state 
boards,  but  also  by  investigation  into  local  conditions  and  conferences 
with  local  officials. 

Bills  for  the  creation  of  a  State  Tax  Commission  were  intro- 
duced in  the  Illinois  Legislature  in  1911  and  1913;  and  a  bill  for  this 
purpose  passed  the  House  of  Representatives  in  the  latter  year.  The 
need  for  such  a  commission  and  its  advantages  over  the  present 
arrangements  in  Illinois  have  been  already  demonstrated.  But  this 
report  on  the  methods  of  local  assessment  and  of  the  State  Board  of 
Equalization  and  its  committees  may  serve  to  make  more  emphatic  the 
inefficiency  and  waste  of  the  existing  arrangements  and  the  urgency 
of  more  efficient  administrative  machinery  for  taxation. 

The  question  may  also  be  raised  here  as  to  the  advisability  of 
going  further  than  has  yet  been  proposed  in  the  organization  of  an 
effective  control  over  State  revenues  and  finances.  The  tax  commission 
as  hitherto  proposed  would  deal  only  with  the  administration  of  the 
general  property  tax,  and  in  some  bills  its  powers  have  been  limited  to 
the  assessment  of  property  for  taxation  under  the  present  laws.  The 
assessment  of  the  capital  and  other  property,  not  assessed  by  local 
assessors,  of  all  classes  of  public  utilities  and  corporations  in  Illinois 
including  those  organized  under  the  laws  of  other  states  and  countries 
as  well  as  those  organized  under  the  laws  of  this  State  should  be 
centralized  in  such  a  State  authority.  Still  larger  results  could  be 
secured  by  the  creation  of  a  revenue  commission,  with  jurisdiction 
over  the  whole  subject  of  State  revenues  from  all  sources.  Still  fur- 
ther a  State  Finance  Commission,  with  jurisdiction  over  both  revenues 
and  expenditures,  and  with  appropriate  bureaus  for  different  phases 
of  its  work,  would  provide  a  comprehensive  organization  for  the 
administration  of  the  State  finances. 

These  later  suggestions  go  further  than  any  of  the  states  in  this 
country;  but  something  of  the  kind  is  provided  in  the  department  of 
the  treasury  in  the  United  States  government ;  and  all  of  the  govern- 
ments of  Europe  and  Latin  America  have  such  a  comprehensive 
department  of  finance.  A  study  of  finance  administration  in  the 
national  government  and  in  foreign  countries,  as  well  as  in  other  states, 
will  be  of  service  in  suggesting  plans  for  a  general  organization  for  the 
State  of  Illinois.^^ 


I'^Changes  which  have  been  proposed  In  the  system  of  taxation  have  not  been 
discussed  in  this  report.  The  authority  of  the  Efficiency  and  liconomy  Committee 
does  not  extend  beyond  the  reorganization  of  administrative  machinery;  and  for 
this  reason,  it  has  not  seemed  advisable  to  consider  important  changes  in  the  sub- 
Btantive  law. 


REVENUE  AND  FINANCE. 


115 


2.  Levy  and  extension  of  taxes. 

Long  before  the  assessment  and  equalization  of  property  is  com- 
pleted, the  various  tax  levying  authorities  have  taken  steps  towards 
determining  the  amounts  to  be  raised  by  taxation,  under  laws  author- 
izing the  levy  of  taxes  and  limiting  the  amount  for  each  class  of 
authorities.  At  the  close  of  the  regular  session  of  the  General  Assem- 
bly every  second  year,  an  act  is  passed  authorizing  the  levy  of  State 
taxes  for  amounts  named  for  the  current  and  following  year;  and  ip 
addition  there  are  at  times  permanent  provisions  authorizing  an  annual 
tax  for  certain  purposes,  as  the  one  mill  university  fund  tax  authorized 
in  1911.  The  proper  authorities  of  towns,  townships,  districts  and 
incorporated  cities,  towns  and  villages  are  required,  on  or  before  the 
second  Tuesday  in  August  of  each  year,  to  certify  to  the  county  clerk 
the  several  amounts  which  they  severally  require  to  be  raised  by  tax- 
ation. The  county  boards  of  the  respective  counties  are  required 
annually,  at  the  September  session  to  determine  the  amount  of  all 
county  taxes  to  be  raised  for  all  purposes. 

It  should  be  noted  that  the  local  tax  levies  are  determined  some 
months  after  the  beginning  of  the  year  for  which  the  levies  are  made ; 
while  the  application  of  these  levies  to  the  property  owners  follows  the 
levies,  and  the  collection  of  taxes  does  not  begin  until  nearly  the  end, 
and  in  many  cases  after  the  end,  of  the  year  for  which  they  have  been 
levied.  This  situation  makes  it  necessary  for  the  various  authorities 
either  to  carry  over  balances  from  the  previous  year,  or  to  borrow  in 
anticipation  of  .taxes. 

State  tax  rates. 

Following  the  tax  levies  comes  the  process  of  determining  the 
rates  of  taxation. 

On  the  completion  of  the  assessment  and  equalization  of  property 
(which  occurs  in  December),  the  Governor,  Auditor  and  Treasurer 
are  required  annually  to  ascertain  the  rate  per  cent  required  to  produce 
the  amount  of  taxes  levied  by  the  General  Assembly.  The  Auditor 
is  required  to  compute  and  certify  to  the  county  clerks  the  separate 
rates  per  cent  ,as  will  produce  the  amount  of  State  taxes  authorizd 
to  be  levied  for  each  iand. 

The  method  of  authorizing  the  amount  of  State  taxes  and  of 
determining  the  State  tax  rate  is  by  no  means  satisfactory.  The  amounts 
authorized  by  the  General  Assernbly  are  presumably  based  on  th  appro- 
priations, after  allowing  for  revenue  expected  from  other  sources  than 
the  general  property  tax.  But  there  appears  to  be  no  official  report 
giving  the  total  appropriations  and  the  estimated  revenues  from  oher 
sources,  so  as  to  show  the  amount  necessary  to  be  raised  by  taxation. 
Moreover,  as  the  taxes  for  any  year  are  not  received  until  after  nine 
months  of  the  fiscal  year  has  elapsed,  the  expenditures  for  that  period 
would  have  to  be  delayed  or  paid  out  of  temporary  loans  were  not 
large  balances  ofdinarily  carried  over  from  year  to  year. 

In  practice  the  tax  rates  determined  have  usually  provided  for 
levying  taxes  which  aggregate  more,  and  at  times  considerably  more, 
than  the  amounts  authorized  by  the  General  Assembly,  but  some  times 


116  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

have  amounted  to  less.  Such  action  has  been  sustained  by  the  Supreme 
Court  on  the  ground  that  allowance  must  be  made  for  commissions 
and  probable  losses  in  collections.^"  This  situation  makes  the  determi- 
nation of  the  tax  rate  not  merely  a  ministerial  duty  of  calculating  the 
rate,  but  a  function  calling  for  judgment  and  discretion.  Usually  the 
amounts  collected  have  been  more  than  the  amounts  authorized;  but 
for  some  years  the  amounts  collected  have  been  less  than  the  amounts 
authorized. 

From  the  following  table  it  appears  that  in  the  seventies,  the  taxes 
levied  were  largely  in  excess  of  the  amounts  authorized,  but  the 
amounts  collected  were  usually  not  much  above  the  amounts  author- 
ized. In  recent  years,  the  taxes  levied  and  the  collections  for  the  year 
1909  exceeded  the  amount  authorized  by  more  than  a  million  dollars ; 
while  the  levies  and  collections  for  1899,  1900,  1902,  1905,  1906,  1911, 
and  1912  were  less  than  the  amounts  authorized. 

The  practice  of  naming  a  rate  higher  than  necessary  to  yield  the 
amount  authorized  by  the  General  Assembly  led  to  the  accumulation  of 
considerable  balances  from  which  payments  could  be  made  in  the 
period  before  the  current  year's  taxes  were  paid.  But  the  low  rates  in 
1911  and  1912,  while  yielding  enough  revenue,  with  the  former  bal- 
ances to  meet  the  appropriations  of  1911,  did  not  leave  a  sufficient  bal- 
ance to  meet  the  appropriations  made  in  1913  before  the  time  when 
the  taxes  for  tha\  year  became  payable. 

The  procedure  in  authorizing  State  taxes  and  in  determining  the 
rate  should  provide  for  more  definite  statements,  both  jn  the  form  of 
estimates  and  reports  of  results.  The  tax  levy  bill  should  be  based 
on  statements  showing  the  total  appropriations  and  the  revenue  esti- 
mated from  each  source.  The  report  to  the  next  session  of  the  Gen- 
eral Assembly  should  show  not  only  the  tax  rates  determined,  but 
also  the  amount  of  taxes  levied  and  the  amount  collected  under  this 
rate ;  and  should  also  compare  the  revenues  received  with  the  estimates 
presented  at  the  previous  session.  It  should  also  be  more  clearly 
recognized  that  the  taxs  levied  by  one  General  Assembly  must  be 
depended  on  to  furnish  revenue  to  meet  a  large  part  of  one  year's 
appropriations  to  be  made  by  the  following  General  Assembly. 


lOEdwards  v.  People  88  111.  340  (1878).  In.  an  earlk-r  case,  part  of  the  State  tax 
was  enjoined,  because  the  State  officers  had  fixed  the  rate  so  as  to  include  certain 
municipal  debts  under  a  statute  held  to  be  in  conflict  with  the  State  Constitution. 
Ramory  v.   Hager,  76  111.  432   (1875).     In  the  later  case  two  judges  dissented. 


REVENUE  AND  FINANCE.  117 

STATE  TAXES  IN  ILLINOIS,   1871-1914. 
(Compiled  from  reports  of  Auditor  of  Public  Accpunts.) 


State 

Amount 

Tax 

Amount  of 

Paid 

State  Tax 

Rate 

State  Tax 

State 

Year 

Appropriations 

Autliorizcd 

Cents 

Charged 

Treasurer 

1871    .. 

$ 

$ 

$  4,525,964 

$4,177,711 

1872    . 

1,700,000=^ 

75 

3,948,357 

3,527,377 

1873    .. 

3,500,000 

36 

5,054,435 

3,793,270 

1874    . . 

2,500,000 

24 

3,440,477 

2,578,422 

1875    ... 

2,800,000 

30 

3,966,596 

2,861,374 

1876    .. 

2,500,000 

28 

3,610,997 

2,755,978 

1877    .. 

6,562,653 

3,000,000 

36 

4,185,661 

2,961,773 

1878    .. 

2,500,000 

33 

3,614,855 

2,917,047 

1879    . . 

6,584,364 

2,200,000 

27 

2,712,635 

2,123,239 

1880    .. 

2,500,000 

36 

3,202,289 

2,840,807 

1881    .. 

6,605,399 

3,350,000 

48 

4,067,060 

3,706,323 

1882    .. 

2,500,000 

36 

3,098,013 

2,847,810 

1883    .. 

7,342,742 

2,400,000 

32 

2,748,111 

2,534,028 

1884    . . 

2,500,000 

35 

2,965,449 

2,739,799 

1885    .. 

7,776,458 

3,000,000 

42 

3,485,083 

3,142,307 

1886    .. 

2,500,000 

35 

2,889,479 

2,707,327 

1887    .. 

7,940,412 

3,800,000 

53 

4.318,959 

4,083,618 

1888    .. 

3,200,000  - 

44 

3,526,608 

3,358,693 

1889   .. 

7,396,737 

2,700,000 

38 

3,075,600 

2,884,876 

1890    .. 

2,700,000 

36 

2,974,920 

2,823,504 

1891    . . 

8,757,901 

2,500,000 

33 

2,768,887 

2,630,930 

1892    .. 

2,500,000 

31 

2,628,317 

2,948,569 

1893    .. 

9,032,514 

2,500,000 

31 

2,676,101 

2,524,131 

1894    . . 

2,500,000 

31 

2,616,900 

2,478,495 

1895    .. 

10,055,800 

4,000,000    • 

52 

4,378,186 

4,187,406 

1896    . . 

4,000,000 

55 

4,544,229 

4,332,368 

1897    . . 

...   .   11,178,902 

4,900,000 

66 

5,319,433 

,      5,063,375 

1898    .. 

4,000,000 

56 

4,413,495 

4,187,557 

1899    . . 

..    ..   12,499,655 

4,300,000 

42 

4.061,840 

3,848,943 

1900    .. 

4,300,000 

50 

4,111,622 

3,915,628 

1901    . . 

13,273,686 

4,500,000 

50 

5,219,122 

4,824,164 

1902 

4,500,000 

40 

4,315,147 

3,967,708 

1903   .. 

15,467,316 

5,500,000 

52 

5,852,493 

5,434,065 

1904    .. 

5,500,000 

55 

6,172,998 

5,757,093 

1905 

..   15,889,364 

6,000,000 

50 

5,568,310 

5,296,871 

1906    .. 

6,000,000 

50 

5,845,058 

5,446,164 

1907    . 

20,208,146 

6,000,000 

SO 

6.379,029 

6,1J.4,961 

1908 

6,000,000 

50 

6.458,081 

6,107,259 

1909    . . 

19,857,596 

6,100,000 

35 

7,724,912 

7,283,519 

1910    .. 

6,100,000 

30 

6,760,560 

6,400,132 

191l"   .. 

29,658,175 

9,750,000 

35 

8,307,578 

7,826,122 

1912   .. 

9,750,000b 

38 

8,900,000 

8,614,920 

1913    .  . 

37,915,457 

13,600,000'J 
13,000,000b 

70 

48 

16,940,000 

Plus  20  coiits  school  tax  and  15  cents  canal  redemption  fund, 
b.     Plus  10  cents  University  Fund  Tax. 


118  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Local  Tax  Rates — Juul  Law. 

The  determination  of  local  tax  rates  and  the  calculation  and 
extension  of  the  taxes  on  each  parcel  of  real  property  and  each  owner 
of  personal  property  are  duties  imposed  on  the  county  clerks,  in  the 
preparation  of  the  collectors'  books.  The  county  clerk  in  each  county 
is  to  ascertain  the  rates  per  cent  required  to  be  extended  upon  the 
assessed  valuation  of  the  taxable  property  in  the  respective  towns, 
townships,  districts,  incorporated  cities  and  villages  in  his  county,  as 
equalized  by  the  State  Board  of  Equalization  for  the  current  year,  to 
produce  the  several  amounts  certified  for  extension  by  the  taxing 
authorities  in  said  county.  But,  under  the  Juul  law,  this  duty  is  com- 
plicated by  elaborate  provisos  limiting  the  aggregate  tax  rate  and 
requiring  the  reduction  of  rates  when  the  total  exceeds  the  maximum. 
The  statutory  requirements  regulating  the  tax  limit  form  a  most  curi- 
ous and  confusing  medley.  Taxes  for  certain  purposes  are  excluded 
from  the  reduction  process ;  and  taxes  for  other  purposes  may  not  be 
scaled  below  certain  minimum  rates.^^. 

The  result  is  that  while  the  nominal  maximum  of  all  taxes  is  three 
per  cent  of  the  assessed  valuation,  the  total  of  the  tax  rates  finally 
determined  is  in  many  places  much  above  this  rate.  Thus  in  1911, 
the  average  tax  rate  for  the  entire  State  was  4.12  per  cent;  and  the 
county  average  rate  was  more  than  four  per  cent  in  ten  counties,  and 
more  than  five  per  cent  in  three  counties,  and  the  total  rate  in  many 
cities  was  more  than  five  per  cent. 

The  tax  limit  law  appears  to  have  been  enacted  primarily  to  limit 
the  aggregate  taxes  in  Cook  County.  In  many  of  the  other  counties 
little  or  no  attention  seems  to  be  paid  to  the  provisions  for  scaling 
down  taxes  above  the  maximum  named ;  and  in  these  and  other  cases 
taxes  are  calculated  and  extended  on  the  collectors'  books  which  do 
not  comply  with  all  the  requirements  of  the  law.  In  some  cases  where 
this  happens,  the  collection  of  taxes  is  restrained  by  court  proceedings 
on  behalf  of  railroads  and  other  large  tax  payers;  while  the  great 
majority  of  tax  payers  pay  the  amounts  extended  on  the  collectors' 
books. 

Other  difficulties  are  caused  by  the  unequal  operation  of  the  vari- 
ous limits  on  different  classes  of  authorities.  Some  taxing  bodies 
receive  ample  or  even  unnecessary'  amounts,  while  others  are  so  closely 
limited  that  they  are  unable  to  meet  even  the  most  necessary  expenses. 
Moreover  a  large  levy  from  one  district  will  at  times  require  the  reduc- 
tion of  rates  of  all  the  taxing  bodies  throughout  a  larger  area,  at  times 
below  the  three  per  cent  limit  in  some  parts  of  tlie  larger  district. 

Various  suggestions  have  been  made  to  secure  a  more  general  and 
stricter  compliance  with  the  tax  limit  law  before  the  taxes  are  com- 

i^Tax  rates  may  not  be  reduced  below  the  following  figures: 

Cook  County.  Other  Counties. 

For  county  purposes 40  cents  45  cents 

For  city  or  village  purposes 110  cents  120  cents 

School    tax    for    educational    purposes 105  cents  150  cents 

Taxes  excluded  from  the  process  of  reduction  include  State  taxes,  village  taxes, 
levee  taxes,  school  building  taxes,  high  school  taxes,  district  school  taxes,  road  and 
bridge  taxes,  and  for  three  years  from  1913  taxes  to  meet  i)rin(ipal  and  interest  on 
bonded  debt  and  judgments.  There  are  also  other  taxes  for  school  buildings,  librar- 
ies, parks  and  drainage  districts. 


REVENUE  AND  FINANCE.  119 

puted  and  extended.  But  the  most  serious  trouble  is  caused  by  impos- 
inj4'  a  uniform  and  mechanical  schedule  of  rates  throughout  the  whole 
State  without  regard  to  different  local  conditions.  These  difficulties 
are  accentuated  by  tlie  multiplex  variety  of  local  taxing  authorities  in 
Illinois ;  and  there  should  be  steps  taken  to  consolidate  and  reduce  the 
number  of  such  bodies.  Whether  or  not  this  is  done,  better  results 
might  be  hoped  for  by  concentrating  the  responsibility  for  the  final 
decision  as  to  the  distribution  of  taxes  within  each  county  in  one  body 
with  some  discretionary  power. 

Extension  of  Taxes. 

When  the  tax  rate  for  each  of  the  taxing  bodies  has  been  ascer- 
tained and  determined,  these  rates  are  extended  by  the  county  clerk 
upon  the  assessed  value  of  the  property  subject  thereto,  as  equalized. 
These  extensions  are  made  in  books  prepared  by  the  county  clerk  for  the 
use  of  collectors,  with  correct  lists  of  taxable  property  as  assessed  and 
equalized.  In  counties  under  township  organization,  these  books  cor- 
respond with  the  organized  townships ;  in  other  counties,  they  are  made 
up  by  congressional  townships,  but  fractional  townships  may  be  added 
to  full  townships.  Separate  books  may  be  made  for  incorporated 
cities,  towns  and  villages.  Each  book  is  required  to  be  ruled  so  as  to 
show  the  original  assessed  valuation,  the  valuation  as  corrected  and 
equalized  by  the  county  board  of  review,  and  the  valuation  as  equalized 
or  assessed  by  the  State  Board  of  Equalization ;  and  with  columns  for 
the  extension  of  the  several  kinds  of  taxes  and  to  note  any  tax  sales 
for  the  two  preceding  years.  Where  real  property  has  been  forfeited 
for  taxes,  the  amount  of  back  taxes,  interest,  penalties  and  printers' 
fees  are  to  be  added  to  the  taxes  due. 

The  calculation  and  extension  on  the  collectors'  books  of  the 
amount  of  tax  for  each  taxing  authority  against  each  piece  of  real 
estate  and  each  owner  of  personal  property  involves  a  large  amount  of 
unnecessary  clerical  work.  If  this  was  not  required  the  fees  for 
extending  taxes  could  be  reduced. 

To  each  collector's  book  a  warrant  must  be  annexed  commanding 
the  collector  to  collect  from  the  persons  named  the  several  sums 
entered  opposite  their  names;  and  directing  the  collector  to  pay  over 
the  several  kinds  of  taxes  collected  to  the  respective  officers  entitled 
thereto,  less  the  compensation  for  collection. 

When  the  collectors'  books  are  completed,  the  county  clerk  is 
required  to  make  out  and  forward  to  the  Auditor  a  certified  statement 
of  the  assessment  and  taxes  on  blanks,  and  in  conformity  to  instruc- 
tions forwarded  by  the  Auditor. 

5.  Collection  of  Taxes. 
The  procedure  for  collecting  taxes,  for  recovering  delinquent 
taxes  and  for  making  settlements  between  the  collectors  and  taxing 
authorities  are  regulated  in  detail  by  the  revenue  law.  In  counties 
under  township  organization,  a  town  collector  is  elected  in  each  town- 
ship ;  and  the  county  treasurer  acts  as  county  collector^^     In  counties 

i**In  Cook  County,  the  county  treasurer  Is  also  town  collector  for  the  towns  In 
the  city  of  Chicago;  and  in  Sangamon  County,  the  county  treasurer  Is  town  collector 
lor  Capital  Township,  which  is  coextensive  with  the  city  of  Springtield.  In  cities 
collectors  of  special  assessments,  are  also  provided. 


120  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

not  under  township  organization,  the  sheriff  is  district  collector  and 
county  collector.  Each  collector  must  subscribe  to  the  oath  of  office 
and  execute  a  bond,  to  be  recorded  as  a  lien  against  the  real  estate 
of  such  collector.  Collectors'  bonds  tnust  be  approved  by  the  county 
board  or  by  the  supervisor  and  town  clerk  of  the  town;  and  county 
collectors'  bonds  must  also  t»e  approved  by  the  Auditor  of  Public 
Accounts.  Provision  is  also  made  for  vacancies  in  the  office  of  col- 
lector ;  and  collectors  are  authorized  to  appoint  deputies  and  to  revoke 
any  such  appointment  at  their  pleasure. 

On  the  second  day  of  January  following  the  year  in  which  taxes 
are  levied,  the  county  clerks  are  required  to  deliver  to  the  town,  dis- 
trict or  county  collectors  the  books  for  the  collection  of  taxes;  and 
also  to  furnish  the  county  collector  with  a  certified  statement  giving 
the  name  of  each  town  or  district  collector,  the  amount  of  taxes  to  be 
collected  and  paid  over  for  each  purpose  in  each  of  the  several  towns 
or  districts,  cities  and  villages. 

Town  and  district  collectors. 

Every  town  collector  is  to  call  at  least  once  on  the  person  taxed, 
or  at  his  place  of  residence  or  business,  if  in  the  town,  and  demand 
payment  of  the  taxes  charged  to  him  on  his  property.  In  counties  not 
under  township  organization  it  is  the  duty  of  the  collector  to  give  notice 
(by  newspaper  and  posting  notices)  stating  when  and  where  he  will 
attend  in  each  precinct  for  the  purpose  of  collecting  taxes  therein. 

Whenever  any  person  pays  the  taxes  charged  on  any  property,  the 
collector  is  required  to  enter  such  payment  in  his  book,  and  give  a 
receipt  therefor. 

In  case  any  person,  company  or  corporation  refuses  or  neglects  to 
pay  (personal)  taxes  imposed  on  him  or  them,  when  demanded,  it  is 
the  duty  of  the  collector  to  levy  the  same,  together  with  the  costs 
and  charges  that  may  accrue  by  distress  or  sale  of  the  personal  prop- 
erty of  the  person,  company  or  corporation  who  ought  to  pay  the  same. 
At  least  five  days  public  notice  shall  be  given  of  the  time  and  place  of 
sale,  and  such  sale  shall  be  by  public  auction.  Provision  is  made  for 
the  collection  of  taxes  from  persons  who  have  removed  from  the  town 
or  district. 

Every  thirty  days,  town  and  district  collectors  are  required  to 
render  an  account  to  the  county  collector  of  State  and  county  taxes, 
and  pay  over  the  amounts  collected;  and  similar  statements  and  pay- 
ments may  be  required  every  thirty  days  by  the  proper  authorities  of 
incorporated  towns,  cities  and  villages,  road  and  school  districts. 

Town  and  district  collectors  are  required  to  return  the  tax  books 
and  make  final  settlements  on  or  before  March  10,  or  on  a  day  with- 
in twenty  days  thereafter  fixed  by  the  county  collector.  In  counties 
under  township  organization,  each  town  collector  is  required  to  furnish 
a  detailed  statement  showing  the  unpaid  taxes,  also  the  causes  of 
failure  to  collect  personal  taxes  verified  by  affidavit.  Such  collectors 
are  given  credit  for  the  commissions  on  taxes  collected  and  for  unpaid 
taxes. 


REVENUE  AND  FINANCE. 


121 


County  collectors. 

County  collectors  have  the  same  powers,  and  may  proceed  in  the 
same  manner  for  the  collection  of  any  tax  on  real  or  personal  property, 
as  town  or  district  collectors. 

On  or  before  April  10,  after  settlement  with  the  town  or  district  . 
collectors,  the  county  collector  is  required  to  make  and  file  with  the 
county  clerk  a  sworn  statement  showing  the  total  amounts  of  each 
kind  of  tax  received  by  him  from  the  town  or  district  collectors,  and 
the  total  amount  of  each  collected  by  himself.  The  clerk  is  required 
to  certify  to  the  Auditor  and  the  proper  authorities  or  persons,  the 
amount  for  which  the  collector  is  required  to  settle  with  them  severally. 

On  or  before  April  15,  the  county  collector  is  required  to  pay 
over  to  the  State  Treasurer  the  taxes  in  his  hands  payable  to  the 
State  treasury;  and  within  the  same  time  to  pay  over  to  the  other 
proper  autliorities  or  persons  the  amounts  payable  to  them.  When 
demanded  by  the  proper  persons,  the  county  collector  is  required  to 
report  and  pay  over,  at  least  once  in  every  ten  days,  the  amount  of 
tax  and  special  assessments  collected  by  him  on  delinquent  property 
and  due  to  towns,  districts,  cities,  villages,  corporations  and  persons. 
On  the  first  of  every  month,  the  county  collector  is  required  to  report 
to  the  county  clerk  the  amount  of  county  tax  received  by  him  during 
the  preceding  month. 
Notice  of  judgment  proceedings.  • 

All  taxes  on  real  estate  unpaid  at  the  time  the  town  or  district 
collector  makes  return  of  his  books  are  deemed  delinquent;  and  all 
such  due  and  unpaid  taxes  bear  interest  after  the  first  day  of  May 
at  the  rate  of  one  per  cent  per  month,  until  paid  or  forfeited;  and 
such  taxes,  with  interest  penalties  and  costs,  are  a  prior  and  first  lien 
on  such  real  property  from  and  including  the  first  day  of  April  in  the 
year  in  which  the  taxes  are  levied. 

At  any  time  after  first  day  of  April  next  after  delinquent  taxes 
and  special  assessments  become  due,  the  collector  shall  publish  an 
advertisement,  giving  notice  of  the  intended  application  for  judgment 
for  sale  of  such  delinquent  lands  and  lota.  Said  advertisement  shall 
be  published  at  least  three  weeks  previous  to  the  term  of  court  at 
which  judgment  is  prayed;  and  all  applications  for  judgment  and  order 
of  sale  for  taxes  and  special  assessments  on  delinquent  lands  and  lots 
shall  be  made  at  the  June  term  of  the  county  court. 

At  least  five  days  before  the  commencement  of  the  term  at  which 
application  for  judgment  is  to  be  made,  the  collector  shall  transcribe 
into  a  book  prepared  for  the  purpose,  and  known  as  the  tax,  judgment, 
sale,  redemption  and  forfeiture  record,  the  list  of  delinquent  lands  and 
lots,  made  out  in  numerical  order,  with  all  the  information  necessary 
to  be  recorded. 

Any  person  owning  or  claiming  lands  or  lots  upon  which  judg- 
ment is  prayed,  may  pay  the  taxes  and  other  charges,  to  the  county 
collector  at  any  time  before  the  sale;  and  it  is  the  duty  of  the  collector 
to  report  to  the  clerk  all  the  lands  and  lots  on  which  taxes  and  special 
assessments  have  been  paid. 


122  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Court  proceedings. 

The  county  court  is  required  to  examine  the  list  of  delinquent 
lands  and  lots,  and  if  defense  (specifying  in  writing  the  particular 
cause  of  objection)  be  offered  by  any  person  interested  in  any  of  said 
lands  or  lots  to  the  entry  of  judgment  against  the  same,  the  court  shall 
hear  and  determine  the  same  in  a  summary  manner,  without  pleadings, 
and  shall  pronounce  judgment  as  the  right  of  the  case  may  be.  The 
court  shall  give  judgment  for  such  taxes  and  special  assessments  and 
penalties  as  shall  appear  to  be  due ;  and  shall  direct  the  clerk  to  make 
out  and  enter  an  order  for  the  sale  of  such  real  property  against  which 
judgment  is  given. 

Appeals  from  the  judgment  of  the  court  may  be  taken  during 
the  same  term  to  the  supreme  court,  on  executing  a  bond  that  the 
appellant  will  prosecute  his  said  appeal  with  effect,  and  will  pay  the 
amount  of  the  tax  assessment  and  cost  which  may  finally  be  adjudged 
against  the  real  estate  involved  in  the  appeal,  and  after  depositing  with 
the  county  collector  an  amount  of  money  equal  to  the  amount  of  the 
judgment  and  costs. 

Tax  sales. 

If  judgment  is  rendered  by  any  court,  at  any  time,  against  any 
lands  or  lots  for  any  tax  or  special  assessment,  the  county  collector, 
after  publishing  the  required  notice  for  sale,  shall  proceed  to  execute 
such  judgment  by 'the  sale  of  lots  and  lands  against  which  such  judg- 
ment shall  be  rendered. 

On  the  day  specified  in  the  notice,  the  county  collector,  in  person 
or  by  deputy,  is  required  to  attend  at  the  court  house  in  his  county, 
and  offer  for  sale  each  tract  of  land  or  town  or  city  lot  on  the  list,  on 
which  taxes  or  special  assessments  have  not  been  paid.  The  sale  is 
to  be  continued  from  day  to  day  until  all  the  tracts  or  lots  shall  be 
sold  or  offered  for  sale. 

At  such  sale,  the  person  offering  to  pay  the  amount  due  on  each 
tract  or  lot  for  the  least  per  centage  thereon  as  penalty  (not  less  than 
25  per  cent)  shall  be  the  purchaser  of  such  tract  or  lot. 

Every  tract  or  lot  so  offered  at  public  sale,  and  not  sold  for  want 
of  bidders,  shall  be  forfeited  to  the  State  of  Illinois.  But  on  certificate 
that  the  taxes  on  forfeited  lands  equal  or  exceed  the  actual  value  of 
such  lands,  they  may  be  offered  for  sale  to  the  highest  bidder. 

The  county  clerk,  in  person  or  by  deputy,  is  required  to  attend  all 
sales  of  real  estate  for  taxes  and  assist  at  the  same.  He  is  required 
to  examine  the  list  upon  which  judgment  has  been  rendered  and  certify 
to  its  correctness ;  and  when  a  tract  or  lot  is  sold  it  is  his  duty  to  enter 
this  on  the  record  with  the  name  of  the  purchaser;  to  make  out  and 
deliver  to  the  purchaser  a  certificate  of  purchase,  and  to  make  out  and 
transmit  to  the  Auditor  a  transcript  of  the  sales  for  taxes  within  twenty 
days  after  such  sale. 

Redemption — tax  deeds. 

Section  five  (5)  of  article  nine  (IX)  of  the  State  Constitution  pro- 
vides for  a  right  of  redemption  ffom  all  sales  of  real  estate  for  taxes 


REVENUE  AND  FINANCE.  123 

for  a  period  of  two  years,  and  foi*  notice  to  the  owners  or  parties 
interested.  The  revenue  law  provides  for  such  redemption  on  payment 
of  the  amount  for  which  the  property  was  sold  together  with  later 
taxes  and  the  amount  of  the  penalty,  the  latter  being  gradually 
increased  from  the  amount  bid  to  four  times  that  sum  during  the  last 
six  months  of  the  two  years  in  which  redemption  may  be  made. 

After  the  expiration  of  two  years  from  the  sale  of  real  estate 
for  taxes  or  special  assessment,  if  it  has  not  been  redeemed,  the  county 
clerk  shall  execute  and  deliver  to  the  purchaser  a  deed  of  conveyance 
for  the  real  estate,  on  request  and  on  production  of  the  certificate  of 
purchase,  and  upon  compliance  with  the  provisions  of  the  revenue  law 
in  regard  to  notice  to  the  owners  or  occupants  of  such  property.  Such 
deeds  are  prima  facie  evidence  of  certain  facts  as  to  the  legality  of  the 
sale  for  taxes.  If  the  holder  of  the  certificate  of  purchase  does  not 
take  out  the  deed  and  file  the  same  for  record  within  one  year  after 
the  time  for  redemption  expires,  the  certificate  or  deed  shall  be  null 
and  void. 

Final  settlements. 

On  or  before  the  third  Monday  in  June,  the  county  collector  is 
required  to  make  out  and  file  with  the  county  clerk  a  detailed  state- 
ment of  unpaid  personal  property  taxes  and  of  errors  in  assessment  of 
real  estate  and  errors  in  footing  of  tax  books.  The  county  clerk  is 
required  to  certify  to  the  Auditor  of  Public  Accounts  and  to  other 
authorities  the  valuation  of  property  and  the  amount  of  taxes  and 
special  assessment  due  thereon  for  which  the  county  collector  may  be 
allowed  credit. 

As  soon  as  adjustment  is  made  with  the  county  board  or  county 
clerk,  the  county  clerk  is  required  to  make  out  and  deliver  to  the 
county  collector  the  statements,  certificates  and  lists  appertaining  to 
the  settlement  of  his  accounts.  The  collector  is  required  to  deliver  the 
same  at  the  office  of  the  Auditor  and  make  a  final  settlement  of  his 
accounts  and  pay  the  amount  due  to  the  State  treasury  on  or  before 
the  first  day  of  July  next  after  receiving  the  tax  books. 

Upon  the  final  settlement  of  any  account  with  the  State,  the 
Auditor  shall  give  the  collector  duplicate  certificates ;  and  it  is  the  duty 
of  the  collector  to  file  one  of  said  certificates  in  the  office  of  the  county 
clerk  before  the  first  day  of  August.  If  any  collector  neglects  or 
refuses  to  file  such  certificate,  the  county  clerk  shall  give  written 
notice  requiring  him  to  appear  before  the  county  court  at  the  Septem- 
ber term  to  show  cause  why  he  has  not  filed  the  certificate ;  and  if  the 
collector  does  not  show  that  he  has  paid  over  the  full  amount  due  and 
made  a  final  settlement  with  the  State  and  county,  or  that  he  has  a 
lawful  excuse  for  failing  to  do  so,  his  office  as  collector  and  treasurer 
shall  be  declared  vacant  by  said  court. 

Upon  the  failure  of  any  collector  to  make  settlement  with  the 
Auditor,  or  to  pay  money  into  the  State  treasury,  it  is  the  duty  of  the 
Auditor  to  sue  the  collector  and  his  sureties  upon  the  bond  of  such 
collector,  or  to  sue  the  collector  in  such  form  as  may  be  necessary,  and 
take  all  such  proceedings,  either  upon  the  bond  or  otherwise,  as  may 
be  necessary  to  protect  the  interests  of  the  State. 


124  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Cost  and  Efficiency  of  Collection. 

Tax  collectors  are  allowed  commissions  at  fixed  rates  per  cent, 
deducted  from  the  amounts  collected,  on  the  following  scale.^^ 

la  Counties  of  Class 

12  3 

Per  -«nt     Per  cent    Per  cent  • 

Town  and  district  collectors 2  2  2 

Collectors  in  cities  and  incorporated  towns,  not  over. .  .2  2 
County  collectors  in  counties  under  township  organiza- 
tion on  moneys  paid  over  by  town  collectors Ij/a  1  % 

County  collectors  in  counties  under  township  organiza- 
tion   on    moneys    collected    by   them    for   cities    and 

villages  1  1  1 

County  collectors  on  moneys  collected  by  them 3  2  1^ 

County  treasurers  on  moneys  received  and  monevs  paid 

out  ; 1  1  'A 

In  counties  under ,  township  organization,  county  treasurers  are 
not  allowed  any  additional  commission  on  moneys  received  from  town 
collectors  on  which  they  receive  commissions  as  county  collector. 
Additional  fees  are  allowed  in  cases  of  delinquent  taxes,  which  are 
added  to  the  amount  of  the  taxes.  County  collectors  are  also  allowed 
ten  cents  per  mile  for  each  mile  of  necessary  travel  in  going  to  and 
returning  from  the  seat  of  government  in  settlement  of  State  taxes.  _ 

Where  the  compensation  of  town  and  district  collectors  is 
insufficient,  the  town  or  county  board  may  allow  an  additional  com- 
pensation or  per  diem,  to  be  paid  out  of  the  county  treasury.  On  the 
other  hand,  all  excess  of  commissions  and  fees  for  town  and 
district  collectors  over  $1,500  in  counties  of  the  first  class,  and  over 
$3,000  in  counties  of  the  second  class  shall  be  paid  into  the  town  or 
district  treasur>^;  while  the  town  board  of  auditors  may  fix  the  maxi- 
mum amount  at  a  lesser  sum.  But  in  all  cases  the  commissions  are 
deducted  from  the  amounts  collected  and  before  payment  to  the  various 
public  authorities. 

The  total  commissions  range  from  a  minimum  or  1>^  per  cent  on 
collections  by  the  County  Collector  in  Cook  County,  to  a  maximum 
of  4y^  per  cent  on  collections  by  town  collectors  in  counties  of  the 
first  class  under  township  organization.  The  totals  for  the  several 
classes  of  counties  are  as  follows :  on  collections  by 

Town   or  District     County 
Collector  Collector 

Per  cent  Per  cent 

In  counties  of  Class  1  without  township  organization 2  3 

In  counties  of  Class  1  with  township  organization. 3  35^3 

In  counties  of  Class  2  without  township  organization 2  2 

In  counties  of  Class  2  with  township  organization 3  2 

In  counties  of  Class  3  (Cook  County) 2^  V/i 

It  may  be  noted  that  the  commissions  are  higher  in  the  small 
counties  of  the  first  class  than  in  the  more  populous  counties;  but  that 
the  total  commissions  allowed  in  counties  under  township  organization 
are  more  than  in  counties  of  the  same  class  not  under  township  organi- 
zation. 

The  following  statement,  compiled  from  the  records  in  the  office 
of  the  Auditor  of  Public  Accounts,  throws  some  light  on  the  results 
of  the  present  system  of  tax  collection  in  the  several  groups  of 
counties ; 

"Hurd's  Revised  Statutes   (1913)   ch.  53,  aecs.  21.  36,  38. 


REVENUE  AND  FINANCE. 


125 


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REVENUE  AND  FINANCE. 


127 


Collectors'  Commissions. 

Some  striking  contrasts  are  shown  in  the  above  table  between 
different  groups  of  counties.  In  counties  of  the  second  class  and  in 
those  of  the  first  class  with  township  organization,  from  three- 
fourths  to  four-fifths  of  the  taxes  are  collected  by  the  town  collectors ; 
while  in  Cook  County  (third  class)  only  about  one-half  is  collected 
by  the  town  collectors,  and  in  counties  of  the  first  class  without  town- 
ship organization  little  more  than  a  fourth  of  the  taxes  is  collected 
by  the  district  collector,  and  nearly  three-fourths  by  the  county 
collector. 

The  last  situation  is  probably  explained  as  a  natural  result  of 
the  commissions  allowed.  In  counties  without  township  organization, 
the  sheriff  is  both  district  and  county  collector.  On  collections  as  dis- 
trict collector  he  is  allowed  commissions  of  two  per  cent,  while  on 
collections  as  county  collector  he  is  allowed  three  per  cent.  Under 
these  conditions,  it  is  to  the  interest  of  the  collector  to  collect  as  large 
a  proportion  as  possible  as  county  collector. 

On  the  other  hand  in  counties  under  township  organization,  it  is 
to  the  interest  of  the  town  collectors  in  most  towns  to  collect  as  large 
a  porportion  of  the  taxes  as  possible,  and  thus  receive  a  larger  amount 
in  commissions.  But  in  some  towns  containing  cities  of  some  size, 
where  the  town  collector's  compensation  is  limited,  the  town  collectors 
are  less  active,  and  they  seem  to  be  satisfied  when  the  commissions  on 
their  collections  amount  to  their  maximum  compensation.  Thus  in 
1909,  in  Rockford,  Evanston,  and  Joliet,  the  town  collectors  collected 
Dnly  from  43  to  53  per  cent  of  the  taxes  collected  f°  and  in  Sangamon 
County  in  1912,  while  in  the  rural  towns  nearly  three-fourths  of  the 
tax  collections  were  by  the  town  collectors,  in  Capital  Township 
(Springfield),  only  about  60  per  cent  of  the  taxes  were  collected  by  the 
town  collector.^^ 

In  Cook  County,  where  the  county  treasurer  is  town  collector  for 
the  towns  in  the  city  of  Chicago  and  also  county  collector,  the  com- 
missions allowed  on  taxes  paid  to  him  as  town  collector  amount  to 
2^  per  cent;  while  on  taxes  paid  him  as  county  collector  the  com- 
missions allowed  are  I3/2  per  cent. 

The  increased  State  tax  for  the  year  1913  will  nearly  double  the 
amount  of  commissions  allowed  on  this  tax  to  the  local  collectors ;  while 
their  work  will  not  be  appreciably  increased. 

The  total  amount  of  commissions  allowed  on  State  taxes  for  1912 
were  $217,644.14,  or  2.38  per  cent  of  the  State  taxes  charged.  On  the 
total  amount  of  property  taxes  levied  by  all  the  public  authorities  in 
the  State,  the  commissions  allowed  for  collections  amount  to  more 
than  $2,000,000  a  year. 

Some  readjustment  of  the  method  of  compensating  tax  collectors 
is  needed.  If  the  system  of  percentage  commissions  is  to  be  continued, 
the  rates  should  be  revised,  to  avoid  the  present  incentives  to  lax 
efforts  by  the  town  and  district  collectors  in  some  parts  of  the  State ; 

2"L.  D.  Upson:  Sources  of  Municipal  Revenue  in  Illinois,  (University  of  Illinois 
Studies  in  the  Social  Sciences,  vol.  1,  No.  3,  p.  24). 

"^O.  R.  Martin:  Report  on  the  Finances  of  the  towns,  etc.,  in  Sangamon  County, 
in  Report  of  the  Joint  Legislative  Committee. 


128  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

and  the  compensation  allowed  should  be  better  adapted  to  the  present 
scale  of  taxes  levied,  and  to  the  different  conditions  in  rural  towns  and 
in  cities. 

Other  Abatements. 

The  statement  of  State  taxes  for  1912  also  shows  other  abatements 
from  th  amount  of  taxes  charged,  analyzed  so  as  to  show  the  princi- 
pal classes  of  such  abatements.  From  this  it  appears  that  in  addition 
to  the  collectors'  commissions,  a  considerably  larger  amount  of  the 
taxes  charged  were  reported  as  not  collected.  Nine-tenths  of  these 
abatements  are  reported  from  Cook  County,  where  the  total  of  com- 
missions and  abatements  for  several  years  have  amounted  to  more 
than  eight  per  cent  of  the  taxes  charged.  More  than  four  per  cent  of 
the  taxes  charged  in  1912  for  this  county  were  uncollected  on  account 
of  real  estate  forfeited ;  and  more  than  two  per  cent  were  uncollected 
on  account  of  insolvencies,  removals,  etc.,  on  personal  property.  This 
means  that  more  than  five  per  cent  of  the  taxes  on  real  estate  were  not 
paid;  and  more  than  eight  per  cent  of  the  taxes  on  personal  property 
were  not  paid. 

Several  other  counties  also  have  a  high  percentage  of  abatements. 
The  following  statement  shows  the  counties  where  the  total  abatements 
from  the  taxes  charged  for  1910,  1911,  and  1912  were  more  than  five 
per  cent.  It  will  be  noted  that  several  counties  appear  on  the  list  for 
each  year.  From  the  records  in  the  oftice  of  the  Auditor  of  Public 
Accounts,  the  abatements  in  different  counties  are  due  to  different 
factors.  Thus  in  1912,  the  high  proportion  of  abatements  in  St.  Clair 
and  Marion  counties  were  mainly  on  account  of  real  estate  forfeitures ; 
those  in  Pulaski  County  were  largely  on  account  of  unpaid  taxes  on 
personal  property ;  and  those  in  Madison,  JoDaviess  and  Saline  coun- 
ties were  due  to  other  causes,  s.uch  as  errors  in  the  assessment  or 
injunction  proceedings. 

AMOUNT   AND   PERCENTAGE   OF  ABATEMENTS   FROM    STATE   TAX. 

For  the  Year  ending  September  30,  1910. 

Amount  Total  Per- 

County.  Charged              Abatements     centage 

St.  Clair  $  105,302.76           $    9,194.56  8.73 

Massac   8,934.78  633.50  7.09 

Hardm           2.772.39  194.09  7.00 

Franklin    16,723.18  1,150.11  6.87 

Saline   ' 15,252.54  1,048.62  687 

Marion                          22,356.95  1,465.80  6.55 

Pike                                           30,313.18  1,948.99  6.42 

Pope .V 5,564.11  336.03  6.03 

Grundv'    '                               36,030.55  2,133.86  5.92 

Pulaski    "'                 7,028.54  371.66  5.28 

Randolph';: 21,770.85  1,115.71  5.12 

Total-1 1  counties .$   272,049.83  $  19,592.93  7.20 

Total      for      State      (excluding      Cook 

County)                 3,875,550.97  141,905.74  3.66 

Cook  .......'.'.'.'. 2,885,009.67  239,434.95  8.29 

Total  for  State .$6,760,560.64  $381,340.69  5.64 


REVENUE  AND  FINANCE. 


129 


AMOUNT   AND   PERCENTAGE  OF   ABATEMENTS   FROM    STATE   TAX. 

For  the  Year  ending  September  30,  1911. 

Amount  Total  Per- 

County.                                                                 Charged  Abatements  centage 

JoDaviess     $     39,044.02  $       4,606.81  11.79 

St    Clair        125,256.04  10,835.93  8.65 

Madison    105,125.13  7,822.40  7.43 

Franklin   22,791.77  1,497.16  6.56 

Marion                      26,587.47  1,733.62  6.52 

Will                         111,050.11  6,521.81  5.87 

Hardin .'     3,532.95  206.96  5.85 

Grundy"'          41,567.71  2,399.06  5.77 

Pulaski    .'    88,446.57  456.96  5.41 

Alexander  21,226.11  1.129.68  5.31 

Randolph    25,786.55  1,323.00  5.13 

Total-11  counties $   530,414.43  38,533.39  7.26 

Total     for     State     (excluding     Cook 

County)           .     ..    4,672,879.53  177,629.22  3.80 

Cook    .......'.'.'.'. 3,634,698.51  1,180,045.69  ^32.46 

Total  for  State .$8,307,578.04  $1,357,674.91  16.34 

a.     "Final  settlement  not  made." 

For  the  Year  ending  September  30,  1912 

Amount  Total  Per- 

County                                                                  Charged  Abatements  centage 

St    Clair                          $137,014.10  $12,151.91  8.86 

ToDaviess '.   41,890.41  2,920.09  6.96 

PuTaskf    .  ;.•;.■..... 9,264.62  592.40  6.38 

Marion                                   27,832.79  1,681. /8  6.04 

Madison  ■.■.■.■.■;;.■.■;.■.  .■ 115,569.87  6,787.96  5.87 

Saline   21,256.68  1,077.71  5.07 

Total-6  counties .$   352,828.47  $  25.211.86  7.14 

Total      for      State      (excluding      Cook  ,„o  ,^^  ,«  ■,  co 

County)                            5,112,136.44  183,123.10  3.58 

Cook              .  .'.■.'.■.■;.■.;.■ 4;025,193.74  340,186.15  _845 

Total  for  State .$9,137,330.18  $523,309.25  5.72 


Delays  in  Settlements. 

In  the  reports  of  the  Auditor  of  Public  Accounts  for  1908,  1910, 
and  1912,  the  statement  of  State  taxes  .charged  and  paid  shows  abate- 
ments for  Cook  County  of  about  $1,000,000  for  the  second  of  the  two 
years  in  each  report— nearly  one-third  of  the  total  State  tax  charged 
to  that  county.  A  foot  note  in  each  case  states  that  final  settlement  had 
not  been  made  for  that  county;  and  the  later  reports  show  receipts  by 
the  State  treasury  of  nearly  a  million  dollars  in  taxes  for  years  which 
should  have  been  included  in  the  preceding  report. 

The  Auditor's  reports  are  prepared  for  the  period  ending  on  Sep- 
tember 30,  three  months  after  the  date  fixed  by  the  revenue  law  when 
county  collectors  shall  make  final  settlements  for  State  taxes ;  and  after 
the  time  when  any  collector  failing  to  make  such  settlement  should  be 
cited  to  appear  before  the  county  court  to  show  cause  why  he  should 


130  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

not  be  removed  for  failure  to  make  settlement.  Records  in  the  Audi- 
tor's office  show  that  the  final  settlements  for  Cook  County  in  recent 
years  have  not  been  made  before  December;  and  in  a  few  other  coun- 
ties final  settlements  are  delayed,  and  in  some  cases  small  payments 
of  taxes  due  July  1  are  made  more  than  six  months  after  that  date. 

Under  the  present  law,  neither  the  Auditor  nor  any  other  State 
officer  has  specific  authority  to  take  action  other  than  by  suit  to  com- 
pel the  county  collectors  to  make  settlements  at  the  prescribed  dates. 

Conclusions. 

From  the  foregoing  analysis  it  appears  that  the  cost  of  tax  col- 
lection in  Illinois  is  unduly  high ;  and  that  the  present  system  of 
compensating  collectors  is  not  well  adjusted  to  the  varying  conditions 
in  different  parts  of  the  State.  The  considerable  proportion  of  taxes 
uncollected  in  Cook  and  some  other  counties  is  also  evidence  of 
inefficiency  either  in  the  assessment  or  the  collection  administration ; 
and  shows  the  need  for  more  eft'ective  State  supervision  of  the  local 
officials,  if  not  also  of  a  change  in  the  local  organization. 

Complaints  have  been  made  of  town  collectors  in  counties  under 
township  organization,  as  an  unnecessary  duplication  of  officials  caus- 
ing additional  expense.  Inquiries  in  connection  with  a  recent  study  of 
town  and  county  government  in  Illinois  showed  that  most  county 
officials  were  in  favor  of  abolishing  the  office  of  town  collector,  and 
concentrating  the  collection  of  taxes  in  the  hands  of  the  county  col- 
lector. This  opinion  w^as  strongest  in  counties  under  township  organ- 
ization.^^ 

The  town  collector  may  serve  the  convenience  of  some  tax  payers 
in  certain  localities;  but  making  the  county  collector  responsible  for 
the  collection  of  all  taxes  would  not  prevent  the  appointment  of 
deputies  or  agents  in  rural  districts;  and  these  could  often  be  better 
adjusted  to  the  convenience  of  tax  payers  than  under  the  present 
arrangement  of  one  collector  for  each  township.  In  fact  rural  tovyn 
collectors  sometimes  make  their  headquarters  in  the  county  seat ;  while 
at  least  in  the  town  which  includes  the  county  seat  there  seems  to  be 
no  occasion  whatever  for  having  both  a  town  and  county  collector, 
and  for  the  payment  of  commissions  to  two  officials  on  a  large  part 
of  the  taxes  collected. 

If  the  abolition  of  town  collectors  throughout  the  State  does  not 
seem  advisable,  there  should  be  no  reasonable  objection  to  an  optional 
law  authorizing  any  county,  by  popular  vote,  to  designate  the  county 
collector  ex  officio  town  collector  for  all  the  towns  in  the  county, 
or  allowing  any  town  to  designate  the  county  collector  as  its  town 
collector. 

Need  for  State  Supervision. 

There  is  need  for  further  information  as  to  the  collection  of  taxes, 
by  inquiries  and  examination  of  records  in  the  offices  of  the  county 
clerks  and  county  collectors.  These  should  be  directed  to  the  follow- 
ing points : 

22John  A    Fail-lie:     A  Report  on  Town  and  County  Government  in  Illinois   (1913), 
pp.  12,  153,  176-178. 


REVENUE  AND  FINANCE.  131 

1.  The  extent  to  which  the  procedure  laid  down  in  the  revenue 
law  is  followed,  and  the  extent  to  which  the  provisions  of  the  law  are 
not  carried  out. 

2.  The  amount  and  proportion  of  taxes  collected  by  town,  dis- 
trict and  county  collectors. 

3.  The  cost  of  collection,  noting  the  differences,  where  there  are 
such,  between  the  commissions  allowed  and  the  compensation  paid 
to  the  collectors. 

4.  The  amount  of  taxes  uncollected,  noting  separately  abatements 
for  errors,  and  on  account  of  injunctions,  and  the  taxes  on  forfeited 
real  estate  and  on  delinquent  personal  property. 

5.  Data  in  regard  to  sales  of  real  estate  for  taxes  and  the  redemp- 
tion of  such  property. 

Some  of  this  information  can  probably  be  obtained  by  inquiries 
and  reports  from  county  officers.  But  there  should  also  be  a  regular 
examination  of  the  records  of  the  county  'officers,  and  investigation 
into  the  taxes  not  collected.  For  this  purpose  the  power  of  the  Audi- 
tor of  Public  Accounts  should  be  increased. 

4.  Summary  of  Property  Tax  Administration. 

The  principal  steps  in  the  administration  of  the  general  property 
tax  in  Illinois  may  be  summarized  in  the  following  brief  statement  of 
the  duties  of  each  public  officer: 
Assessment  of  Property. 

Auditor  of  Public  Accounts — 

Prepares  and  transmits  forms,  blanks  and  instructions. 
Receives  abstracts  of  local  assessments  and  schedules  of  rail- 
road companies  and  corporations. 
Certifies  action  of  State  Board  of  Equalization  to  the  county 
clerks. 
County  Clerks — 

Prepare  assessment  books  before  April  1. 
Prepare  abstract  of  local  assesments. 
County  Treasurers — 

Instruct  town  assessors  in  counties  under  township  organiza- 
tion. 
Acts  as  county  assessor  in  counties  not  under  township  organ- 
ization. 
Assessors — 

Make  original  valuations  of  property,  April  1  to  June  1. 
County  Boards  of  Review — 

Review  and  equalize  original  valuations. 
State  Board  of  Equalization — 

Equalizes  local'assessments  and  assesses  railroad  property  and 
capital  stock  of  corporations. 

Levy  and  Extension  of  Taxes. 

Local  tax  authorities  certify  tax  levies  to  county  clerk  before 
second  Tuesday  in  August. 

County  boards  determine  county  tax  levy  at  September  meet- 
ing. 


132  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Governor,  Auditor  and  Treasurer  determine  State  tax  rate. 
Auditor  of  Public  Accounts  certifies  State  tax  rate  to  county 

clerks. 
County    clerks    determine   local   tax    rates    under   Juul   law, 

extend  taxes  on  collectors'  books  and  forward  statements 

to  Auditor. 

Collection  of  Taxes. 

County  Clerks — 

Deliver  books  to  collectors,  January  2. 

Certify  statements  of  collections  to  Auditor  and  other  author- 
ities. 
Attend  and  assist  at  sales  of  real  estate  for  taxes. 
Town  and  District  Collectors — 

Collect  taxes,  may  distrain  personal  property  for  taxes. 
Render  accounts  ahd  make  payments  every  thirty  days. 
Make  final  settlement  on  or  before  ]\Iarch  30. 
County  Collectors — 

File  statement  of  taxes  received  on  or  before  April  10. 

Collect  delinquent  taxes. 

Report  and  pay  taxes  to  local  authorities  every  ten  days. 

Give  notice  of  judgment  proceedings. 

Conduct  sales  of  real  estate  for  taxes. 

Makes  statement  of  delinquent  taxes  on  or  before  third  ]\Ion- 

day  in  June. 
Makes  final  settlement  for  State  taxes  on  or  before  July  1. 
County  Court — 

Enters  judgment  for  delinquent  taxes  and  orders  sales  of  real 
estate  for  taxes. 
Auditor  of  Public  Accounts. 

Receives  statements  of  collections  and  delinquent  taxes. 
Makes  final  settlements  with  county  collectors. 
State  Treasurer  receives  funds  for  the  State  treasury. 
The  procedure  involves  the  action  of  ten  distinct  authorities,  in 
addition  to  six  or  more  tax  levying  bodies,  and  requires  repeated  trans- 
fers of  books  and  statements  from  one  ofBcer  to  another;  while  the 
duties  of  some  officials  duplicate  those  of  others,  so  as  to  make  possible 
conflicting  decisions.     There  are  four  different  State  authorities  hav- 
ing to  do  with  the  administration  of  tax  matters ;  but  the  supervision 
of  local  tax  offtcials  and  the  total  powers  of  all  the  State  authorities 
are  inadequate. 

Suggested  Reorganization. 

It  may  be  safely  stated  that  the  present  assessed  valuations  of 
property  are  inadequate  and  unequal,  that  the  tax  levies  are  compli- 
cated and  poorly  adjusted,  and  that  the  collection  of  taxes  appears  to 
be  costly  and  incomplete. 

Some  reorganization  and  simplification  of  the  administrative 
machinery  is  clearly  needed.  Town  assessors  and  collectors  might  well 
be  abolished,  and  their  duties  performed  more  effectively  by  county 
officers  with  appointed  deputies.    At  least  an  optional  law  should  per- 


REVENUE  AND  FINANCE. 


133 


mit  counties  which  wish  to  make  this  change  to  do  so.  The  number 
of  county  officers  involved  should  qlso  be  reduced  and  their  functions 
concentrated.  State  administration  of  tax  matters  should  also  be  cen- 
tralized in  the  hands  of  a  small  commission,  with  power  to  supervise 
local  assessing  and  collecting  officers,  to  make  State  assessments  and 
to  determine  the  State  tax  rate. 

C.    ADMINISTRATION  OF  OTHER  STATE  REVENUES. 

Illinois  Central  Railroad  Payments. 

Under  an  Act  o£  1851  providing  for  the  construction  of  the  Illinois 
Central  railroad,  this  company  pays  to  the  State  seven  per  cent  of  its 
gross  income  semi-annually  in  lieu  of  taxes  and  in  consideration  of  its 
grants,  privileges  and  franchises.  These  payments  are  made  only  on 
its  original  charter  lines;  and  more  recently  built  lines  are  assessed 
and  taxed  as  other  railroad  property.  The  revenue  from  this  source 
is  an  important  item  in  the  receipts  of  the  State  treasury,  ranging  dur- 
ing the  last  ten  years  from  $1,000,000  to  $1,240,000  a  year. 
The  Act  of  1851  provides  that: 

for  the  purpose  of  ascertaining  the  proceeds,  receipts  or  income 
aforesaid,  an  accurate  account  shall  be  kept  by  said  company,  a  copy 
thereof  shall  be  furnished  to  the  Governor  of  the  State  of  Illinois,  the 
truth  of  which  account  shall  be  verified  by  the  affidavits  -^f  the  treasurer 
and  secretary  of  the  company.  And  for  the  purpose  of  verifying  and 
ascertaining  the  accuracy  of  said  account,  full  power  is  hereby  vested 
in  the  Governor  of  the  State  of  Illinois,  or  any  other  person  by  law 
appointed,  to  examine  the  books  and  papers  of  said  corporation,  and  to 
examine,  under  oath  the  officers,  agents  and  employees  of  said  company, 
and  other  persons. 

Up  to  1905,  it  appears  that  the  statements  submitted  by  the  com- 
pany were  accepted  by  the  Governor,  and  in  many  cases  approved, 
without  verification.  As  the  result  of  an  investigation  begun  in  1905 
under  the  direction  of  Governor  Deneen,  suit  for  an  accounting  was 
brought  by  the  State  against  the  company.  In  deciding  this  suit,  the 
Supreme  Court  held  that  the  Governor  had  power  to  adjust,  settle 
and  approve  the  accounts  submitted;  and  that  statements  submitted  by 
the  company  which  had  been  approved  or  accepted  without  objection 
by  the  Governor  v^-ere  stated  or  settled  accounts ;  but  that  when  state- 
ments were  not  so  accepted  and  approved,  an  accounting  could  be 
required.  The  court  also  ruled  on  a  number  of  questions  as  to  what 
should  be  included  in  the  gross  receipts  of  the  company  subject  to  the 
seven  per  cent  payment  to  the  State,  and  as  to  the  apportionment  of 
earnings  and  expenses  between  the  charter  and  non-charter  lines.^^ 

Corporation  and  Other  Fees,  Collected  by  the  Secretary  of  State. 

Organization,  license  and  other  fees  imposed  on  corporations  now 
produce  considerable  revenue,  collected  by  the  Secretary  of  State. 
Before  1870  such  registration  and  incorporation  fees  as  were  collected 
were  retained  at  first  by  the  Secretary  of  State,  and  after  1848  by  the 
Auditor  of  State.     The  Constitution  of  1870,  however,  provided  that 

23State  of  Illinois  v.  Illinois  Central  R.  R.  Co.  (Opinion  filed  October  28,  1910)  ; 
Special  Message  of  Governor  Charles  S.  Deneen,  January  10,  1907;  Biennial  Message 
pf  Governor  Charles  S.  Deneen,  January  4,  1911. 


134  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

all  such  fees  should  go  to  the  State  Treasury.  Before  1893,  the  fees 
were  small  and  the  revenue  unimportant.  But  by  laws  of  1893  and 
1895,  and  later  amendments  a  sliding  scale  of  fees  is  imposed  varying 
with  the  amount  of  capital  stock ;  and  the  revenue  has  increased  rapid- 
ly, to  $876,000  for  the  biennial  period  1910-12. 

Various  other  fees  are  also  paid  to  the  Secretary  of  State;  for 
notarial,  justices  and  miscellaneous  commissions ;  for  anti-trust 
affidavits ;  and,  since  1907,  for  licenses  for  motor  vehicles  and 
chauff"eurs.    The  largest  revenue  is  from  automobile  fees. 

The  following  statement  shows  the  fees  colle,cted  by  the  Secre- 
tary of  State  from  October  1,  1910  to  September  30,  1912.-^ 

Domestic  corporations   $    732,003.15 

Foreign  corporations  foF  licenses 99,413.97 

Annual  reports  of  corporations 31,562.50 

Reinstatement   of   corporations 13,754.20 


Total  corporation  fees $  876,733.82 

Anti-trust  affidavits  35,129.40 

Notarial  commissions    27,185.35 

Miscellaneous  commissions   1,670.50 

Miscellaneous   fees    15,734.28 

Automobile   fees    462,371.52 


$1,418,824.87 
Refunded  for  charters  not  issued  or  for  over-payments 17,857.19 


Net  fees  collected  $1,400,967.68 

For  the  two  years  ending  September  30,  1914,  the  receipts  of  the 
State  treasury  from  the  Secretary  of  State  were  as  follows : 

General  Road 

Revenue  Fund  Total 

1912-13   : $   512,586.42        $   482,865.59        $    995,452.01 

1913-14    613,246.42  699,534.52  1,312,780.94 


Total    $1,125,832.84        $1,182,400.11        $2,308,232.95 

The  expense  of  administration  for  automobile  licenses  (including 
metal  tags  and  expressage)  is  a  large  proportion  of  the  amount  col- 
lected, amounting  in  191213  to  $106,679.66,  and  in  1913-14  to  $107,- 
249.71,  or  more  than  20  per  cent  of  the  receipts.  These  expenses  are 
paid  out  of  the  general  revenue ;  while  the  total  revenue  from  auto- 
mobile licenses  is  paid  into  the  road  fund. 

Insurance  Fees  and  Taxes. 

Under  the  laws  regulating  insurance  companies,  a  complicated 
variety  of  license  fees  are  imposed  on  dififerent  classes  of  companies, 
for  filing  their  charters  and  annual  reports,  and  in  some  cases  yearly 
fees  for  renewals  and  agents  certificates.  In  addition,  the  so-called 
reciprocal  clause  in  the  Act  of  1869  provides  that  when  the  home 
state  of  a  foreign  insurance  company  charges  foreign  companies 
higher  rates  for  licenses  or  taxes  than  the  State  of  Illinois,  the  same 
rates  shall  be  charged  to  such  company  by  this  State.  The  revenue 
from  license  fees  is  not  a  large  amount ;  and  for  twelve  years  the 
reciprocal  clause  was  not  enforced.     But  since  1882,  reciprocal  taxes 

2«Report  of  the  Secretary  of  State  1910-12,  p.  3. 


REVENUE  AND  FINANCE.  135 

have  been  imposed  and  have  yielded  considerable  revenue,  amounting 
with  license  fees  to  $1,178,695  for  the  two  years  from  October  1,  1910 
to  September  30,  1912,  and  to  $1,354,520  for  the  two  years  ending 
September  30,  1914. 

Up  to  1893,  insurance  fees  and  taxes  were  collected  by  the  Auditor 
of  Public  Accounts.  By  Act  of  that  year  a  separate  insurance  depart- 
ment was  created,  under  the  direction  of  the  Insurance  Superintendent. 
The  duties  of  this  officer  include  the  collection  of  taxes  and  fees  from 
insurance  companies,  and  the  payment  of  the  sums  collected  to  the 
State  Treasurer. 

Inheritance  Tax. 

By  Act  of  1895,  gifts,  legacies  and  inheritances  of  property,  taking 
effect  after  the  death  of  the  ownei",  were  maXle  subject  to  taxation. 
The  tax  applies  to  all  property  from  decedents,  residents  of  the  State, 
and  to  property  from  non-resident  decedents  which  is  within  the  State. 
Under  the  Act  of  1895,  three  classes  of  heirs  or  legatees  were  recog- 
nized, each  subject  to  a  different  rate  of  taxation, — direct  or  lineal 
heirs,  collateral  relatives  and  others.  For  each  class,  transfers  of 
estates  of  less  than  fixed  amounts  were  exempted,  and  for  the  third 
class,  the  tax  rate  was  progressive,  increasing  with  the  amount  of  the 
estate. 

Under  a  revised  Act  of  1909,  the  rates  of  the  inheritance  tax  have 
been  increased  in  the  case  of  larger  estates ;  and  the  rates  have  been 
made  progressive  for  transfers  to  direct  and  collateral  relatives  as  well 
as  to  other  heirs  or  legatees.  The  rates  on  transfers  to  direct  heirs 
are  one  per  cent  for  transfers  of  more  than  $20,000,  and  two  per  cent 
for  transfers  of  more  than  $100,000.  To  collateral  relatives,  the  rates 
are  two  per  cent  on  transfers  of  more  than  $2,000,  and  four  per  cent 
on  transfers  of  more  than  $20,000.  To  other  heirs  and  legatees,  the 
rates  range  from  three  per  cent  on  estates  of  more  than  $500  to  ten  per 
cent  on  estates  of  more  than  $100,000. 

By  amendments  passed  in  1913,  some  of  the  administrative  pro- 
visions of  the  law  have  been  altered  and  strengthened. 

For  the  administration  of  the  inheritance  tax,  certain  duties  are 
imposed  on  administrators,  executors  and  trustees  of  estates ;  provis- 
ion is  made  for  official  appraisal  and  for  the  collection  of  the  tax 
through  county  officers ;  while  the  attorney-general  has  authority  to 
supervise  and  aid  in  the  execution  of  the  law. 

Any  administrator,  executor  or  trustee  of  any  estate  or  property 
subject  to  this  tax  is  required  to  deduct  the  tax  therefrom,  or  to  col- 
lect the  tax  from  the  legatee  or  heir,  and  to  pay  the  amount  to  the 
treasurer  of  the  proper  county. 

As  amended  in  1913,  it  is  the  duty  of  the  county  judge  to  ascer- 
tain whether  any  transfer  of  property  is  subject  to  an  inheritance  tax, 
and  if  so  to  assess  and  fix  the  value  of  estates  and  other  interests 
and  the  tax  to  which  they  are  liable.  For  this  purpose,  he  may  hear 
evidence,  or,  where  the  facts  are  complicated  and  the  evidence  volumi- 
nous, he  may  appoint  some  competent  person  as  appraiser."  Notice 
shall  be  given  to  persons  interested. 

2sin   counties  of  the  third   class    (Cook   County)    the  county   judge  may   appoint 
appraisers  in  all  cases. 


136  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Both  the  appraiser  and  the  county  judge  are  authorized  to  sub- 
poena witnesses  and  to  take  the  evidence  of  such  witnesses  under  oath. 
Persons  subpoened  who  refuse  or  neglect  to  appear  or  testify  may  be 
compelled  to  do  so  by  the  circuit  court  or  judge  thereof.  Appraisers 
are  to  make  a  report  of  the  evidence  and  of  such  value. 

The  order  of  the  county  judge  assessing  and  fixing  an  inheritance 
tax,  with  the  report  of  the  appraiser,  if  any,  shall  be  filed  with  the 
county  clerk;  and  it  is  the  duty  of  the  county  clerk  within  five  days 
to  transmit  a  certified  copy  of  such  order  to  the  Attorney-General  and 
to  the  county  treasurer  and  to  give  notice  to  all  parties  interested.  Any 
person  or  persons  dissatisfied  with  the  appraisement  or  assessment  may 
appeal  therefrom  to  the  county  court  within  sixty  days. 

Appraisers  are  paid  by  the  county  treasurer,  from  the  inheritance 
tax  collected,  such  compensation  as  the  county  judge  deems  just,  not 
to  exceed  ten  dollars  a  day.  County  clerks  are  allowed  fees  in  inher- 
itance tax  matters,  as  provided  in  the  Act. 

When  the  tax  is  not  paid,  the  county  court  is  required  to  issue 
a  summons  to  the  persons  interested  to  appear  and  show  cause  why  the 
tax  should  not  be  paid.  It  is  also  the  duty  of  the  Attorney-General 
to  prosecute  the  collection  of  any  such  tax  due  and  unpaid  by  a  bill  in 
chancery  or  an  action  in  assumpsit. 

The  county  judge  and  county  clerk  of  each  county  are  required, 
every  three  months,  to  make  a  statement  to  the  county  treasurer  of 
property  on  which  such  tax  is  due  and  unpaid.  It  is  the  duty  of  the 
county  treasurer  to  make  and  transmit  to  the  Attorney-General  on  the 
first  day  of  January,  April,  March  and  October  of  each  year  a  state- 
ment of  the  inheritance  tax  due  and  unpaid. 

The  county  treasurer  is  required  to  collect  and  pay  to  the  State 
Treasurer  all  such  taxes ;  and  to  make  a  report  under  oath  to  the  Audi- 
tor of  Public  Accounts  on  the  first  of  each  year,  in  such  form  and  stat- 
ing such  particulars  as  the  Auditor  prescribes.  On  taxes  collected  and 
not  paid  to  the  State  treasury  on  the  first  day  of  October  and  April  of 
each  year,  he  shall  pay  interest  at  the  rate  of  ten  per  cent  per  annum. 
The  law  provides  for  a  commission  of  two  per  cent  of  such  taxes  paid 
and  accounted  for,  for  his  services. 

The  state  treasurer  is  required  to  furnish  each  county  judge  a 
book  to  enter  the  returns  made  by  the  appraisers,  the  cash  value  of 
annuities,  life  estates  and  terms  of  years  and  other  property  fixed  by 
him,  and  the  tax  assessed  thereon  and  the  amount  of  receipts  for  pay- 
ments filed  with  him. 

By  the  amendments  of  1913,  it  is  made  the  duty  of  the  Attorney- 
General  to  exercise  general  supervision  over  the  assessment  and  collec- 
tion of  the  inheritance  tax,  and  to  institute  such  suits  and  proceedings 
as  may  be  necessary  and  proper.  He  is  more  specifically  to  be  given 
notices  and  reports  of  inheritance  tax  proceedings;  he  may  initiate  such 
proceedings  before  the  county  judge;  and  he  may  appeal  from  the 
original  assessment  to  the  county  court.  In  counties  of  the  third  class 
(Cook  County)  the  Attorney-General  is  required  to  designate  an  assis- 
tant or  assistants  Attorney-General,  whose  special  duty  it  shall  be  to 
attend  to  all  inheritance  tax  matters  in  such  counties. 


REVENUE  AND  FINANCE,  137 

An  appropriation  was  also  made  for  investigating  inheritance  tax 
matters  in  other  counties ;  and  a  number  of  attorneys  have  been 
appointed  for  this  purpose. 

The  administrative  arrangements  for  the  assessment  and  collec- 
tion of  the  inheritance  tax  are  more  centralized  and  more  effective  than 
in  the  case  of  the  general  property  tax. 

Appraisers  are  appointed,  with  a  distinct  proviso  that  competent 
persons  shall  be  selected ;  while  there  is  definite  authority  to  subpoena 
witnesses  and  compel  testimony  as  to  the  value  of  property.  Further 
the  action  of  the  appraisers  and  county  officials  are  subject  to  active 
supervision  by  the  Attorney-General,  who  has  also  authority  to  insti- 
tute proceedings  on  his  own  motion. 

It  may  also  be  noted,  however,  that  the  administration  of  the 
inheritance  tax  calls  into  service  certain  officials  who  have  little  or 
nothing  to  do  with  other  branches  of  revenue  administration.  The 
county  judge  is  the  local  assessor  for  this  tax;  the  State  Treasurer  pre- 
pares books  for  the  local  officials ;  and  the  Attorney-General  has  impor- 
tant powers.  These  duties  are  somewhat  similar  to  those  of  the  county 
treasurer  as  supervisor  of  assessments,  and  the  Auditor  of  Public 
Accounts  in  property  tax  administration.  The  result  adds  to  the  com- 
plexity of  revenue  administration  as  a  whole. 

Cost  of  Administration. 

The  cost  of  administration  of  the  inheritance  tax  has  been  a  large 
percentage  of  the  total  amount  of  tax  collected;  and  in  some  counties 
the  local  expenses  have  taken  more  than  one-half  of  the  tax  collected. 
As  shown  in  the  following  table,  the  local  expenses  for  the  years  1908- 
10,  were  more  than  eleven  (11)  per  cent  of  the  tax  collected,  and  for 
1910-12  and  1912-14  were  more  than  seven  (7)  per  cent.  In  Cook 
County,  where  much  the  larger  part  of  the  tax  is  collected,  the  cost  of 
administration  is  considerably  less  than  in  the  rest  of  the  State, — 9]/^, 
Sy^,  and  6^  per  cent  in  these  biennial  periods  for  Cook  County,  and 
lO  2/3,  11^  and  11^  per  cent  for  the  other  counties.  In  a  number  of 
counties  the  proportionate  cost  of  collection  is  much  higher  than  these 
averages.  In  1908-10,  there  were  29  counties  and  in  1910-12,  26  coun- 
ties where  the  local  expenses  were  more  than  20  per  cent  of  tax  col- 
lected, the  average  for  these  counties  being  about  30  per  cent.  In  1908- 
10,- in  five  counties,  in  1910-12  in  three  counties,  and  in  1912-13  in  six 
counties,  the  local  expenses  were  more  than  50  per  cent;  while  in 
Kankakee  County  in  1908-10  the  local  expenses  were  equal  to  the  total 
amount  of 'the  tax  collected. 

In  some  instances  these  high  per  centages  are  on  small  amounts ; 
but  in  others  they  are  on  considerable  sums,  and  in  the  aggregate  the 
expenses  in  such  counties  form  an  appreciable  amount. 

In  addition  to  the  local  expenses  the  State  now  pays  out  con- 
siderable sums  for  the  better  enforcement  of  the  inheritance  tax  law. 
In  1911,  an  appropriation  of  $49,100  was  made  for  the  inheritance  tax 
office  under  the  Attorney-General;  and  in  1913,  an  appropriation  of 
$113,000  was  made  for  this  purpose,  and  also  an  appropriation  of  $60,- 
000  to  the  State  Treasurer  for  expenses  in  -collecting  the  inheritance 
tax.     These  appropriations  are  more  than  60  per  cent  of  the  local 


138  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

expenses  for  collecting  the  inheritance  tax  for  the  two  years  1912-14; 
and  on  the  basis  of  the  tax  collected  for  that  period  would  increase  the 
total  cost  of  collection  from  less  than  8  to  more  than  12  per  cent  of 
the  tax. 

The  present  methods  for  the  appraisement  and  collection  of  the 
inheritance  tax  are  in  the  form  of  legal  proceedings,  which  involve 
a  good  deal  of  expense,  which  could  be  avoided  in  a  large  proportion 
of  cases,  if  the  forms  of  an  administrative  action  were  followed,  as  in 
other  taxes.  The  United  States  Inheritance  Tax  of  1898  was  assessed 
and  collected  through  the  internal  revenue  collectors,  at  little  additional 
expense.  The  expense  of  administering  the  State  inheritance  tax  could 
be  much  reduced,  if  its  enforcement  was  concentrated  in  the  hands  of 
a  State  officer,  with  provisions  for  judicial  proceedings  only  in  con- 
tested cases. 
United  States  Inheritance  Tax. 

Under  the  Act  of  Congress  providing  for  the  inheritance  tax  of 
1898,  it  was  made  the  duty  of  every  executor,  administrator  or  trustee 
of  an  estate  to  pay  the  tax  and  to  render  to  the  collector  of  internal 
revenue  a  sworn  statement  of  the  amount  of  each  legacy  or  share  of 
the  estate  and  the  amount  of  the  duty  thereon.  In  cases  of  failure, 
neglect  or  false  statements,  the  collector  was  required  to  make  out  such 
lists  and  valuations  as  in  other  cases  of  delinquent  taxes  and  assess  the 
duty ;  and  he  was  also  required  to  commence  appropriate  proceedings 
before  any  court  of  the  United  States  to  collect  the  tax  by  judgment 
and  sale  of  the  property.  Every  person  in  possession  of  any  record  or 
papers  concerning  such  property  was  required  to  exhibit  them  at  the 
request  of  the  collector,  under  penalty  of  $500.00. 

AMOUNT    OF    INHERITANCE    TAX    COLLECTED    AND    LOCAL    EXPENSES    OF 
ADMINISTRATION   IN   ILLINOIS.       Qqq]^  Other 

1908-10  Total  County         Counties 

Tax  on  direct  inheritances $   813,41574    $558,607.50    $254,808.24 

Tax  on  collateral  inheritances 427,624.99      285,268.39       142,356.60 

Total  amount  of  tax  collected $1,241,040.73    $843,875.89    $397,164.84 

County  treasurer's  commission $     24,806.63         16,877.50  7,929.13 

Appraiser's   fees  and  expenses 119,741.21        61,382.78        58,358.43 

Total   local   expenses $  144,547.84    $  78,260.28    $  66,287.56 

Net  amount  to  State  Treasury $1,096,492.89    $765,615.61  $330,877.28 

Per  cent  expenses  of  administration 11.65                 9.2^  16.69 

1910-12 

Tax  on  direct  inheritances $2,933,367.30    $2,248,690.71  $684,676.59 

Tax  on  collateral  inheritances 1,034,864.81         851,832.08  183,032.73 

Total  amount  of  tax  collected $3,968,232.11     $3,100,522.79    $867,709.32 

County  treasurer's   commissions $     79,546.71     $     62,010.46    $17,536.25 

Appraiser's  fees  and  expenses 203,317.34         117,377.84        85,939.50 

Total  local  expenses $   282,864.05    $    179,388.30    $103,475.75 

Net  amount  to  State  Treasury $3,685,368.06    $2,921,134.49    $764,233.57 

Per  cent  expenses  of  administration...  7.13  5.78  11.79 


REVENUE  AND  FINANCE. 


139 


Cook  Other 

1912-14                                       Total            Countv  Counties 

Tax  on  direct  inheritances $2,319,881.64    $1,938,530.13  $381,351.51 

Tax  on  collateral  inheritances 1,093,052.62         698,178.88  394,873.74 

Total  amount  of  tax  collected $3,412,934.26    $2,636,709.01  $776,225.25 

County  treasurer's   commissions $     68,212.75    $     25,700.54  $15,512.21 

Appraiser's  fees  and  expenses 198,672.34         125,508.60  73,163.74 

Total  local  expenses $   266,885.09    $    178,209.14  $88,675.95 

Net  amount  to  State  Treasury .$3,146,049.17    $2,458,499.87  $687,549.30 

Per  cent  expense  of  administration....                7.13                    5.78  11.79 

LOCAL    EXPENSES    OF    COLLECTING    INHERITANCE    TAX. 

1908-1910. 


Per  cent  of 
cost  of  col- 
Name  of  County        lection 

Kankakee   100 

Coles  88.11 

Hancock  74.15 

White  57.71 

Winnebago    54.87 

Will   48.09 

Wabash    48.00 

Douglas   45.32 

Kendall   38.75 

Richland    36.23 

LaSalle    33.70 

DuPage    33.51 

Livingston    ..  33.22 

Edgar   ...  32.08 

Logan  31.51 

Bureau    30.27 


Total,  counties  over  30%.  35.41 


Morgan    29.99 

Marshall    29.75 

McHenry    28.75 

Champaign    28.44 

Shelby  27.95 

Henry    26.03 

Sangamon   24.66 

Woodford  24.55 

Menard    24.34 

Fulton   23.32 

Wavne    21.96 

Christian    20.50 

Johnson    20.01 

Total,  counties  20  to  307o.  25.66 


Total 

] 

^et 

amount  of 

Total  ex- 

amount trans- 

tax col- 

pense of 

mitted  to  State 

lected 

collection 

Treasurer 

$          223.76 

$       223.76 

$ 

159.44 

140.48 

18.96 

102.27 

75.84 

26.43 

2,045.55 

1,183.78 

861.77 

3,780.14 

2,074.27 

1,705.87 

2,520.31 

1,212.03 

1,308.28 

128.24 

61.56 

66.68 

722.70 

327.57 

395.13 

307.42 

119.15 

188.27 

602.20 

218.20 

384.00 

16,359.98 

5,514.48 

10.845.50 

1,337.72 

448.25 

889.47 

11,920.78 

3,959.70 

7,961.08 

4,223.86 

1,355.02 

2,858.84 

21,524.36 

6,781.80 

14.742.56 

6,505.53 

1,969.21 

4,536.32 

$     72,464.26 

$  25,665.10 

$ 

46,799.16 

$       4,369.56 

$     1,310.29 

$ 

30,592.27 

720.23 

214.26 

505.97 

3,758.67 

1,080.70 

2,677.97 

4,530.37 

1,288.28 

3.242.09 

2,527.72 

706.54 

1,821.18 

1,502.29 

391.05 

1,111.24 

10,863.39 

2,679.36 

8,184.03 

66.50 

16.33 

50.17 

852.12 

207.42 

644.70 

3,006.03 

701.03 

2,305.00 

140.26 

30.80 

109.46 

6,035.98 

1,237.39 

4,798.59 

221.97 

44.43 

177.54 

$     38,595.09 

$    9,907.88 

$ 

28,687.21 

140 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


LOCAL  EXPENSES   OF   COLLECTING   INHERITANCE   TAX. 

1908-1910. 


Percent  of 
cost  of  col- 
Name  of  County        lection 

Kane    19.84 

Lee    19.81 

Adams   19.60 

Clark   19.32 

Moultrie   18.76 

Putnam    18.60 

Stephenson    18.25 

Alexander    17.26 

Macon   16.50 

DeKalb   16.39 

DeWitt   15.28 

Iroquois  14^94 

Knox   14.42 

St.  Clair  14  29 

Ogle  13.75 

Pike    13.63 

Warren   13.39 

Clinton    13.29 

Vermilion    13.19 

Peoria  12.67 

Henderson   12.11 

Tazewell   11.90 

Carroll   11  14 

Cass    10.91 

Rock  Island 10.88 

Mercer  10.44 

Total,  counties  10  to  20%  14.48 

Lawrence    9.36 

Stark   8.95 

Montgomery    8.73 

McDonough    7.98 

Boone    7.80 

Jefferson    7.76 

JoDaviess    7.57 

Piatt    7.49 

Marion    7.24 

Madison    7.01 

Fayette    6.92 

McLean    6.11 

Total,  counties  6  to  10%.  7.34 

Greene   5.55 

Whiteside    5.45 

Lake   5.44 

Macoupin   4.04 

Jackson  3.66 

Franklin    2.00 

Schuyler   2^00 

Union  2.00 

Total,  counties  under  6%  4.70 


Total 

Net 

amount  of 

Total  ex- 

amount trans- 

tax col- 

pense of 

mitted  to  State 

lected 

collection 

Treasurer 

$       6,828.28 

$     1,354.77 

$       5,473.51 

1,936.70 

383.63 

1,553.07 

12,065.02 

2,365.53 

9,699.49 

1,183.81 

228.68 

955.13 

842.40 

158.05 

684.35 

72.32 

13.45 

58.87 

1,511.68 

275.92 

1,235.76 

1,518.71 

262.12 

1,256.59 

13,073.05 

2,157.55 

10,915.50 

5,275.26 

864.90 

4,410.36 

17,351.42 

2,651.36 

14,700.06 

1,964.79 

293.49 

1,671.30 

10,437.97 

1.505.04 

8,932.93 

2,795.14 

399.40 

2,395.74 

5,111.85 

703.20 

4,408.65 

1,142.81 

155.76 

987.05 

3,590.94 

480.80 

3,110.14 

3,427.04 

455.75 

2,971.29 

11,485.07 

1,513.67 

9,971.40 

14,417.87 

1,827.20 

12.590.67 

3,048.18 

369.06 

2,679.12 

14,701.62 

1,748.97 

12,952.65 

1,827.92 

203.61 

1,624.31 

190.62 

20.80 

169.82 

15,592,81 

1,696.86 

13,895.95 

4,087.79 

427.02 

3,660.77 

$    155,481.07 

$  22,516.59 

$    132,964.48 

$       4,351.37 

$       407.33 

$       3,944.04 

2,442.97 

218.75 

2,224.22 

1,633.36 

142.67 

1,490  6" 

4,352.51 

347.48 

4,005.03 

3,339.50 

260.64 

3,078.86 

2,723.43 

211.45 

2,511.98 

2,042.54 

154.70 

1,887.84 

15,447.31 

1,157.88 

1,489.43 

1,049.29 

75.97 

973.32 

28,662.15 

2,010.78 

26,651.37 

1,064.00 

73.61 

990.39 

10.669.82 

651.67 

10,018.15 

$     77.778.25 

$    5,712.93 

$     72,065.32 

$     21,288.12 

$     1,183.33 

$     20,104.79 

434.35 

23.69 

410.66 

17,790.37 

968.63 

16.821.74 

1.114.87 

45.05 

1,069.92 

1,205.79 

44.11 

1,161.68 

10.197.04 

203.94 

9,993.10 

228.00 

4.56 

223.44 

587.53 

11.75 

575.78 

$     52,846.17       $    2,485.06       $     50,361.11 


REVENUE  AND  FINANCE. 


141 


LOCAL   EXPANSES   OF   COLLECXmC   INHERITANCK   TAX. 

1908-1910. 
Name  of  County  Total  Net 
Recapitulation.                    Per  cent  of  amount  of  Total  ex-  amount  trans- 
Percentages  of  cost         cost  of  col-  tax  col-  pense  of  mitted  to  State 
above                           lection  lected  collection  Treasurer 

30%    35.41  $     72,464.26  $25,665.10  $     46,799.16 

Above  20%    25.66  38,595.09  9,907.88  28,687.21 

Above   10% 14.48  155,481.07  22,516.59  132,964.48 

Above  6% 7.34  77,778.25  5,712.93  72,065.32 

Below  6% 4.70  52,846.17  2,485.06  50,361.11 

Cook  County  927^  843,875.89  78,260.28  765,615.6J. 

11.65 


$1,241,040.73        $144,547.84        $1,096,492.89 


1910-1912. 


Percent  of 
cost  of  col- 
Name  of  County         lection 

Fayette    93.59 

DeWitt    73.53 

Kendall    50.80 

Vv^hite    49.50 

Clay   44.16 

Greene    39.30 

•Marshall 35.84 

Logan    35.08 

Henderson    34.41 

Douglas    32.68 

Boone    31.57 

Coles    31.52 

Total,  counties  over  30%  39.19 

Champaign    29.48 

Knox   26.68 

Christian    27.09 

Bureau    25.36 

Fulton   24.04 

Ford    23.50 

Mason    23.41 

Carroll   22.63 

Macon   22.52 

Shelby  22.46 

Edgar 22.36 

Jackson    21.27 

Tazewell 20,59 

St.  Clair  20.14 

Total,   counties  20  to   30%  23.44 

Adams    19^ 

Warren    19.68 

Cass  19.67 

Mercer  19.15 

Pike   18.34 

McHenry    18.18 

Vermilion    17.91 

DuPage   17.27 

Kankakee    17.26 

Morgan    17.13 

Grundy   17.12 

Lee    16.85 

Sangamon    16.67 


Total 
amount  of 
tax  col- 
lected 
$  181.77 

1,367.71 
388.52 
2,030.05 
1.153.83 
3,008.55 
3,567.20 
5,113.66 
1,009.83 
3,632.57 
668.00 
2,875.40 


$ 


Total  ex- 
pense of 
collection 
$        170.13 
1,005.75 
197.38 
1,004.95 
509.58 
1,185.33 
1,278.57 
1,793.98 
347.50 
1,187.39 
210.92 
906.51 


Net 
amount  trans- 
mitted to  State 
Treasurer 
$  11.64 

361.96 
191.14 
1,025.10 
644.25 
1,823.22 
2,288.63 
3,319.68 
662.33 
2,445.18 
457.08 
1.968.89 


$     24,997.09        $    9,797.99        $     15,199.10 


3,962.79 
9,468.90 
5,311.54 
2,824.13 
2,895.20 
2,661.35 
11,853.07 
2,578.41 
7,837.51 
3,265.93 
7,983.03 
134.93 
9,404.48 
9,885.28 


1,168.27 

2,526.55 

1,439.09 

716.23 

696.21 

625.62 

2,775.07 

583.65 

1,765.65 

733.54 

1,785.67 

28.70 

1,936.94 

1,991.74 


2,794.52 
6.942.35 
3,872.45 
2,107.90 
2,198.99 
2,035.73 
9,078.00 
1,994.76 
6,071.86 
2,532.39 
6,197.36 
106.23 
7,467.54 
7,893.54 


80,066.55        $  18,772.93        $     61,293.62 

'  1,882.78        $       7,605.76 

447.84  1,827.60 
624.72  2,550.65 

1,517.95  6,407.58 

477.05  2,123.38 

138.76  624.36 

1,472,63  6,746.38 

434.64  2,080.95 

1,334.78  6,398.59 

1,647.74  7,966.07 

2,610.71  12,638.21 

596.85  2,944.95 
4,182.46  20.901.80 


9,488.54 
2,275.44 
3,175.37 
7,925.53 
2,600.43 
763.12 
8,219.'01 
2,515.59 
7,733.37 
9,613.81 

15,248.92 
3,541.80 

25,084.26 


142 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


LOCAL   EXPENSES   OF   COLLECTING   INHERITANCE   TAX. 
1910-1912. 


Per  cent  of 
cost  of  col- 
Name  of  County         lection 

Perry    16.60 

Will    15.55 

Winnebago    15.28 

Menard   14.68 

Stark   14.43 

Alexander    14.26 

Montgomery    14.06 

Madison   13.83 

Peoria    13.27 

Washington  12.13 

McDonough    12.04 

Jasper    . .. 11.31 

Macoupin 10.76 

LaSalle   10.47 

Henry    10.40 

Bond    '. 10.29 

Whiteside 10.16 

Woodford  10.16 

Total,  counties  10  to  20%     13.20 

Iroquois    9.74 

Kane  9.51 

Livingston 9.44 

Ogle  7.96 

Hancock   7.92 

Crawford    7.41 

Rock  Island  6.91 

JoDaviess    6.56 

Stephenson    6.56 

Piatt    6.54 

Moultrie   6.46 

Lake   6.09 

Total,  .counties  6  to  10%  6.09 

Marion    5.94 

Gallatin    5.93 

DeKalb   5.82 

Saline    5.47 

McLean   4.51 

Clinton  1.99 

Randolph    1.99 

Total,  counties  under  6%    5.37 

Recapitulation. 

Per  centage  of  cost  above 

30%    39.19 

Above  20% 23.44 

Above  10% 13.20 

Above  6% 6.09 

Below   6% 5.37 

Cook   County    5.78 


Total 

Net 

amount  of 

Total  ex- 

amount trans- 

tax col- 

pense of 

mitted  to  State 

lected 

collection 

Treasurer 

220.49 

36.71 

183.78 

9,983.71 

1,553.21 

8,430.50 

15,110.84 

2,310.43 

12,800.41 

2,322.34 

341.11 

1,981.23 

3,722.33 

537.19 

3,185.14 

3,070.18 

438.08 

2,632.10 

953.41 

134.07 

819.34 

20,449.74 

2,828.57 

17,621.17 

42,530.18 

5,217.23 

37,312.95 

1,162.95 

141.16 

1,021.79 

1,678.09 

202.11 

1,475.98 

161.00 

18.22 

142.78 

821.63 

SS^63 

733.00 

150,160.45 

15,734.41 

134,426.04 

7,485.98 

778.89 

6,708.09 

180.82 

18.62 

162.20 

7,513.00 

765.37 

6,747.63 

7,255.94 

737.35 

6,518.59 

$   372,969.27 

$  49,250.27 
$       574.37 

$   323,719.00 

$       5,893.93 

$       5,319.56 

34,961.56 

3,324.85 

31,636.71 

9,971.11 

942.01 

9,029.10 

5,787.69 

461.15 

5,326.54 

464.00 

36.78 

427.22 

2,825.76 

209.56 

2,616.20 

61,432.92 

4,249.94 

57,182.98 

3,766.28 

247.26 

3,519.02 

7,520.01 

494.98 

7,025.03 

23,976.61 

1,569.86 

22,406.75 

6,686.67 

432.54 

6,254.13 

130,965.90 

7,977.52 

122,988.38 

$   294,252.44 

$  20,520.82 

$   273,731.62 

$       1,935.10 

$       115.06 

$       1,820.04 

11,910.18 

706.83 

11,203.35 

46,037.81 

2,680.69 

43,357.12 

6,271.79 

343.21 

5.928.58 

27,988.83 

1,262.35 

26,726.48 

336.54 

6.73 

329.81 

943.72 

18.87 

924.85 

$     95,423.97 

$    5,133.74 

$     90,290.23 

$     24,997.09 

$    9,797.99 

$     15,199.10 

80,066.55 

18,772.93 

61.293.62 

372,969.27 

49,25027 

323.719.00 

294^52.44 

20,520.82 

273,731.62 

95,423.97 

5,133.74 

90,290.23 

3,100,522.79 

179.388,30 

2,921,134.49 

7.13       $3,968,232.11        $282,864.05        $3,685,368.06 


REVENUE  AND  FINANCE.  143 

Miscellaneous  Revenues. 

In  addition  to  the  general  property  tax,  and  the  special  taxes  and 
fees  on  inheritances,  corporations  and  insurance  companies,  there  are 
a  large  number  of  minor  sources  of  State  revenue  collected  by  various 
State  officials  and  boards.  There  is  a  considerable  list  of  examination, 
inspection  and  license  fees  imposed  in  connection  with  the  licensing  and 
regulation- of  certain  professions,  businesses  and  occupations.  Some 
appropriations  from  the  United  States  government  are  made  for  the 
partial  support  of  certain  State  institutions.  The  State  prisons  and 
penitentiaries  receive  considerable  sums  for  the  products  manufactured 
by  prison  labor;  and  the  various  institutions  receive  sundry  income 
from  sales  and  rentals  and  fees  for  special  services.  Interest  on  bal- 
ances of  public  funds  are  paid  by  a  number  of  officials. 

Revenues  from  any  one  of  these  sources  are  not  of  large  impor- 
tance ;  and  in  many  cases  are  oil  set  by  the  expenses  of  the  offices  and 
institutions.  But  in  the  aggregate  they  form  a  considerable  factor  in 
the  financial  transactions  of  the  State.  Formerly,  and' even  as  late  as 
1911,  much  of  the  revenues  of  this  kind  were  not  turned  into  the  State 
treasury;  and  in  many  cases  were  not  reported  to  the  State  Treasurer 
or  Auditor  of  Public  Accounts;  but  were  used  by  the  various  officials 
and  institutions  to  meet  expenses  not  covered  by  legislative  appropri- 
ations, and  accounted  for — if  at  all — only  in  the  separate  reports  of  the 
various  boards  and  offices.  By  legislation  of  1911,  most  of  these 
revenues  are  now  reported  to  the  Auditor  and  turned  into  the  State 
treasury;  and  provision  was  made  in  1913  authorizing  the  Auditor 
to  audit  such  revenue  accounts.^^ 

No  attempt  will  be  made  in  this  survey  of  revenue  administra- 
tion to  analyze  these  miscellaneous  revenues  in  detail.  Their  general 
scope  and  importance  will  be  indicated  in  the  following  table  showing 
the  receipts  of  the  State  treasury  of  this  kind  from  the  different  State 
officials  and  boards  for  the  biennial  periods  ending  September  30,  1912 
and  1914. 

MISCELLANEOUS    STATE   REVENUES. 

1910-12  1912-14 

From  Governor,  amount    received    from  U.  S.  govt,  for 

Illinois  Soldier's  and  Sailor's  Home $280,665.50  $237,710.90 

From  U.  S.  govt,  for  college  of  agriculture 100,000.00  100,000.00 

From  State  offices,  boards,  etc.,  from  fees: 

Auditor  of  Public  Accounts 70,988.61  138,372.53 

State  Treasurer  6,009.19 

R.  R.  and  Whse.  Commission 4,642.00  2,766.43 

State  Grain  Inspection 284,439.07  348,531.34 

Superintendent  of  Public  Instruction 305.00  755.00 

Board  of  Administration 167.00  138.15 

Commissioners  of  Labor 16,257.75  34,018.48 

State  Board  of  Health 22,858.96  54,910.25 

State  Board  of  Pharmacy 23,805.38  45,506.20 

State  Board  of   Nurse   Examiners 26,475.44  9,804.01 

State  Board  of  Dental   Examiners 10,802.41  17,676.00 

State  Board  of  Veterinary  Examiners 1,268.49  3,865.00 

26Fees,  tolls  and  other  revenues  are  collected  by  the  State  penitentiaries,  slate  uni- 
versity, normal  schools,  and  canal  commissioners  which  are  not  turned  over  to  the 
state  treasury,  and  do  not  appear  in  the  reports  of  th«  Auditor  of  Public  AccouDts. 


144  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Board  of  Examiners  of  Architects 17,899.35  19,876.00 

Barbers'  Examining  Board 27,436.03  38,473.42 

State   Geological   Survey 178.89  24.09 

State    Game   Commission 305.42         

State    Fish    Commission 1,151.50         ^. 

State    Entomologist    2,603.74 

Stallion   Registration   Board 24,655.17 

Miners    Examining   Boards 1,996.01_  16,487.62 

State  Food  Commission ■^^^•29 

Live   Stock  Commission 6,933.75 

Public  Utilities  Commission 151,898.63 

State   Park   Comnjission 6,850.10 

From  interest  on  public  funds •.•••.•••    170,266.99  147,480.68 

From   miscellaneous   collections,    state   charitable   institu- 
tions   641,431.03  789,415.99 

From  collections  under  State  game  law 305,549.54  293,548.12 

From  collections  under  State  fish  law 14,448.97  19,291.01 

From  collections  under  pure  food  law 25,178.20  34,098.65 

From  Insurance  Supt.,  fire  marshal  fund 120,597.19  124,266.50 

From  sales,  etc.,  Kaskaskia  commons  fund 21,266.79  76,099.51 

From  Board  of  Prison  Industry 225,000.00 

From  sundry   items    63,881.70  174,285.94 

Total      $2,261,371.96  $3,141,864.40 

D.    GENERAL  COMMENTS   AND   SUGGESTIONS. 

From  the  foregoing  survey  of  revenue  administration  in  Illinois, 
it  appears  evident  that  the  existing  arrangements  present  a  confusing 
chaos  of  conflicting  authorities,  without  systematic  correlation  or 
coordination.  In  the  administration  of  the  general  property  tax  and  the 
inheritance  tax,  local  officials  are  relied  -on  to  a  large  extent,  with  a 
highly  complicated  differentiation  of  functions  and  with  similar  duties 
imposed  on  different  officials.  The  State  administration  for  each  of 
these  sources  of  revenue  is  placed  largely  in  the  hands  of  different 
State  officials,  and  is- organized  on  entirely  distinct  lines;  while  the 
supervision  of  local  officials  and  the  State  assessment  for  the  general 
property  tax  is  clearly  inadequate  and  inefficient.  Other  State  revenues 
are  collected  by  a  large  number  of  State  officials,  acting  under  diff'erent 
statutes,  and  with  no  provisions  for  any  general  policy  or  uniformity 
of  methods. 

The  State  officials  who  are  charged  with  functions  in  the  admin- 
istration of  the  more  important  State  revenues  include  the  Governor, 
Auditor  of  Public  Accounts,  State  Treasurer,  Secretary  of  State, 
Attorney-General,  the  State  Board  of  Equalization  and  the  Insurance 
Superintendent;  while  a  much  largeY  list  of  other  officials,  boards  and 
commissions  collect  various  minor  revenues.  The  office  of  the  Auditor 
of  Public  Accounts  acts  to  some  extent  as  a  clearing  house  of  infor- 
mation in  regard  to  the  revenues  collected  by  most  of  the  other  authori- 
ties; but  his  authority  to  supervise  the  accounts  and  methods  of  other 
officials  is  far  from  adequate ;  while  his  reports  in  recent  years  have 
been  little  more  than  tables  of  detailed  statistics,  without  any  analysis, 
explanation  or  discussion  of  the  significant  facts  shown  in  the  data 
published. 

On  the  basis  of  the  preceding  analysis  of  the  revenue  laws  and 


REVENUE  AND  FINANCE.  145 

their  administration  certain  changes  may  be  proposed  in  the  organiza- 
tion of  revenue  administration.  It  should  be  clear  that  the  recom- 
mendations previously  made  by  other  official  authorities  for  the  aboli- 
tion of  the  State  Board  of  Equalization  and  the  creation  of  a  small 
commission  with  larger  powers  of  inquiry,  investigation  and  super- 
vision over  the  administration  of  the  general  property  tax  will  improve 
that  important  part  of  the  revenue  system  of  the  State.  Such  a  com- 
mission should  have  jurisdiction  not  only  over  the  assessment  of  prop- 
erty, but  also  over  tax  levies  and  the  collection  of  property  taxes.  Its 
authority  should  be  extended  to  all  sources  of  State  revenue,  including 
the  inheritance  tax  and  automobile  fees.  Still  further,  there  should 
be  at  least  considered  the  advisability  of  giving  such  a  body  authority 
over  the  whole  field  of  State  finances,  including  not  only  revenues,  but 
also  expenditures  and  the  preparation  of  a  budget  of  proposed  appro- 
priations for  presentation  to  the  General  Assembly. 

In  the  field  of  local  revenue  administration,  the  number  of  local 
officials  should  be  reduced,  and  their  duties  better  co-ordinated.  This 
is  of  most  importance  in  the  local  assessment  and  collection  of  the 
general  property  tax,  where  town  assessors  and  collectors  should  be 
abolished.  But  there  is  also  need  for  a  county  board  of  taxation,  to 
take  the  place  of  the  present  county  boards  of  review  and  to  pass  on 
the  validity  of  the  levy  of  taxes  by  local  authorities. 

SUMMARY  OF  STATE  REVENUES. 

1910-12  1912-14 

General  Property  Tax,  general  revenue $11,317,345.57  $15,507,335.44 

General  Property  Tax,  special  funds 2,985,817.83  9,685,825.90 

Illinois   Central   Railroad 2,409,924.37  2,696,008.89 

Inheritance   Tax    3,687,029.97  3,146,048.56 

United    States    Government 380,665.50  337,710.90 

Secretary  of  State,  fees 1,376,588.22  2,308,234.95 

Insurance    Superintendent    1,178,695.41  1,354,520.87 

State  offices,  boards  etc.,  fees 518,026.05  930,667.10 

Interest  on  public   funds 170,266.99  147,480.68 

State  charitable  institutions 641,431.03  789,415.99 

Collections  under  S+ate  game  law 305,549.54  293,548.12 

Collections  under  State  fish  law 14,448.97  19,291.01 

Collections  under  pure  food  law 25,178.20  34,098.65 

Board  of  Prison  Industry 225,000.00 

Fire  Marshal  fund 120,597.19  124,266.50 

Kaskakia  commons  school  lands 21,266.79  76,099.51 

Sundry  items    63,881.70  174,285.94 

Total  General  and  Special  Funds $25,227,757.09    $37,849,839.01 

Registered  Bond  Fund 1,729,430.70         1,859,631.03 

Grand  Total   $26,957,187.79    $39,709,470.04 


146  EFFICIENCY  AND  ECONOMY  COMMITTEE. 


11.  FINANCE  ADMINISTRATION  IN  OTHER  STATES  AND 
COUNTIES. 

A.    STATE  FINANCE  ADMINISTRATION.      , 

None  of  the  states  have  established  a  comprehensive  department 
of  finance,  including  the  various  officials  dealing  w^ith  revenues  and 
expenditures,  corresponding  to  the-  finance  departments  of  European 
countries,  or  to  the  department  of  the  treasury  in  the  United  States 
government.  In  each  state  there  are  a  number  of  state  and  local 
officials,  vi^ho  until  recently  have  in  the  main  acted  independently ;  and 
while  a  number  of  states  have  now  provided  a  more  effective  system 
for  some  parts  of  the  finance  administration,  in  none  have  all  the 
finance  officials  been  definitely  organized  into  one  main  division  of  the 
government. 

The  oldest  state  finance  official  is  the  State  Treasurer,  who  is 
found  in  every  state,  to  receive,  care  for  and  disburse  public  funds. 
For  a  time  this  was  the  only  state  officer,  the  assessment  and  collection 
of  state  taxes  being  entrusted  to  local  officials.  The  office  of  State 
Comptroller  or  Auditor  was  early  established  in  some  states;  and  is 
now  provided  in  nearly  all.  Later,  mainly  since  1860,  state  boards  of 
equalization  have  been  organized  in  most  states.  More  recently  (since 
1890)  state  tax  commissions  and  commissioners  have  been  created  in 
many  states;  and  in  a  number  of  states,  supervision  over  local  accounts 
has  been  established  through  the  state  auditor  or  comptroller,  the 
state  tax  commission  or  by  another  official  known  as  the  state  examiner. 

In  most  of  the  states  there  is  now  a  state  treasurer,  an  auditor  or 
comptroller  and  a  state  tax  commission  or  commissioner,— the  two 
former  usually  elected,  and  the  latter  appointed.  Other  officials  or 
boards  found  in  a  number  of  states  include  state  boards  of  equalization, 
state  assessors  and  state  examiners  or  accountants.  In  some  states 
there  are  still  other  authorities  dealing  with  financial  matters,  such  as 
boards  of  auditors,  courts  of  claims  and  sinking  fund  commissions. 
Thus  each  state  has  from  three  to  six  or  more  separate  finance 
officials,  largely  independent  of  each  other. 

The  State  Treasurer. 

Every  state  has  a  State  Treasurer.  In  most  cases  this  officer  is 
elected  by  popular  vote,  even  in  states  where  some  of  the  older  state 
officers  are  appointed;  but  in  Maine,  New  Hampshire,  New  Jersey  and 
Maryland,  the  Treasurer  is  chosen  by  the  legislature.  Thus  in  every 
state,  the  Treasurer  is  by  law  independent  of  the  Governor;  and  in 
some  states  this  is  further  marked  by  his  election  at  a  different  time  or 
for  a  shorter  term  than  the  Governor  (as  in  Pennsylvania,  New  Jersey, 
Maryland,  Indiana  and  Illinois). 


REVENUE  AND  FINANCE.  147 

The  Treasurer  is  by  law  the  receiver  and  custodian  of  state 
revenues,  and  the  disbursing  officer  for  appropriations  from  state 
funds.  He  is  placed  under  heavy  bond  to  secure  the  state  in  case  of 
loss.  He  is  usually  a  member  ex  officio  of  various  financial  boards, 
such  as  boards  of  equalization,  sinking  funds  and  land  funds ;  and  less 
frequently  is  a  member  of  other  ex  officio  boards.  In  some  states  other 
miscellaneous  duties  not  connected  with  finances  are  placed  on  the 
Treasurer. 

Reports  of  receipts  and  expenditures  are  made  by  the  State  Treas- 
urer to  the  legislature.  But  these  are  usually  brief  summaries,  while 
the  more  detailed  statements  are  presented  by  the  Auditor  or  Comp- 
troller. The  Treasurer's  office  in  most  states  is  limited  to  formal  and 
ministerial  functions,  controlled  by  the  Auditor  or  Comptroller.  In  no 
state  does  he  have  any  duties  or  influence  on  the  approprialions  or 
revenue  laws,  such  as  forms  the  important  work  of  a  Finance  Minister 
in  other  countries. 

Under  the  earlier  laws,  the  Treasurer  was  assumed  to  have  physi- 
cal possession  of  the  state  funds, — and  he  was  personally  responsible 
for  them;  so  that  if  he  deposited  any  amounts  in  banks  he  did  so  at  his 
own  risk.  With  the  increase  in  the  scale  of  financial  transactions  and 
the  accumulation  of  large  balances  at  times,  the  states  have  either  pro- 
vided vaults  for  the  custody  of  state  funds,  or  have  authorized  deposits 
in  banks. 

In  1900,  nine  states  kept  their  funds  in  state  vaults, — Ohio,  Indi- 
ana, Illinois,  Alabama,  Mississippi,  Arkansas,  Texas,  Nevada  and  Cal- 
ifornia, Kansas  and  Oregon  also  kept  part  of  the  state  funds  in  treas- 
ury vaults.  Under  this  system  balances  of  from  $250,000  to  $4,000,000 
aggregating  from  $12,000,000  to  $15,000,000  were  withdrawn  from  cir- 
culation, earning  no  interest,  and  were  a  direct  source  of  expense  to 
the  state  for  the  maintenance  and  protection  of  the  vaults.  Since 
then,  Illinois  has  authorized  the  deposit  of  State  funds  in  banks. 

In  1900,  thirty-seven  states  and  territories  deposited  the  greater 
part  of  their  funds  in  banks,  and  two  others  deposited  part  of  their 
funds.  Under  this  system  balances  aggregating  $40,000,000  or  more 
were  kept  free  of  expense  to  the  state  and  in  most  states  were  a  source 
of  income  while  the  money  was  kept  in  circulation. 

Wide  differences,  howeVer,  exist  as  to  the  method  of  selecting 
banks  and  taking  security  for  the  state  funds.  In  some  states,  the 
depositary  banks  are  named  by  law;  more  often  the  banks  are  selected 
by  a  board  of  state  officers;  and  in  some  states  the  selection  is  made  by 
the  Treasurer  alone.  The  latter  method  is  used  in  Connecticut, 
Maine,  New  Hampshire,  New  Jersey,  North  Carolina,  South  Dakota, 
Montana,  Idaho  and  Oregon ;  and  is  also  used  in  Illinois.  Most  of 
these  are  small  states ;  and  Illinois  and  New  Jersey  are  the  only  states 
using  this  method  which  carry  large  balances. 

The  number  of  bank  depositaries  for  state  funds  varied,  in  1900, 
from  one  in  Delaware  and  Arizona  to  150  in  New  York  and  177  in 
Massachusetts,  averaging  from  20  to  30  in  most  states. 

In  the  larger  number  of  states  special  security  is  required  for  state 
funds, — by  personal  bonds,  bonds  of  surety  companies,  financial  secur- 


148  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

ities  as  collateral,  or  a  first  lien  on  the  assets  of  the  bank.  In  1900, 
thirteen  states  required  no  security  other  than  that  given  to  ordinary 
depositors. 

About  two-thirds  of  the  st%tes  using  bank  depositaries  received 
interest  on  balances,  usually  at  the  rate  of  from  two  to  three  per  cent. 
But  thirteen  states,  with  average  balances  aggregating  $7,000,000 
received  no  interest.^^ 

Auditor  or  Comptroller. 

All  of  the  states  have  made  provision  for  auditing  the  receipts  and 
payments  of  the  State  treasury;  and  in  all  the  states  except  three  a 
separate  state  officer  and  department  has  been  established  for  this  pur- 
pose. In, Wisconsin  and  Oregon  the  Secretary  of  State  acts  as  Auditor; 
and  in  New  Hampshire  warrants  on  the  treasury  are  drawn  by  the 
Governor,  who  annually  appoints  a  committee  of  two  or  more  members 
of  the  executive  council,  to  audit  the  accounts  of  the  state  treasurer. 

In  the  other  states  the  officer  in  charge  of  the  auditing  department 
is  usually  called  the  Auditor;  but  the  exact  title  varies  to  some  extent. 
In  Pennsylvania  and  Michigan,  he  is  the  Auditor-General ;  in  Illinois, 
Kentucky,  and  Nebraska,  he  is  the  Auditor  of  Public  Accounts;  in 
Ohio  and  Indiana,  he  is  the  Auditor  of  State ;  in  a  number  of  states,  he 
is  Comptroller  or  Comptroller-General— New  York,  New  Jersey,  Con- 
necticut, Maryland,  South  Carolina,  Georgia,  Florida,  Tennessee, 
Texas,  Nevada  and  California.  Usually  where  the  title  of  Comp- 
troller is  used  the  powers  of  the  office  are  larger  than  where  the  title 
Auditor  is  employed. 

This  official  is  elected  by  popular  vote  in  all  of  the  states  except 
New  Jersey  and  Tennessee,  where  he  is  chosen  by  the  legislature.  His 
term  in  most  cases  corresponds  with  that  of  the  State  Treasurer ;  and 
like  that  official  this  is  sometimes  for  a  shorter  period  than  the 
Governor ;  but  in  a  few  states  the  Auditor  has  a  longer  term  than  the 
Treasurer,  as  in  Illinois,  Minnesota  and  Ohio  (four  years)  and 
Pennsylvania  (three  years).  These  factors  serve  to  emphasize  the 
independence  of  the  office  from  the  chief  executive ;  but  none  of  the 
states  have  placed  the  position  on  the  basis  of  judicial  tenure,  as  are 
the  auditing  officials  in  Great  Britain  and  most  of  the  countries  of 
continental  Europe. 

The  primary  function  of  the  auditing  department  is  to  act  as  a 
check  on  the  State  Treasurer ;  and  in  most  states  it  is  more  important 
than  the  Treasurer's  office  in  the  administration  of  state  finances.  It 
keeps  a  record  of  all  moneys  paid  into  or  out  of  the  state  treasury, 
examines  and  adjusts  claims  and  issues  warrants  or  orders  on  the  state 
treasury,  which  are  the  only  authority  to  justify  disbursements.  It 
operates  as  a  check  on  all  the  other  branches  of  the  state  government 
to  keep  their  expenditures  within  the  limits  of  appropriations.  The 
Auditor's  report  usually  presents  a  detailed  statement  of  receipts  and 
disbursements. 

In  addition  to  these  duties,  other  functions  have  been  added  to 
the  office  in  different  states.     The  Auditor  is  usually  a  member  of 


2'Annals  of  tlie  A»iierican  Academy  of  Social  and  Political  Science,  VI.  397   (1895)- 
571   (1902). 


REVENUE  AND  FINANCE.  149 

various  financial  boards.  In  a  number  of  states,  he  receives  and  com- 
piles estimates  for  appropriations.  In  some  states,  he  has  important 
duties  in  the  assessment  and  collection  of  taxes,  especially  in  regard 
to  corporation  and  inheritance  taxes.  In  New  York,  Ohio  and  some 
other  states  he  has  supervision  over  the  accounts  of  county  and  munici- 
pal officials. 

In  some  states,  the  Auditor  acts  in  other  capacities  not  directly 
connected  with  the  state  finances.  Thus  in  Minnesota,  he  is  Land  Com- 
missioner; in  Illinois,  he  has  charge  of  the  supervision  of  State  banks; 
in  Montana  and  Rhode  Island,  he  acts  as  Insurance  Commissioner;  and 
in  Indiana  as  Banking  and  Insurance  Commissioner. 

Public  Accounting. 

The  powers  of  the  State  Auditor  or  Comptroller  enable  him  to 
exercise  some  control  over  the  accounts  of  other  state  offices  and  insti- 
tutions, and  also  over  the  accounts  of  local  officers  relating  to  state 
funds.  But  until  recently  in  most  states,  this  has  been  limited  to 
accounts  dealing  with  the  collection  of  state  revenues  and  the  disburse- 
ment of  state  appropriations ;  and  for  these  has  been  confined  to  cash 
accounts,  and  to  keeping  expenditures  within  the  amounts  appropriated. 
A  number  of  states  have  now  made  provisions  for  introducing  more 
satisfactory  accounting  methods,  both  for  state  officers  and  institutions 
and  for  local  officials.  In  some  cases  this  has  been  done  by  increasing 
the  authority  of  the  State  Auditor  or  Comptroller;  but  in  some  cases 
another  officer  has  been  created  for  this  purpose. 

In  1878  the  State  of  Minnesota  established  the  office  of  State 
Examiner  to  examine  the  accounts  of  State  offices  and  institutions 
and  county  accounts.  A  year  later  State  supervision  of  county 
accounts  was  begun  in  Massachusetts.  In  1889  the  constitutions  of 
the  new  states  of  Wyoming  and  Montana  provided  for  state  examiners 
to  examine 'the  accounts  of  state  and  county  officers.  Shice  then  many 
other  states  have  passed  laws  for  better  accounting  and  auditing  in 
state  and  local  offices. 

By  1913,  about  two-thirds  of  the  states  had  laws  for  uniform 
accounting.  Eleven  of  these  placed  this  work  under  the  State  Auditor 
or  Comptroller;  and  in  most  of  these,  the  scope  of  the  law  was  limited 
to  state  offices  and  institutions.  About  one-half  of  the  states  have 
provided  for  state  supervision  of  county  accounts ;  and  some  twelve 
states  have  made  some  provision  for  state  supervision  of  municipal 
accounts,  usually  by  a  state  examiner  or  accountant.^^ 

Ohio  has  the  most  comprehensive  law,  passed  in  1902.  This 
establishes  a  bureau  of  inspection  and  supervision  of  public  accounts 
in  the  office  of  the  Auditor  of  State,  which  has  power  to  prepare  and 
prescribe  uniform  systems  of  accounts  for  all  public  offices  in  the  state. 
The  law  also  provides  for  financial  reports  and  for  the  inspection  and 
examination  of  both  state  and  local  accounts. 

New  York  has  authorized  the  State  Comptroller  to  establish  uni- 
form accounts  for  counties,  cities  and  villages, — except  New  York  City 
and  Buffalo. 

s^National   Municipiil   Review,   Vol.  2,  pp.  522-525   (July,  1913). 


150  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Other  states  with  a  comprehensive  law  are  California,  Indiana, 
Washington  and  Wyoming.  In  West  Virginia  and  Wisconsin  the  state 
tax  commissioners  have  power  to  prepare  uniform  accounting  systems. 

For  purposes  of  comparison,  a  more  definite  statement  is  given 
below  of  the  powers  and  duties  of  the  State  Comptroller  or  Auditor 
in  some  of  the  more  important  states. 

New  York  State  Comptroller. 
General  Duties. 

The  State  Finance  Law  provides  that  the  Comptroller  shall : 

1.  Superintend  the  fiscal  concerns  of  the  State; 

2.  Keep,  audit  and  state  all  accounts  in  which  the  state  is  inter- 
ested, and  keep  accurate  and  proper  books  showing  their  condition  at 
all  times ; 

3.  Examine  and  settle  the  accounts  of  all  public  officers  and  other 
persons  indeebted  to  the  state,  and  certify  the  account  or  balance  there- 
on due; 

4.  Examine,  audit  and  liquidate  the  claims  of  all  persons  against 
the  state,  if  payment  thereof  out  of  the  treasury  is  authorized  by  law ; 

5.  Draw  warrants  6n  the  treasury  for  the  payment  of  the  moneys 
directed  by  law  to  be  paid  out  of  the  treasury; 

6.  Make  a  report  to  the  legislature  at  its  annual  session  ;  containing 
a  complete  statement  of  the  funds  of  the  state,  its  resources  and  public 
expenditures,  during  the  preceding  fiscal  year,  a  statement  of  each 
object  of  expenditure,  the  funds,  if  any,  from  which  it  is  to  be 
defrayed,  and  a  statement  of  all  claims  against  the  state  presented  to 
him  where  no  provision  or  an  insufficient  provision  for  the  payment 
thereof  has  been  made  by  law,  with  the  facts  relating  thereto  and  his 
opinion  thereon,  and  suggesting  plans  for  the  improvement  and  man- 
agement of  the  public  resources,  and  containing  such  other  information 
and  recommendations  relating  to  the  fiscal  aiTairs  of  the  state  as  in 
his  judgment  should  be  communicated  to  the  legislature; 

7.  Represent  and  vote  for  the  state  at  all  meetings  and  occas- 
sions  when  the  state  is  entitled  to  vote  as  stockholder  in  a  corporation 
or  joint  stock  association; 

8.  Supervise  the  administration  of  all  funds  paid  into  any  court 
of  record,  and  prescribe  rules  and  regulations  for  the  care  and  dis- 
position thereof. 

Prison  Accounts. 

The  Comptroller  has  supervision  over  the  accounts  of  the  state 
prisons  and  reformatories,  which  are  open  to  his  examination.  He 
designates  the  banks  for  the  deposit  of  moneys  received  from  the  pro- 
ceeds of  prison  labor;  and  such  moneys  are  subject  to  check  and  draft 
only  when  countersigned  by  the  Comi)troller.  He  has  also  some  super- 
vision over  tlie  care  of  convicts'  deposits  and  earnings.  He  issues 
licenses  for  the  sale  of  convict  made  goods. 


REVENUE  AND  FINANCE.  151 

Estimates  for  Appropriations. 

Under  an  Act  of  1910,  statements  of  desired  appropriations  by 
institutions  and  boards  are  submitted  to  the  Comptroller,  and  tabulated 
by  him  in  printed  form,  with  comparative  data  and  estimates  of  income 
and  such  comments  as  he  deems  necessary. 

Local  Accounts. 

Every  county,  other  than  those  in  New  York  City,  every  city  of 
the  second  and  third  classes,  and  every  incorporated  village  is  required 
annually  to  make  a  report  of  its  finanacial  condition  to  the  State  Comp- 
troller. The  reports  are  to  be  in  the  form  prescribed  by  the  Comp- 
troller, and  contain  a  statement  of  receipts,  revenue  accounts  due,  dis- 
bursements, indebtedness,  costs  of  ownership  and  operation  and  income 
of  public  service  industries,  and  further  information  as  may  be 
required  by  the  Comptroller.  The  Comptroller  is  also  required  to  have 
the  accounts  of  the  fiscal  officers  of  such  municipal  corporations 
inspected  and  examined.  The  Comptroller  may  formulate  and  pre- 
scribe a  system  of  keeping  accounts,  uniform  for  each  class  of  munici- 
pal corporation. 

Taxation. 

The  Comptroller  charges  each  county  treasurer  with  the  amount 
of  the  state  tax  levied  on  his  county.  If  any  part  of  a  state  tax  is 
unpaid  on  June  1,  the  Comptroller  shall  transmit  by  mail  to  the 
county  treasurer  a  copy  of  the  accounts  and  a  requisition  that  he  must 
pay  the  balance  within  thirty  days;  and  if  the  tax  is  not  paid  in 
that  time,  the  Comptroller  shall  unless  he  is  satisfied  by  due  proof  that 
the  treasurer  has  not  received  such  balance,  and  has  used  due  diligence 
in  collecting  the  same,  forthwith  deliver  a  copy  of  the  account  to  the 
Attorney-General,  who  shall  take  the  necessary  proceedings  to  collect 
the  same.  The  Comptroller  may  also  direct  the  board  of  supervisors 
to  institute  proceedings  against  county  treasurers. 

The  Comptroller  has  supervision  over  the  sale  of  lands  for  unpaid 
taxes. 

Corporations  liable  to  pay  a  tax  under  the  corporation  tax  law 
are  required  to  make  reports  to  the  Comptroller,  and  if  a  report  is  not 
made  or  is  unsatisfactory,  the  Comptroller  is  authorized  to  make  an 
estimate  of  dividends  and  the  value  of  the  capital  stock,  and  has  power 
to  examine  the  books  and  records  of  any  such  company,  and  take  testi- 
mony, either  personally  or  by  a  commissioner  appointed  for  that  pur- 
pose. The  Comptroller  shall  order  and  state  an  amount  for  the  tax  due 
the  state  and  send*  notice.  On  application,  the  Comptroller  may  revise 
and  readjust  such  account,  subject  to  review  upon  certiorari  by  the 
Supreme  Court.  After  thirty  days  from  notice  of  account,  the 
Comptroller  may  issue  a  warrant  directing  the  sheriff  to  levy  and  sell 
property  of  the  company,  etc. 

The  State  Comptroller  has  general  supervisory  power  over  all 
county  treasurers  and  the  chamberlain  of  New  York  City  in  respect  to 
duties  imposed  dl  them  by  the  mortgage  tax  lav/,  and  may  make  rules 
and  regulations  to  secure  a  due  accounting  for  taxes  and  moneys  col- 
lected from  such  tax. 


152  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Pennsylvania  Auditor-General. 
General  Powers  and  Duties. 

The  Auditor-General  is  required  annually  to  examine  the  situation 
of  the  public  treasury  and  the  deposits  in  the  several  banks,  and  the 
accounts  of  the  state  treasurer  with  the  several  banks  in  which  public 
moneys  are  deposited.  He  is  also  authorized  to  take  measures  to  re- 
cover moneys  due  to  the  commonwealth. 

All  receipts  for  payments  into  the  state  treasury  must  be  signed 
by  the  state  treasurer  and  countersigned  by  the  Auditor-General. 

All  accounts  between  the  commonwealth  and  any  person  or  per- 
sons shall  be  examined  and  adjusted  by  the  Auditor-General,  who  has 
power  to  compel  all  persons  in  possession  of  public  moneys  to  render 
to  him  their  accounts,  and  to  compel  delivery  of  books  and  papers. 
Public  accounts  when  examined  and  adjusted  by  the  Auditor-General 
are  submitted  to  the  state  treasurer  for  his  revision  and  approbation. 

Settlements  may  be  revised  by  the  Auditor-General,  state  treas- 
urer and  attorney-general. 

In  settling  accounts  (for  hospitals  and  for  expenses  of  the  legis- 
lature and  other  departments  of  the  government)  he  shall  have  power 
"to  inquire  into  the  correctness  and  fairness  of  the  prices  charged; 
and  it  shall  be  his  duty  to  disallow  any  excess  over  fair  cash  prices." 

He  has  the  same  control  over  accounts  for  public  printing  and 
binding  as  over  the  accounts  of  any  other  officer;  and  bills  for  station- 
ery and  supplies  must  be  approved  by  him. 

He  receives  title  papers  and  insurance  policies  for  the  state  insti- 
tutions. 

Taxation. 

The  treasurer  and  Auditor-General  are  required  to  prepare  and 
transmit  to  the  county  commissioners  instructions  in  regard  to  the 
assessment  and  collection  of  taxes. 

Corporations  and  persons  subject  to  special  state  taxes  are  required 
to  submit  reports  to  the  Auditor-General,  and  the  Auditor-General  and 
treasurer  are  authorized  to  examine  books  and  papers  and  to  make 
valuations. 

Manufacturing  and  mining  companies  are  required  to  make  annual 
reports  to  the  Auditor-General. 

Departmental  Organization. 

The  stalif  of  the  Auditor-General,  as  provided  by  the  appropria- 
tions of  1913,  include  a  Deputy  Auditor-General,  an  Assistant  Deputy 
Auditor-General,  a  Chief  Clerk,  13  other  clerks,  7  traveling  auditors. 
There  are  also  three  bureaus — on  corporations,  on  collections  from 
public  officers,  and  on  accounts  and  expenditures — each  under  a  chief 
clerk,  with  a  staff  of  other  clerks.  Provision  is  made  in  all  for  a  force 
of  69  persons. 

Ohio  Auditor  of  State. 

General  Powers  and  Duties.  ^ 

The  Auditor  of  State  is  the  chief  accounting  officer  of  the  state, 
and  shall  keep  in  his  office  full  and  accurate  accounts  of  all  moneys, 


REVENUE  AND  FINANCE. 


153 


bonds,  stocks,  securities  and  other  property  paid  into  or  out  of  the  state 
treasury.  He  shall  keep  an  account  of  all  appropriations  made  and  of 
warrants  drawn  and  money  paid  out. 

No  payment  into  the  state  treasury  shall  discharge  a  liability  to 
the  state  unless  made  on  the  certificate  and  draft  of  the  Auditor.  The 
Auditor  is  authorized  to  draw  warrants  on  the  county  treasurers  for 
state  taxes. 

If  any  county  treasurer  or  other  collecting  officer  fails  to  pay  over 
moneys  received -and  belonging  to  the  state,  at  the  time  and  manner 
required  by  law,  the  Auditor  of  State  shall  immediately  inform  the 
attorney-general,  who  shall  forthwith  prosecute  proper  action. 

On  or  before  December  fifteenth  of  each  year,  the  Auditor  shall 
make  to  the  governor  a  report  of  receipts  and  disbursements  for  the 
year  ending  November  fifteenth,  showing  balances,  warrants  drawn 
and  outstanding,  unexpended  balances,  and  a  careful  estimate  of  all 
ordinary  receipts  and  disbursements  for  the  year  ending  November 
fifteenth,  following.  This  report  shall  include  a  statement  of  the  public 
debt  of  each  county,  township,  city,  village  and  school  district. 

The  Auditor  is  custodian  of  public  land  records. 

The  financial  transactions  of  state  institutions  are  to  be  inspected 
and  examined  by  the  Auditor  of  State  not  less  than  six  times  a  year. 
Monthly  financial  statements  are  required  by  law. 

The  Auditor  of  State  prepares  and  transmits  to  county  auditors 
forms  of  returns  and  instructions  as  to  state  finances. 

Bureau  of  Inspection  and  Supervision  of  Public  Offices. 

By  Act  of  1902  a  bureau  of  inspection  and  supervision  of  public 
offices  has  been  established  in  the  office  of  tlie  Auditor  of  State.  This 
consists  of  a  chief  inspector  and  supervisor,  three  deputy  inspectors 
and  supervisors,  one  clerk  and  a  force  of  examiners.  This  bureau  is 
empowered  to  prescribe  and  install  a  system  of  accounting  for  all  public 
offices;  annual  reports  are  required  from  each  institution  and  taxing 
district ;  and  each  office  is  to  be  examined  at  least  once  a  year. 

Maryland  Comptroller. 
The  Maryland  state  constitution  provides  that  "The  Comptroller 
shall  have  the  general  superintendence  of  the  fiscal  affairs  of  the  state ; 
he  shall  digest  and  prepare  plans  for  the  improvement  and  management 
of  the  revenue,  and  for  the  support  of  the  public  credit;  prepare  and 
report  estimates  of  the  revenue  and  expenditures  of  the  state ;  superin- 
tend and  enforce  the  prompt  collection  of  all  taxes  and  revenue;  adjust 
and  settle,  on  terms  prescribed  by  law,  with  delinquent  collectors  and 
receivers  of  taxes  and  state  revenue;  preserve  all  public  accounts; 
decide  on  the  forms  of  keeping  and  stating  accounts;  grant,  under 
regulations  prescribed  by  law,  all  warrants  for  money  to  be  paid  out 
of  the  treasury,  in  pursuance  of  appropriations  made  by  law,  and 
countersign  all  checks  drawn  by  the  treasurer  upon  any  bank  or  banks ; 
in  which  the  moneys  of  the  state  may,  from  time  to  time,  be  deposited ; 
prescribe  the  formalities  of  the  transfer  of  stock,  or  other  evidence  of 
the  state  debt,  and  countersign  the  same,  without  which  such  evidence 
shall  not  be  valid ;  he  shall  make  to  the  general  assembly  full  reports 


154  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

of  all  his  proceedings,  and  of  the  state  of  the  treasury  department 
within  ten  days  after  the  commencement  of  each  session ;  and  per- 
form such  other  duties  as  shall  be  prescribed  by  law.^^ 

B.    STATE  TAX  ADMINISTRATION. 

Local  Assessments. 

In  nearly  one-half  of  the  states  the  original  local  assessment  of 
property  for  taxation  is  made  by  town  or  township  assessors.  These 
states  include  all  of  those  north  of  the  Ohio  and  Potomac  river-  and 
cast  of  the  Mississippi,  except  Maryland  and  Ohio  and  also  Minn».-- 
sota,  Iowa,  Kansas,  North  and  South  Dakota,  and  North  Carolina. 
But  in  Indiana,  Kansas  and  North  Carolina  the  township  assessors  are 
closely  supervised  by  county  officers;  and  in  Illinois,  county  officers 
have  some  part  in  making  assessments.  In  the  other  17  states  the 
township  assessments  are  subject  only  to  a  nominal  review  or  equaliza- 
tion by  a  county  board,  or  are  subject  to  no  county  supervision  what- 
ever. But  in  most  of  these  21  states  (all  except  Pennsylvania,  Illinois, 
Iowa  and  South  Dakota)  there  is  now  a  considerable  measure  of  state 
supervision,  through  a  state  tax  commission  or  board  of  assessors. 

In  more  than  half  of  the  states  the  original  local  assessments  are 
made  by  county  officials ;  and  the  county  system  is  also  used  to  some 
extent  in  several  other  states.  County  assessment  is  the  regular  method 
in  nearly  all  of  the  states  west  of  the  Mississippi  river  and  south  of  the 
Ohio  and  Potomac;  and  county  assessors  to  supervise  town  officers 
have  recently  been  established  in  Indiana  and  Kansas,  while  in_  Ohio 
the  work  of  assessment  has  been  more  thoroughly  centralized  in  the 
hands  of  county  assessor's  appointed  by  the  governor.  Most_  of  tlie 
states  with  county  assessors  have  not  established  state  tax  commissions ; 
but  the  most  effective  systems  of  local  assessment  appear  to  be  in 
states  which  have  both  county  and  state  administration,  as  ^^'est  Vir- 
ginia and  Kansas.  Pennsylvania  and  Illinois  are  the  only  states  which 
use  the  township  system  of  assessment  without  either  count)^  or  state 
supervision. 

Equalization  and  Review. 

The  need  for  some  power  of  supervision  over  local  assessments 
has  been  recognized  in  the  states  by  provisions  for  equalizing  the 
aggregate  valuations  of  the  local  districts,  and  in  many  states  by  pro- 
visions for  a  more  effective  review  of  local  valuations.  While  original 
assessments  are  made  by  township  officers  in  21  states,  there  are  only 
.«;ix  states  where  there  is  a  township  board  of  review.  .  All  but 
nine  states  have  some  form  of  county  eqaulization  or  review— the 
exceptions  being  in  New  England,  Delaware,  Virginia  and  Georgia. 
In  many  states  this  power  is  vested  in  the  county  board  of  commis- 
sioners or  supervisors ;  but  in  some  states  a  special  body  is  established 
for  this  purpose,  as  in  Illinois.  In  most  states  the  county  authorities 
have  the  power  to  review  individual  assessments  as  well  as  to  equalize 
the  aggregate  valuations  of  local  districts. 

All   but   ten    states   have   provided    for    some    method    of    state 


2»Con8t.  1867,  Art.  6,  Sec.  2. 


REVENUE  AND  FINANCE.  155 

equalization  of  local  assessments ;  and  the  exceptions  are  nearly  all  in 
the  Southern  States,  where  the  original  assessments  are  made  by  county 
ofticers,  "Until  the  recent  movement  for  state  tax  commissions,  start 
boards  of  equalization  were  usually  composed  of  some  of  the  elective 
state  officials  acting  ex-officio ;  and  their  powers  were  often  limited  to 
that  of  equalizing  the  aggregate  county  valuations.  Only  one  other 
state — Ohio — had  had  a  board  of  equalization  at  all  similar  to  that  of 
Illinois;, and  this  board  was  abolished  and  replaced  by  a  permanent  tax 
commission  some  years  ago. 

State  Assessment. 

Provision  is  now  made  in  all  of  the  states  for  the  assessment  of 
some  classes  of  property,  or  for  assessing  special  taxes  on  such  prop- 
erty, by  state  officials.  There  are  considerable  variations  in  the  kinds 
of  property  so  assessed  and  taxed  and  in  the  organization  of  the  state 
authority.  But  there  is  hardly  a  state  where  state  assessment  and  state 
taxation  is  not  more  largely  used  than  in  Illinois. 

Railroad  property  is  assessed  by  state  officials  in  all  the  states, 
except  in  some  of  those  with  special  taxes  on  railroads.  The  property 
of  other  classes  of  public  utilities  is  also  assessed  by  state  officers  in 
most  states.  Usually  the  different  classes  of  public  utilities  are  specified, 
as  express,  telegraph,  telephone,  and  car  companies,  light,  heat  and 
power  companies  and  pipe  lines.  In  Ohio  and  Oregon  all  public  utili- 
ties are  assessed  by  state  officers ;  and  in  Utah  all  inter-county  public 
service  corporations.  In  New  York  the  special  franchises  of  public 
utilities  are  assessed  by  the  state  tax  commissioners ;  and  in  Massachu- 
setts and  Maryland  there  is  a  state  assessment  of  the  "corporate  ex- 
cess" value  of  capital  stock,  similar  to  the  capital  stock  assessments  in 
Illinois,  but  more  efficiently  administered.  The  assessment  of  capital 
stock  is  limited  to  those  corporations  organized  under  the  laws  of  the 
state ;  while  the  assessment  of  the  property  of  each  public  utility  as  a 
unit  by  a  state  authority  is  more  effective  in  taxing  all  public  utilities 
of  the  same  class  on  the  same  basis.^'' 

In  some  states  the  state  assessments  of  special  taxes  are  made  by 
one  of  the  older  state  officials,  as  the  auditor-general  in  Pennsylvania 
and  the  comptroller-general  in  Georgia.  In  other  states,  they  are  made 
by  the  state  board  of  equalization,  as  in  Illinois,  Missouri  and  Nebraska. 
In  a  few  states,  as  in  Maine  and  New  Jersey,  there  is  a  distinct  state 
board  of  assessors ;  and  in  some  states  these  assessments  are  made  by 
the  railroad  or  corporation  commission,  as  in  Virginia  and  North 
Carolina.  Since  1901,  however,  state  assessment  and  review  or  equali- 
zation has  been  transferred  in  many  states  to  the  new  class  of  perma- 
nent salaried  tax  commissioners,  as  in  New  York,  Michigan,  Wisconsin 
and  Indiana.  No  other  state  places  this  function  in  the  hands  of  a 
large  elective  board,  as  in  Illinois;  but  in  all  the  states  assessments  are 
made  either  by  a  single  official  or  by  a  small  board,  of  not  more  than 
five  members. 


sojohn  A.  Fairlie:  A  Report  on  the  Taxation  and  Revenue  System  of  Illinois 
(1910),  ch.  10;  U.  S.  Bureau  of  Corporations,  Report  on  Taxation  of  Corporations,  Pt. 
v.,  pp.  8-16;  U.  S.  Census.  Report  on  the  Taxation  and  Revenue  Systems  of  State 
and  Local  Government  in  1912. 


156  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

State  Tax  Commissions. 

Most  of  the  states  have  now  estabhshed  permanent  salaried  state 
■tax  officials  or  commissions,  with  powers  of  assessment,  and  usually 
with  important  powers  of  investigation  and  of  supervision  over  local 
assessing  officials.  In  a  few  states  such  officials  have  been  provided 
for  many  years;  but  in  most  states  these  authorities  represent  a  new 
movement,  mainly  since  1900. 

In  Massachusetts,  the  treasurer  and  receiver-general  acted  as 
tax  commissioners  from  1865  to  1890.  In  the  latter  year  the  separate 
office  of  tax  commissioner  was  established.  Maryland  has  had  a  tax 
commissioner  since  1878,  and  Vermont  since  1882.  Indiana  created  a 
state  tax  commission  in  1891,  and  New  York  in  1896.  The  latter 
movement  began  with  the  creation  of  the  Wisconsin  and  Michigan 
Commissions  of  1899;  and  these  have  been  rapidly  followed  by  other 
states  in  all  parts  of  the  country. 

Such  tax  commissions  or  officials  with  similar  powers  are  now 
provided  in  all  of  the  states  except  Pennsylvania,  Illinois,  Iowa,  Dela- 
ware, South  Carolina,  Kentucky,  Oklahoma,  Nebraska  and  New  Mex- 
ico. In  some  of  states  with  such  officials,  they  act  mainly  as  assessing 
officers  for  certain  state  taxes — as  in  Vermont,  or  as  a  state  collecting 
agent,  as  the  state  revenue  agent  in  Mississippi.  But  in  most  of  the 
other  states  the  tax  commissions  or  commissioners  have  much  broader 
powers  over  the  administration  of  tax  and  revenue  laws ;  while  in  Ohio 
and  Montana,  the  local  assessing  officers  (by  laws  of  1913)  are  now 
appointed  by  the  state  authorities;  and  in  Wisconsin  the  administra- 
tion of  the  state  .income  tax  has  been  similarly  centralized  under  the 
state  tax  commission. 

A  notable  improvement  in  the  efficient  administration  of  the  tax 
and  assessment  laws  has  resulted  from  the  work  of  these  state  tax 
commissions.  This  has  been  more  important  in  states  where  the  com- 
mission's powers  have  been  largest,  as  in  Michigan,  Wisconsin,  Kan- 
sas and  West  Virginia.  And  the  most  striking  results  have  been  in 
states  where  the  powers  of  the  state  commission  have  been  supple- 
mented by  a  more  centralized  sysiem  of  local  administration,  as  in 
Kansas,  West  Virginia  and  Ohio. 

The  following  tables  show  the  increase  in  assessed  valuations  of 
property  in  Michigan,  Wiconsin,  Kansas  and  West  Virginia  since 
the  establishment  of  state  tax  commissions  in  these  states : 


REVENUE  AND  FINANCE. 


157 


ASSESSED    VALUATIONS    OF    PROPERTY    FOR    TAXATION    IN     MICHIGAN,  WISCONSIN, 
KANSAS    AND    WEST   VIRGINIA. 

Personal 

Total                Real  Estate  Property 

Michigan,  1899 $   968,189,087        $   825,858,711  $142,330,376 

^     'l?00                    1,335,109,918          1,019,968,833  315,141,085 

1907    ;.■; 1,654,371,892          1,290,164,227  364,207,665 

Wisconsin,  local  assessment,  1898.$   630,721,497        $    519,713,082  $111,008,415 

1899.      648,035,848            528,572,241  119,463,607 

1900       746,022,932             599,540,595  146,482,337 

1901.   1,082,641,094            878,911,348  203,729,746 

1909.  1,613,427,747          1,314,252,061  299,175,686 
State  assessment,  1901.   1,436,284,000          1,186,349,139  249,934,861 

1910.  2,743,180,404          2,108,140,021  635,040,383 

Kansas-                                                                                  1907  1908 

Real  estate                      $269,154,500  $1,573,048,790 

g^rsonal  proper'ty  ' 78.834,269  474,191,255 

Railroads  and  other  public  utilities /7,2/2,445  404,320,3j^ 

$425,281,214  $2,451,560,397 

West  Virginia-                                                                          1905  1906 

Real  estate                                          $168,000,000  $476,000,000 

Ranroads      ■'. ..36,063,848  176,675,980 

0?her  public \.iiUtk;:: ■■      9,379.006  29,271,650 

Total  all  property  ( 1904) $277,000,000  $875,000,000 


158 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


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160  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

C.    FINANCE    ADMINISTRATION    IN    THE    UNITED    STAJES    AND    OTHER 
COUNTRIES, 

In  nearly  all  the  governments  of  the  world,  there  is  organized  a 
department  of  finance,  at  the  head  of  which  is  a  single  official,  such 
as  the  chancellor  of  the  exchequer  in  Great  Britain,  the  secretary  of 
the  treasury  in  the  United  States  National  Government,  and  the  min- 
ister of  finance  in  countries  of  continental  Europe.  Such  departments 
of  finance  include  tax  and  revenue  administration,  also  the  custody  of 
government  moneys  (the  treasury)  and  their  disbursement.  In  many 
countries,  however,  the  auditing  of  disbursements  is  in  charge  of  an 
authority  not  classed  with  the  department  of  finance — as  the  comp- 
troller general  in  Great  Britain,  and  the  courts  of  accounts  in  France 
and  Germany.  But  in  the  United  States  National  Government  the 
auditing  service  is  under  the  direction  of  the  comptroller  of  the 
treasury  and  a  staff  of  auditors,  who  are  classed  in  the  department 
of  the  treasury,  though  not  subject  to  the  effective  control  of  the 
secretary  of  the  treasury. 

United  States  Department  of  the  Treasury. 

The  department  of  the  treasury  in  the  United  States  National 
Government  includes  all  branches  of  financial  administration,  and  also 
control  over  coinage  and  currency  and  a  number  of  miscellaneous  serv- 
ices not  necessarily  connected  with  the  finance  administration.  The 
head  of  the  department  is  the  secretary  of  the  treasury,  appointed  by 
the  President  and  Senate,  with  general  responsibility  for  the  work  of 
the  department.  There  are  also  three  assistant  secretaries  of  the 
treasury,  one  in  charge  of  customs,  one  in  charge  of  other  fiscal  and 
currency  bureaus,  and  one  in  charge  of  miscellaneous  sefvices.  The 
secretary's  office  is  organized  in  a  number  of  divisions,  dealing  with 
appointments,  bookkeeping  and  warrants,  customs,  loans  and  currency, 
mails  and  files,  printing  and  stationery,  public  moneys  and  special 
agents. 

A  large  number  of  bureaus  are  organized  within  the  department ; 
and  the  character  and  scope  of  the  functions  of  the  department  can 
be  indicated  by  grouping  these  bureaus  and  their  principal  officers 
under  the  main  divisions  of  its  work,  as  follows : 

Revenue  Services. 

The  Customs  Service,  under  the  supervision  of  an  Assistant  Sec- 
retary of  the  Treasury,  and  the  Chief  of  the  Customs  Division. 

The  Internal  Revenue  Service:     The  Commissioner  of  Internal 
Revenue. 
The  Treasury. 

The  Treasurer  of  the  United  States. 

The  Register  of  the  Treasury, 

Auditing  and  Accounting  Bureaus. 

The  Comptroller  of  the  Treasury. 

The  Auditor  for  the  Treasury  Department. 

The  Auditor  for  the  War  Department. 


REVENUE  AND  FINANCE.  161 

The  Auditor  for  the  Interior  Department. 

The  Auditor  for  the  Navy  Department. 

The  Auditor  for  the  Postoffice  Department. 

The  Auditor  for  the  State  and  other  departments. 

Coinage  and  Currency  Bureaus. 
Comptroller  of  the  Currency. 
Director  of  the  Mint. 
Federal  Reserve  Board. 

Miscellaneous  Bureaus. 

Revenue.  Cutter  Service,  Chief. 

Life  Saving  Service,  General  Superintendent. 

Secret  Service  Division,  Chief. 

Supervisory  Architect's  Office. 

Bureau  of  Engraving  and  Printing,  Director. 

Public  Health  Service,  Surgeon-General. 

The  British  Treasury  Board. 

The  treasury  in  the  British  Government  is  nominally  in  charge 
of  a  board  of  commissioners  for  executing  the  ancient  office  of  lord 
high  treasurer,  commonly  known  as  the  treasury  board.  This  is 
composed  of  the  first  lord  of  the  treasury,  the  chancellor  of  the 
exchequer  and  three  junior  lords.  In  practice,  the  chancellor  of  the 
exchequer  is  the  responsible  finance  minister  in  the  department,  in  the 
cabinet  and  in  the  House  of  Commons.  His  main  work  is  in  connec- 
tion with  the  annual  budget,  both  on  the  side  of  passing  on  the  esti- 
mates for  appropriations  and  preparing  plans  for  changes  in  the  reve- 
nue laws.  The  other  members  of  the  board  are  political  officers, 
though  the  junior  lords  meet  at  intervals  to  transact  formal  business 
in  the  name  of  the  board. 

In  addition  to  the  chancellor  of  the  exchequer,  there  are  three 
secretaries — the  financial  secretary,  the  parliamentary  secretary  and 
the  permanent  secretary.  The  financial  secretary, is  responsible  fo^ 
the  estimates  of  the  revenue  departments  and  the  civil  service. 

Closely  connected  with  the  Treasury  are  the  services  connected 
with  the  collection  of  revenue  and  the  expenditure  of  money.  The 
officers  in  direct  charge  of  the  revenue  services  include  the  commis- 
sioners of  customs,  of  inland  revenue  ,of  woods  and  forests  (i.  e.. 
the  land  revenues)  and  the  postmaster  general. 

There  is  no  government  treasury ;  and  public  funds  are  paid  into 
the  Bank  of  England ;  and  receipts  and  payments  are  made  b) 
transfers  on  the  accounts  of  the  bank. 

Expenditures  are  directly  made  through  the  office  of  paymaster 
general,  which  has  absorbed  all  the  offices  through  which  public  money 
voted  by  Parliament  was  formerly  paid.  No  payments  can,  however, 
be  made  without  the  aid  of  the  comptroller  and  auditor-general,  who 
acts  as  the  agent  of  Parliament  to  control  the  disbursement  of  appro- 
priations. This  official  is  independent  of  any  of  the  government  de- 
partments ;  but  his  functions  keep  him  in  constant  communication  with 
the   treasury.     He   and   the  assistant   comptroller   hold   office   during 


162  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

good  behavior,  removable  upon  an  address  by  both  Houses  of  Parlia- 
ment. They  may  not  hold  any  other  office  at  the  pleasure  of  the 
Crown;  and  neither  may  be  a  member  of  Parliament.  In  the  larger 
spending  departments,  the  comptroller  and  auditor-general  has  a 
local  staff,  whose  audit  may  be  said  to  be  concurrent  with  the  outlay. 
In  smaller  departments  a  monthly  audit  is  made. 

Connected  in  different  ways  with  the  treasury  are  a  number  of 
miscellaneous  non-financial  offices  and  services,  including  the  first 
commissioner  of  works  and  pubic  buidings,  the  deputy  master  of 
the  mint,  the  parliamentary  counsel  (who  drafts  government  bills), 
the  civil  service  commissioners,  the  London  Gazette,  the  National 
Gallery  and  the  National  Portrait  Gallery. 

The  French  Ministry  of  Finance. 

At  the  head  of  the  finance  department  in  the  French  administra- 
tion is  the  minister  of  finance,  who  is  a  member  of  the  Cabinet,  and 
like  the  British  chancellor  of  tlie  exchequer  is  primarily  concerned 
with  financial  legislation — revenues,  appropriations  and  loans — rather 
than  with  finance  administration. 

The  main  divisions  of  the  Ministry  are  as  follows : 
General  Inspection  of  Finances. 
Legislative  services. 
Director  of  Personnel  and  Supplies. 
Director  of  Control  and  Revenue  Administration. 
Director  General  Movement  of  Currency. 
Director  General  of  Public  Accounts. 
•      Director  of  Registered  Debt. 

Central  Pay  Office  of  the  Public  Treasury. 
Central  Control  of  the  Treasury  (Comptroller). 
In  addition  to  the  regular  staff  of  officials  and  employes,  there  are 
a  number  of  councils  and  committees,  as  follows: 

Honory  Members  of  the  Adm-nistration  of  Finance. 
Committee  on  Examination  of  Discounts. 
Consulting  Committee  on  Conflicts. 
Commission  on  Verification  of  Ministerial  Accounts. 
Central  Commission  on  candidates  for  sale  of  tobaccos. 
Superior    Commission    for    classification    of    employment    of 
lottery  receivers. 
The  Court  of  Accounts  is  aYi  independent  authority  which  exam- 
ines the  accounts  of  all  administrative  officers.     It  is  composed  of  a 
first  president,  several  division  presidents,  master  councillors  and  refer- 
endars,  all  appointed  by  the  president  of  the  Republic  for  Life.    There 
are  also  a  body  of  auditors,  who  act  as  assistants  and  from  whom  the 
higher  positions  are  filled.     This  court  has  original'jurisdiction  over 
the  accounts  of  the  central  government  and  of  the  larger  municipali- 
■ties;  and  acts  as  a  court  of  appeal  from  the  councils  of  prefecture  on 
the  accounts  of  the  great  number  of  small   communes.     This   court 
does  not  make  a  current  audit  of  financial  transactions;  but  makes  an 
annual  examination  of  financial  accounts,  officials  having  an  oppor- 
tunity to  answer  any  charges  or  disallowances  made -in  their  accounts. 


REVENUE  AND  FINANCE.  163 

Appeals  on  questions  of  law  may  be  taken  to  the  Council  of  State; 
and  in  cases  of  fraud,  the  matter  is  reported  through  the  minister  of 
finance  to  the  minister  of  justice  for  action. 
Prussian  Ministry  of  Finance. 

At  the  head  of  the  department  of  finance  in  the  Prussian  admin- 
istration is  the  minister  of  finance.     The  department  has  three  main 
divisions,  with  each  of  which  are  connected  various  services,  as  shown 
in  the  following  analysis  of  organization: 
Minister  of  Finance. 
Under  Secretary. 
Services: 

General  State  Treasury. 

Royal  Maritime  Commerce   (a  banking  institution). 
Prussian  Central  Co-operative  Bank. 
Superior  Administration  of  the  State  Debt. 
Division  I.     Accounts  and  Treasury. 
Services : 

General  Directio-^  of  Lotteries. 
Coinage. 

Institute  for  care  of  widows. 
Division  II.    Administration  of  Direct  Taxes. 

Direction  for  administration  of  Direct  Taxes  in  Berlin. 
Tax  Treasury. 
Division  III.    Administration  of  Customs  and  Excise. 
Provincial  Tax  Administration. 

Chief  Revenue  Director  for  Berlin  and  Brandenburg. 
Chief  Stamp  Bureau  in  Berlin. 
Stamp  and  Inheritance  Tax  Office. 
Superior  Educational  Institute  for  Revenue  Officials. 
Chief  Customs  Treasury. 
Oiifice  of  Receiver  General. 
Service  in  Connection  with  Ministries  of  Agriculture  and  Public 
Works : 

Superior  Examining  Committee  for  Surveyors. 
The  Superior  Chamber  of  Accounts  is  an  independent  body,  which 
audits  the  budget  accounts,  and  supervises  the  income  and  outgo  of 
public  property  and  the  administration  of  the  public  debt. 
Bavarian  Ministry  of  Finance. 

The  Ministry  of  Finance  in  Bavaria  has  charge  of  the  following 
functions : 

1.  Administration  of  the  financial  resources  of  the  State,  includ- 
ing land  holdings,  except  those  under  the  Minister  of  the  Interior. 

2.  Administration  of  Public  Revenues. 

3.  Preparation  of  budget  and  submission  of  bills  to  the  legislature. 

4.  Administration  of  State  Debt. 

5.  Supervision  and  Administration  of  Expenditures. 

6.  Supervision  of  the  Superior  Court  of  Accounts. 

7.  Financial  relations  of  Bavaria  with  the  Empire. 

8.  The  assessment  of  circles  and  affairs  of  local  councils  with  the 
Minister  of  the  Interior. 


1^4  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

include^  P^ncipal  divisions  of  the  ministry  and  other  related  offices 

The  General  Direction  of  Customs  and  Indirect  Taxes. 

Ihe  General  Direction  of  Mines,  Smelters  and  Salt  Works 

l*he  Ministerial  Division  for  Forestry. 

Central  State  Treasury. 

Royal  Bank  and  affiliated  banks. 

Chief  Mint  Office. 

Direction  of  State  Debt  Administration. 

Superior  Commission  of  Appeals. 

Superior  Court  of  Accounts. 

Cadaster  Bureau  (Land  Records). 


REVENUE  AND  FINANCE.  165 


III.    STATE  'CONTRACTS,  PRINTING  AND  SUPPLIES. 

A.    STATE   BOARD   OF   CONTRACTS. 

The  Board  of  Commissioners  of  State  Contracts  consists  of  the 
Secretary  of  State,  Attorney-General,  State  Treasurer  and  Auditor  of 
Public  Accounts.  The  board  is  authorized  to  elect  one  of  its  members 
as  chairman;  and  to  hold  stated  quarterly  meetings,  and  special  meet- 
ings upon  the  call  of  the  chairman  or  any  two  commissioners;  and  is 
required  to  keep  a  record  of  its  proceedings.  Three  members  consti- 
tute a  quorum.  Meetings  for  awarding  contracts  must  be  held  in  the 
presence  of  the  Governor ;  and  the  consent  of  the  Governor  is  required 
to  let  contracts,  to  reject  all  bids,  or  to  suspend  or  cancel  any  contract. 

It  is  the  duty  of  the  state  board  of  contracts  to  supervise  the 
letting  of  contracts  for  furnishing  fuel,  stationery  and  printing  paper 
for  the  use  of  the  state,  and  for  the  copying,  printing,  binding  and 
distributing  of  the  laws,  journals,  reports  and  all  other  printing  ordered 
by  the  General  Assembly.  The  statute  regulates  the  method  of  adver- 
tising for  bids  for  such  contracts,  the  opening  of  bids  and  the  award 
of  contracts.  Advertisements  for  bids  are  required  to  be  made  bien- 
nially in  the  month  of  July— in  a  daily  Springfield  paper  for  fuel,  at 
Springfield  and  Chicago  for  printing  and  other  paper  and  stationery, 
and  at  Springfield,  Chicago,  Peoria,  Quincy  and  Cairo  for  copying 
the  laws,  journals,  reports  and  and  other  public  documents.  Bids  must 
be  accompanied  by  bonds.  At  the  time  named  in  the  advertisement — 
on  or  before  the  first  Monday  in  September — the  board  meets  for 
awarding  contracts,  in  the  presence  of  the  Governor.  No  contract  may 
be  let  to  any  member  of  the  General  Assembly,  State  officer  or  employee 
in  any  executive  office,  or  to  the  wife  of  any  such  persons ;  nor  may 
any  of  such  persons  become  interested  in  any  such  contract.  Provi- 
sions are  made  for  letting  contracts  at  other  times,  for  cancelling  con- 
tracts and  for  settling  accounts  of  contractors. 

The  statute  divides  the  state  printing  into  four  classes,  and  bind- 
ing into  five  classes,  and  specifies  for  each  class  the  forms  of  bids,  the 
maximum  price  and  style  of  composition  or  manner  of  binding.  The 
number  of  copies  of  reports  of  certain  officers  and  departments  to  be 
printed,  bound  and  distributed  are  also  provided.  Maximum  prices 
are  also  fixed  for  copying  laws,  resolutions  and  journals,  for  dis- 
tributing laws,  journals  and  documents,  and  for  paper,  stationery  and 
fuel.  The  Commissioners  of  State  Contracts  are  authorized  to  print 
and  have  bound  250  volumes  containing  reports  of  institutions  and 
boards  required  to  be  made  to  the  Governor  or  General  Assembly.    No 


166  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

report  may  exceed  400  pages,  unless  on  a  certificate  from  the  Governor 
to  the  Secretary  of  State  that  the  interests  of  the  State  require  that 
such  report  shall  contain  more  than  400  pages. 

Regular  meetings  of  the  state  board  of  contracts  are  scheduled  to 
be  held  weekly,  at  which  requisitions  for  printing  are  submitted  with 
the  Printer  Expert's  estimates ;  and  the  board  grants  authority  for  such 
orders  as  it  approves. 

The  Printer  Expert.  , 

The  Governor  is  required  to  appoint  a  practical  printer,  who  has 
had  experience  in  estimating  book  and  job  work,  and  has  worked  at 
the  trade  for  six  years,  to  prepare  specifications  upon  which  bids  for 
public  printing  shall  be  made,  to  read  proof,  to  measure  the  v^-ork,  to 
estimate  the  amount  of  paper  required  for  each  job,  and  to  examine 
the  accounts.  He  receives  a  salary  of  $2,500  a  year,  and  is  subject  to 
removal  at  the  pleasure  of  the  Governor. 

The  Printer  Expert  is  under  the  supervision  of  the  Secretary  of 
State  in  his  office ;  but  in  measuring  and  estimating  the  price  of  work 
and  examining  accounts,  he  is  not  subject  to  the  orders  of  the  Secre- 
tary. Any  conflict  of  opinion  between  the  Secretary  and  the  Printer 
Expert  shall  be  decided  by  the  Commissioners  of  State  Contract"^.  The 
commissioners  are  not  bound  by  the  action,  opinion  or  measurement  of 
the  Printer  Expert,  but  may  inquire  of  and  take  the  evidence  o^  other 
experts  upon  all  matters  connected  with  said  printing,  but  in  no  case 
shall  they  raise  the  estimates. 

In  the  State  contract  law  provision  is  made  for  the  appointment 
of  a  bill  proofreader  during  the  session  of  the  General  Assembly. 
Appropriations  are  made  for  other  proofreaders  and  employees.  The 
positrons  provided  by  statute  and  appropriations,  and  the  staflf  of  the 
office  in  October,  1913,  are  shown  below: 

Staff 
Appropriations     Oct.,  1913 
Per  Annum     Per  Annum 

Printer  Expert  $2,500  $2^500 

Assistant  Printer  Expert 1.800  1,800 

Two  Proofreaders  at  $1.200 2,400  2,400 

Bill  Proofreader,  $4  per  day 

Proofreader  and  Stenographer 900 

Copyholder    , 900 

Extra  Help    . 3,000 

Messenc^er  and  Janitor  ^ 840  840 

Postage  and  Office  Expense 300  300 

$9,040  $9,640 

The  procedure  in  connection  with  orders  for  printing  and  binding 
is  intricate  and  complicated.  A  requisition  for  printing  is  made  out 
by  the  department  in  triplicate  and  sent  to  the  Secretary  of  State.  This 
is  submitted  to  the  Printer  Expert,  who  prepares  and  sends  to  the 
Secretary  of  State  an  estimate  of  the  cost.  The  requisition  and  esti- 
mate is  submitted  to  the  State  Board  of  Contracts,  which  authorizes 
the  work ;  and  the  Secretary  of  State  issues  an  order  for  printing  to 
the  Printer  Expert.  Emergency  orders  are  issued  directly  by  the 
Secretary  of  State  without  action  by  the  State  Board  of  Contracts. 


REVENUE  AND  FINANCE.  '  167 

On  receipt  of  the  order  the  Printer  Expert  makes  out  and  sends 
an  order  with  order  for  paper,  to  the  Supply  Department  (for  fourth 
class  printing),  or  directly  to  the  printing  contractor  (for  second  class 
printing)  as  per  forms  attached.  The  Supply  Department  forwards 
the  order  with  paper  to  the  contractor.  Proofs  are  sent  to  the  Printer 
Expert  for  correction. 

Orders  for  binding  are  issued  directly  by  the  Secretary  of  State 
to  the  binding  contractor  ;  and  the  printed  sheets  are  sent  by  the  printer 
to  the  bindery. 

When  the  work  is  completed  it  is  delivered  by  the  printer  (in  the 
case  of  stationery)  or  by  the  binder  to  the  Shipping  Department.  This 
department  sends  a  sample  to  the  Printer  Expert  with  a  notation  of 
the  number  of  copies  received,  and  also  delivers  the  work  to  the 
department  for  which  it  was  done. 

Bills  for  printing  under  the  general  contract  come  to  the  Printer 
Expert  for  his  approval ;  but  bills  for  binding,  lithographing  or  non- 
contract  printing  do  not  come  to  this  office. 

Expenditures  for  public  printing  and  binding  in  Illinois  have  in- 
creased rapidly,  especially  during  the  last  ten  years.  As  shown  in 
the  following  table,  the  total  of  the  items  shown  in  the  reports  of  the 
Auditor  of  Public  Accounts  has  risen  from  $102,207  for  the  two  years 
ending  September  30,  1892,  to  $171,719  for  the  two  years  ending  Sep- 
tember 30,  1902,  and  to  $444,489  for  the  two  years  ending  September 
30,  1912.  The  increase  in  the  first  decade  was  about  seventy  per  cent; 
in  the  second  decade  almost  two  hundred  per  cent — and  the  total  in- 
crease for  the  two  decades  has  been  three  hundred  and  forty  per  cent. 
These  totals  include  the  expenditures  under  the  general  contracts  for 
printing  paper  and  stationery,  public  printing  and  public  binding ;  and 
also  the  expenses  of  the  Printer  Expert's  office,  additional  expenditures 
for  printing  and  stationery  shown  in  the  accounts  of  the  separate  state 
offices,  and  payments  for  the  purchase  of  Supreme  Court  reports.  Of 
these  several  items,  the  largest  increases  have  been  in  the  expenditures 
for  printing  paper  and  stationery,  and  the  expenditures  outside  of  the 
general  contracts. 

Not  all  of  the  expenditures  for  printing  and  stationery  are  shown 
in  the  Auditor's  report.  The  report  of  the  Comptroller  of  the  Uni- 
versity of  Illinois  for  the  two  years  ending  June  30,  1913,  shows  ex- 
penditures for  publications  of  $58,092.  Probably  there  are  similar 
expenditures  at  other  institutions  and  offices. 

Comments. 

The  law  relating  to  State  contracts  for  printing,  binding,  stationery 
and  fuel  prescribes  a  highly  complicated  series  of  arrangements,  in 
which  duties  and  responsibilities  are  distributed  between  the  Governor, 
Secretary  of  State,  State  Board  of  Contracts  and  Printer  Expert; 
while  many  details  are  definitely  specified  in  the  law,  and  at  the  same 
time  no  provision  is  made  for  some  important  matters.  As  a  result 
no  single  authority  can  be  held  clearly  responsible  for  mistakes  or 
inefficient  methods. 

Appropriations  are  made  in  lump  sums  for  printing,  binding, 
paper,  stationery  and  heating  and  lighting;  and  payments  made  out 


168  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

of  these  appropriations  are  not  cliarged  to  the  appropriations  for  the 
several  offices  and  departments.  The  Secretary  of  State  keeps  accounts 
of  printing,  binding  and  stationery  for  the  different  offices,  which  are 
summarized  in  the  statement  below  for  1910-12;  but  these  amounts 
do  not  appear  in  the  expenses  of  the  several  offices.  The  sum  of  the 
amounts  reported  by  the  Secretary  of  State  for  the  several  offices  was 
$83,000  less  than  the  amount  reported  by  the  Auditor  of  Public 
Accounts  as  expended  from  the  general  appropriation  for  printing, 
paper  and  stationery  for  the  same  period. 

At  the  same  time  much  printing,  binding,  stationery  and  fuel  is 
purchased  by  the  several  departments,  institutions  and  offices  out  of 
their  separate  appropriations.  For  example,  this  is  true  of  all  the  fuel 
purchased  for  the  state  institutions ;  and  many  offices  have  their  office 
printing  done  through  the  printing  department  at  the  State  Reforma- 
tory, or  by  private  printers  on  release  from  the  boa^^d  of  prison  indus- 
tries. The  result  is  that  the  appropriations  for  the  several  offices  and 
institutions  do  not  show  all  their  expenses  for  such  supplies;  nor  do 
the  general  appropriations  for  printing,  binding,  stationery  and  heating 
and  lighting  show  all  the  expenses  for  these  purposes. 

In  many  respects  the  details  specified  in  the  law  hamper  the  most 
efficient  and  economical  method  of  furnishing  such  supplies;  and  better 
results  could  be  secured  by  giving  more  discretionary  powers  to  the 
officials  in  charge.  On  the  other  hand,  in  the  matter  of  printing, 
while  the  method  of  making  contracts  and  the  technical  work  is  care- 
fully regulated,  there  is  no  provision  for  editorial  supervision  or  any 
effective  control  of  the  bulk  of  material  to  be  printed. 

The  present  Printer  Expert  is  endeavoring  to  enforce  the  statu- 
tory limit  of  400  pages  for  any  department  report,  and  to  keep  down 
the  bulk  of  reports  within  this  limit,  by  reducing  the  amount  of  waste 
space  in  printing.  Payment  for  composition  is  said  to  have  been 
made  two  or  more  times  when  the  same  type  has  been  used  for 
matters  duplicated  in  diff'erent  orders;  and  efforts  have  been  made  to 
prevent  this  in  the  present  contract.  The  Printer  Expert  has  met  with 
the  Board  of  Classification  to  discuss  prices  to  be  charged  for  printing 
by  the  State  Reformatory. 

Responsibility  and  control  over  printing,  binding  and  other  sup- 
plies should  be  simplified  and  more  definitely  concentrated  in  a  Super- 
intendent of  Printing,  who  should  actively  co-operate  with  the  printing 
establishment  in  the  State  Reformatory.  Printing  bills  should  also  be 
charged  against  each  department  ,and  included  in  the  expenses  of  such 
department,  though  a  record  should  also  be  kept  of  the  total  amount 
expended  by  all  offices  for  such  purposes. 

The  State  Board  of  Contracts  should  be  abolished ;  and  contracts 
for  printing,  binding  and  office  supplies  should  be  made  by  the  Super- 
intendent of  Printing  and  Supplies — subject  to  the  approval  of  the 
proposed  State  Comptroller,  and  also  of  the  Governor  as  required  by 
the  Constitution.  Such  contracts  should  include  more  nearly  than  at 
present  all  of  such  supplies  for  the  various  state  officers  and  boards. 


REVENUE  AND  FINANCE. 


169 


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170  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

STATEMENT    OF    PRINTING,    BINDING    AND    STATIONERY, 

for  the 

BIENNIAL   PERIOD   ENDING   SEPT.    30,    1912. 

Printing  Binding  Stationery-  Total 
Paper  and 

General  Assembly  $  24,688.67  $  7,117.72  $  11,979.28    $  43,785.67 

Judiciary    (Supreme   Court) .06  .06 

Governor    1,395.67  96.61  1,663.41  3.155.69 

Lieut.  Governor  91.68  91.68 

Secretary  of  State 9,144.04  3,179.16  12,391.53  24,714.73 

Printer  Expert  19.22  10.20  312.25  341.67 

Attorney-General    4,785.60  1,040.20  3,782.91  9,608.71 

Civil   Service   Commission 4S0.14  284.40  1,370.11  2,134.65 

Finance  Adtninistration. 

Auditor  of  Public  Accounts... $  12,326.39    $  1,182.30    $    3,325.31    $  16,834.00 

State  Treasurer  140.90  266.20  754.18  1,161.28 

State  Board  of  Equalization..  .  1.68  432.15  432.S3 


12,467.29    $  1,450.18    $    4,511.64    $  18,429.11 


Control  of  Corporations. 

R.  R.  and  Warehouse  Com....$     5,279.10    $  3,081.43    $    2,400.52    $  10,761.05 
Insurance  Department  9,851.67        4,464.10  5,414.12         19,729.89 


$  15,130.77    $  7,545.53    $    7,814.64    $  30,490.94 


Public  Safety. 

State  Board  of  Health $  1,716.55 

Dental   Examiners    70.54 

Board  of  Pharmacy 791.36 

Food   Commissioner    1,358.04 

Fire   Marshal    27.01 

Building  Commission    2.45 


312.45  $ 

3,116.81  i 

^  5,145.81 

44.62 

115.16 

62.57 

598.88 

1,452.81 

88S.37 

1,023.13 

3,269.54 

2.50 

418.55 

448.06 
2.45 

3,965.95    $  1,310.51    $    5,157.37    $  10.433.83 


Labor  and  Mining  Bureaus. 

Bureau  of  Labor $     7,863.47 

Free  Employment  Offices 

Factory  Inspector  2,277.34 

State  Mining  Board 2,273.95 

Mine  Examiner   

Mine  Rescue  Station  Com 73.41 

Board  of  Arbitration 


$  2,486.08  $ 

3,407.34 

$  13,756.89 

522.23 

522.23 

143.00 

2,420.34 
2,273.95 

1,155.62 

1,155.62 

184.54 

64.58 

322.53 

45.74 

23.16 

68.90 

$  12,488.17    $  2,859.36    $    5,172.93    $  20,520.46 


Agricultural  Interests. 

State  Board  of  Agriculture.... $  1,791.82  $     801.60  $       792.16  $    3,385.58 

Farmers'  Institutes  4,527.81  14,399.56  l,422.8A  20,350.21 

Live  Stock  Commission 745.76  596.79  861.69  2,194.24 


$    7,065.39    $15,787.95    $    3,076.69    $  25,930.03 


REVENUE  AND  FINANCE. 


171 


Printing 

Binding 

Stationery 
Paper  and 

Total 

$    4,341.46 

$  1,284.07 
.19 

$    2,026.94 

$ 

7,652.47 
.19 

72.67 

274.40 

3.22 

347.07 
3.22 

Public  Education. 

Supt.   Public   Instruction 

Board  of  Education 

Educational   Commission    

State  Educational  Bldg.  Com. 


$  4,414.13    $  1,558.66    $    2,030.16    $    8,002.95 

University  of  Illinois 2,812.45  212.57                               3,025.02 

Sicientific  Investigation. 

Geological    Survey    1,783.99  819.40          1,020.99          3,624.38 

Libraries  and  Museums. 

State  Library   155.22  111.62             266.84 

Historical   Library    1,224.69  912.00             748.70          2,885.39 

Library  Extension  Com 9.96  59.03               68.99 

Natural   History  Museum 404.32  198.60             168.01             770.93 

Historical   Society   737.56  737.56 

$  1^638.97    $  2,003.38    $     1,087.36    $    4,729.71 

Charities. 

Charities    Commission    $  1,549.19    $1,226.44    $       211.51     $    2,987.14 

Board  of  Administration 4,672.65  449.31          4,336.29          9,458.25 

Anna  State  Hospital 86.29  86.29 

Chester  State  Hospital 53.63  53.63 

Elgin  State  Hospital 112.78  112.78 

Jacksonville  State  Hospital....  108.28  108.28 

Kankakee  State  Hospital 125.74  125.74 

Peoria  State  Hospital 96.26  96.26 

Watertown  State  Hospital 80.83  80.83 

Lincoln  State  School  and   Col.  86.91  86.91 

Industrial  Home  for  the  Blind.  35.84  35.84 

School  for  the  Blind 60.86  60.86 

School  for  the  Deaf 86.01  86.01 

Soldiers'  Widows'  Home 22.06  22.06 

Soldiers'  and  Sailors'  Home...  167.88  167.88 

St.  Charles  School  for  Boys...  48.61  48.61 

Training  School  for  Girls 57.59  57.59 

Soldiers'  Orphans  Home 47.82  .       47.82 

111.     Charitable     Eye    and     Ear 

Infirmary    66.90  66.90 

$  7,566.13    $  1,675.75    $    4,547.80    $  13,789.68 


Penal  and  Reformatory. 

Southern  111.   Penitentiary. .  . .  .$ 

State  Board  of  Pardons 

State   Board   of   Prison   Indus- 
tries     


109.15    $ 
38.67 


49.95 


$            $ 

149.70 

109.15 
238.32 

132.74 

132.74 

147.82    $       49.95    $       282.44    $       480.21 


172  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Printing  Binding  Stationen^         Total 

Public  IVorks,  Parks  and  Monuments.  Paper  and 

State  Highway  Commission... $       798.81  $     600.24  $     1,105.12    $    2,504.17 

Canal  Commission  122.81  90.00                                   212.81 

Rivers  and  Lakes  Commission.          321.26  335.64                                   656.90 

Illinois  Parks  Commission 68.80  17.00                                     85.80 

Lincoln  Monument  Assn 14.77  14.77 

Lincoln  Home  8.00                                       8.00 

Internal  Improvement  Com 270.00                                   270.00 

Fish  and  Game  Commission...  654.67  654.67 

$    1,311.68  $  1,320.88  $     1,774.56    $    4,407.12 

Military  Adtninistration. 

Adjutant  General    $    3,991.86  $2,077.59  $    4,450.42    $10,519.87 

Miscellaneous    33.25  33.25 

Grand  Total   $115,297.94  $50,400.06  $72,551.42    $238,249.42 

On  Hand  Oct.  1,  1912 6,380.65  6.380.65 

$115,297.94  $50,400.06  $  78,932.07    $245,630.07 

Auditor's  Report  for  1910-12.. $138,150.04  $61,261.59  $129,520.01    $328,931.64 


REVENUE  AND  FINANCE. 


173 


B,    PUBLIC  PRINTING  IN   OTHER  STATES. 

In  most  states  control  over  public  printing  and  binding  is  distrib- 
uted, as  in  Illinois,  between  several  offices  and  boards.  Often  there  is 
an  ex  officio  board  which  makes  contracts  ;and  an  officer  who  looks 
after  the  technical  work  of  proof  reading  and  checking  up  pnntmg 
bills.  The  statutes  usually  contain  detailed  provisions  as  to  the  style  of 
printing,  the  number  of  copies  and  the  like. 

Of  the  larger  states,  Pennsylvania  appears  to  have  the  most 
efficient  organization.  The  Superintendent  of  Public  Printing,  ap- 
pointed by  the  Governor  and  Senate,  makes  arrangements  for  con- 
tracts, and  handles  printing  orders;  but  contracts  must  be  approved 
by  an  ex  officio  board,  and  Orders  for  printing  considered  by  the 
superintendent  to  be  unnecessary  or  unreasonable  may  be  referred  by 
him  to  the  Governor. 

In  several  other  states  some  provision  is  also  made  for  adminis- 
trative control  over  the  form  or  amount,  of  printing.  In  Ohio  the 
Governor  may  order  the  condensation  of  any  report;  and  in  Massa- 
chusetts, a  board  of  publications  defines  the  form  and  extent  of  any 
printed  repoft.  In  Iowa  and  Kansas,  the  executive  council  has  some 
control ;  and  in  California  the  Superintendent  of  Public  Printing  may 
disapprove  orders  he  considers  unnecessary,  subject  to  review  by  the 
state  board  of  control. 

In  many  states  there  are  lump  sum  appropriations  for  printing 
and  binding— though  more  or  less  printing  is  done  by  the  various  offices 
and  institutions  out  of  their  separate  appropriations.  In  Massachu- 
setts and  Wisconsin  printing  bills  are  charged  against  the  appropriation 
for  the  separate  offices ;  but  in  Wisconsin  a  record  is  also  kept  of  the 
total  expenditures  for  printing. 

California  and  Kansas  maintain  state  printing  plants,  which  print 
school  books  as  well  as  the  usual  public  printing. 

Court  reports  are  usually  not  included  in  the  general  contract  for 
state  printing ;  but  are  printed  under  separate  arrangements. 

Expenditures  for  public  printing  have  been  increasing ;  and  there 
is  a  wide  variation  in  the  amounts  paid  in  the  different  states.  New 
York  shows  much  the  largest  expenditures,  even  in  proportion  to  popu- 
lation. Wisconsin  and  California  apparently  spend  more  proportion- 
ately than  Illinois;  while  Ohio,  Pennsylvania  and  Kansas  show  rela- 
tively smaller  expenses  for  printing. 

The  Auditor  of  Ohio  in  1913,  and  the  Secretary  of  the  Common- 
wealth of  Massachusetts  in  1914,  in  their  reports,  commented  on  the 
unnecessary  number  of  separate  authorities  dealing  with  public  print- 
ing in  these  states. 
New  York. 

There  is  a  Printing  Board,  consisting  of  the  Secretary  of  State, 
Comptroller  and  Attorney-General,  which  has  general  control  and 
superintendence  of  all  printing  done  for  the  state,  and  makes  such 
general  and  special  regulations  as  it  deems  advisable. 


174  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  Printing  Board  is  authorized  to  employ  the  necessary  clerk 
hire,  payable  from  the  fund  for  legislative  printing.  In  1912,  the  staff 
of  the  printing  board  consisted  of : 

Salar>- 

Printing  expert  $3,500 

Proofreader    1,800 

Stenographer    1,200 

Clerk    1,200 

Page    360 

Total    $8,060 

Public  printing  payable  by  the  state  is  divided  into  three  parts — 
the  legislative  printing,  the  department  printing,  and  the  printing  of  the 
session  law^s.  The  lav;^  contains  detailed  regulations  as  to  procedure  in 
making  contracts,  forms  and  specifications,  the  manner  of  printing, 
and  in  the  case  of  legislative  printing  the  number  of  copies  to  be 
printed  and  the  time  of  delivery. 

Contracts  for  publishing  reports  of  the  court  of  appeals  are  made 
by  the  reporter,  subject  to  the  approval  of  the  chief  justice;  for  ap- 
pellate division  reports,  by  the  supreme  court  reporter,  with  the 
approval  of  the  presiding  judges ;  and  for  miscellaneous  court  reports, 
by  the  miscellaneous  reporter,  secretary  of  state  and  comptroller. 

The  expense  for  public  printing  in  New  York  State  is  much  the 
largest  of  any  state ;  and  is  much  larger  in  proportion  to  population 
than  in  other  states.  In  1908,  the  total  expense  for  legislative  and 
department  printing  was  $723,968;  and  in  1912,  this  had  increased  to 
$1,072,753.  From  75  to  85  per  cent  of  this  expenditure  is  for  legisla- 
tive printing,  which  amounted  to  $530,900  in  1908,  and  $874,400  in 
1912. 

COST  OF  LEGISLATIVE   AND   DEPARTMENT   PRINTING,    1908-1912. 

Year  Legislative  Department  Total 

1908    $530,900  $186,816  $717,716 

1909   672,038  206,712  878,750 

1910    582.884  201,173  784,057 

1911    620,857  170,592  791,448 

1912    874,400  189,981  1,0(>4,381 

Pennsylvania. 

There  is  a  department  of  public  printing  and  binding,  appointed 
by  the  Governor  with  the  advice  and  consent  of  the  senate,  for  a  term 
of  four  years.  The  salaries  for  this  department  in  1913  were  as 
follows : 

Superintendent  of  public  printing  and  binding $  3,000.00 

Clerk  hire  8,128.24 

Proof  readers  and  copy  holders 2,269.34 

Total   $13,397.58 

The  superintendent  advertises  for  proposals  for  public  printing 
and  binding  and  for  supplies,  prescribes  forms  for  bids  and  receives 
the  bids;  contracts  are  allotted  to  the  lowest  bidder,  with  the  approval 
of  the  Governor,  auditor-general  and  state  treasurer.  The  statute 
contains  detailed  regulations  as  to  procedure  in  contracts,  and  as  to 
size  of  paper,  style  of  binding,  number  of  copies  and  the  like. 


REVENUE  AND  FINANCE.  175 

The  superintendent  receives  all  orders,  not  otherwise  provided 
for,  for  all  blanks,  blank  books  and  miscellaneous  printing  and  binding 
needed  by  the  legislature,  departments,  commissions,  etc.,  and  has  them 
executed  by  the  contractors  and  delivered.  If  he  considers  any  orders 
unnecessary  or  unreasonable,  he  shall  refer  them  to  the  governor  for 
approval  or  disapproval.  No  public  printing,  binding  or  supplies  shall 
be  furnished  by  the  contractors  unless  ordered  in  writing  by  the  super- 
intendent. 

Expenditures  for  public  printing  and  binding  in  Pennsylvania  are 
less  than  a  third  of  those  in  New  York  State;  and  they  compare  favor- 
ably with  the  expenditures  in  the  other  important  states.  The  expen- 
ditures since  1910  have  been  about  $300,000  a  year,  less  than  in  1901, 
and  from  1904  to  1906. 

Ohio. 

The  secretary  of  state,  auditor  of  state  and  attorney-general  are 
ex-ofticio  commissioners  of  public  printing;  there  is  also  a  Supervisor 
of  Public  Printing,  appointed  by  the  Governor,  with  the  advice  and 
consent  of  the  senate,  for  a  term  of  two  years,  at  a  salary  of  $2,000 
a  year.  He  must  be  a  practical  printer.  The  supervisor's  otfice  has 
also  a  chief  clerk,  a  stenographer  and  a  messenger;  and  there  is  a  state 
bindery  at  the  state  school  for  the  deaf,  with  a  foreman  in  charge.  The 
auditor-general,  in  his  1913  report,  recommended  that  the  commission- 
ers of  public  printing  be  abolished,  and  all  of  its  duties  be  placed  upon 
the  supervisor,  who  is  better  fitted  by  training  to  perform  them. 

The  commissioners  of  public  printing  make  contracts  for  printing 
and  binding,  subject  to  detailed  regulations  in  the  statutes.  Contracts 
for  printing  supreme  court  reports  are  made  by  the  reporter,  with  the 
approval  of  the  supreme  court. 

Specific  provisions  are  made  by  law  as  to  the  number  of  copies 
of  each  report  or  document,  size  of  type  and  the  l-ke.  The  Governor 
may,  however,  order  the  condensation  of  the  report  of  any  other  than 
an  elective  state  officer. 

The  Supervisor  of  Printing  exercises  about  the  same  functions 
as  the  Printer  Expert  in  Illinois.  He  corrects  proof  and  prepares  in- 
dexes, and  he  audits  the  accounts  and  approves  bills  for  printing  and 
binding. 

Expenditures  for  printing,  binding,  and  paper  in  Ohio  vary  to  a 
considerable  extent  from  year  to  year;  and  have  increased  in  recent 
years,  especially  in  1913.  From  1900  to  1908,  expenditures  averaged 
about  $130,000  a  year;  but  rose  to  $187,615  in  1909;  they  were  $178,- 
433  in  1911,  $169,495  in  1912,  and  $255,255  in  1913.  Prior  to  1913, 
the  expenditures  in  Ohio  had  been  considerably  less  than  in  Illinois. 

Massachusetts. 

The  Secretary  of  the  Commonwealth  supervises  the  state  print- 
ing; and  all  publications  by  the  commonwealth  shall  be  printed  and 
distributed  under  his  direction,  unless  otherwise  provided.  He  pur- 
chases paper  to  be  used  in  state  printing,  and  has  the  custody  of  all 
plates  owned  by  the  state.  He  may  employ  an  expert  in  printing  to 
examine  bills  for  printing. 


1/^6  REVENUE  AND  FINANCE. 

The  attorney-general,  secretary  of  the  commonwealth,  treasurer, 
receiver-general,  auditor  and  clerks  of  the  senate  and  house  advertise 
for  bids,  and  make  contracts  for  printing. 

A  state  board  of  publications,  consisting  of  three  persons  from 
different  branches  of  the  public  service  appointed  by  the  governor, 
with  the  advice  and  consent  of  the  council,  must  examine  all  reports 
of  state  officers,  boards  and  commissions  (with  certain  exceptions) 
and  define  their  form  and  extent — the  number  of  pages,  and  whether 
they  shall  include  maps  and  illustrations.  Appeal  may  be  taken  from 
the  decision  of  this  board  to  the  governor  and  council,  whose  decision 
shall  be  final.  In  1914,  the  board  comprised  the  director  of  the  bureau 
of  statistics,  the  clerk  of  the  house  of  representatives  and  the  clerk  of 
the  commissioner  of  public  records. 

Since  April,  1903,  the  cost  of  printing  such  reports  and  documents 
is  charged  to  and  paid  from  the  appropriation  of  the  department  from 
which  it  is  issued.  No  record  appears  to  be  kept  of  the  total  cost  of 
state  printing  and  binding. 

In  the  1914  report  of  the  secretary  of  the  commonwealth  he  ex- 
presses regret  that  in  practice  supervision  of  state  printing  is  exercised 
by  three  heads — the  secretary  of  the  commonwealth,  the  board  of  pub- 
lication and  the  auditor. 

Wisconsin. 

There  is  a  state  printing  board,  consisting  of  the  secretary  of 
state,  state  treasurer  and  attorney-general.  The  printing  clerk  is 
secretary  of  the  board,  and  has  an  assistant. 

The  board  lets  contracts  for  printing  and  paper,  and  also  for  su- 
preme .court  reports,  subject  to  detailed  statutory  provisions  as  to  ad- 
vertising, and  form  and  conditions  of  the  contracts  for  dift"erent  classes 
of  printing. 

The  board  also  directs  the  manner,  form,  style,  quantity  and 
method  of  all  public  printing,  not  expressly  prescribed  by  law ;  and  can 
increase  or  diminish  the  prescribed  number  of  pages  and  editions. 
Printers'  copy  and  requests  for  printing  are  received  from  the  several 
offices ;  and  the  secretary  of  the  board  issues  orders  to  the  state  printer 
(the  contractor  for  the  class  of  work) — except  for  legislative  printing, 
official  newspaper  and  court  reports. 

Printing  is  delivered  to  the. superintendent  of  public  printing,  who 
has  charge  of  the  distribution,  except  court  reports. 

The  cost  of  public  printing  and  paper  for  state  institutions  is 
charged  against  their  general  appropriations — with  some  exceptions. 

Expenditures  for  printing  for  the  past  ten  years  have  ranged  from 
$60,050  in  1905  to  $163,351  in  1910,  $204,427  in  1912  and  $216,326  in 
1913.  Before  1912  the  expenditures  averaged  about  two-thirds  those 
for  Ohio;  and  for  the  last  two  years  the  Wisconsin  expenditures  have 
been  as  much  as  those  for  Ohio  or  Illinois,  which  are  much  larger  and 
wealthier  states. 


REVENUE  AND  FINANCE.  177 

Iowa. 

The  Executive  Council — which  consists  of  the  Governor,  secretary 
of  state,  audit  or  and  treasurer — among  other  functions,  purchases 
paper  for  public  printing,  and  makes  contracts  for  printing  and  assigns 
work  to  the  state  institution  for  the  deaf  and  dumb. 

The  secretary  of  the  executive  council  issues  blank  forms  for 
printing  orders  and  keeps  accounts  of  printing  materials  issued  to  the 
state  printer. 

The  Governor  shall  cause  reports  to  be  printed,  after  examination 
and  omission  of  all  matter  he  may  deem  not  of  sufficient  importance  to 
warrant  publication  at  the  State's  expense. 

The  prices  to  be  paid  for  printing  and  binding  and  the  number  of 
copies  of  each  document  to  be  printed  are  specified  by  law;  but  the 
executive  council  shall  reduce  the  number  of  any  report  provided  the 
books  of  the  document  accountant  in  the  office  of  the  Secretary  of 
State  show  that  a  less  number  will  supply  all  the  necessary  needs. 

A  state  printer  and  a  state  binder  are  elected  by  the  General  As- 
sembly, for  terms  of  two  years,  who  have  offices  in  the  state  capitol. 
The  work  is  subject  to  examination  and  certification  by  the  secretary 
of  state,  who  also  has  charge  of  the  distribution  of  documents. 

Kansas. 

The  executive  council — consisting  of  the  Governor,  secretary  of 
state,  auditor,  treasurer,  attorney-general  and  superintendent  of  public 
instruction — makes  contracts  and  purchases  for  stationery  for  the  state 
offices,  legislature  and  supreme  court,  and  may  revise  estimates  of  the 
state  printer  as  to  paper  and  binding  materials  needed. 

The  printing  commission — the  secretary  of  state,  attorney-general 
and  state  printer — determines  what  printing  is  necessary  and  may  re- 
fuse requisitions  for  printing,  it  furnishes  specifications  for  printing 
and  binding;  and  it  has  charge  of  all  newspaper  publications. 

The  State  Printer  is  elected  by  popular  vote  for  a  term  of  two 
years,  at  a  salary  of  $2,500.  He  has  control  of  the  state  printing  plant, 
which  does  all  the  public  printing  and  binding,  except  what  the  printing 
commission  permits  to  be  done  at  state  institutions  where  a  printing 
plant  is  established. 

California. 

The  Superintendent  of  Public  Printing  is  appointed  by  the  Gov- 
ernor, with  the  advice  and  consent  of  the  senate,  and  holds  office  at 
the  pleasure  of  the  governor.  He  shall  be  a  competent  practical 
printer.  He  receives  a  salary  of  $5,000.  There  is  also  a  deputy,  at 
$2,400,  a  copy  editor  at  $1,800  and  a  watchman  at  $1,200.  The 
monthly  wages  of  the  printing  office  in  1911-12  amounted  to  $13,185. 

The  Superintendent  of  Public  Printing  has  charge  of  the  state 
printing  plant,  which  does  all  the  printing  of  the  state  unless  otherwise 
expressly  provided  for  by  law.  This  includes  the  printing  of  school 
books.  Supreme  Court  reports  are  published  under  a  contract  made 
by  the  reporter,  secretary  of  state  and  attorney-general ;  but  if  no  suit- 
able contractor  is  found,  the  state  printer  shall  print  these  reports. 


178  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  Superintendent  of  State  Printing  shall  decide  upon  the  style 
and  manner  of  printing  all  laws  and  other  state  documents.  He  shall 
receive  and  promptly  execute  all  orders  for  printing  and  binding  for 
the  various  state  offices,  vi^ith  discretionary  authority  to  revise,  reduce 
or  decline  to  execute  any  order,  or  part  of  any  order,  vv^hich  in  his 
judgment  is  unnecessary  or  unv^arranted  by  law,  and  which  will  tend  to 
unnecessarily  consume  the  appropriation  for  the  state  printing  office  ; 
but  if  any  state  officer,  board  or  commission  considers  his  decision  un- 
fair, he  may  refer  the  matter  to  the  state  board  of  examiners  which 
shall  determine  the  matter. 

Yearly  estimates  of  the  kind,  quality  and  amount  of  paper  needed 
are  submitted  by  the  superintendent  to  the  board  of  examiners,  and 
with  their  approval  the  superintendent  advertises  for  bids,  and  contract 
is  awarded  by  the  board  of  examiners  to  the  lowest  responsible  bidder. 

Since  1911  the  powers  of  the  board  of  examiners  are  exercised 
by  the  state  board  of  control,  which  consists  of  three  members  ap- 
pointed by  the  governor,  to  hold  office  at  his  pleasure,  at  salaries  of 
$4,000.  This  board  has  control  over  state  institutions  and  public 
buildings,  invests  school  funds,  may  examine  books  of  public  offices, 
must'  approve  bills  before  the  controller  can  draw  warrants,  make 
recommendations  to  the  legislature  as  to  claims  against  the  state,  ap- 
proves contracts  for  supplies,  and  may  authorize  deficiencies  in  ap- 
propriations if  necessary. 

Expenditures  of  the  State  Printing  Office  have  varied  a  good  deal 
from  year  to  year;  and  have  been  increasing,  from  $139,886  in  1900  to 
a  maximum  of  $377,148  in  1911.  In  1911  there  was  a  decrease  to 
$238,895,  which  the  superintendent  claims  was  due  to  increased  ef- 
ficiency. Deducting  the  expense  for  school  books,  the  printing  expen- 
diture for  California  has  been  larger  than  in  some  other  states  of  the 
same  population,  and  not  much  less  than  in  the  more  populous  state 
of  Ohio. 


REVENUE  AND  FINANCE. 


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180  EFFICIENCY  AND  ECONOMY  COMMITTEE. 


IV.     RECOMMENDATIONS. 
State  Finance  Commission. 

In  Illinois,  as  in  most  States  of  the  Union,  the  constitutional  pro- 
visions for  the  election  of  two  officials  dealing  with  state  finances — the 
Auditor  of  Public  Accounts  and  the  State  Treasurer— prevent  the  or- 
ganization by  statute  of  a  thoroughly  consolidated  department  of 
finance  under  the  control  of  a  single  official.  But  it  is  possible  to 
provide  a  more  efficient  organization  than  at  present,  and  to  secure 
more  definite  relations  between  the  several  finance  officials. 

As  a  basis  for  such  an  organization  it  is  proposed  that  there  be 
established  a  State  Finance  Commission,  to  consist  of  the  Auditor  of 
Public  Accounts,  the  State  Treasurer  and  three  members,  to  be  ap- 
pointed by  the  Governor  and  Senate.  One  of  the  appointed  members 
should  be  State  Comptroller  and  chairman  of  the  comrnission,  one 
should  be  Tax  Commissioner  and  one  Revenue  Commissioner.  The 
Finance  Commission  should  take  the  place  of  the  State  Board  of 
Equalization,  the  State  Tax  Levy  Board  and  the  Court  of  Claims,  and 
should  have  general  supervision  over  finance  administration ;  while  the 
several  members  should  also  have  specified  powers  and  duties  in^par- 
ticular  field.  The  State  Comptroller  should  receive  a  salary  of  $7,500 
a  year,  and  the  other  appointed  members  $6,000  each. 

The  powers  of  the  Finance  Commission  should  include: 

(a)  As  to  Revenue  Matters : 

To  prescribe  forms  and  to  issue  rules  and  instructions  for 
assessors  and  collectors  of  State  revenues. 

To  hear  and  determine  appeals  from  county  boards  of  review 
and  from  assessments  by  the  Tax  Commissioner. 

To  hear  complaints  and  order  investigations  of  the  operation 
of  the  tax  and  revenue  laws,  and  in  special  cases  to  appoint  local 
assessors  and  order  the  reassessment  of  a  taxing  district. 

To  equalize  the  aggregate  county  valuations  of  property  for 
taxation. 

(b)  As  to  Accounts  and  Expenditures: 

To  prescribe  forms  for  accounts,  financial  reports  and  esti- 
mates of  appropriations  for  the  several  State  offices  and  depart- 
authorized  by  law. 

To  order  examinations  of  the  expenditures  of  State  offices, 
departments  and  institutions,  and  to  make  final  settlements  of 
accounts  of  State  officers. 

To  hear  and  report  to  the  General  Assembly  on  all  claims 
against  the  State  now  brought  before  the  Court  of  Claims. 


REVENUE  AND  FINANCE.  181 

(c)  To  investigate  the   revenue  and  accounting  lav^s  of  other 

states  and  countries,  and  to  recommend  changes  in  such  laws  in 
Illinois. 
The  State  Comptroller  should  have  general  superintendence  over 
all  matters  to  be  acted  on  by  the  Finance  Commission,  and  supervision 
over  the  Tax  Commissioner  and  Revenue  Commissioner.  He  should 
be  charged  with  the  preparation  of  estimates  of  revenues  and  approp- 
riations to  be  submitted  through  the  Governor  to  the  General  Assembly 
at  each  regular  session.  He  should  approve  general  contracts  for 
printing,  fuel  and  supplies,  with  the  approval  of  the  Governor;  and  he 
should  have  control  over  salaries  of  departmental  employees,  within 
the  limits  of  the  appropriations. 

He  should  also  take  the  place  of  the  department  and  institution 
auditor  with  power: 

to  prepare  forms  for  accounts,  financial  reports  and  estimate  for 
State  officers  and  departments  and  for  local  collectors  of 
State  revenue,  subject  to  the  approval  of  the  Finance  Com- 
mission; 

to  examine  the  business  methods  of  State  offices,  departments  and 
institutions,  as  directed  by  the  Governor  or  the  Finance  Com- 
mission ; 

to  prepare  forms  of  accounts  and  financial  reports  for  such  county 
and  local  officials  as  may  be  authorized  by  law. 

The  Tax  Commissioner  should  have  power : 

to  prepare  forms,  rules  and  instructions  for  local  assessors ; 

to  receive  abstracts  of  assessment,  and  prepare  data  for  the  equali- 
zation of  local  asessments  by  the  Finance  Commission ; 

to  make  original  assessments  of  railroad  property  aud  the  capital 
and  other  property  of  public  utilities  and  corporations  not 
assessable  by  local  assessors  ; 

to  investigate  the  operation  of  tax  and  revenue  laws  and  initiate 
proceedings  for  their  enforcement. 

The  Revenue  Commissioner  should  collect  the  inheritance  tax  and 
automobile  licenses  and  such  other  State  revenues  as  may  hereafter  be 
assigned. 

The  Auditor  of  Public  Accounts  should  continue  his  primary 
functions  as  the  agent  of  the  Legislature  to  maintain  a  current  audit 
and  control  of  all  receipts  into  and  payments  from  the  State  Treasury, 
to  make  settlements  with  collectors  of  revenue,  and  to  limit  expendi- 
tures within  and  for  the  purposes  of  the  appropriation  acts ;  he  should 
also  have  power  to  audit  the  accounts  of  State  offices  and  institutions 
and  of  such  county  and  other  local  officials  as  may  be  authorized  by 
law.  He  should  have  power  to  investigate  and  enforce  the  collection 
of  State  revenues  and  blank  forms  for  licenses  and  certificates  for 
which  fees  are  paid  should  be  issued  by  the  auditor  to  the  fee  collecting 
offices,  as  a  means  of  auditing  collections  from  such  sources.  He 
should  also  receive  and  submit  to  the  Finance  Commission  claims  re- 
quiring action  by  that  body. 


182  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  State  Treasurer  should  continue  his  functions  as  custodian 
of  State  funds ;  with  power  to  deposit  funds  in  banks.  Reports  as  to 
the  deposit  of  State  funds  in  banks  should  be  made  and  published  from 
time  to  time. 

The  State  Board  of  Contracts  should  be  abolished;  and  general 
contracts  for  printing,  binding  and  stationery  should  be  approved  by 
the  State  Comptroller.  Responsibility  for  executing  such  contracts 
should  be  concentrated  in  a  Superintendent  of  Printing. 

Local  Administration. 

To  secure  a  thoroughly  efficient  local  assessment  and  collection 
of  taxes,  township  assessors  and  collectors  should  be  abolished,  and 
their  functions  given  to  county  officers.  But  as  a  comprehensive 
change  of  this  kind  is  perhaps  not  possible  at  once,  there  should  at 
least  be  an  optional  law,  under  which  any  county  or  township  may  by 
popular  vote  abolish  township  assessors  and  collectors,  and  place  their 
work  in  the  hands  of  county  officers.  In  the  smaller  counties  (those 
of  the  first  class),  the  county  clerk  could  act  as  county  assessor.  In 
other  counties,  a  county  assessor  should  be  appointed  by  the  county 
board,  subject  to  the  approval  of  the  Finance  Commission,  and  remov- 
able by  that  body.  County  Treasurers  should  act  as  collectors.  Any 
township  should  also  be  authorized  to  abolish  its  township  assessor 
and  collector,  in  which  case  the  county  clerk  and  treasurer  should  act 
— as  is  now  authorized  for  townships  over  50,000  population. 

The  commissions  paid  to  collectors  of  taxes  should  be  revised ; 
and  should  be  graded  according  to  the  amount  of  collections  by  each 
collector,  instead  of  at  a  uniform  rate  for  all  collectors  in  each  county. 

The  extension  of  taxes  in  detail  for  each  taxing  authority  against 
each  person  or.  piece  of  real  estate  should  not  be  required;  and  with 
the  reduction  of  this  uneccessary  clerical  work,  the  fees  for  extending 
taxes  should  be  reduced. 

A  county  board  of  taxation  should  be  organized  in  each  county, 
to  act  as  the  county  board  of  review  of  assessments,  and  to  pass  on  the 
validity  of  the  tax  levies  for  the  several  taxing  authorities  in  the 
county.  This  board  should  consist  of  the  county  assessor,  county 
clerk  and  the  chairman  of  the  county  board,  with  the  state's  attorney 
as  its  legal  adviser. 

Any  county  should  be  authorized  to  provide  for  a  county  con- 
troller, to  be  appointed  by  the  county  board,  subject  to  the  approval 
of  the  State  Finance  Commission. 

Provision    should    be    made    for    the    audit    of    county    officers* 
accounts  and  for  the  release  of  such  officers  and  their  bondsmen  from 
further  liability  after  a  reasonable  period  following  such  audit. 
Results  to  he  Expected. 

The  most  important  results  to  be  looked  for  from  a  more  efficient 
finance  administration  are  in  improved  methods  of  assessment  and  of 
revenue  collection  and  in  a  more  thorough  control  over  appropriations 
by  means  of  a  carefully  prepared  budget.  A  more  efficient  system  of 
assessment  and  a  more  thorough  collection  of  revenue  will  bring  in 
larger  revenues,  and  enable  a  reduction  to  be  made  in  the  tax  rates.  An 
adequate  budget  system  will  make  possible  a  better  check  on  unneces 


REVENUE  AND  FINANCE.  183 

sary  appropriations,  and  thus  tend  to  keep  down  the  expenditures  as  a 
whole.  The  amount  of  the  financial  gains  and  savings  by  these  means 
cannot  be  stated  in  exact  terms;  but  even  a  small  percentage  on  the 
total  amount  of  the  financial  transactions  of  the  State  will  amount  to 
a  million  dollars  or  more. 

As  to  the  direct  State  expenditures  for  finance  administration,  the 
amounts  now  paid  to  the  State  board  of  equalization  and  the  court  of 
claims  will  cover  the  salaries  of  the  proposed  State  Finance  Com- 
mission, and  provide  for  a  larger  force  of  clerks  and  assistants  than 
are  now  used ;  though  an  increase  beyond  this  may  be  needed  to  secure 
the  most  efficient  results.  The  centralization  of  the  administration  of 
the  inheritance  tax  should  lead  to  a  large  reduction  from  the  present 
expenses  of  collection,  which  may  be  roughly  estimated  at  not  less 
than  $100,000  a  year.  A  revision  of  the  fees  for  the  extension  and 
collection  of  property  taxes  would  lead  to  a  large  saving;  and  as  the 
optional  provisions  for  county  assessment  and  collection  of  taxes  are 
adopted,  there  will  not  only  be  increased  efficiency  but  a  direct  reduc- 
tion in  the  local  expenses  for  these  purposes. 

The  following  estimate  is  presented  of  possible  annual  savings  to 
the  State  Treasury  which  may  be  expected  from  the  recommendations 

in  this  report : 

Annual  Estimated 

Expense  Reduction 

Collectors'  Commissions  on  State  Taxes $    300,000  $  50,000 

Other  Abatements  on  State  Taxes 500,000  100,000 

Interest  on  Tax  CoUecnons 250,000  200,000 

Inheritance  Tax  expenses 225,000  100,000 

Automobile  Fees  expenses 100,000  50,000 

Printing  and  Binding 250,000  50,000 

Totals $1,625,000       $550,000 

In  addition,  the  various  local  authorities  should  save  about 
$1,000,000  in  collectors'  commissions,  other  abatements  and  fees  for 
extending  taxes. 


A  REPORT 

ON 

THE   ACCOUNTS   OF   THE    STATE 
OF   ILLINOIS 

BY 

GEORGE  E.  FRAZER,  C.  P.  A. 


CONTENTS  Page 

Introduction    189-190 

I.  The  Present  Accounts  of  the  State  of  Illinois 191-221 

A.  Constitutional  Provisions   191-194 

Historical    Note    191 

Legislative    Control    191 

Financial  Administration    ^ 192 

Extent  of  Constitutional  Provisions 193 

B.  Legislative  Procedure    194-197 

Appropriation   Acts 195 

C.  Statutory  Provisions  for  Auditing  and  Accounting 197-205 

Auditor  of  Public  Accounts 197 

State    Treasurer    199 

Accounting  and  Auditing  other  than  by  Auditor  and  Treasurer  ..201 

Auditing  Powers  of  Governor 202 

Auditing  Powers  of   Secretary  of  State  and   State  Board  of  Con- 
tracts  202 

Auditing  Powers  of  the  Civil  Service  Commission 203 

Auditing  Powers  of  the  Board  of  Prison  Industries 204 

Auditing  Powers  of  the  State  Architect 205 

The  Court  of  Claims 205 

D.  Accounts  and  Accounting  Procedure  in  the  office  of  the  State  Au- 

ditor  205-215 

1.  Revenue  Procedure  and  Auditing 205-209 

Accounting  for  the  Collection  of  State  Taxes 206 

Accounting  for  the  Collection  of  Inheritance  Taxes 207 

Collection  of  Revenue  other  than  for  Taxes 207 

"Receipt  Book  and  Receipt  Ledger" 207 

Auditing    of    Receipts 208 

Cash  Audits   209 

2.  Disbursement  Procedure  and  Auditing 209-213 

Appropriation  Ledgers    210 

Auditing  of  Disbursements 211 

3.  Classification  of  Receipts  and  Disbursement  Accounts 213 

4.  Perpetual   Inventory    214 

5.  Reports   215 

E.  Accounts   and   Accounting   Procedure    in    the    Office   of  the    State 

Treasurer    216-220 

Register  of  Warrants 216 

Accounting  for  Cash  Received 216 

Accounting  Procedure  for  Disbursements 217 

"Cash    Ledger" 217 

Local  Bond  Cash  Transactions 217 

Monthly  Reports  of  the  Treasurer 219 

State  Depositaries  219 

Biennial  Report  of  the  Treasurer 220 

F.  Conclusions  220-221 

List  of  Forms , 221 


Page 

II.  Accounting  Needs  of  the  State  of  Illinois 222-248 

Introduction    222 

Auditing  Requirements  of  the  State ....223 

The  Need  for  Financial  Information 224 

Accounting  Information  Needed  by  Members  of  the  General  Assembly.     .  .224 

Schedule  1.  Statement  of  Budget  Proposals  by  Funds 227 

Schedule  2.  Statement  of  Estimated  Revenues  for  the  General  Revenue 

Fund  228 

Schedule  3.  Statement    of    Appropriation    Requests    from    the    General 

Revenue  Fund    ^ 228 

Schedule  4.  Comparison  of  Appropriations  and  Requests 229 

Reports  Needed  by  the  Governor 233 

Reports  Needed  by  the  State  Tax  Board 235 

Reports  Needed  by  the  State  Board  of  Equalization 235 

Accounts  and  Reports  of  the  Auditor  of  Public  Accounts 235 

Accounting  Needs  of  the  State  Treasurer 237 

Accounting  Needs  of  Revenue  Collecting  Agencies 237 

Accounting  Needs  of  Heads  of  Departments  and  Boards  in  charge  of  State 

Institutions 238 

Schedule  5.  Budget  Proposals  for  the State  Normal  School 239 

Schedule  6  Department  of Free  Balances  in  Allotments 241 

Accounting  Needs  of  Institutional  and  Departmental  Executives 242 

Accounting  Needs  of  Employes  of  Departments  and  Institutions 243 

Accounting  Needs  of  the  Public 243 

A  Plan  of  Accounting  for  the  State 245 

Constructive  Accounting  Work  to  be  Done 24/ 


INTRODUCTION. 

The  resolution  of  the  Forty-eighth  General  Assembly  creating  the 
Efficiency  and  Economy  Committee,  provided  that  the  committee  "shall 
have  full  power  and  authority  to  investigate  all  departments  of  the 
State  government,  including  all  boards,  bureaus  and  commissions  which 
have  been  created  by  the  General  Assembly,  such  investigation  to  be 
made  with  a  view  of  securing  a  more  perfect  system  of  accounting, 
combining  and  centralizing  the  duties  of  the  various  departments, 
abolishing  such  as  are  useless  and  securing  for  the  State  of  Illinois 
such  reorganization  that  will  promote  greater  efficiency  and  greater 
economy  in  her  various  branches  of  government." 

After  its  organization,  the  committee  gave  careful  consideration  to 
the  work  possible  of  performance  under  this  resolution  before  the 
meeting  of  the  Forty-ninth  General  Assembly,  especially  with  regard 
to  the  sum  appropriated  by  the  General  Assembly  for  its  investigation. 
The  committee  was  of  the  opinion  that  its  energies  and  funds  could 
best  be  expended  on  the  consideration  of  a  plan  for  the  reorganization 
of  the  administrative  work  of  the  State.  It  recognized  the  importance 
of  scientific  and  adequate  accounting,  and  the  desirability  of  providing 
a  permanent  constructive  accounting  authority  to  prepare  adequate 
accounts  for  the  use  of  State  officers.  But  it  was  believed  that  any 
system  of  accounts  could  do  no  more  than  reflect  the  organization  of 
the  State,  and  that  major  results  towards  efficiency  and  economy  could 
best  be  secured  by  a  reorganization  and  consolidation  of  the  greatly 
elaborated  system  of  administrative  bureaus,  offices  and  departments. 

The  present  accounting  system  of  the  State  Is  inadequate,  and 
constructive  accounting  is  imperatively  needed.  This  report  presents 
an  outline  of  the  present  accounting  methods,  and  of  the  accounting 
needs  of  the  State.  In  a  separate  report,  there  is  presented  an  illus- 
tration of  an  adequate  accounting  system  in  the  form  of  a  proposed 
system  of  accounts  for  the  State  penal  institutions. 

The  report  prepared  by  George  E.  Frazer,  C.  P.  A.,  on  the 
present  accounting  system  of  the  State  was  made  for  the  use  of  the 
committee,  to  the  end  that  the  present  accounting  methods  might  be 
had  in  mind  in  planning  reorganization  of  various  State  activities. 
The  report  is  now  published  because  it  gives  in  brief  and  readable  form 
a  summary  of  the  accounting  that  now  obtains  for  the  State.  Mr.  Frazer 
has  also  prepared  a  brief  statement  of  the  accounting  needs  of  the 
State,  which  is  submitted  herewith,  with  the  recommendation  that  pro- 
vision be  made  for  a  i)rogram  of  constructive  accounting  work,  and 
especially  for  a  scientific  State  budget  and  control  over  the  obligations 
incurred  by  departments  and  institutions  that  must  subsequently  be 
met  from  State  funds. 


190  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

Professor  Spurgeon  Bell,  of  the  University  of  Texas,  has  prepared 
for  the  committee  a  report  outlining  a  comprehensive  system  of  ac- 
counts for  the  penal  institutions  of  the  State,  with  special  reference  to 
the  financial  control  of  penal  institutions  under  the  proposed  board  of 
prison  administration. 

These  reports  taken  together  will  serve  to  acquaint  the  members 
of  the  General  Assembly  and  the  citizens  of  the  State  with  the  account- 
ing needs  of  the  State,  and  with  the  results  that  may  h6  expected  if 
an  adequate  system  of  State  accounting  is  provided.  The  reports  do 
not  present  a  system  of  accounts  for  the  State,  since  such  a  system  of 
accounts  as  the  State  needs  can  be  prepared  and  installed  only  after 
a  careful  and  detailed  analysis  of  all  of  the  financial  transactions  of  the 
State,  of  the  organization  of  the  State,  and  of  the  functions  of  each  of 
the  State  departments  and  institutions.  Such  an  accounting  and  finan- 
cial study  is  needed,  and  provision  should  be  made  for  it. 

John  A.  Fairlie. 


REPORT  ON  ACCOUNTS.  191 


1.    THE  PRESENT  ACCOUNTS  OF  THE  STATE  OF  ILLINOIS. 

A.     CONSTITUTIONAL   PROVISIONS. 

Historical  Note. 

Article  II  of  the  first  State  Constitution  contained  two  sections 
relating  to  appropriations  and  expenditures,  as  follows : 

Sec.  20.  No  money  shall  be  drawn  from  the  treasury  but  in  consequence 
of  appropriations  made  by  law. 

Sec.  21.  An  accurate  statement  of  the  receipts  and  expenditures  of  the 
public  money  shall  be  attached  to  and  published  with  the  laws,  at  the  rising 
of  each  session  of  the  General  Assembly. 

In  the  second  State  Constitution,  the  above  provisions  were  con- 
tinued and  combined  in  Section  26  of  Article  III.  Another  section  of 
the  same  article  added  the  following: 

Sec.  22.  Bills  making  appropriations  for  the  pay  of  members  and  of- 
licers  of  the  General  Assembly,  and  for  the  salaries  of  the  officers  of  the 
government  shall  not  contain  any  provision  on  any  other  subject. 

The  Constitution  of  1870  continued  the  first  and  third  of  the  fore- 
going provisions,  and  further  elaborated  the  requirements  and  restric- 
tions relating  to  appropriations  and  loans. 

Legislative  Control. 

Under  the  Constitution  of  1870,  the  General  Assembly  is  giVen 
control  over  the  finances  of  the  State.  Section  18  of  Article  IV  provides 
that  each  General  Assembly  shall  provide  for  the  ordinary  and  con- 
tingent expenses  of  the  various  departments  of  the  State  by  making 
appropriations  for  the  period  ending  with  the  first  quarter  after  the 
adjournment  of  the  next  regular  session  of  the  General  Assembly. 

In  order  that  the  General  Assembly  may  be  provided  with  informa- 
tion as  a  basis  for  the  making  of  appropriations  it  is  provided,  in  Sec- 
tion 21  of  Article  V,  that  all  public  officers  and  departments  shall  report 
to  the  Governor  at  least  ten  days  preceding  each  regular  session  of 
the  General  Assembly ;  and  that  "the  Governor  may  at  any  time  require 
information  in  writing,  under  oath,  from  the  officers  of  the  executive 
department ;"  and,  in  Section  7  of  Article  V,  that  the  Governor  shall 
present  at  the  commencement  of  each  session  of  the  General  Assembly 
"estimates  of  the  amount  of  money  required  to  be  raised  by  taxation  fbr 
all  purposes."  Section  10  of  Article  IX  of  the  Constitution  provides: 
"the  General  Assembly  shall  provide  such  revenue  as  may  be  needed  by 

levying  a  tax,  by  valuation, "on  real  and  personal  property, 

and  by  levying  fees  for  licenses,  franchises,  and  privileges. 

It  is  provided  in  Section  18  of  Article  4  of  the  Constitution  that 
"the  State  may,  to  meet  casual  deficits  or  failures  in  revenue,  contract 
debts,"  never  to  exceed  $250,000.     The  Constitution  does  not  provide 


192  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

how  any  debt  may  be  contracted,  and  the  matter  of  arranging  for  the 
contracting  of  debt  is  left  by  inference  to  the  General  Assembly.  (See 
Section  389  of  Chapter  120  of  the  Revised  Statutes,  empowering  the 
Governor,  Auditor,  and  Treasurer,  under  certain  circumstances,  to 
negotiate  loans  to  the  extent  of  $250,000.) 

It  is  seen  that  the  constitution  of  Illinois  provides  that  the  Governor 
shall  make  recommendations  to  the  General  Assembly;  and  that  the 
General  Assembly  shall  raise  revenue,  and  control  public  expenditures 
by  the  passing  of  appropriation  laws. 

Limitations  are,  however,  imposed  on  the  General  Assembly  in 
making  appropriations  and  authorizing  expenditures.  Section  16  of 
Article  IV,  provides  that : 

The  General  Assembly  shall  make  no  appropriation  of  money  out  of  the 
treasury  in  any  private  law.  Bills  making  appropriations  for  the  pay  of 
members  of  the  General  Assembly  and  for  the  salaries  of  the  officers  of 
the  government  shall  contain  no  provision  on  any  other  subject. 

Under  Section  19  of  Article  IV,  it  is  provided  that : 

The  General  Assembly  shall  never  grant  or  authorize  extra  compensa- 
tion, fee  pr  allowance  to  any  public  officer,  agent,  servant  or  contractor, 
after  service  has  been  rendered  or  a  contract  made,  nor  authorize  the  pay- 
ment of  any  claim,  or  part  thereof,  hereafter  created  against  the  State 
under  any  agreement  or  contract  made  without  express  authority  of  law; 
and  all  such  unauthorized  agreements  or  contracts  shall  be  null  and  void ; 
Provided,  the  General  Assembly  may  make  appropriations  for  expenditures 
incurred  in  suppressing  insurrection  or  repelling  invasion. 

Section  20  of  A  r'    le  IV  provides  that : 

The  State  shall  never  pay,  assume  or  become  responsible  for  the  debts 

or  liabilities  of,  or  in  any  manner  give,  loan  or  extend  its  credit  to,  or  in  aid 

of,  any  public  or  other  corportion,  association  or  individual. 

*  Section  25  of  Article  IV,  provides  that  the  General  Assembly  shall 

provide  a  legal  procedure  for  the  letting  of  State  contracts  for  fuel, 

stationery,  and  the  printing  and  binding  of  public  documents,  subject 

to  the  approval  of  the  Governor. 

Financial  Administration.  • 

The  enforcement  of  the  will  of  the  General  Assembly  as  to  the 
collection  of  revenue  and  the  disbursement  of  public  funds  under  appro- 
priations is  placed  by  the  Constitution  in  the  hands  of  the  Auditor  of 
Public  Accounts  and  the  State  Treasurer.  Under  Section  17  of  Article 
IV,  the  disbursement  of  public  funds  is  dependent  on  an  appropri- 
ation that  is  passed  by  the  General  Assembly,  and  on  the  presenta- 
tion of  a  warrant  issued  by  the  Auditor  of  Public  Accounts.  The 
same  article  makes  necessary  the  keeping  of  accounts  in  that  it  requires 
the  Auditor  within  sixty  days  after  the  adjournment  of  each  session  of 
the  General  Assembly  to  "prepare  and  publish  a  full  statement  of  all 
moneys  expended  at  such  session,  specifying  the  amount  of  each  item, 
and  to  whom  and  for  what  paid."  In  Section  7  of  Article  IX  of  the 
Constitution,  it  is  provided  that  all  taxes  levied  for  State  purposes  are 
to  be  deposited  in  the  State  treasury. 

In  Section  1  of  Article  V  of  the  Constitution,  it  is  provided  that 
the  .A.uditor  of  Public  Accounts  and  the  Treasurer  shall  reside  at  the 


REPORT  ON  ACCOUNTS. 


193 


State  Capitol  during  their  term  of  office,  and  "keep  the  public  records, 
books  and  papers  there,  and  shall  perform  such  duties  as  may  be  pre- 
scribed by  law." 

The  Constitution  apparently  contemplates  that  all  departments  and 
institutions  of  the  State  orovernment  shall  be  subject  to  the  auditing 
powers  of  the  Auditor  of  Public  Accounts;  but  it  does  not  concentrate 
all  of  the  accounting  responsibility  in  his  office,  and  indeed  it  distinctly 
provides  that  the  Governor  is  to  account  directly  to  the  General 
Assembly  for  all  funds  subject  to  his  order.     (Section  7  of  Article  V.) 

Extent  of  Constitutional  Provisions. 

It  will  be  seen  that  the  Constitution  of  1870  provides,  either  directly 
or  by  inference,  for  practically  all  of  the  processes  of  governmental 
accounting. 

In  the  first  place,  the  Constitution  itself  provides  for  a  complete 
State  budget  in  that : 

A  All  State  officers  and  institutions  are  required  to  make  reports 
in  the  form  prescribed  by  the  Governor  at  least  ten  days  preceding 
each  regular  session  of  the  General  Assembly,  and  the  Governor  may 
specifically  require  reports  as  to  financial  condition.  (Section  21  of 
Article  V.) 

B  At  the  commencement  of  each  regular  session,  the  Governor 
is  required  to  present  a  report  to  the  General  Assembly,  summarizing 
the  condition  of  State  departments  and  institutions,  and  including  an 
estimate  of  the  money  required  to  be  raised  by  taxation  for  all  purposes. 
(Section  7  of  Article  V.) 

C  The  General  Assembly  is  required  to  provide  necessary  revenue 
by  the  levying  of  taxes  and  fees  (Section  1  of  Article  IX),  and  to  pro- 
vide for  the  proper  disbursement  of  public  funds  by  the  passage  of 
appropriation  laws  covering  all  expenses  for  the  period  ending  with 
the  first  quarter  after  the  next  General  Assembly.  (Section  18  of 
Article  IV.) 

D  It  is  specifically  provided  that  contract  debts  of  the  State  shall 
never  exceed  $250,000,  except  in  time  of  war  or  invasion  (Section  18 
of  Article  IV),  andlhat  the  State  of  Illinois  shall  never  be  made  de- 
fendant in  any  court  of  law  or  equity.    (Section  26  of  Article  IV.) 

A  careful  study  of  the  Constitutional  provisions  will  show  that 
the  present  Constitution  provides  complete  powers  and  the  necessary 
machinery  for  the  installation  in  the  State  government  of  a  scientific 
budget  system. 

The  Constitution  also  specifically  provides  for  the  enforcement 
of  budget  control  by  the  Auditor  of  Public  Accounts,  and  for  the  safe 
keeping  of  public  funds  by  the  State  Treasurer.  The  General  Assembly 
is  given  power  to  pass  laws  providing  for  the  necessary  financial  pro- 
cedure in  the  office  of  the  State  Auditor  and  in  the  office  of  the  State 
Treasurer. 

While  the  Constitution  makes  necessary  the  keeping  of  accurate 
revenue  and  appropriation  accounts  it  is  silent  as  to  the  keeping  of 
accounts  showing  the  detailed  cost  of  each  of  the  activities  of  the  vari- 
ous State  departments.  It  may,  however,  be  safely  assumed  that  the 
heads  of  departments  cannot  fully  comply  with  the  Constitutional  re- 


194  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

quirement  as  to  biennial  reports  to  the  Governor  and  tliat  tlie  Governor 
cannot  fully  comply  with  the  Constitutional  requirement  as  to  the  char- 
acter of  his  biennial  message  to  the  Legislature,  unless  there  is  a 
complete  system  of  cost  accounting  for  each  of  the  State  offices  and 
institutions. 

The  Constitution  is  silent  as  to  the  keeping  of  such  accounts,  either 
in  the  office  of  the  State  Auditor  or  elsewhere,  as  will  show  the  assets 
and  liabilities  of  the  State  and  of  its  several  departments.  The  Con- 
stitution does  require  that  the  contract  debts  of  the  State  shall  never 
exceed  the  sum  of  $250,000.  It  is  difficult  to  see  how  this  provision 
of  the  Constitution  can  be  enforced  unless  an  account  is  kept  in  each 
of  the  State  departments  and  institutions  of  the  outstanding  contract 
obligations  of  that  department  or  institution. 

To  summarize,  it  may  be  said  that  the  Constitution  authorizes  the 
General  Assembly  to  pass  laws  requiring  the  executive  officers,  or  any 
one  of  them,  to  keep : 

A.  Revenue  accounts; 

B.  Appropriations  accounts. 

C.  Cost  accounts. 

D.  Asset  and  liabihty  accounts. 

B.      LEGISLATIVE   PROCEDURE. 

Up  to  the  present  time,  there  has  been  little  or  no  preliminary  work 
before  the  meeting  of  the  General  Assembly  in  compiling  and  analyzing 
the  estimates  and  requests  for  appropriations.  Estimates  and  proposed 
bills  have  been  prepared  beforehand  by  the  various  officers,  depart- 
ments and  institutions;  and  a  long  Ust  of  appropriation  bills  are  in- 
troduced by  individual  members.  Since  the  creation  of  the  Board  of 
Administration,  estimates  for  the  charitable  institutions  are  prepared 
by  this  board,  and  the  amounts  recommended  are  included  in  two  bills — 
one  for  ordinary  expenses  and  one  for  special  appropriations — each 
of  these  bills  covering  all  the  charitable  institutions.  Separate  bills  are 
introduced  for  each  of  the  other  public  institutions  and  for  some  of 
the  other  State  offices  and  departments ;  and  a  large  number  of  the 
offices  and  bureaus  submit  their  requests  to  the  Appropriation  Com- 
mittee, to  be  included  in  the  so-called  omnibus  bill  for  the  ordinary 
and  contingent  expenses  of  the  State  government. 

After  the  session  of  1913  had  begun,  a  compilation  of  appropriation 
bills  was  prepared,  with  comparative  figures  showing  the  appropriations 
made  two  years  before.  But  this  contained  no  data  as  to  the  expendi- 
tures and  unexpended  balances ;  while  the  various  items  showed  a  wide 
variation  in  the  form  and  detail  of  the  proposed  appropriations  for  the 
different  offices,  departments  and  institutions. 

The  Act  of  1913  creating  a  Legislative  Reference  Bureau  requires 
this  bureau  to  prepare  a  detailed  budget  of  proposed  appropriations. 
It  is  made  the  duty  of  the  bureau : 

Sec.  5d.  To  cause  to  be  prepared,  printed  and  distributed  for  the  use 
of  the  members  of  the  General  Assembly,  a  detailed  budget  of  the  appro- 
priations which  the  officers  of  the  several  departments  of  the  State  govern- 
ment report  to  it  are  required  for  their  several  departments  for  the  biennium 


REPORT  ON  ACCOUNTS.  195 

for  which  appropriations  are  to  be  made  by  the  next  General  Assembly, 
together  with  a  comparative  statement  of  the  appropriations  by  the  preceding 
General  Assembly  for  the  same  purpose. 

Sec.  6.     The  officers  of  the  several  departments  of  the  State  govern- 
ment shall  make  duplicate  reports  by  the   1st  day  of  November  next  pre- 
ceding the  convening  of  the  next  regular  session  of  the  General  Assembly 
of  the  appropriations  which  are  required  for  their  several  departments  for 
the   biennium    for   which    appropriations    are  to  be   made   by   such    General 
Assembly.     One  of  said  duplicate  reports  shall  be  filed  with  the  Governor 
and  the  other  with  the  secretary  of  said  Reference  Bureau. 
These  provisiorw  form  the  first  step  towards  the  preparation  of 
a  preliminary  budget  of  estimates  of  appropriations.     But  it  should  be 
noted  that  the  proposed  budget  will  be  simply  a  compilation  of  the 
estimates  of  the  several  departments ;    that  there  is  no  provision  re- 
quiring these  estimates  to  be  prepared  on  a  uniform  or  systematic  plan : 
and  that  there  is  no  provision  for  including  a  statement  of  expenditures 
to   compare   with   the  previous   and   proposed  appropriations.     There 
may  also  be  some  doubt  as  to  how  comprehensive  this  compilation  of 
estimates  will  be.    Does  the  phrase  "departments  of  State  government" 
include  the  State  institutions  and  elective  officers,  or  is  it  limited  to 
those  officers   and  bureaus  whose  appropriations   are   included  in   the 
omnibus  bill? 

Each  house  of  the  General  Assembly  provides  for  a  committee  to 
which  appropriation  bills  are  referred.  The  membership  of  these 
committees  is  large — the  House  Committee  on  Appropriations  in  the 
Forty-eighth  General  Assembly  had  fortv-four  (44)  members,  and  the 
Senate  committee  had  thirty-seven  r37)  members.  There  are  also 
several  other  committees  dealing  with  financial  measures — on  claims, 
contingent  expenses  and  on  revenue. 

Upon  the  organization  of  the  Appropriation  Committee,  sub- 
committees are  appointed  bv  the  chairman  to  visit  each  of  the  Stnte 
institutions,  and  report  to  the  full  committee.  Joint  hearings  of  the 
appropriation  committees  are  held,  at  which  the  heads  of  the  various 
institutions  appear  to  explain  and  urge  their  requests  for  appropriations. 
After  these  hearings,  the  committees  nass  on  the  various  bills,  and  pre- 
pare the  omnibus  bill,  making  such  changes  as  are  agreed  to. 

With  the  exception  of  deficiencv  and  emergencv  apnropriation«;. 
the  approoriation  bills  are  not  reported  to  the  house  until  nearlv  the 
close  of  the  session.  At  this  stage,  the  chairmen  of  the  committees 
are  said  to  have  practical  control  of  the  appropriations :  the  committee 
recommendations  are  rarely  changed  in  either  house.  Tf  change<=  are 
made  in  one  house  and  not  accepted  bv  the  other,  the  bill  goes  to  a  con- 
ference committee,  whose  report  is  almost  invariably  accented. 

After  passing  both  houses,  appropriation  bills  go  to  the  Governor. 
who  may  disapprove  anv  of  these  bills  or  anv  item  in  anv  of  them. 
within  ten  davs.  A  considerable  number  of  appropriations  are  rec-nlarlv 
disapproved  by  the  Governor,  and  the  aggregate  appropriations  reduced. 

Appropriation  Acts. 

The  absence  of  any  comprehensive  preliminarv  estimates  and  the 
numerous  bills  introduced  are  reflected  in  the  appropriation  .Acts  as 
passed.     In  the  session  of  1913  there  were  94  separate  appropriation 


196  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

Acts  passed,  covering  116  pages  in  the  volume  of  session  laws.  Some 
of  the  leading  characteristics  of  these  measures  may  be  noted  in  the 
following  summary: 

SUMMARY  OF  APPROPRIATION  ACTS— 1913 

Ordinary  and  contingent  expenses  of  the  State  gov- 
ernment  (omnibus  bill)  — 

State  school   fund $6,000,000.00 

Other  items   (96  paragraphs) 5,863,825.24 

— » $11,863,825.24 

Pay  of  members  of  49th  General  Assembly  and  sal- 
aries of  State  officers,  no  items 2,600,000.00 

Charitable  institutions — 

■      Ordinary  expenses,  6  items $7,904,637.42 

Special  appropriations,  131  items 2,636,405.47 

Reappropriations   615,408.57 

11,156,451.46 

University  of  Illinois,  4  items $4,500,000.00 

University  of  Illinois,  U.  S.  grants 100,000.00 

4,600,000.00 

Normal  schools,  33  items..... 1,235,500.00 

Penal  and  reformatory  institutions — 

Five  bills $1,489,150.00 

Reappropriations     57,859.44 

1,547,009.44 

Xational  Guard,  9  bills $1,431,655.12 

Reappropriations   318,090.53 

1.749,745.65 

Highway  Commission,  4  bills 1,107,5(X).(X) 

Total,  23  bills $35,860,031.79 

Other  bills 2,055,326.14 

Grand  total   $37,915,357.93 

The  various  Acts  offer  the  most  startling  contrasts  in  the  extent  to 
which  appropriations  are  itemized.  That  for  the  pay  of  members  of  the 
General  Assembly  and  the  salary  of  State  officers  appropriates  $2,600,- 
000  in  one  sum.  The  amounts  paid  to  each  person  is  regulated  by  the 
salaries  provided  in  the  various  statutes ;  but  the  appropriation  bill 
does  not  show  the  amount  for  each  office,  not  even  the  totals  for  the 
General  Assembly,  the  executive  officers  or  the  judiciary.  The  appro- 
priation for  ordinary  expenses  of  the  charitable  institutions  ($7,904.- 
637.42)  is  made  in  six  items,  three  for  each  year;  and  the  appropria- 
tion for  the  state  University  ($4,500,000)  is  made  in  four  items,  two  for 
each  year. 

On  the  other  hand,  the  omnibus  bill,  while  including  the  school 
grant  of  $6,000,000  in  two  items,  appropriates  about  the  same  sum  in 
96  paragraphs,  most  of  which  are  itemized  in  detail.  The  special  ap- 
propriations for  charitable  institutions  are  specified  in  131  items, 
besides  a  number  of  reappropriations  of  unexpended  balances,  not 
specified  in  the  Act. 

The  appropriations  for  the  five  norm.il  schools  are  included  in  one 
Act,  with  33  items.  But  the  appropriations  for  the  penitentiaries  and 
reformatory  are  in  five  separate  Acts ;  those  for  the  Highway  Com- 
mission are  in  four  Acts:    and  those  for  the  National  Guard  are  in 


REPORT  ON  ACCOUNTS.  197 

nine  Acts.  Several  of  these  bills  include  provisions  for  the  reappro- 
priation  of  unexpended  balances  of  former  appropriations,  the  amounts 
of  which  are  not  specified. 

Much  the  larger  part  of  the  appropriations  are  included  in  23  Acts ; 
while  71  other  Acts  make  separate  appropriations  aggregating-  about 
$2,000,000.  One  appropriation  Act  for  sewer  improvements  at  Ottawa 
is  for  $286.50. 

The  entire  list  of  appropriations  covers  about  1,500  separate  items; 
but  there  is  the  widest  variation  in  the  character  of  the  items.  While 
in  a  number  of  cases,  several  million  dollars  are  appropriated  as  one 
item;  in  many  other  cases,  the  amounts  for  salaries  and  expenses  are 
specified  in  minute  detail.  Thus  the  appropriation  for  the  Grain  In- 
spection Department  includes  such  items  as  $75  a  year  for  rubber 
stamps,  $50  a  year  for  inspection  pans,  $50  a  year  for  steel  bars,  and 
$75  a  year  for  twine;  the  appropriation  for  the  State  Board  of  Ex- 
aminers of  Barbers  includes  an  item  of  $60  a  year  for  the  secretary's 
bond;  and  the  appropriation  for  awards  made  by  the  Court  of  Claims 
includes  an  item  of  $7.90. 

This  minute  specification  of  minor  items  serA'cs  no  useful  purpose: 
while  the  mass  of  such  details  makes  more  diflficult  an  understanding 
of  the  purposes  of  the  appropriations.  On  the  other  hand,  the  large 
lump  sum  appropriations  practically  transfer  the  real  work  of  appro- 
priation to  the  managing  boards  of  the  departments  or  institutions. 
The  appropriations  for  each  office  or  institution  should  be  made  on  the 
same  general  plan,  showing  separately  the  amounts  for  salaries,  for 
other  current  expenses,  and  for  land  and  permanent  improvements,  with 
specifications  of  the  more  important  items  under  each  of  these  main 
divisions. 

C.     STATUTORY   PROVISIONS   FOR   AUDITING   AND   ACCOUNTING. 

The  General  Assembly  has  provided  accounting  and  auditing  pro- 
cedure both  in  general  laws  and  in  provisions  in  appropriation  accounts. 

Auditor  of  Public  Accounts. 

In  Section  7  of  Chapter  15  of  the  Revised  Statutes,^  the  auditing 
and  accounting  procedure  to  be  employed  by  the  Auditor  of  Public 
Acounts  is  very  specifically  set  forth.  The  Auditor  is  required  to 
"audit  all  accounts  of  public  officers  who  are  to  be  oaid  out  of  the  State 
treasury,  of  the  members  of  the  Legislature,  and  all  persons  authorized 
to  receive  money  out  of  the  treasury,  by  virtue  of  any  appropriation 
made  or  to  be  made  by  law  particularly  authorizing  such  account."  The 
Auditor  is  further  required,  under  Section  7,  to  keep  the  accounts  of 
the  State  "with  any  State  or  Territory,  and  with  the  United  States, 
with  all  public  officers,  corporations  and  individuals,  having  accounts 
with  this  State."  This  wide  sweeping  statement  of  duties  was  passed 
in  1845,  and  has  not  since  been  amended. 

It  is  further  specifically  provided  in  Section  8  of  Chapter  15  that 
"on  ascertaining  the  amount  due  any  person  from  the  Treasury,  the 
Auditor  shall  grant  his  warrant  on  the  treasury  for  the  sum  due," 

^References  are  to  Section  numbers  In  Hurd's  Revised  statutes,  1911, 


198  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

Sections  9,  10  and  11  provide  that  a  fair  record  shall  be  kept  of  all 
warrants  drawn,  by  their  numbers,  that  the  Auditor  shall,  in  all  cases, 
personally  sign  all  warrants,  and  that  warrants  are  to  be  counter-signed 
by  the  State  Treasurer.  To  carry  out  this  provision,  it  is  further  pro- 
vided in  Section  19  of  Chapter  15  that  "the  Auditor  shall  credit  the 
Treasurer's  account  with  the  amount  of  cancelled  warrants  returned  to 
him  monthly  by  the  Treasurer,  and  give  him  a  receipt  for  the  same,  and 
shall  enter  the  date  of  cancellations  of  such  cancelled  warrants  in  his 
warrant  book." 

In  issuing  warrants,  the  Auditor  is  to  take  into  considera^tion,  as  a 
set-off,  any  claim  that  may  be  due  to  the  State.  (Section  12  and  Section 
13  of  Chapter  15.) 

Proper  auditing  protection  is  required  in  the  issuance  of  duplicate 
warrants  on  account  of  warrants  that  have  been  lost  or  destroyed,  in 
that  the  payee  is  required  to  give  a  bond  in  double  the  amount  of  the 
warrant,  and  to  pay  all  costs  and  charges,  should  the  State  afterwards 
be  compelled  to  pay  the  original  warrant.  (Section  14  of  Chapter  15.) 
These  provisions  are  summarized  in  Section  17  of  Chapter  15  by 
the  statement  that  "the  Auditor  shall  keep  a  correct  record  of  all 
accounts  by  him  audited  in  books  to  be  kept  for  that  purpose." 

It  will  be  noted  that  the  statutory  requirements,  so  far  as  expendi- 
tures are  concerned,  provide  only  for  the  auditing  and  recording  of 
disbursements  in  this  particular  from  the  State  treasury.  The  statutory 
requirements  in  this  particular  do  not  seem  to  extend  to  the  auditing 
and  accounting  by  the  State  Auditor  of  the  expenditures  of  public 
credit. 

Under  Section  17  of  Chapter  15,  the  State  Auditor  is  required  to 
"keep  an  account  of  all  taxes  or  other  moneys  which  may  be  due  by 
any  person  to  the  State,  and  also  on  account  of  all  amounts  which  may 
be  paid  into  the  State  Treasurv."'  To  carrv  out  this  renuirement,  it  is 
provided  in  Section  20  that  "the  Auditor  shall  counter-sign  all  receipts 
for  monev  issued  by  the  Treasurer,  and  charge  the  Treasurer  with  the 
amount  thereof." 

It  will  be  noted  that  the  Auditor  is  required  to  keep  an  account 
of  revenues  as  well  as  an  account  of  receipts.  The  statute  is  very  plain. 
The  Auditor  must  "keep  an  account  of  all  taxes  or  other  monevs  which 
may  be  due  by  anv  person  to  the  State,  and  also  an  account  of  all 
monevs  which  may  be  paid  into  the  State  Treasury."  The  Auditor  is 
specifically  required  to  keep  an  account  with  the  entire  revenue  receiv- 
able of  the  State,  whether  the  revenue  receivable  is  taxes  receivable,  fees 
receivable,  or  moneys  receivable  from  fines,  forfeits,  sales,  or  the  like. 
It  will  be  noted  that  the  statutes  provide  a  careful  auditino-  pro- 
cedure by  the  requirement  of  the  exchange  of  countersigned  warrants 
and  countersigned  receipts  betM'^een  the  offices  of  the  State  Auditor 
(the  auditing  agency  of  the  Stntc")  and  the  office  of  t'-"^  State  Treasurer 
rthe^  cash  depositary  of  the  State) .  No  such  auditing  procedure  is 
provided  for  the  control  of  acroimts  navable.  or  acronnt>^  rereivible. 
In  order  that  the  exchange  of  countersigned  warrants  and  receipts 
may  have  more  auditing  effect,  it  is  provided,  in  Section  21  of  Chapter 


REPORT  ON  ACCOUNTS.  199 

15,  that  "no  person  shall  be  employed  as  clerk  in  the  Auditor's  office 
who  is,  at  the  same  time,  employed  in  any  capacity  in  the  Treasurer's 
office." 

As  a  means  of  enforcing  the  auditing  duties  of  the  State  Auditor, 
the  statutes  provide  that  the  State  Auditor  shall  subscribe  to  an  oath, 
and  shall  give  a  bond  in  the  sum  of  fifty  thousand  dollars  ($50,000) 
for  the  faithful  discharge  of  his  duties.  The  Governor  is  given  the 
right  to  require  an  additional  bond  whenever  he  shall  deem  it  necessary. 
(Section  3  of  Chapter  15.)  This  power  vested  in  the  Governor  should 
seem  to  make  him  in  a  sense  responsible  for  the  character  of  the  audit- 
ing and  accounting  in  the  office  of  the  State  Auditor,  in  so  far  as  the 
proper  protection  of  the  credit  and  funds  of  the  State  is  concerned. 

An  important  statutory  provision  is  found  in  Section  i  of  Chapter 
15,  requiring  the  Auditor  "to  deliver  up  all  papers,  books,  records  and 
other  property  appertaining  to  his  office,  whole,  safe  and  undefaced  to 
his  successor  in  office." 

The  chief  public  protection  provided  by  the  statutes  is  that  found 
in  Section  18  of  Chapter  15,  page  112.  "The  Auditor  shall  make  out 
and  present  to  the  Governor,  at  least  ten  days  before  each  regular 
session  of  the  General  Assembly,  a  report  showing  the  amount  of 
warrants  drawn  on  the  treasury,  to  whom  and  for  what  account  they 
were  drawn,  and  if  drawn  on  the  contingent  fund,  to  whom  and  for 
what  they  were  issued.  He  shall  also,  at  the  same  time,  report  to  the 
Governor  the  amount  of  money  received  into  the  treasury,  stating, 
particularly,  the  source  from  which  the  same  may  be  derived,  and  also 
a  general  account  of  all  the  business  of  his  office." 

State  Treasurer. 

The  most  important  duty  of  the  State  Treasurer  is  that  specified 
in  Section  7  of  Chapter  130:  "The  State  Treasurer  shall  receive  the 
revenues  and  all  other  public  moneys  of  the  State,  and  all  moneys 
authorized  by  law  to  be  paid  to  him,  and  safely  keep  the  same."  In 
Section  22  of  Chapter  130,  approved  March  7,  1908,  it  is  the  duty  of 
the  State  Treasurer  to  "deposit  all  moneys  received  by  him  on  account 
of  the  State  within  five  days  after  receiving  same  in  such  banks  in 
the  cities  of  the  State  as  in  the  opinion  of  the  Treasurer  are  secure 
and  which  shall  pay  the  highest  rate  of  interest  to  the  State  for  such 
deposits.  The  money  so  deposited  shall  be  placed  to  the  account  of 
the  State  Treasurer."  In  addition  to  taxes,  it  is  provided  in  Section  11 
of  Chapter  102  that  certain  specified  officers  and  departments  are  to 
deposit  into  the  State  Treasury  all  revenues  that  they  collect.  In  Sec- 
tion 12  of  the  same  chapter,  it  is  provided  that  all  such  officers  and 
departments  are  "to  keep  in  proper  books  a  detailed  itemized  account 
of  all  moneys  received  and  from  what  source,  or  sources,  received," 
and  are  to  report  such  receipts  under  oath  to  the  Auditor  of  Public 
Accounts  at  the  end  of  each  calendar  quarter.  The  departments 
specified  seem  to  include  all  State  departments  and  institutions  with 
the  exception  of  the  State  Board  of  Agriculture,  the  State  University, 
and  the  State  Normal  Schools. 

In  Section  24  of  Chapter  130,  it  is  specifically  stated  that  the  State 
Treasurer  is  "personally  responsible  for  the  faithful  performance  of 


200  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

his  duties  under  the  law  and  for  a  proper  accounting  of  all  moneys 
paid  to  him  as  State  Treasurer."  It  appears,  therefore,  that  it  is  the 
duty  of  the  State  Treasurer  to  safely  keep  the  moneys  of  the  State  by 
depositing  them  in  banks  that,  in  his  opinion,  are  secure.  He  is  re- 
quired to  select  banks  which  "pay  the  highest  rate  of  interest  to  the 
State  for  such  deposits."  It  does  not  appear  that  the  State  Treasurer 
need  deposit  money  in  a  bank  offering  a  higher  rate  of  interest  than  the 
depositary  he  has  already  selected.  It  is  his  first  duty  to  safely  keep 
the  funds  and  his  second  duty  to  secure  as  much  interest  on  them  from 
banks  as  is  consistent  with  the  security  required. 

Section  12  of  Chapter  130  provides  that  the  State  Treasurer  "shall 
keep  regular  and  fair  accounts  of  all  moneys  received  and  paid  out  by 
him,  stating,  particularly,  on  what  account  each  amount  is  received 
or  paid  out." 

The  State  Treasurer  has  no  responsibilities  as  to  the  auditing  of 
warrants  for  disbursements.  Under  Section  11  of  Chapter  130,  he  is 
required  to  countersign  any  warrant  that  is  presented  him  to  be 
countersigned,  and  to  keep  a  record  of  it.  Auditing  protection  is 
afforded  in  the  requirement  of  Section  13  of  Chapter  130  that  warrants 
shall  be  cancelled  by  cutting  or  perforation  and  by  the  requirement  of 
Section  14  of  Chapter  130  that  the  Treasurer  shall  "at  the  close  of 
each  month,  report  to  the  Auditor  the  amount  of  money  received  and 
paid  out  by  him  during  the  month,  stating  on  what  account  the  same 
was  received  and  paid ;  and  shall,  at  the  same  time,  deposit  with  the 
Auditor  all  warrants,  properly  cancelled,  which  he  may  have  paid,  and 
take  the  Auditor's  receipt  for  the  same." 

Section  10  of  Chapter  130  specifically  places  auditing  responsibility 
upon  the  Auditor  rather  than  upon  the  Treasurer,  by  providing  that 
"The  Treasurer  shall  not  pay  out  of  the  treasury  any  money,  except 
upon  the  warrant  of  the  Auditor." 

The  Auditor  is  likewise  made  responsible  for  the  auditing  of  all 
receipts  of  the  State.  Section  8  of  Chapter  130  provides  that  the 
Treasurer  shall  be  removed  from  his  office  if  he  receives  money  into 
the  State  Treasury  otherwise  than  upon  an  order  from  the  Auditor. 
Section  9  of  Chapter  130  provides  that  the  Treasurer  shall  issue  dupli- 
cate receipts  to  persons  paying  money  into  the  treasury,  and  that  such 
receipts  shall  be  counter-signed  by  the  State  Auditor. 

Under  Section  7  of  Chapter  130,  the  Treasurer  is  to  receive  all 
revenues  of  the  State  as  well  as  all  moneys.  This  section  provides 
for  the  deposit  with  the  Treasurer  of  bonds  and  other  credits  owned 
by  the  State.  As  an  auditing  protection,  it  is  provided  in  Section  17 
of  Chapter  130,  that  "every  United  States  or  other  bond  now  in  the 
State  treasury,  or  that  may  hereafter  come  into  the  treasury,  shall 
immediately  be  indorsed  with  the  words  following,  viz :  'Property  of 
the  State  of  Illinois,  not  transferable  by  the  Treasurer,  without  the 
consent  of  the  Governor  indorsed  thereon.'  " 

It  will  be  noted  that  the  statutes  provide  rather  complete  auditing 
protection  so  far  as  the  receipt  and  disbursement  of  money  is  con- 
cerned, and  so  far  as  the  deposit  of  bonds  and  other  credit  papers  is 
concerned.    It  is  to  be  especially  noted  that  bonds  owned  by  the  State 


REPORT  ON  ACCOUNTS.  201 

and  deposited  with  the  Treasurer  are  transferable  only  upon  the  en- 
dorsement of  the  Governor.  In  this  case,  the  Governor  is  made  the 
auditing  officer  rather  than  the  Auditor  of  Public  Accounts. 

As  Treasurer,  the  Treasurer  is  not  required  by  the  statutes  to  pro- 
tect the  State  in  the  disbursement  of  public  credit.  This  auditing  duty 
devolves  upon  a  board  composed  of  the  Governor,  Auditor,  and  Treas- 
urer.    (Section  389  of  Chapter  120.) 

To  insure  the  fulfillment  by  the  State  Treasurer  of  his  duties,  he 
is  required  to  take  an  oath  upon  assuming  office  and  to  deposit  a  bond 
in  the  penal  sum  of  five  hundred  thousand  dollars,  conditioned  for  the 
faithful  discharge  of  his  duties.  This  bond  is  to  be  approved  by  the 
Governor  and  two  justices  of  the  Supreme  Court.  The  Governor  may 
require  additional  bonds.  (Section  1  and  3  of  Chapter  130.)  The 
Treasurer  is  allowed  the  sum  of  five  thousand  dollars  from  the  State 
treasury  as  payment  on  the  premiums  on  the  bonds  given  by  him  as 
Treasurer.  (Section  23  of  Chapter  130.)  Under  Section  6  of  Chapter 
130,  the  Governor  is  authorized  to  institute  suits  under  the  bond 
either  against  the  Treasurer  or  against  his  sureties,  without  first  ob- 
taining judgment  against  the  Treasurer.  As  a  protection,  it  is  re- 
quired that  the  bond  of  the  Treasurer  shall  be  filed  in  the  office  of 
the  Secretary  of  State.     (Section  1  of  Chapter  130.) 

An  important  protection  aftorded  by  the  statutes  is  that  found  in 
Section  1  of  Chapter  130,  requiring  the  Treasurer  "to  deliver  up  all 
moneys,  papers,  books,  records  and  other  property  appertaining  to  his 
office,  whole,  safe,  and  undefaced  to  his  successor  in  office."  One  of 
the  chief  protections  to  the  public  as  to  the  discharge  by  the  Treasurer 
of  his  duties  is  found  in  the  requirement  of  a  biennial  report.  "He 
shall  also  make  out  and  present  to  the  Governor,  at  least  ten  days 
before  each  regular  session  of  the  General  Assembly,  a  full  report  of 
all  moneys  by  him  received  and  paid  out,  and  also  a  general  account 
of  all  the  business  of  his  office."     (Section  15  of  Chapter  130.) 

Auditing  and  Accounting  Other  Than  By  Auditor  and  Treasurer. 

Practically  all  of  the  statutes  quoted  heretofore  were  first  passed 
in  1845  under  the  Constitution  of  1818,  the  first  Constitution  of  the 
State.  These  statutes  have  not  since  been  changed.  The  Constitutional 
provisions  and  the  statutes  heretofore  referred  to  seem  to  contemplate 
that  the  auditing  and  accounting  responsibilities  shall  be  centered  in 
the  office  of  the  State  Auditor  of  Public  Accounts.  The  General 
Assembly  has,  however,  provided  special  auditing  and  accounting 
agencies  for  numerous  classes  of  transactions.  We  have  already  noted 
that  the  Governor  is  an  auditing  officer  with  respect  to  the  bonds  of 
the  State  Auditor  and  the  State  Treasurer,  and  also  with  respect  to 
the  transfer  by  endorsement  of  bonds  and  other  securities  owned  by 
the  State.  Other  auditing  and  accounting  duties  have  been  laid  by 
the  General  Assembly  upon  the  following  officers  and  departments: 

1.  Governor,   exercised   through   the    Institutional   and    Depart- 

mental Auditor. 

2.  Secretary  of  State  and  State  Board  of  Contracts. 

3.  Civil  Service  Commission. 


202  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

4.  Board  of  Prison  Industries,  as  to  the  purchase  of  furniture 

and  other  suppHes. 

5.  State  Architect,  as  to  building  transactions. 

Auditing  Powers  of  Governor. 

The  auditing  powers  of  the  Auditor  of  Public  Accounts  have  been 
supplemented  in  the  case  of  most  of  the  appropriation  Acts  made  for 
the  support  of  the  executive  departments  by  the  requirement  that  the 
Governor  shall  approve  bills  for  traveling  expenses,  pay  rolls,  and, 
indeed,  all  bills  submitted  to  the  Auditor  as  charges  against  such  ap- 
propriations. (See  pages  119  and  120  of  the  session  laws  of  1913  for 
an  example  of  the  tenor  of  such  appropriation  Act  provisions.)  To 
aid  the  Governor  in  this  particular,  the  position  of  Institutional  and 
Departmental  Auditor  has  been  created.  This  Institutional  Auditor 
has  no  authority  as  of  his  own  office,  but  acts  for  the  Governor. 

The  effect  of  this  requirement  of  appropriation  acts  that  the 
Governor  shall  approve  individual  bills  before  the  Auditor  of  Public 
Accounts  shall  pay  them  is  to  place  a  very  considerable  auditing  power 
in  the  hands  of  the  Governor,  or  rather  in  the  hands  of.  his  Institutional 
Auditor.  While,  in  point  of  law,  the  Auditor  of  Public  Accounts  still 
has  the  final  audit,  the  prestige  of  the  Governor's  office  is  undoubtedly 
such  as  to  make  the  approval  of  the  Institutional  Auditor  in  the  name 
of  the  Governor  practically  a  final  audit. 

Section  8  of  Chapter  102  of  the  Revised  Statutes  provides  that 
"an  account  shall  be  kept  by  the  officers  of  the  Executive  department, 
and  of  all  the  public  institutions  of  the  State  of  all  money  received 
or  disbursed  by  them  severally  from  all  sources  and  for  every  service 
performed,  and  a  semi-annual  report  thereof  be  made  to  the  Governor 
of  the  State  under  oath."  This  semi-annual  report  must  be  made  in 
the  form  prescribed  by  the  Governor.  This  requirement  gives  the 
Governor  a  very  real  power  in  the  prescription  of  accounting  systems 
for  executive  departments  and  institutions,  inasmuch  as  he  may  require 
a  report  in  such  form  as  to  make  necessary  the  keeping  of  certain 
prescribed  accounts.  It  may  be  well  to  add  that  this  power  of  the 
Governor  has  never  been  exercised,  other  than  to  require  institutions 
to  report  in  detail  receipts  and  disbursements  classified  only  as  to  ap- 
propriation Acts. 

Auditing  Powers  of  Secretary  of  State  and  State  Board  of  Contracts. 

Under  Section  5  of  Chapter  124  of  the  Revised  Statutes,  the  Sec- 
retary of  State  is  given  control  over  the  office  space  in  the  State  Capitol 
Building,  over  the  furniture  in  the  State  House,  and  is  required  to 
furnish  office  supplies  to  his  own  office  and  to  the  Governor,  Treasurer, 
Auditor,  Superintendent  of  Public  Instruction,  and  Attorney  General. 
The  same  provision  is  applied  to  other  offices  by  the  statutes  creating 
them. 

It  has  been  customary  to  appropriate  a  sum  of  money  to  the  Secre- 
tary of  State  out  of  which  supplies  are  purchased  for  the  use  of  the 
various  executive  departments.  It  has  been  customary  to  appropriate 
such  sums  to  the  Secretary  of  State  as  may  be  necessary  to  maintain 


REPORT  ON  ACCOUNTS. 


203 


the  State  House  and  to  keep  it  lighted  and  heated.  (See  paragraph 
8  on  page  97  of  the  session  laws  of  1913  for  example  of  such  an  appro- 
priation.) 

The  actual  purchase  of  stationery  and  printing  is  done  by  the 
Secretary  of  State,  under  contracts  awarded  by  a  commission  on  State 
contracts,  composed  of  the  Attorney  General,  Secretary  of  State,  State 
Treasurer,  and  the  Auditor  of  Public  Accounts.  (Chapter  127,  Re- 
vised Statutes.)  To  aid  this  Commission  on  Contracts  in  the  handling 
of  State  printing,  an  officer  is  appointed,  known  as  Printer  Expert. 
(Section  21  of  Chapter  127.)  The  Printer  Expert  is  presumed  to 
enforce  the  contracts  of  the  Commission  on  Contracts.  The  Printer 
Expert  is  supervised  by  the  Secretary  of  State  ( Section  22  of  Chapter 
127),  and  is  required  to  audit  all  printing  bills.  (Section  23  of  Chap- 
ter 127.) 

It  will  be  seen  that  the  Secretary  of  State  has  a  considerable  audit- 
ing power,  using  the  term  in  a  broad  sense,  in  the  service  that  he  is 
required  to  perform  for  other  State  officers.  The  Secretary  of  State, 
through  the  Printer  Expert,  has  practically  final  auditing  power,  in  so 
far  as  paying  of  bills  for  State  printing  is  concerned.  To  be  sure, 
Section  23  of  Chapter  127  provides  that  a  contractor  for  State  printing 
may  carry  a  bill,  disapproved  by  the  Printer  Expert,  to  the  Commission 
on  Contracts,  and  that  the  Commission  on  Contracts  shall  have  final 
power  to  adjudicate  such  a  disputed  bill.  In  this  limited  number  of 
cases,  the  Auditor  of  Public  Accounts  has  some  direct  auditing  power 
over  printing  bills,  in  so  far  as  he  is  ex  officio  a  member  of  the  Com- 
mission on  Contracts.  Eor  all  practical  purposes,  it  may  be  said  that 
the  Printer  Expert  is  the  auditor  of  State  printing  bills.  The  appro- 
priation made  in  1913  for  State  printing  and  binding  Cincluding  paper 
and  the  State  Blue  Book)  amounted  in  all  to  $347,300.  (See  Sections 
15,  16  and  17  on  page  98  of  the  session  laws  of  1913.) 
Auditing  Powers  of  the  Civil  Service  Commission. 

Under  Chapter  24a  of  the  Revised  Statutes,  the  Civil  Service 
Commission  is  given  very  large  auditing  powers  over  the  employment 
of  servants  of  the  State.  Under  Section  11  of  Chapter  24a  this  power 
of  the  Civil  Service  Commission  extends  to  all  persons  on  the  pay  roll 
of  the  State  excepting  elective  officers:  officers,  boards  and  commis- 
sions appointed  by  the  Governor  subject  to  confirmation  by  the  Senate; 
officers  and  employees  of  the  Legislature;  judges  and  officers  of  the 
court;  employees  of  the  State  military  service;  instructional  staflF^of 
the  State  University  and  Normal  Schools;  employees  at  the  executive 
mansion;  attorneys;  building  and  loan  and  bank  examiners;  officers 
of  charitable,  correctional  and  penal  institutions ;  one  private  secretary 
or  stenographer  in  the  elective  offices  and  offices  of  the  president,  dean 
of  men  "and  dean  of  women  of  the  University  of  Illinois,  and  in  the 
offices  of  the  presidents  of  the  Normal  schools ;  all  clerks  and  watch- 
men in  the  offices  of  elective  officers;  and  students  at  the  Universitv 
of  Illinois  and  the  Normal  Schools.  While  the  exemptions  to  Civil 
Service  requirements  appear  to  be  numerous  in  effiect  a  very  larsjc  per 
cent  of  the  employees  of  the  State  are  in  the  classified  service  and  hence 
subject  to  the  auditing  power  of  the  Civil  Service  Commission. 


204  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

Under  Sections  27  to  31  inclusive,  of  Chapter  24a,  it  is  provided 
that  the  State  Auditor  and  the  State  Treasurer  shall  pay  salaries  for 
the  services  of  any  person  employed  in  the  classified  service  of  the  State 
only  upon  certification  by  the  Civil  Service  Commission  that  the  em- 
ployees named  "have  been  appointed,  or  employed,  or  promoted  in 
pursuance  of  law  and  of  the  rules  made  in  pursuance  of  this  Act." 

It  is  interesting  to  note  that  under  the  caption  of  "Auditing 
Officer,"  Section  27  of  Chapter  24a  provides  that  the  Governor  shall 
not  approve  any  voucher  for  any  -claim  of  any  public  officer  for  the 
services  of  any  person  employed  in  the  classified  service  of  the  State 
in  violation  of  the  provisions  of  this  x'Vct."  This  Section  27  is  a  frank 
statement  of  the  auditing  powers  of  the  Governor. 

Auditing  Pozvers  of  the  Board  of  Prison  Industries. 

Under  Sections  75  to  102  of  Chapter  108  of  the  Revised  Statutes, 
the  Commissioners  of  the  Illinois  State  Penitentiary  at  Joliet,  the 
Commissioners  of  the  Southern  Illinois  Penitentiary  at  Chester,  and  the 
Board  of  Managers  of  the  Illinois  State  Reformatory  at  Pontiac  are 
created  a  Board  of  Prison  Industries.  This  board  is  given  very  sweep- 
ing powers  to  manufacture  by  convict  labor  in  the  penitentiaries  and 
reformatories  all  articles  that  may  be  required  for  State  use.  State 
officers  and  State  institutions  are  required  to  purchase  such  articles 
from  the  Board  of  Prison  Industries  as  the  Board  of  Prison  Industries 
may  cause  to  be  manufactured  and  oflfered  for  sale.  "No  articles  so 
manufactured  shall  be  purchased  from  any  other  source  for  the  State 
or  public  institutions  of  the  State,  unless  said  Board  of  Prison  Indus- 
tries of  Illinois  shall  certify  that  the  same  cannot  be  furnished.  .  .  . 
and  no  claim  therefore  shall  be  audited  or  paid  without  such  certificate." 

It  will  be  seen  that  the  Auditor  of  Public  Accounts  is  not  author- 
ized to  draw  his  warrant  in  payment  for  supplies  purchased  from  com- 
mercial vendors,  if  it  shall  appear  that  such  supplies  are  manufactured 
and  sold  by  the  Board  of  Prison  Industries,  and  if  it  shall  appear  that 
the  Board  of  Prison  Industries  has  not  certified  that  the  particular  sup- 
plies, covered  by  the  bill  for  which  the  warrant  is  drawn,  cannot  be 
furnished  from  the  prison  industries. 

The  President  of  the  Board  of  Prison  Industries  of  Illinois,  the 
President  of  the  State  Board  of  Administration  and  the  Auditor  of 
Public  Accounts  of  Illinois  are  created  a  Board  of  Classification  under 
Section  90  of  Chapter  108,  and,  as  such,  are  required  to  fix  the  prices 
for  all  products  furnished  to  State  departments  and  institutions  by  the 
Board  of  Prison  Industries. 

It  will  be  seen  that  the  Board  of  Prison  Industries  and,  particu- 
larly, the  Board  of  Classification  have  a  very  considerable  financial 
control  over  State  departments  and  institutions  in  that  such  depart- 
ments must  buy  supplies  from  the  Board  of  Prison  Industries  at  the 
prices  fixed  by  the  Board  of  Classification.  The  only  share  of  the 
Auditor  of  Public  Accounts  in  this  financial  control  comes  in  the  fact 
that  he  is  ex  officio  a  member  of  the  Board  of  Classification,  and  that, 
under  Section  90  of  Chapter  108,  he  is  required  to  devise  and  furnish 
a  proper  system  of  accounts  for  the  transactions  of  the  I'oard  of 
Prison  Industries. 


REPORT  ON  ACCOUNTS.  205 

Auditing  Pozvers  of  the  State  Architect. 

Under  Sections  13  to  17  inclusive,  of  Chapter  10a  of  the  Revised 
Statutes,  the  Governor  is  empowered  to  appoint  a  State  Architect  of 
Public  Buildings  and  Improvements.  All  State  departments  and  in- 
stitutions are  required  to  avail  themselves  of  the  services  of  the  State 
Architect  in  the  preparation  of  plans  for  new  buildings  and  in  the 
supervision  of  the  construction  of  all  public  buildings  and  works.  For 
this  service,  the  departments  and  institutions  are  required  to  pay  to  the 
State  x\rchitect  a  commission  of  two  and  one-half  per  cent  of  the  cost 
of  the  work. 

Nothing  is  said  in  the  sections  creating  the  office  of  State  Architect 
and  defining  the  duties  of  that  officer  as  to  his  auditing  powers.  It  is 
the  evident  intent  of  the  law,  however,  that  the  State  Architect  shall 
be  responsible  for  the  honesty  and  efficiency  of  the  plans  and  the  con- 
struction work  on  public  buildings.  While  the  Auditor  of  Public  Ac- 
counts remains  the  financial  auditor  in  connection  with  the  payment 
of  bills  on  account  of  the  construction  of  public  buildings,  it  would 
seem  that  the  State  Architect  bears  the  responsibility  as  to  the  actual 
worth  of  the  materials  and  services  represented  by  such  bills. 

The  Court  of  Claims. 

All  claims  disputed  by  the  officers  in  charge  of  executive  depart- 
ments and  State  institutions,  or  disallowed  by  the  State  Auditor  may 
be  brought  for  final  adjudication  before  a  Court  of  Claims  created  by 
Sections  331  to  341  inclusive,  of  Chapter  37  of  the  Revised  Statutes. 
This  Court  of  Claims  consists  of  three  judges  appointed  by  the  Gov- 
ernor. The  Auditor  of  Public  Accounts  is  ex  officio  clerk  of  this  court. 
Claims  allowed  by  the  Court  are  reported  by  the  Auditor  to  the  Gov- 
ernor, and  by  the  Governor  to  the  General  Assembly.  The  General 
Assembly  may  or  may  not  make  appropriations  covering  such  adjudica- 
tions. The  action.of  the  Court  of  Claims  is  final  so  far  as  the  claimant 
is  concerned. 

A  bill  disallowed  by  the  State  Auditor  may,  therefore,  be  brought 
before  the  Court  of  Claims  and  the  Court  of  Claims  by  adjudication 
may  bring  the  bill  with  their  endorsement  to  the  General  Assembly. 
The  supreme  and  final  auditing  power  in  the  State,  therefore,  rests 
with  the  Legislature.  For  all  practical  purposes,  the  Auditor  of  Public 
Accounts  may  be  considered  as  the  final  auditor.  Bills  disallowed  by 
him,  because  of  their  illegitimate  or  illegal  character,  will  seldom  be 
revised  before  a  Court  of  Claims  of  which  the  Auditor  is  ex  officio 
clerk.  The  legislative  intent  in  creating  the  Court  of  Claims  seems  to 
have  been  the  provision  of  a  judicial  body  for  the  settlement  of  ex- 
traordinary claims,  such  as  claims  for  personal  injuries  alleged  to  have 
been  received  in  the  public  service  of  the  State. 

D.      ACCOUNTS  AND  ACCOUNTING  PROCEDURE  IN  THE  OFFICE  OF  THE 
STATE  AUDITOR. 

1.     Revenue  Procedure  and  Auditing. 
The  Auditor  of  Public  Accounts  and  the  State  Board  of  Fqualiza- 
tion,  of  which  the  Auditor  is  usually  chairman,  maintain  a  compre- 


206  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

hensive  procedure  in  the  determination  of  valuations  for  the  purpose 
of  State  taxation.     A  description  of  that  procedure  is  not  given  here. 

Accounting  for  the  Collection  of  State  Taxes. 

The  county  clerk  of  each  county  in  the  State  is  required  to  make 
an  annual  report  of  the  total  valuation  of  property  listed  for  taxation 
in  his  county,  and  of  the  taxes  charged  thereon,  including  taxes  due  for 
previous  years.  The  form  of  this  report  is  prescribed  by  the  State 
Auditor.  (See  form  1.)^  This  statement  of  valuation  and  taxes  is 
made  up  by  the  county  clerk  from  the  report  of  equalized  valuation 
made  out  by  the  State  Board  of  Equalization.  The  report  of  the  State 
Board  of  Equalization  is  based  upon  the  local  assessments  as  corrected 
by  the  County  Board  of  Review.  The  amount  due  from  the  county  on 
taxes  is  computed  by  the  county  clerk  by  applying  the  State  rates 
fixed  by  the  Board  of  Equalization  to  the  valuations  agreed  upon  by 
the  State  Board  of  Equalization.  The  county  clerk  is  notified  of 
the  rate  of  taxation  on  account  of  general  State  purposes,  State  school 
purposes,  and  the  University  of  Illinois  Mill  Tax  Fund,  by  a  circular 
letter  sent  out  by  the  State  Auditor.     (See  form  2.) 

The  valuation  and  taxes  reported  by  county  clerks  are  entered  by 
the  revenue  clerk  in  the  office  of  the  State  Auditor  in  a  bound  book 
entitled  "revenue  book  by  collectors  of  counties."  This  book  has  the 
following  columns : 

/.     Date 
,   2.     Item 
J.     Valuation 

4.  Revenue 

5.  School 

6.  University 

7.  Total 

The  "revenue  book"  has  the  same  columns  on  both  th.e  debit  and  credit 
sides. 

When  taxes  have  been  received  by  the  county  treasurer  (who  is 
ex  officio  county  collector),  they  are  paid  into  the  county  treasury  and 
the  county  treasurer  comes  to  the  office  of  the  State  Auditor  in  person 
for  the  purpose  of  making  tax  settlement.  The  county  treasurer  brings 
with  him  a  statement  of  the  account  of  the  county  collector.  (See 
form  3.)  This  statement  on  the  debit  side  gives  the  same  information 
as  to  taxes  receivable  as  is  contained  in  the  report  of  the  cmmty  clerk 
shown  in  form  1,  and  as  has  been  posted  in  the  debit  side  of  the  account 
of  the  county  in  the  "revenue  book."  The  county  collector's  statement 
shows  on  the  credit  side  the  taxes  collected  and  paid  into  the  county 
treasury.  After  the  information  given  in  form  3  by  the  county  col- 
lector has  been  compared  with  the  information  given  in  form  1  by  the 
county  clerk,  a  settlement  is  made  and  the  revenue  clerk  in  the  office 
of  the  State  Auditor  makes  out  an  order  directing  the  State  Treasurer 
to  receive  the  tax  moneys  from  the  county  collector.  (See  form  4.) 
From  this  order  and  from  the  settlement  made  as  shown  on  form  3  as 
to  errors  on  real  property,  insolvencies  and  removals  on  personal  prop- 
zForm  numbers  are  those  of  the  writer. 


REPORT  ON  ACCOUNTS.  207 

erty,  collector's  commission,  and  collector's  mileage,  items  are  credited 
by  the  revenue  clerk  on  the  credit  side  of  the  account  maintained  as 
to  each  county  collector  in  the  "revenue  book." 

It  will  be  seen  that  the  "revenue  book"  shows  on  the  debit  side 
the  assessed  taxes  charged  to  the  county  collector,  and  shows  on  the 
credit  side  the  manner  in  which  the  county  collector  has  met  this  re- 
sponsibility, either  by  handing  over  cash,  or  by  a  statement  of  errors, 
insolvencies,  taxes  in  arrears,  commissions,  and  mileage.  The  "revenue 
book"  is,  therefore,  of  great  importance.  It  will  be  seen  later  that  it 
is  possible  to  audit  the  "revenue  book"  by  comparing  postings  made  to 
the  account  with  a  county  collector  with  the  account  kept  for  the  county 
in  the  "revenue  ledger". 
Accounting  for  the  Collection  of  Inheritance  Taxes. 

Inheritance  taxes  are  collected  by  county  treasurers  and  are  paid 
by  them  into  the  State  treasury  through  the  oiiface  of  the  State  Auditor. 
The  county  treasurer  is  required  to  turn  over  the  full  amount  collected 
to  the  State  Treasurer,  less  appraiser's  fees,  fees  of  county  clerks,  and 
such  other  expenses  as  may  be  certified  to  as  reasonable  by  the  county 
judge. 

On  the  1st  Monday  of  March  and  of  September  of  each  year,  the 
treasurer  of  each  county  is  required  to  report  under  oath  the  amount 
of  inheritance  tax  collections.  (See  form  5.)  The  money  collected 
must  be  turned  over,  however,  as  soon  as  it  is  received  by  the  county 
treasurer.  The  duplicate  of  the  tax  receipt  issued  by  the  county  treas- 
urer must  be  counter-signed  by  the  State  Treasurer.     (See  form  6.) 

When  the  county  treasurer  turns  over  taxes  collected  under  the 
Inheritance  Tax  Law,  an  order  is  made  out  by  the  revenue  clerk  in 
the  office  of  the  State  Auditor  directing  the  State  Treasurer  to  receive 
the  money.  This  order  is  posted  by  the  revenue  clerk  to  a  book  en- 
titled "account  of  receipts  into  the  treasury"  and  from  there  to  a 
"revenue  ledger." 
Collection  of  Revenue  Other  Than  from  Taxes. 

Revenue  is  paid  inio  the  State  treasury  through  the  office  of  the 
State  Auditor  on  account  of  license  fees,  receipts  from  the  sale  of 
public  property,  and  miscellaneous  receipts.  Such  moneys  usually 
come  to  the  office  of  the  State  Auditor  or  to  the  office  of  the  State 
Treasurer,  accompanied  by  a  voucher  of  the  department  making  the 
collection.  These  vouchers  vary  in  form  according  to  the  nature  of 
the  receipts  transmitted.  The  revenue  voucher  forms  used  for  mis- 
cellaneous purposes  are  designed  by  the  departments  making  the  col- 
lections, and  sometimes  consist  only  of  typewritten  letters  referring 
to  a  draft  enclosed  and  the  character  of  revenue  that  the  draft  covers. 
Under  strict  legal  procedure,  all  such  revenue  should  come  directly  to 
the  State  Auditor.  Some  of  them,  however,  are  mailed  to  the  office 
of  the  State  Treasurer.  In  either  case,  the  State  Auditor  makes  an 
order  upon  the  State  Treasurer  directing  him  to  receive  such  revenue 
and  credit  it  to  the  revenue  fund  of  the  State.  (See  form  7.) 
"Receipt  Book"  and  "Receipt  Ledger." 

All  moneys  are  received  into  the  State  treasury  on  orders  signed 
by  the  Auditor  of  Public  Accounts.    These  orders  are  issued  in  dupli- 


208  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

cate,  and  from  the  duplicates  the  revenue  clerk  in  the  office  of  the 
State  Auditor  posts  to  a  book  entitled  "account  of  receipts  into  State 
treasury."     This  book  has  the   following  columns : 

1.  Date. 

2.  Number  (of  order). 

3.  From  whom. 

4.  County. 

5.  Years  tax. 

6.  Ledger  page. 

7.  From  what  bond  fund. 

8.  Revenue. 

9.  School. 

10.  University. 

11.  Special. 

12.  Sinking  fund. 

13.  Local  bond  funds. 

14.  Total. 

The  entries  in  the  "receipt  book"  are  chronological  entries,  i.  e., 
entries  are  made  according  to  the  consecutive  numbers  on  receipt 
orders.  The  total  in  the  "total"  column  for  any  day,  week  or  month 
should  show  the  receipts  into  the  State  treasury^  for  that  day,  week  or 
month.  The  total  of  the  columns  headed  "revenue,"  "school,"  and 
"university"  should  agree  with  the  total  of  the  credit  columns  simi- 
larly headed  in  the  "revenue  book  by  collectors  of  counties."  It  will 
be  remembered  that  the  "revenue  book  by  collectors  of  counties"  con- 
tains an  account  for  the  collector  of  each  county.  By  taking  a  trial 
balance  of  the  "revenue,"  "school"  and  "university"  credits  in  the 
accounts  in  the  "revenue  book,"  it  should  be  possible  for  an  expert  book- 
keeper to  get  the  same  totals  as  appear  in  the  "revenue,"  "school,"  and 
"university"  columns  in  the  book  entitled  "account  of  receipts  into  State 
treasury."  While  this  would  be  a  laborious  process,  it  is  mentioned 
here  to  show  the  adequacy  of  the  present  records  from  the  bookkeeping 
standpoint. 

Each  order  is  posted  into  the  book  entitled  "account  of  receipts 
into  State  treasury."  The  entries  there  are  posted  into  "revenue 
ledgers."  All  the  entries  are  posted  into  a  cash  account  and  then  are 
posted  a  second  time  into  accounts  with  each  fund.  The  totaf  of  the 
postings  into  fund  accounts  will  equal,  of  course,  the  total  of  the  post- 
ings into  the  cash  account. 

Auditing  of  Receipts. 

The  procedure  described  provides  for  an  audit  of  receipts  derived 
Equalization. 

Receipts  derived  from  inheritance  taxes  are  audited  so  as  to  strike 
out  any  deductions  on  account  of  the  expenses  of  the  county  treasurer 
as  the  collector  of  such  inheritance  taxes  not  specifically  allowed  by  the 
provisions  of  the  Inheritance  Tax  Law. 

It  must  be  admitted  that  the  procedure  described  does  not  provide 
in  itself  an  adequate  auditing  machinery  as  to  the  moneys  collected 
by  various  State  departments  and  institutions  on  account  of  licenses, 


REPORT  ON  ACCOUNTS.  209 

fines,  fees,  departmental  sales,  and  the  like.  The  Legislature  of  1913, 
however,  provided"  a  special  appropriation  of  ten  thousand  dollars 
($10,000)  for  the  State  Auditor  to  enable  him  to  employ  professional 
accountants  to  audit  the  original  records  in  the  various  fee  collecting 
offices  of  the  State. 

Cash  Audits. 

The  Accounts  of  the  State  Auditor  are  periodically  reconciled  with 
the  accounts  of  the  State  Treasurer.  This  reconciliation  affords  a 
rather  complete  check  on  the  actual  cash  receipts  and  disbursements 
of  the  State  Treasurer.  The  procedure  will  be  described  in  connection 
with  the  accounting  procedure  of  the  office  of  the  State  Treasurer. 

2.  Disbursement  Procedure  and  Auditing. 

The  appropriation  laws  passed  by  the  General  Assembly  com- 
monly provide  that  the  State  Auditor  shall  draw  his  warrant  upon  the 
State  Treasurer  in  the  payment  of  bills  incurred  by  the  various  execu- 
tive officers,  State  departments  and  State  institutions,  upon  receipt  and 
audit  by  the  State  Auditor  of  vouchers  certified  to  as  correct  by  the 
executive  officers,  .heads  of  the  State  departments,  or  officers  of  the 
State  institutions. 

The  first  step,  then,  in  the  payment  of  money  from  the  State 
treasury  is  taken  in  the  office  of  the  department  that  has  incurred  the 
expense  that  is  to  be  paid.  The  officer  in  charge  of  the  department,  or 
officer  of  the  board  of  trustees  in  charge  of  an  institution,  prepares  a 
voucher  showing  the  items  to  be  paid  in  detail  and  certify  to  these 
items  as  correct.  The  various  State  officers,  department  heads,  and 
institutional  officers  have  devised  forms  of  vouchers  that  in  their 
opinions  are  suitable  for  their  several  interests.  These  vouchers  are 
not  uniform  in  size  or  character,  and  there  appears  to  be  no  uniformity 
in  the  detail  that  the  vouchers  bear.  The  vouchers  used  by  the  Board  of 
Trustees  of  the  University  of  Illinois,  samples  of  which  are  submitted 
herewith,  will  serve  to  illustrate  the  form  in  which  bills  commonly 
come  to  the  attention  of  the  office  of  the  State  Auditor. 

All  vouchers  are  received  by  the  chief  warrant  clerk  or  the  assistant 
chief  warrant  clerk,  who  audits  the  vouchers  to  make  certain  that  they 
bear  the  signatures  of  officers  as  required  in  appropriation  Acts,  and 
that  the  itemized  accounts  upon  these  present  legitimate  charges  in 
proper  form.  It  devolves  upon  these  warrant  clerks  to  see  that  each 
voucher  is  charged  against  a  proper  appropriation,  and  that  no  voucher 
is  passed  against  an  appropriation  in  excess  of  the  amount  appropriated. 
The  warrant  clerks  obtain  this  information  by  inspection  of  the  appro- 
priation ledger,  or  warrant  ledger,  which  will  be  described  later. 

If,  all  the  requirements  are  complied  with,  the  vouchers  are 
stamped  as  being  filed  in  the  office  of  the  Auditor  of  Public  Accounts 
as  of  that  date,  and  the  vouchers  are  then  distributed  among  the  warrant 
clerks,  who  proceed  to  draw  warrants  in  payment  of  the  vouchers. 

If  there  are  a  number  of  vouchers  chargeable  to  the  same  appro- 
priation, or  to  the  appropriations  made  by  the  General  Assembly  to  the 
same  department  or  institution,  they  are  compiled  on  a  "list  of  war- 
rants" form.     (See  form  8.)     This  form  shows  the  number  of  the 


210  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

warrant,  to  whom  issued,  the  amount  of  the  warrant,  and  to  whom  the 
warrant  is  to  be  mailed.  At  the  top  of  the  form  the  total  amount  of 
the  vouchers  listed  is  distributed  as  a  charge  against  one  or  more 
appropriations.  The  vouchers  and  warrants,  together  with  the  lists, 
are  then  turned  over  to  one  of  the  warrant  clerks,  who  numbers  each 
voucher  and  the  warrant  made  out  for  its  payment  with  the  same 
number.  The  warrant  is  then  entered  in  a  book  known  as  the  "entry 
clerk's  record  book."  This  book  shows  a  chronological  record  of 
warrants  issued,  the  amount  of  the  warrant,  and  the  appropriation 
against  which  it  is  to  be  charged.  The  "entry  clerk's  record  book"  is 
later  used  as  a  posting  medium  for  the  "warrant  ledger,"  the  appropria- 
tion ledger. 

The  warrants  and  vouchers  are  then  handed  to  the  "journal  clerk," 
who  makes  a  full  record  of  the  warrant  on  a  form  known  as  "warrant 
journal."     (See  form  9.)     This  form  has  the  following  columns: 

1.  Ledger  page. 

2.  Date. 

3.  Number  of  warrant. 

4.  To  whom  issued. 

5.  For  what  issued. 

6.  Appropriation  purpose. 

7.  Appropriation  amount. 

8.  Total. 

9.  Received,  or  mailed  to. 

This  "warrant  journal"  is  the  official  posting  medium  for  the  appro- 
priation ledger.  Where  warrants  are  handed  out  over  the  counter  to 
clalimants,  they  are  required  to  receipt  for  the  warrant  in  the  column 
provided  for  that  purpose.  Nearly  all  warrants  are  mailed,  however, 
and  the  place  to  which  the  warrant  is  mailed  is  indicated  in  the  column 
so  headed. 

The  journal  clerk  makes  a  comparison  of  voiKher  and  warrant  to 
make  sure  that  the  correct  number  appears  on  each.  The  vouchers 
are  then  folded  and  backed  and  are  filed  in  the  vault  consecutively  by 
numbers  in  document  files.  This  inconvenient  method  of  filing  seems 
to  be  made  necessary  by  the  various  sizes  of  vouchers  used  by  various 
departments  and  institutions.  After  the  warrants  and  vouchers  have 
been  compared,  the  warrants  are  sent  to  the  State  Treasurer  to  be 
counter-signed. 

The  State  Treasurer  countersigns  the  warrants  and  registers  them. 
They  are  then  returned  by  the  State  Treasurer  to  the  office  of  the 
State  Auditor.  The  journal  clerk  sorts  out  such  warrants  as  are  to  be 
handled  over  the  countel-  and  places  them  in  a  box  properly  indexed  for 
prompt  distribution.  The  vouchers  to  be  mailed  out  are  turned  over  to 
the  mail  clerk,  who  mails  them  in  envelopes  that  have  been  addressed 
by  the  warrant  clerks  at  the  same  time  that  the  warrants  were  type- 
written. 
Appropriation  Ledgers. 

The  "warrant  journal"  and  the  "entry  clerk's  record  book"  give 
practically  the   same   information    and   are   used    in   making  charges 


REPORT  ON  ACCOUNTS.  211 

against  various  funds  in  the  appropriation  ledger.  In  the  appropria- 
tion ledger,  an  account  is  kept  with  each  appropriation  made  by  the 
General  Assembly,  The  appropriation  ledger  is  known  as  the  "warrant 
ledger"  and  has  the  following  columns : 

1.  Date. 

2.  Number  of  warrant. 

3.  To  whom  issued. 

4.  For  what  issued. 

5  to  17,  inclusive.     Appropriation  columns. 
18.     Total. 
Three  appropriation  ledgers  are  maintained.    One  appropriation  ledger 
contains  only  the  accounts  administered  by  the  State  Board  of  Admin- 
istration. 

,  It  will  be  noted  that  thirteen  (13)  appropriation  columns  are 
provided  in  the  appropriation  ledger  ("warrant  ledger").  These 
columns  make  it  possible  to  keep  all  of  the  appropriation  accounts  with 
one  institution  or  department  on  one  double  page,  since  it  seldom 
occurs  that  a  single  department  or  institution  has  more  than  thirteen 
appropriations. 

At  the  beginning  of  each  year,  the  amounts  of  appropriations  are 
entered  at  the  head  of  appropriation  columns.  Balances  are  obtained 
from  time  to  time  by  subtracting  the  total  of  charges  made  against  an 
appropriation  from  the  amount  of  the  appropriation.  Such  balances 
are  frequently  indicated  in  red  ink.  If  any  balance  remains  unspent  at 
the  end  of  the  first  quarter  following  the  adjournment  of  the  next 
General  Assembly  after  that  of  the  General  Assembly  making  the 
appropriation,  such  balances  are  "lapsed"  by  red  ink  entries  indicating 
the  expiration  of  the  appropriation  period. 

Auditing  of  Disbursements. 

The  first  auditing  officers  with  respect  to  disbttrsements  are  the 
officers  in  charge  of  executive  departments,  or  of  institutions,  whose 
duty  it  is  to  certify  vouchers  to  the  State  Auditor  for  payment.  While 
this  certification  may  be  considered  to  be  an  administrative  act  rather 
than  an  audit,  there  is  much  evidence  to  show  that  the  officers  in  charge 
of  the  larger  departments  and  institutions  audit  bills  carefully.  These 
officers,  in  fact,  are  the  only  officers  who  can  certifv  as  to  the  quantity 
and  quality  of  the  materials  received,  and  the  length  and  quality  of  the 
services  rendered. 

Bills  and  pay  rolls  coming  from  the  executive  departments  of  the 
State  are  audited  in  the  office  of  the  Governor  by  the  institutional 
auditor.  In  several  important  particulars,  the  institutional  auditor 
bears  the  same  auditing  relatinnship  to  such  departments  n'^  that  of  the 
Attorney  General,  as  does  the  fiscal  supervisor  of  the  Board  of  Admin- 
istration to  that  board,  and  the  comptroller  of  the  Board  of  Trustees 
of  the  University  to  the  University. 

The  Auditor  of  Public  Accounts,  as  an  auditor  of  disbursements, 
is  concerned  primarily  with  the  auditing  of  bills  as  charges  ag^ainst 
appropriations.  The  Auditor  of  Public  Accounts  may  be  said  to  be  the 
auditing  officer  whose  duty  it  is  to  enforce  the  intent  of  the  T.egisla- 


212  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

ture  in  making  an  appropriation  for  a  specific  purpose.  The  office  of 
the  Auditor  of  PubHc  Accounts  is  apparently  alive  to  its  responsibilities 
as  to  appropriation  charges,  and  the  procedure  in  the  office  of  the 
Auditor  of  Public  Accounts  is  adequate  to  protect  the  State  against 
misappropriation  of  funds. 

The  Auditor  of  Public  Accounts  has  a  second  important  auditing 
function  in  the  reconciliation  that  is  made  between  the  books  of  the 
State  Auditor  and  the  books  of  the  State  Treasurer.  It  is  the  duty  of 
the  Auditor  to  safeguard  the  State  with  respect  to  the  methods 
employed  in  the  payment  of  moneys.  From  examination  of  the  pro- 
cedure employed  in  the  office  of  the  Auditor  of  Public  Accounts,  it  is 
evident  that  a  constant  audit  is  exercised  over  the  methods  employed  in 
paying  out  State  money. 

While  the  Auditor  of  Public  Accounts  is  charged  by  law  with  the 
final  audit  of  disbursements  in  all  the  various  aspects  that  such  a  final 
audit  may  assume,  the  practice  seems  to  be  for  the  Auditor  to  rely  upon 
several  agencies  in  several  important  auditing  respects. 

It  has  already  been  noted  that  the  Auditor  relies  upon  the  heads  of 
departments  and  institutions  for  the  auditing  of  materials  received, 
both  as  to  quality  and  quantity.  On  several  occasions,  the  State  Auditor 
of  PubHc  Accounts  has  employed  professional  accountants  to  examine 
the  records  of  departments  and  institutions  as  to  the  accuracy  of  such 
local  audits. 

The  Auditor  relies  upon  the  Secretary  of  State,  the  State  Board 
of  Contracts,  and  the  Printer  Expert  as  to  the  auditing  of  the  purchase 
and  distribution  of  fuel,  stationery,  printing  and  office  supplies  to  the 
departments  housed  at  Springfield.  The  tenor  of  present  statutes 
practically  makes  necessary  the  reliance  of  the  Auditor  upon  the  Printer 
Expert  as  to  State  printing,  and  the  reliance  of  the  Auditor  upon  the 
Secretary  of  State  as  to  the  distribution  of  office  supplies  to  State 
departments  located  at  Springfield. 

The  Auditor*  of  Public  Accounts  relies  upon  the  institutional 
auditor  in  the  office  of  the  Governor  as  to  the  auditing  of  the  pay  rolls 
of  executive  departments,  and  upon  the  Civil  Service  Commission  a-^ 
to  the  auditing  of  the  pay  rolls  of  employees  under  the  classified  civil 
service.  Pay  rolls  under  the  classified  civil  service  are  sent  by  denart- 
ments  and  institutions  directly  to  the  Civil  Service  Commission  and  are 
transmitted  by  the  secretary  of  th'e  Civil  Service  Commission  to  the 
State  Auditor  with  the  following  certificate  attached : 

"Springfield 

"I  hereby  certify  that  the  persons  named  in  the  attached  pay  roll  or 

voucher  of  the for  the  month   of containing 

names,  of  which are  exempt,  have  been 

appointed  or  promoted  to  or  employed  in  the  position?  or  phces  and  at  the 
rates  of  compensation  indicated  in  pursuance  of  Civil  Service  Law  and  the 
rules  made  in  pursuance  thereof  as  shown  by  the  official  roster. 

Secretary  Civil  Service  Commission. 
(Form  10) 

The  entries  as  to  pay  rolls  made  in  the  "warrant  journal"  and  "warrant 
ledger"  in  the  office  of  the  Auditor  contain  no  reference  to  the  Civil 
Service  Laws,  excepting  perhaps  in  particular  cases. 


REPORT  ON  ACCOUNTS.  213 

The  Auditor  relies  upon  the  Board  of  Prison  Industries  for  the 
enforcement  of  the  statutory  provisions  requiring  State  departments 
and  institutions  to  purchase  such  supplies  as  the  Board  of  Prison 
Industries  may  manufacture.  It  is  customary  for  many  of  the  State 
institutions  to  obtain  "releases"  from  the  Board  of  Prison  Industries 
on  certain  articles  manufactured  by  that  Board  which  the  institutions 
desire  to  purchase  from  the  open  market.  The  numbers  of  such 
"releases"  are  usually  entered  on  the  face  of  the  vouchers  made  out  by 
the  institutions  in  question  to  the  open  market  vendor.  The  entries 
in  the  "v^^arrant  journal"  and  "warrant  ledger"  in  the  office  of  the 
Auditor  of  Public  Accounts  contain  no-  reference  to  the  procedure  as  to, 
or  the  number  of,  such  "releases." 

Apparently  the  Auditor  of  Public  Accounts  relies  upon  the  State 
Architect  for  the  inspection  and  supervision  of  buildings  and  works 
under  construction.  No  procedure  has  been  established  to  indicate  in 
the  records  of  the  State  Auditor  that  the  State  Architect  has  accepted 
buildings  and  works,  or  parts  of  the  constructions  thereon,  at  the  time 
that  payments  are  made  to  contractors.  The  bills  of  the  State  Architect 
for  the  two  and  one-half  per  cent  commission  allowed  to  him  under 
State  law  are  handled  in  the  same  manner  as  other  vouchers. 

It  will  be  seen  that  the  office  of  the  State  Auditor  confines  its 
audit  as  to  disbursements  in  the  great  majority  of  cases  to  an  audit  of 
the  appropriation  charge  and  to  an  audit  of  the  methods  employed  in 
the  payment  of  money.  Indirectly,  the  office  of  the  Auditor  exercises 
a  very  considerable  and  beneficial  influence  towards  close  scrutinv  of 
vouchers  and  pay  rolls  by  departmental  and  institutional  officers.  This 
influence  is  actively  exercised  from  time  to  time  and  at  least  once 
during  each  biennium  by  the  employment  of  professional  accountants  to 
examine  the  records  kept  in  departments  and  at  institutions,  and  tn 
make  suggestions  to.  the  State  Auditor  as  to  possible  improvements  in 
such  records. 

J.    Classification  of  Receipt  and  Dishitrscmcnt  Accounts. 

The  revenue  accounts  in  the  office  of  the  State  Atiditor  are  classi- 
fied so  as  to  distinguish  between  receipts  from  (1)  State  taxes  on  real 
and  personal  property;  (2)  State  inheritance  taxes;  (3)  collections 
by  departments  and  institutions  on  account  of  fees,  sales,  etc.  Re- 
ceipts on  account  of  State  taxes  are  further  classified  as  between : 

a.  General  revenue  fund. 

b.  State  school  fund. 

c.  University  mill  tax  fund. 

d.  Special  (other)  funds. 

A  separate  account  is  maintained  with  each  collector.  This  pro- 
vides a  classification  of  State  taxes  by  counties.  A  similar  classification 
is  provided  for  inheritance  taxes  by  counties.  Miscellaneous  receipts 
on  account  of  fees,  sales,  and  the  like,  are  classified  simply  by  the 
names  of  the  departments  and  institutions  making  the  collections. 

Certain  data  as  to  receipts  credited  to  the  general  revenue  fund 
is  abstracted  in  the  form  of  statistical  statements.  Such  statements 
may  be  considered  as  accounts.    An  example  of  such  data  is  the  state- 


214  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

nient  filed  in  the  office  of  the  State  Auditor  as  to  the  condition  of  the 
endowment  fund  of  the  University  of  Illinois.  Other  financial  state- 
ments are  prepared  for  the  use  of  the  General  Assembly  and  of  vari- 
ous State  officers,  and  copies  of  such  statements  are  to  be  found  on 
file.  A  typical  statement  of  this  character  is  the  "List  of  Claims 
Against  the  State  of  Illinois"  filed  with  the  Auditor  of  Public  Ac- 
counts, considered  by  the  Court  of  Claims  at  its  session  of  1908  and 
1909. 

The  disbursement  accounts  maintained  by  the  xA.uditor  of  Public 
Accounts  are  classified  as  to  State  funds,  i.  e.,  the  general  revenue 
fund,  the  State  school  fund,  the  University  mill  tax  fund,  etc.  Dis- 
bursements are  further  classified  under  these  funds  as  to  appropri- 
ation accounts.  It  has  been  noted  that  the  "warrant  ledger"  is  so 
arranged  as  to  show  all  of  the  appropriations  made  to  a  department 
or  institution  on  a  single  double  page.  By  these  means,  the  dis- 
bursements on  account  of  any  institution  are  shown  in  one  place  in 
the  appropriation  ledger  and  it  may  be  considered  that  the  Auditor 
of  Public  Accounts  maintains  a  classification  of  disbursements  by 
departments  and  institutions.  This  latter  classification  is  quite  in- 
complete as  to  many  of  the  departments,  for  the  reason  that  a  large 
number  of  departments  receive  supplies,  fuel,  and  other  maintenance 
through  appropriations  made  to  the  Secretary  of  State  and  to  the 
State  Board  of  Contracts.  An  incomplete  system  of  accounts  show- 
ing the  distribution  of  such  supplies  and  maintenance  items  is  main- 
tained in  the  office  of  the  Secretary  of  State,  and,  if  taken  in  connec- 
tion with  the  accounts  maintained  in  the  State  Auditor's  office,  can 
be  made  to  provide  a  classification  of  disbursements  by  departments 
for  the  executive  departments  concerned. 

4.     Perpetual  Inventory. 

A  very  interesting  law  was  passed  by  the  General  Assembly  of 
1913,  requiring  officers  in  charge  of  departments  and  institutions  to 
make  inventory  reports  to  the  State  Auditor  of  Public  Accounts.  (See 
page  6,  Session  Laws  of  1913.) 

The  Auditor  of  Public  Accounts  was  given  an  appropriation  of 
$6,500  for  extra  assistants  in  enforcing  this  law.  (P.  7,  Session 
Laws,  1913.)  This  law  required  every  officer,  board,  commission,  de- 
partment, and  institution  of  the  State  government,  except  the  Board 
of  Administration,  to  file  with  the  Auditor  of  Public  Accounts,  on  or 
before  September  1,  1913,  "an  inventory  of  all  of  the  property,  both 
real  and  personal,  belonging  to  the  State  of  Illinois  under  the  charge, 
care,  management,  custody  or  control  of  said  officer,  board,  commis- 
sion, department  and  institution  of  the  State  government  respectively. 

"Such  inventorv  shall  contain  a  true  and  correct  legal  <lescription 
of  the  real  estate  under  the  care,  custody  or  control  of  such  officer, 
board,  commission,  department  and  institution,  and  shall  contain  a  true 
and  correct  description  of  all  the  buildings  and  other  improvements 
situated  on  such  real  estate,  together  with  a  statement  as  to  the  value 
of  such  real  estate  and  improvements. 


REPORT  ON  ACCOUNTS.  215 

"Such  inventory  as  to  personal  property  shall  contain  an  item- 
ized statement  of  all  the  personal  property  under  the  care,  custody, 
control  and  management  of  such  officer,  board,  commission,  depart- 
ment, and  institution  respectively,  together  with  the  value  of  same." 

This  inventory  requirement  was  very  onerous.  It  is  presumed  that 
the  State  Board  of  Administration  was  omitted  from  the  inventory 
requirement  because  of  the  inventory  system  maintained  in  the  office 
of  that  board  at  Springfield.  It  is  understood  that  all  other  agencies 
of  the  State  made  some  attempt  to  comply  with  the  requirement.  Their 
reports  were  received  and  placed  on  file  in  the  office  of  the  State 
Auditor,  but  the  appropriation  made  to  the  Auditor  was  inadequate 
to  provide  him  with  the  necessary  assistants  needed  in  the  proper 
compilation  of  such  reports  in  the  form  of  a  complete  State  inventory. 

The  law  of  1913  provided  also  that  all  departments  and  institu- 
tions should  make  an  inventory  report  every  ten  days  to  the  Auditor 
of  Public  Accounts,  containing  a  list  of  all  property  of  every  kind  ac- 
quired, destroyed,  or  disposed  of,  since  the  time  of  the  last  report, 
together  with  a  statement  as  to  the  value  of  the  same.  It  is  understood 
that  this  requirement  has  been  disregarded  for  the  most  part.  The 
office  of  the  Auditor  of  Public  Accounts  is  not  adequately  manned  to 
take  care  of  the  great  mass  of  detail  that  such  reports  would  furnish. 
Moreover,  the  law  is  so  broad  in  its  requirements  as  to  make  its  ful- 
fillment a  matter  of  the  greatest  practical  difficulty.  For  example, 
the  officers  of  the  University  of  Illinois  have  not  been  able  to  devise  a 
method  under  which  they  could  report,  once  in  ten  days,  the  exact 
amount  of  supplies  consumed  in  that  institution  during  the  ten-day 
period. 

It  may  not  be  out  of  place  to  cite  this  inventory  law  as  an  exam- 
ple of  an  accounting  requirement  plausible  in  theory,  but  exceedingly 
impracticable  in  operation. 

5.     Reports. 

All  departments  and  institutions,  including  the  Auditor  of  Pub- 
lic Accounts,  are  required  to  make  a  biennial  report  to  the  Governor, 
giving  a  complete  statement  as  to  receipts  and  disbursements.  All 
departments  and  institutions  are  required  to  make  a  report  to  the 
Governor  as  to  receipts  and  disbursements,  at  the  close  of  each  six 
months  period,  on  April  1  and  October  1,  respectively.  These  reports 
are  received  by  the  institutional  auditor  in  the  office  of  the  Governor 
and  placed  on  file  for  the  information  of  the  Governor.  The  semi- 
annual reports  of  departments  and  institutions  are  accompanied  by 
lists  giving  the  name  of  each  person  from  whom  money  has  been 
received  and  the  name  of  the  person  to  whom  each  disbursement  has 
been  made  during  the  six  months  period. 

The  Auditor  of  Public  Accounts  has  access  to  the  reports  on  file 
in  the  office  of  the  Governor  and  they  constitute  a  valuable  auditing 
check  for  the  use  of  the  office  of  the  State  Auditor  in  connection  with 
particular  cases  of  alleged  misappropriation  or  fraud.  It  is  not  known 
to  what  extent  the  reports  on  file  in  the  office  of  the  Governor  are 
used  in  this  particular. 


216  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

The  Auditor  of  Public  Accounts  makes  a  report  at  the  close  of 
each  fiscal  biennium.  This  report,  for  the  most  part,  is  a  transcript 
of  the  ledgers  maintained  in  the  office  of  the  Auditor,  and  in  addition 
contains  numerous  tables  originally  compiled  for  the  use  of  the  Board 
of  Equalization.  A  feature  of  the  report  worthy  of  some  mention  is 
the  detailed  manner  in  which  receipts  into  funds  and  disbursements 
from  appropriations  are  described.  For  example,  the  first  statement 
in  the  report  is  a  "statement  of  receipts  and  disbursements  of  the  gen- 
eral revenue  fund."  The  statement  of  receipts  into  the  general  rev- 
enue fund  gives  a  detailed  list  of  miscellaneous  receipts  with  such  ex- 
planations as  "from  F.  W.  DeWolf,  Acting  Director  of  Geological 
Survey,  for  sale  of  bulletins,"  and  "from  John  B.  Jackson,  Anna,  net 
balance  due  State  from  ordinary  and  special  funds  of  Southern  Hos- 
pital for  the  Insane."  In  a  similar  way,  in  statement  number  three, 
a  list  of  disbursements  is  given,  classified  under  departments  by  appro- 
priation acts. 

The  biennial  report  of  the  office  of  the  Auditor  of  Public  Ac- 
counts gives  an  adequate  statement  of  the  accounts  maintained  in  that 
office. 

E.     ACCOUNTS    AND    ACCOUNTING    PROCEDURE    IN    THE    OFFICE    OF    THE 
STATE  TREASURER. 

The  office  of  the  State  Treasurer  is  concerned  with  the  keeping 
and  handling  of  cash.    It  is  not  an  auditing  office. 

Register  of  Warrants. 

Warrants  must  be  countersigned  by  the  State  Treasurer  before 
they  are  issued  by  the  State  Auditor.  At  the  time  that  warrants  are 
received  in  the  office  of  the  State  Treasurer  for  countersignature,  they 
are  registered  consecutively  by  numbers  in  a  "warrant  register."  This 
"warrant  register"  gives  the  date  and  number  of  the  warrant,  the 
name  of  the  payee,  and  the  amount.  The  "warrant  register"  main- 
tained by  the  State  Treasurer  is  checked  periodically  with  the  "war- 
rant journal"  maintained  in  the  office  of  the  State  Auditor. 

Accounting  for  Cash  Received. 

All  cash  received  into  the  State  treasury  is  officially  received  on 
an  order  issued  by  the  State  Auditor.  (See  form  4  as  an  illustration 
of  such  an  order.)  The  amount  received  is  posted  to  a  "cash  book" 
having  the  following  columns. 

1.  Date. 

2.  Order  number. 

3.  Description. 

4.  Items  amount. 

5.  Totals  amount. 

Receipts  are,  of  course,  posted  to  the  debit  side  of  the  "cash  book." 
The  office  of  the  State  Treasurer  makes  no  audit  as  to  moneys  re- 
ceived excepting  to  inquire  as  to  the  character  of  commercial  paper 
such  as  checks  and  drafts,  when  presented  as  a  payment  into  the 
treasury. 


REPORT  ON  ACCOUNTS.  217 

Accounting  Procedure  for  Disbursements. 

The  cashier  in  the  office  of  the  State  Treasurer  maintains  a  "cash 
book"  in  which  are  Hsted  canceled  warrants  as  they  are  received.  (See 
form  11.)  Canceled  warrants  usually  come  to  the  office  of  the  State 
Treasurer  from  banks.  It  is  customary  for  the  cashier  to  enter  war- 
rants received  from  a  given  bank  in  his  "cash  book"  in  a  group  of 
entries  with  the  name  of  the  bank  written  in  as  a  sub-headmg.  A 
separate  sheet  in  the  cashier's  "cash  book"  is  maintained  for  each 
day's  business.  This  enables  the  cashier  to  trace  the  total  paid  war- 
rants handed  to  him  by  any  bank  on  any  given  date.  The  cashier  also 
enters  in  his  "cash  book"  the  number  and  amount  of  any  warrant 
paid  by  him  over  the  counter. 

The  warrants  paid  and  canceled  on  each  day  are  also  entered  con- 
secutively by  numbers  on  an  adding  machine  form  bearing  the  heading 
"warrants  paid  and  canceled." 

1.  Number. 

2.  Amount. 

3.  Number. 

4.  Amount. 

5.  Number. 

6.  Amount. 

This  adding  machine  form  is  a  very  convenient  form.  It  is  made 
to  fit  into  a  loose-leaf  binder  as  a  permanent  record,  and  from  it  post- 
ings are  made  to  the  credit  side  of  the  "cash  book."  A  separate  "war- 
rants paid  and  canceled"  sheet  is  used  each  day  for  each  State  fund. 

The  total  amount  of  the  "warrants  paid  and  canceled"  sheet  for 
each  fund  is  posted  each  day  to  the  credit  side  of  the  "cash  book" 
with  the  explanation  "as  per  list." 

"Cash  Ledger." 

The  debits  and  credits  in  the  "cash  book"  are  posted  each  day  to 
a  "cash  ledger."  This  ledger  is  in  the  usual  ledger  form.  Accounts 
are  maintained  in  the  ledger  with  each  of  the  funds  of  the  State. 

Local  Bond  Cash  Transactions. 

Under  Chapter  113  of  the  Statutes,  the  various  municipal  cor- 
porations of  the  State  have  issued  the  bonds  of  such  corporations  to 
aid  in  such  local  improvements  as  the  building  of  railroads  and  other 
pubHc  utilities.  These  bonds  are  secured  by  special  taxes,  which  have 
been  collected  into  the  State  treasury  and  are  accounted  for  under 
what  is  known  as  the  "Local  Bond  Fund."  The  coupons  on  these 
bonds  are  usually  payable  semi-annually,  and  are  commonly  paid  by 
banks  throughout  the  State  upon  their  presentment  by  bondholders, 
although  such  coupons  are  also  honored  over  the  counter  of  the  State 
Treasurer.  As  the  amount  of  money  paid  to  any  one  holder  of  such 
bonds  is  usually  small,  a  convenient  procedure  has  grown  up  in  the 
office  of  the  State  Treasurer  for  the  handling  of  such  bond  trans- 
actions directly  by  the  Treasurer,  with  only  periodical  review  by  the 
State  Auditor. 


218  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

Coupons  paid  by  banks  are  mailed  by  them  to  the  office  of  the 
State  Treasurer  at  the  same  time  and  in  the  same  way  as  the  banks 
present  State  warrants  which  they  have  paid.  Such  coupons  paid  by 
banks  are  entered  by  the  cashier  in  his  ''cash  book."  (See  form  11.) 
The  cashier  also  enters  in  his  "cash  book"  payments  of  coupons  made 
by  him  over  the  counter. 

A  separate  cash  book  is  maintained  for  bond  transactions  known 
as  the  "daily  bond  cash  book."     It  has  the  following  columns : 

1.  Date. 

2.  Items. 

3.  Debit. 

4.  Credit. 

5.  Balance. 

In  this  "daily  bond  cash  book"  the  bond  taxes  transmitted  by  the 
County  Treasurer  are  debited  as  received.  Daily  payments  are  cred- 
ited by  items.  After  crediting-  daily  payments  by  coupon  numbers,  the 
coupons  paid  under  each  bond  issue  during  the  day  are  placed  in  small 
envelopes.  The  receipts  from  county  treasurers,  debited  in  the  "daily 
bond  cash  book,"  are  transferred  item  by  item  to  a  similar  cash  book 
known  as  "bond  cash  book  number  two."  The  form  of  this  cash 
book  is  the  same  as  that  of  the  "daily  bond  cash  book."  The  credits 
to  this  "bond  cash  book  number  two"  are  the  warrants  issued  periodi- 
cally by  the  Auditor.  From  time  to  time  the  Auditor,  or  his  repre- 
sentative, comes  to  the  office  of  the  Treasurer  and  draws  a  warrant 
covering  all  bond  coupon  payments  for  which  he  has  not  drawn  a 
warrant.  It  is  these  periodical  warrants  that  are  credited  in  the  "bond 
cash  book  number  two." 

It  will  be  seen  that  the  procedure  in  handling  the  payment  of 
local  improvement  bond  coupons  is  much  the  same  as  that  employed 
in  a  commercial  house  for  the  handling  of  petty  cash  items. 

During  the  period  in  which  coupon  payments  are  carried  on  the 
first  bond  cash  book  without  the  authority  of  the  State  Auditor's  war- 
rant, the  sum  of  such  payments  is  carried  in  the  reports  of  the  State 
Treasurer  as  an  asset  item  similar  to  cash  for  which  the  State  Treas- 
urer is  personally  responsible. 

The  State  Treasurer  is  in  efi"ect  the  auditor  of  the  payment  of 
registered  local  bond  coupons,  although  he  is  relieved  periodically  of 
his  responsibility  by  the  drawing  of  the  Auditor's  warrant.  The  State 
Treasurer  has  in  his  vault  a  file  of  local  improvement  bonds  indexed 
by  counties,  cities  and  towns.  The  office  of  the  State  Treasurer  also 
maintains  a  "bond  register."  A  page  of  this  "bond  register"  is  used 
for  each  bond  issue  of  each  county,  city  or  town.  The  register  gives 
such  information  as  the  name  of  the  municipal  corporation  issuing 
the  issue,  the  names  and  titles  of  the  officers  signing  the  bonds,  the 
place  where  the  bonds  are  payable,  the  total  amount  of  the  issue,  the 
date  of  the  issue,  the  due  date  of  the  issue,  the  interest  rate,  the  dates 
and  amounts  of  the  issue  disposed  of  at  various  times,  and  the  dates 
and  amounts  of  the  issue  paid  at  various  times.     The  State  Auditor 


REPORT  ON  ACCOUNTS.  219 

makes  an  abstract  from  this  "bond  register"  and  includes  a  typewritten 
statement  as  to  each  issue  with  his  report  to  the  county  officers  at  the 
time  of  tax  levying. 

Monthly  Reports  of  the  Treasurer. 

At  the  end  of  each  month,  the  State  Treasurer  makes  a  complete 
report  to  the  State  Auditor.  (See  form  13.)  This  report  shows  the 
amount  received  in  each  State  fund  and  to  the  credit  of  each  local 
bond  fund  and  the  amount  paid  from  each  State  fund  and  from  each 
local  bond  fund.  The  monthly  report  is  accompanied  by  a  detailed 
statement  of  receipts  into  local  bond  funds  during  the  month  (form 

14)  and  of  the  warrants  paid  and  canceled  against  State  funds  (form 

15)  and  against  local  bond  funds  (form  16)  during  the  month. 

The  office  of  the  State  Auditor  audits  this  monthly  report,  check- 
ing the  Treasurer's  statement  as  to  fund  receipts  against  the  duplica- 
tion of  Treasurer's  receipts  on  file  in  the  office  of  the  State  Auditor, 
and  against  the  duplicates  of  Auditors'  orders  on  file  in  the  office  of 
the  State  Auditor,  and  checking  the  State  Treasurer's  statement  of 
fund  disbursements  against  the  "warrant  journal"  in  the  office  of  the 
State  Auditor. 

State  Depositaries. 

Under  State  law,  the  State  Treasurer  is  required  to  deposit  funds 
in  such  banks  as  he  may  select.  To  protect  himself  in  such  deposits 
the  State  Treasurer  requires  banks  to  deposit  securities  with  the  bank 
that  is  the  chief  depositary  of  the  State  Treasurer.  The  requirements 
concerning  such  securities  are  set  forth  in  a  printed  notice  sent  by 
the  State  Treasurer  to  each  depositary.  (See  form  A.)  One  of  the 
securities  required  by  the  State  Treasurer  is  the  adoption  of  a  resolu- 
tion giving  the  State  Treasurer  power  over  the  securities  deposited. 
rSee  forms  B  and  C.) 

The  State  Treasurer  maintains  a  ledger.  On  a  separate  sheet 
for  each  depositary,  the  Treasurer  makes  a  record  of  the  securities 
deposited  by  that  depositary  and  the  return  of  such  securities  to  the 
depositary.  On  another  sheet  in  the  same  ledger,  the  State  Treasurer 
makes  a  record  of  the  money  deposited  with  each  depositary  and  of 
the  transfers  of  such  money  from  the  depositary  to  Chicago  banks, 
through  which  State  warrants  are  cleared. 

At  the  end  of  each  month,  the  State  Treasurer  requires  his  office 
to  make  a  report  to  him  showing  on  the  debit  side  the  amounts  depos- 
ited in  the  several  State  depositaries,  the  amount  of  coupon  payments 
not  as  yet  relieved  bv  the  warrant  of  the  State  Auditor,  and  the  amount 
of  cash  on  hand.  On  the  credit  side  of  this  report,  is  given  the  cash 
balance  in  each  of  the  funds  in  the  State.  Supplementarv  to  this  bal- 
ance sheet,  a  report  is  made  to  the  Treasurer  of  the  receipts  into,  and 
disbursements  from  depositaries  during  the  month,  and  receipts  into 
and  disbursements  from  State  fimds  during' the  month. 

It  will  be  seen  that  the  Treasurer  has  for  his  personal  use  a  double 
entry  trial  balance,  as  between  depositaries,  coupon  payments,  and  cash, 
on  the  one  hand,  and  the  balances  in  State  funds,  for  which  he  is  re- 
sponsible, on  the  other  hand.  , 


220  EFFICIENCY  AND   ECONOMY    COMMITTEE. 

Biennial  Report  of  the  Treasurer. 

The  Treasurer  makes  a  biennial  report  showing  the  receipts  into, 
and  the  disbursements  from  the  several  State  funds  during-  the  bien- 
nium. 

F.    CONCLUSIONS. 

In  preceding  pages,  an  attempt  has  been  made  to  give  an 
outline  of  the  accounting  system  of  the  State.  The  study  made  in 
gathering  materials  Yor  this  working  outline  has  been  by  no  means 
exhaustive  or  conclusive.  It  may  be  valuable,  however,  to  state  certain 
general  conclusions  formed  during  the  progress  of  the  report. 

1.  The  present  Constitution  of  the  State  makes  ample  provision 
for  the  establishment  of  a  scientific  budget  and  appropriation  control, 
of  cost  accounts,  and  of  asset  and  liability  accounts. 

2.  The  Constitution  does  not  center  all  of  the  accounting  respon- 
sibility in  the  office  of  the  Auditor  of  Public  Accounts,  but,  by  infer- 
ence, leaves  the  establishment  of  accounting  responsibility  to  such  laws 
as  may  be  passed  by  the  General  Assembly.' 

3.  The  General  Assembly  has  by  law  made  various  agencies  in 
the  State  government  responsible  for  the  auditing  of  various  classes  of 
transactions. 

4.  The  office  of  the  Auditor  of  Public  Accounts  is  the  agency 
through  which  the  tax  rate  of  the  State  is  computed  and  the  tax  laws  of 
the  State  are  enforced. 

5.  The  accounting  and  auditing  procedure  in  the  office  of  the 
Auditor  of  Public  Accounts  is  concerned  chiefly  with  the  enforcement 
of  appropriation  laws  to  the  end  that  departments  may  not  exceed 
their  appropriations,  and  to  the  end  that  departments  mav  not  make 
charges  against  appropriations  not  contemplated  by  the  General 
Assembly. 

6.  The  present  system  of  appropriation  laws  is  far  from  being  a 
scientific  one.  The  State  Auditor  will  be  greatly  aided  in  his  work  if 
appropriations  are  passed  in  the  form  of  a  classified  budget. 

7.  The  State  Treasurer  is  not  an  auditing  officer,  but  has  large 
responsibilities  in  the  handling  of  cash. 

8.  The  present  accounting  procedure  in  State  offices  is  confined 
to  cash  receipts  and  cash  disbursements,  and  is  both  adequate  and  well 
enforced  as  a  system  of  cash  bookkeeping.  (Some  slight  duplication  of 
work  has  been  noted.  Upon  investigation  it  may  be  found  that  this 
duplication  of  work  is  more  than  offset  by  the  extra  protection  it 
affords.) 

9.  No  attempt  is  made  to  record  accounts  payable  of  various 
departments  and  institutions  in  the  office  of  the  State  Auditor.  It  would 
seem  that  some  system  showing  accounts  pavable  and  orders  and  con- 
tracts outstanding  should  be  maintained,  either  by  departments  and 
institutions,  or  by  the  State  Auditor. 

10.  The  present  reports  of  departments  and  institutions,  and  of 
the  State  Auditor,  give  a  very  great  deal  of  detail  with  regard  to  names 
of  persons  paying  moneys  into  the  State  treasury,  and  with  regard  to 
names  of  persons  to  whom  State  warrants  are  made  payable.    It  would 


221 

seem  that  some  of  this  detail  might  be  well  replaced  by  accounts  giving 
a  more  systematic  analysis  of  the  purposes  for  which  appropriations 
are  expended  by  departments  and  institutions.  In  this  connection, 
reference  is  made  to  the  report  of  the  Comptroller  of  the  University  of 
Illinois,  for  the  biennium  ending  June  30,  1913. 

11.  The  present  inventory  law  is  impracticable  and  should  be 
replaced  by  a  more  practical  system  for  the  recording  of  the  properties 
owned  by  the  State. 

List  of  Forms. 

Number 

Valuation  of  property  listed  for  taxation 1 

Auditor's  circular  letter  giving  tax  rate 2 

County  collector's  statement  of  account 3 

Auditor's  order  for  Treasurer  to  receive  taxes  from  county  collector     4 

County  treasurer's  report  of  inheritance  tax  collections 5 

Copy  of  inheritance  tax  receipt 6 

Auditor's  order  for  Treasurer  to  receive  money 7 

List  of  warrants 8 

Warrant  journal 9 

Pay  roll  certificate  of  Civil  Service  Commission  (See  page  37) ....    10 

Cashier's  cash  book 11 

Warrants  paid  and  cancelled 12 

Treasurer's  monthly  report  of  Local  Bond  Funds  received 13 

Treasurer's  monthly  report  to  Auditor 14 

Treasurer's  monthly  statement  of  warrants  paid  and  cancelled.  ...  15 
Treasurer's  monthly  statement  of  Local  Bond  Fund  warrants  paid 

and   cancelled 16 

Statement  of  securities  required  of  depositaries A 

Forms    of   adoption    of    resolution    giving    Treasurer    power    over 

securities  deposited B-C 


II.    ACCOUNTING  NEEDS  OF  THE  STATE  OF  ILLINOIS. 

INTRODUCTION. 

The  State  of  Illinois  needs  a  complete  system  of  accounting.  The 
present  accounts  of  the  Auditor  of  Public  Accounts,  and  of  State 
departments  and  institutions,  are  confined  to  records  of  cash  receipts 
and  disbursements.  The  present  accounts  satisfy  the  requirements  of 
the  Illinois  statutes  as  to  legal  safeguards  for  the  handling  of  public 
money.  But  every  business  man  who  has  had  occasion  to  refer  to 
Illinois  financial  reports  knows  that  the  present  cash  accounts  do  not 
adequately  reflect  the  important  work  of  the  State,  and  that  such 
accounts  cannot  be  used  intelligently  in  planning  the  ever  increasing 
work  of  the  State.  The  business  men  of  Illinois  are  accustomed  to 
conduct  even  small  commercial  enterprises  by  constant  reference  to 
clear  cut  balance  sheets  and  carefully  classified  statements  of  revenue 
and  expenditure. 

It  is  not  to  be  inferred  that  forms  and  methods  of  commercial 
nccounting  should  be  installed  in  State  offices.  The  accounting  of  the 
State  of  Illinois  must  be  governmental  accounting — it  must  be  based  on 
the  legal  organization  of  the  State.  The  accounts  of  the  State  must  be 
of  service  in  governmental  transactions  and  for  governmental  purposes. 
Indeed,  governmental  accounts  cannot  be  used  in  many  ways  that  com- 
mercial accounts  are  used.  The  balance  sheet  of  a  commercial  organiza- 
tion is  frequently  used  as  a  credit  instrument  in  the  borrowing  of 
money.  But  the  State  cannot  mortgage  its  land  and  buildings  and, 
hence,  does  not  need  a  balance  sheet  for  borrowing  purposes.  The 
State  does  need  a  record  of  its  assets  for  governmental  purposes,  such 
as  the  safeguarding  of  public  property  and  the  computation  of  amounts 
needed  for  the  repair  and  replacement  of  buildings. 

While  the  specific  uses  of  State  accounts  dififer  widely  from  the 
specific  uses  of  commercial  accounts,  the  accounting  system  needed  by 
the  State  of  Illinois  and  the  accounting  system  needed  by  any  business 
enterprise  agree  in  two  fundamental  requirements : 

1.  The  provision  of  auditing  safeguards  over  the  custody  and  use 
of  money,  credit  and  permanent  property. 

2.  The  provisions  of  records  and  reports  of  financial  transactions 
for  the  information  of  those  who  plan  and  carry  out  such  transactions. 

The  purpose  of  this  report  is  to  point  out  in  some  detail  the  present 
accounting  needs  of  the  State  and  to  suggest  a  basis  for  complete 
accounting.  This  report  is  not  an  attempt  to  set  out  a  system  oT 
accounts  as  such. 

The  preparation  and  installation  of  a  complete  accounting  system 
for  the  State  will  involve  a  very  considerable  amount  of  constructive 


REPORT  ON  ACCOUNTS.  223 

work  of  the  first  order.  This  report  will  serve  its  purpose  if  it  attracts 
attention  to  the  pressing  need  for  constructive  accounting  work.  The 
General  Assembly  should  create  an  authority  charged  with  the  duty  of 
installing  and  maintaining  proper  accounts  for  the  business  of  the 
State  of  Illinois,  and  this  authority  should  engage  a  permanent  staff  of 
competent  accountants.  It  will  take  time  and  efifort  to  install  proper 
accounts,  to  maintain  proper  accounts,  and  to  revise  the  accounting 
system  to  meet  changing  conditions. 

AUDITING  REQUIREMENTS  OF  THE  STATE. 

The  following  auditing  safeguards  should  be  provided  by  the 
accounting  and  reporting  system  of  the  State: 

1.  The  receipt  and  disbursement  of  public  money  should  be  safe- 
guarded to  prevent  fraud  and  embezzlement  on  the  part  of  officers 
charged  with  the  financial  transactions  of  the  State. 

2.  The  records  and  audits  of  receipts  should  make  certain,  first, 
that  all  money  collectable  has  been  collected  or  accounted  for,  and, 
second,  that  all  money  collected  has  been  collected  under  law  and  by  the 
methods  set  forth  in  the  law. 

3.  The  records  and  audits  of  disbursements  should  make  certain 
that  all  public  money  disbursed  has  been  disbursed  under  law  and  by 
the  methods  prescribed  by  law. 

4.  The  records  and  audits  of  disbursements  should  make  certain 
that  the  State  has  received  full  value  for  each  disbursement  of  public 
money. 

5.  The  records  and  reports  of  outstanding  encumbrances  on 
account  of  contracts,  open  market  orders,  and  salary  obligations,  should 
make  certain  that  the  credit  of  the  State  is  pledged  only  to  the  extent 
provided  for  in  appropriation  laws. 

6.  The  records  and  reports  of  the  permanent  assets  of  the  State, 
and  the  verification  of  such  records  and  reports  by  actual  inspection, 
should  make  certain  that  the  property  of  the  State  is  properly  used, 
safeguarded,  and  accounted  for. 

These  accounting  requirements  are  fundamental,  and  must  be 
squarely  and  fully  met  by  any  accounting  system  devised  for  any  de- 
partment or  institution  of  the  State  government. 

The  Constitution  and  laws  of  the  State  of  Illinois  adequately 
provide  for  the  fundamental  requirements  of  good  governmental 
accountancy.  The  Constitution  and  laws  provide  that  no  revenue  shall 
be  collected  and  that  no  money  shall  be  spent,  excepting  under  legis- 
lative enactment.  The  Constitution  specifically  provides  that  appropria- 
tions shall  be  made  from  biennium  to  biennium.  In  this  way,  the 
General  Assembly  is  compelled  to  set  up  a  financial  program  for  each 
successive  biennium.  The  Constitution  provides  that  the  Governor 
shall  lay  recommendations  before  the  General  Assembly  as  to  the 
revenues  and  appropriations  necessary  for  the  next  biennium.  In  this 
way,  the  Constitution  clearly  contemplates  the  modern  budget  method 
of  State  finance.  The  Constitution  provides  for  a  State  Treasurer  and 
for  an  Auditor  of  Public  Accounts.  The  Constitution  provides  that  the 
bonded  debt  of  the  State  shall  be  limited  to  two  hundred  fifty  thou- 


224  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

sand  dollars,  and  the  inference  is  plain  that  the  contractual  obligations 
of  the  State  shall  be  kept  within  the  appropriations  passed  by  the 
General  Assembly  for  each  biennium.  Wrongful  use  of  public  property 
is  made  a  misdemeanor,  and  the  State  law  provides  for  inventory 
reports  to  the  office  of  the  Auditor  of  Public  Accounts. 

The  safeguarding  of  State  money,  State  credit,  and  State  property 
is  clearly  a  duty  of  the  officers  of  the  State,  irrespective  of  specific  laws 
and  Constitutional  provisions. 

THE    NEED    FOR    FINANCIAL   INFORMATION. 

But  a  plan  of  accounting  for  the  State  of  Illinois  must  do  more 
than  protect  public  money,  and  public  credit,  and  public  property 
against  embezzlement. 

In  addition  to  providing  protection  as  to  the  handling  of  public 
money,  the  financial  and  accounting  system  of  the  State  must  afford 
data  needed  by  all  of  those  who  have  to  do  with  the  planning  and 
carrying  out  of  the  financial  program  for  each  biennium.  The  account- 
ing system  of  the  State  must  afiford  information  for  the  following 
ofBcers : 

1.  The  members  of  the  General  Assembly. 

2.  The  Governor. 

3.  The  State  Tax  Board. 

4.  The  State  Board  of  Equalization. 

5.  The  Auditor  of  Public  Accounts. 

6.  The  State  Treasurer. 

7.  The  heads  of  departments  and  members  of  boards  in  charge  of 
institutions. 

8.  The  employees  responsible  for  activities  of  departments  and 
institutions. 

The  public  at  large  will  also  make  demands  upon  the  accounting 
system  of  the  State ;  first  of  all,  as  taxpayers  from  whose  pockets  the 
necessary  revenue  must  come  to  meet  appropriations ;  and  second,  as 
citizens  interested  in  one  or  more  of  the  various  departments  and 
institutions  of  the  State,  because  of  the  connection  of  those  depart- 
ments with  their  private  business  and  private  life.  The  publication  of 
financial  reports  in  understandable  form  will  in  itself  increase  the 
interest  of  citizens  in  the  public  welfare  service  performed  by  each 
State  department  and  State  institution. 

ACCOUNTING   INFORMATION    NEEDED   BY   MEMBERS   OF   THE 
GENERAL    ASSEMBLY. 

To  carry  out  their  responsibilities  in  enacting  the  financial  pro- 
gram of  the  State,  the  members  of  the  General  Assembly  need,  first, 
information  upon  which  revenue  laws  and  appropriation  Acts  can  be 
based ;  second,  a  record  kept  up  from  day  to  day  during  the  session 
of  the  General  Assembly  as  to  the  eflfect  upon  the  complete  financial 
program  of  the  State  of  revenue  laws  and  appropriations  as  they  are 
passed ;  and,  third,  a  final  budget  to  be  prepared  at  the  conclusion 
of  the  session,  showing  an  estimate  of  revenue  and  a  statement  of 
appropriations  under  the  laws  passed. 


REPORT  ON  ACCOUNTS. 


225 


Each  department  and  institution  of  the  State  should  be  required 
to  report  to  the  Governor,  or  to  some  authority  designated  by  the 
Governor,  an  estimate  of  its  needs  for  the  next  biennium,  classified  so 
as  to  show  the  estimated  cost  of  each  kind  of  service  and  material 
needed  for  each  activity  of  the  department  or  institution.  Each  depart- 
ment and  institution  acting  as  a  collecting  agency  should  report  to  the 
same  authority  an  estimate  of  the  revenue  collectable  during  the  next 
biennium.  The  basis  for  this  estimate  should  be  existing  revenue  laws. 
There  should  be  prepared  an  estimate  of  the  revenue  collectable  dur- 
ing the  next  biennium  from  State  taxes,  if  tax  rates  and  tax  laws  re- 
main the  same  as  they  were  during  the  biennium  at  the  close  of  which 
the  General  Assembly  meets.  From  this  information,  the  Governor, 
or  the  budget-making  authority  designated,  should  prepare  a  "proposed 
budget." 

This  statement  of  budget  proposals  should  compare  requests  for 
appropriations  with  an  estimate  of  the  revenue  available  for  the  bien- 
nium under  existing  revenue  laws  and  rates. 

This  comparison  should  be  by  funds,  e.  g.,  the  requests  for  appro- 
priations from  the  general  revenue  fund  should  be  compared  with  an 
estimate  of  the  revenue  collectable  for  that  fund.  The  revenue  of  the 
State  is  now  segregated  into  the  following  funds: 

1.  The  general  revenue  fund. 

2.  State  school  fund. 

3.  University  mill  tax  fund. 

4.  State  game  protection  fund. 

5.  State  fish  protection  fund. 

6.  State  food  commission  fund. 

7.  Board  of  administration  fund. 

8.  Miners'  examining  fund. 

9.  School  text  book  fund. 

Some  of  these  funds  are  without  definite  meaning,  in  that  the 
present  policy  of  the  State  does  not  seem  to  require  the  setting  aside 
of  money  for  the  exclusive  use  indicated  by  the  titles  of  the  funds. 
But  some  of  the  specific  funds,  such  as  the  school  fund  and  the  uni- 
versity mill  tax  fund,  do  express  established  public  policy.  The  bud- 
get proposals  should  be  classified  by  funds  if  for  no  other  reason  than 
that  such  a  classification  will  test  the  necessity  for  each  fund. 

The  estimate  of  revenue  for  each  fund  should  be  classified  so  as 
to  show  the  amount  of  each  kind  of  revenue  collectable  by  each  col- 
lecting agency  of  the  State.  Such  a  classification  will  bring  into  re- 
view biennially  the  machinery  under  which  each  kind  of  State  revenue 
is  collected.  Estimates  of  revenue  collectable  cannot  be  scrutinized 
intelligently  without  reference  to  collection  agences ;  first,  because  such 
estimates  will  originate  with  collection  agencies,  and,  second,  the 
method  of  collection  has  very  much  to  do  with  the  amount  of  revenue 
actually  collectable  under  any  revenue  law.  For  example,  the  office 
of  the  Attorney  General  supervises  the  administration  of  inheritance 
taxes.  It  is  to  be  expected  that  budget-making  authorities  will  con- 
sult the  office  of  the  Attorney  General  in  fixing  an  estimate  on  inherit- 
ance taxes  collectible  during  a  biennium,  and  it  is  to  be  expected  fur- 


226  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

ther  that  the  Legislature  will  consider  the  personnel,  organization  and 
procedure  of  the  office  of  the  Attorney  General  in  reviewing  the  esti- 
mate. 

The  estimate  of  revenue  collectable  by  each  collection  agency 
should  be  classified  as  to  kind  of  revenue;  since  a  given  agency  may 
turn  receipts  into  the  State  treasury  derived  from  widely  varying 
classes  of  revenue.  The  office  of  the  Secretary  of  State,  for  example, 
collects  such  widely  different  revenue  as  that  derived  from  automobile 
licenses  and  that  derived  from  fees  for  the  filing  of  papers  of  incor- 
poration. 

Appropriation  requests  from  each  fund  should  be  classified  so  as 
to  show  the  total  amount  requested  by  each  department  and  institu- 
tion>  Many  of  the  departments  of  the  State  are  beneficiaries  under 
general  appropriations  for  salaries  and  for  printing,  supplies  and  the 
like  administered  by  the  State  Board  of  Contracts  and  the  Secretary 
of  State.  Appropriation  requests  should  be  so  classified  in  the  state- 
ment of  budget  proposals  as  to  show  the  amounts  requested  by  each 
department  for  its  direct  use,  and  so  as  to  show  also  the  amount  that 
each  department  expects  to  share  in  general  appropriations.  The  effect 
of  such  a  classification  will  be  to  fix  responsibility  for  the  use  of  public 
supplies  even  although  general  appropriations  are  continued  as  a 
means  of  purchasing  and  other  administrative  economy. 

The  appropriation  requests  of  each  department  and  institution 
should  be  classified  first  of  all,  as  between  requests  for  land,  buildings 
and  permanent  equipment,  and  requests  for  operation  and  maintenance 
expenses.  Land,  building  and  equipment  requests  should  be  further 
classified  by  projects.  Operation  and  maintenance  requests  should  be 
classified  by  units  of  operation  so  that  the  Legislature  may  know  how 
much  each  department  and  institution  requests  for  each  of  its  internal 
divisions,  activities  or  functions.  The  statement  of  proposed  expendi- 
ture for  each  activity  should  be  supported  by  estimates  of  the  cost  of 
each  kind  of  service  and  each  kind  of  material  needed  in  carrying  on 
the  activity  during  the  biennium.  For  example,  the  office  of  the 
Auditor  of  Public  Accounts  should  give  information  along  the  fol- 
lowing lines  in  support  of  the  appropriation  requests  for  the  office : 

1.  From  the  general  revenue  fund — 

A.  For  permanent  equipment. 
(1)   Furniture  and  fixtures. 

B.  For  operation  and  maintenance. 

(1)  General  administration. 

(a)  Salaries  and  wages. 

(b)  Stationery  and  postage. 

(c)  Telegraph  and  telephone. 

(d)  Freight  and  express. 

(e)  Office  supplies. 

(2)  Audit  of  revenue  collections. 

(a)  Salaries  and  wages. 

(b)  Stationery  and  postage. 

(c)  Telegraph  and  telephone. 


REPORT  ON  ACCOUNTS.  227 

(d)  Freight  and  express. 

(e)  Office  supplies. 

(3)  Audit  of  disbursements  under  appropriations. 

(a)  Salaries  and  wages. 

(b)  Stationery  and  postage. 

(c)  Telegraph  and  telephone. 

(d)  Freight  and  express. 

(e)  Office  supplies. 

(4)  State  inventory. 

(5)  Examination  of  banks,  trust  companies  and  loan  com- 

panies. 

(6)  Etc. 

The  purpose  of  the  "proposed  budget"  is  to  show  an  estimate  of 
revenue  for  the  next  biennium,  set  over  against  the  appropriation  re- 
quests for  the  next  biennium.  In  order  that  these  estimates  and  re- 
quests may  have  a  definite  meaning  and  connection  with  the  previous 
financial  policy  of  the  State,  the  estimates  of  revenues  should  be  com- 
pared with  actual  receipts ;  and  appropriation  requests  should  be  com- 
pared with  actual  disbursements  for  the  two  bienniums  preceding  the 
biennium  for  which  the  appropriations  are  asked.  Inasmuch  as  the 
General  Assembly  meets  during  the  second  year  of  the  biennium  next 
preceding  the  biennium  for  which  appropriations  are  asked,  it  will  be 
necessary  to  set  up  an  estimate  for  that  year,  both  as  to  receipts  and 
as  to  disbursements.  A  form  for  a  summary  of  budget  proposals  by 
funds  is  shown  as  Schedule  1 ;  a  form  for  the  comparison  of  revenue 
estimates  with  previous  receipts  is  shown  as  Schedule  2,  and  a  form 
for  the  comparison  of  appropriation  requests  with  disbursements  is 
shown  as  Schedule  3.  These  schedules  are  introduced  to  illustrate  the 
comparison  essential  to  budget-making. 

SCHEDULE    1. 

Statement  of  Budget  Proposals  by  Funds, 
for  the  Biennium  iQi^-i^iy. 

Estimated  Revenue  Appropriation    Requests 

Fund  Amount  Fund  Amount 

General  Revenue  Fund         General   Revenue   Fund        

*Excess  of  Requests  


School  Fund  School   Fund 

*Excess  of  Requests 

University  Mill  Tax  Fund, 

etc.  


*The   essential    point    is    that    the    appropriation    requests   from    each    ftind    shall    be   con- 
trasted with  the  estimate  of  revenue  for  each  fund.     The  summary  may  take  several   forms. 


228 


EFFICIENCY   AND    ECONOMY    COMMITTEE. 


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230  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

The  best  test  that  the  proposed  budget  can  have  Hes  in  the  com- 
parison of  the  estimate  of  revenue  and  appropriation  requests  with  the 
actual  and  estimated  receipts  and  disbursements  for  the  two  preceding 
bienniums.  An  additional  comparison  of  great  value  is  a  comparison 
of  the  estimate  of  revenue  and  appropriation  requests  with  the  estimate 
of  revenue  and  appropriations  enacted  by  the  preceding  General 
Assembly.  The  form  of  such  a  comparison  is  shown  in  Schedule  4. 
It  may  be  noted  in  this  connection  that  the  State  law  now  provides  for 
budget  data  in  this  form,  to  be  compiled  by  the  Legislative  Reference 
Bureau. 

The  form  of  the  "proposed  budget"  suggested,  provides  for  a 
classification  of  revenue  estimates  and  of  appropriations,  first  of  all, 
under  funds,  and  then,  by  collecting  agencies  for  revenue  and  by  de- 
partments and  institutions  for  appropriations.  ^  It  will  be  found  desirable 
to  set  up  a  summary,  so  as  to  show  the  total  estimate  for  each  kind  of 
revenue,  no  matter  to  what  fund  the  revenue  is  to  accrue,  or  by  what 
collecting  agency  it  is  to  be  secured.  A  similar  summary  should  be 
made  for  the  proposed  appropriations  for  similar  activities  under  de- 
partments and  institutions.  Thus,  for  example,  a  summary  may  be 
made  of  the  requests  for  carrying  on  health  and  sanitation  work,  bring- 
ing together  in  one  schedule  the  provision  made  for  such  work  in  the 
requests  of  dififerent  departments  and  institutions. 

The  General  Assembly  as  a  body,  and  especially  individual  mem- 
bers, will  be  particularly  interested  in  the  appropriation  requests  of  a 
particular  department  of  the  State,  such  as  the  Illinois  National  Guard, 
or  of  a  particular  institution,  such  as  the  Eastern  Illinois  State  Normal 
School.  In  addition  to  the  schedules  already  discussed,  data  concerning 
each  particular  department  and  institution  should  be  set  up  in  separate 
schedule  form,  and  these  separate  schedules  should  be  accompanied  by 
supporting  statistics  as  to  the  work  done  by  the  departments  and  institu- 
tions under  each  of  their  activities. 

The  provision  for  separate  budget  schedules  for  each  department 
and  institution  is  of  fundamental  importance.  In  order  that  the  Legis- 
lature may  have  before  it  a  summary  of  the  appropriation  requests  of 
all  the  departments  and  institutions  it  will  be  necessary  for  each  depart- 
ment and  institution  to  make  its  requests  under  a  standard  classification. 
But  the  requirements  of  the  standard  classification  need  go  but  little 
further  than  the  fundamental  distinction  beween  requests  for  addi- 
tion to  land,  buildings^  and  equipment  and  requests  for  operation  and 
maintenance.  Each  department  and  institution  of  the  State  has  its  own 
field  of  work  and  should  be  permitted  to  express  its  requirements  in 
terms  of  its  own  field.  This  is,  of  course,  the  particularly  diflficult 
problem  of  classification  that  must  be  solved  by  the  authority  engaged 
in  the  preparation  of  the  statement  of  budget  proposals  for  the  Legis- 
lature. The  problem  is  emphasized  here  because  of  the  tendency  of 
budget  making  authorities  in  a  few  States  and  cities  to  impose  a  hard 
and  fast  uniform  classification  of  requests  upon  widely  varying  kinds  of 
departments  and  institutions. 

In  addition  to  the  financial  data  provided  for  in  the  schedules 
discussed  above,  a  careful  digest  should  be  made  of  the  revenue  laws 


REPORT  ON  ACCOUNTS. 


231 


and  appropriation  acts  in  force  during  the  bienniuni,  at  the  close  of 
which  the  General  Assembly  meets.  This  digest  of  revenue  laws  and 
appropriation  acts  should  follow  the  same  classitication  as  that  p^iven  for 
revenue  and  appropriations  in  the  "proposed  budget." 

Such  information  as  to  the  present  status  of  the  law  will  enable  the 
General  Assembly  to  consider  the  estimate  of  revenue  and  appropria- 
tion requests  in  connection  with  existing  law.  Such  consideration  -must 
be  given  if  the  will  of  the  General  Assembly  as  to  the  estimate  of 
revenue  and  appropriations  is  to  be  fully  accomplished  by  changes  in 
the  laws.  Further,  these  laws  reflect  the  present  legal  accounting 
classification  that  the  Auditor  of  Public  Accounts,  departments  and 
institutions  are  compelled  to  keep.  If  officers  and  citizens  are  to  think 
aright  on  public  questions  they  must  have  reports  based  on  carefully 
classified  accounts.  It  must  be  emphasized  that  accounting  classifica- 
tion is  determined  by  statutory  requirements. 

The  summary  of  revenue  estimates  and  appropriation  requests  will 
place  squarely  before  the  General  Assembly  the  problem  of  financing 
the  needs  of  the  State  for  the  next  biennium.  Revenue  laws  and  tax 
rates  must  be  so  revised  and  appropriation  requests  must  be  so  increased 
or  reduced  as  to  bring  revenue  estimates  and  appropriations  into 
balance  in  the  final  budget  compiled  at  the  close  of  the  legislative 
session. 

All  of  the  above  information  should  be  compiled  by  the  office  of 
the  Governor,  or  by  the  budget  making  authority;  printed  and  pub- 
lished, so  that  it  may  be  available  to  members  of  the  General  Assembly, 
and  to  the  public  generally,  at  least  one  month  before  the  General 
Assembly  meets.  The  statement  of  budget  allotments  will  of  course 
contain  summaries  setting  forth  the  appropriations  requests  made 
against  each  fund  of  the  State.  These  summaries  should  be  accom- 
panied with  data  showing  the  increase  of  taxes,  fees,  licenses,  etc., 
necessary  if  the  total  amount  of  the  appropriation  requests  are  granted. 

The  statement  of  the  budget  proposals  should  contain  the  recom- 
mendations of  the  Governor  as  to  each  appropriation  request.  The 
exact  time  at  which  the  Governor  should  present  his  budget  and  budget 
recommendations  is  a  matter  of  considerable  difficulty,  because  the 
term  of  the  Governor  commences  on  the  first  day  of  the  legislative 
session.  If  a  budget  is  prepared  in  advance  of  the  legislative  session  it 
will  be  difficult  for  the  Governor-elect  to  make  his  recommendations; 
"and  the  Governor  whose  term  is  expiring  may  not  be  disposed  to 
make  responsible  recommendations  which  he  will  be  unable  to  defend 
before  the  General  Assembly  because  of  the  expiration  of  his  term. 
The  best  working  plan  will  doubtless  be  for  the  Governor  then  in  office 
to  include  tentative  recommendations  in  the  statement  of  the  budget 
proposals  that  is  published  thirty  days  before  the  General  Assembly 
meets.  These  tentative  recommendations  from  the  then  Governor,  can 
be  supplemented  or  revised  by  the  newly  elected  Governor  in  messages 
to  the  General  Assembly  at  or  after  the  beginning  of  the  legislative 
session. 

When  the  General  Assembly  meets,  or  as  soon  as  possible  there- 
after, a   copy  of  the   "proposed  budget"   should  be  handed   to  each 


232  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

member,  together  with  a  message  from  the  Governor,  giving  executive 
recommendations  as  to  each  estimate  of  revenue  and  as  to  each  appro- 
priation request  contained  therein.  These  copies  of  the  "proposed 
budget"  should  be  put  in  such  form  that  members  of  the  finance  com- 
mittees of  the  General  Assembly  can  enter  their  own  recommendations 
on  the  face  of  the  several  schedules,  and  thus  make  use  of  the  classifica- 
tion already  prepared  by  the  budget  making  authority.  The  clerks  of 
the  hnance  committees  may  very  well  have  as  one  of  their  duties  the 
keeping  of  the  recommendations  of  the  finance  committees  in  the 
same  classification  as  the  "proposed  budget."  The  clerk  should  note 
further  any  changes  that  may  be  made  in  revenue  laws  and  appropria- 
tion acts,  and  should  classify  such  changes  in  the  same  way  as  the 
digest  of  the  revenue  laws  and  the  appropriation  laws  are  classified  in 
the  "proposed  budget"  report.  As  the  General  Assembly  passes  new 
revenue  laws  and  new  appropriation  Acts,  the  clerks  of  the  finance 
committees  should  report  the  progress  of  the  budget,  so  that  members 
of  the  General  Assembly  can,  at  any  time,  find  out  how  far  the  financial 
program  of  the  State  has  been  aft'ected  by  the  passage  of  any  particular 
revenue  law  or  appropriation.  This  will  pave  the  way  for  the  enact- 
ment as  one  bill  of  a  complete  State  budget  of  revenue  estimates  and 
appropriations.  Such  a  desideratum  will  evolve  from  the  plan  herein 
proposed  although  it  must  come  gradually,  having  in  mind  the  force  of 
present  legislative  traditions. 

At  the  end  of  the  legislative  session,  the  Auditor  of  Public 
Accounts,  cooperating  with  the  Secretary  of  State  (who  is  the  legal 
custodian  of  State  law)  should  compile  and  publish  a  final  budget, 
containing  an  estimate  of  the  revenue  collectable  under  the  revenue 
laws  passed  by  the  General  Assembly,  and  containing  a  statement  of 
the  appropriations  provided  by  the  General  Assembly.  This  final 
budget  should  be  classified  and  summarized  in  the  same  form  as  the 
"proposed  budget,"  so  that  officers  of  the  State  and  interested  citizens 
may  readily  compare  the  final  budget  with  the  "proposed  budget." 

It  will  be  noted  that  the  classification  suggested  for  the  "proposed 
budget"  provides  that  each  department  and  institution  shall  place  before 
the  General  Assembly  a  statement  of  the  appropriation  needed  for  each 
kind  of  service,  and  each  kind  of  materials,  to  be  secured  for  each 
activity  of  the  department,  or  institution.  It  will  be  easily  seen  that 
data  in  such  classified  detail  is  necessary  if  the  legislature  is  to  thor- 
oughly consider  any  particular  appropriation  request.  It  by  no  means 
follows  that  the  Legislature  should  enact  appropriation  laws  carrying 
such  detail.  In  most,  if  not  in  all  cases,  the  General  Assembly  should 
provide  lump  appropriations  for  departments  and  institutions,  distin- 
guishing simply  between  appropriations  available,  on  the  one  hand,  for 
land,  buildings,  and  equipment,  and,  on  the  other  hand,  appropriations 
available  for  operation  and  maintenance  expenses.  In  turn,  the  heads  of 
departments  and  governing  boards  of  institutions  should  set  up  annual 
departmental  or  institutional  budgets  making  allotments  from  the  funds 
supplied  by  the  General  Assembly.  These  departmental  budgets  should 
provide  allotments  for  each  particular  project  under  land,  buildings 
and  equipment,  and  for  each  particular  activity  of  the  department  or 
institution  under  operation  and  maintenance. 


REPORT  ON  ACCOUNTS.  233 

REPORTS  NEEDED  BY  THE  GOVERNOR. 

As  the  Chief  Executive  of  the  State,  the  Governor  is  constantly 
consulted  by  the  members  of  the  General  Assembly  as  to  the  proposed 
financial  program  of  the  State;  and  the  Governor  is  directly  and  con- 
tinuously concerned  with  State  finances  after  appropriations  are  passed 
by  the  General  Assembly.  The  Constitution  provides  that  the  Gov- 
ernor shall  make  a  report  to  the  General  Assembly  setting  forth  the 
financial  needs  of  the  State.  The  Governors  of  Illinois  have  never 
complied  with  the  requirements  of  the  Constitution,  except  indirectly 
as  they  chose  to  advise  with  the  various  members  of  the  legislative 
body. 

After  the  Governor  has  presented  the  "proposed  budget"  for  the 
consideration  of  the  General  Assembly,  and  the  General  Assembly  has 
enacted  revenue  and  appropriation  laws,  the  Governor  needs  a  com- 
plete report  setting  forth  in  accounting  form  the  results  to  be  ex- 
pected from  the  legislation.  The  Governor  needs  this  information, 
first  of  all,  as  a  member  of  the  State  Tax  Levy  Board,  charged  with 
the  responsibility  of  fixing  the  tax  rate.  The  Governor  needs  this  in- 
formation further  in  checking  the  legal  audit  performed  by  the  Auditor 
of  Public  Accounts,  and  in  checking  upon  the  legal  accounts  main- 
tained in  the  office  of  the  Auditor.  The  Governor  needs  this  informa- 
tion if  he  is  properly  to  advise  the  departments  and  institutions  of  the 
State  as  to  revenues  available  to  them  for  carrying  on  the  work  for 
the  next  biennium.  Finally,  the  Governor  needs  such  a  report  at  the 
close  of  the  legislative  session,  if  he  is  to  acquaint  the  public  with  the 
financial  situation  in  the  State  in  a  definite  and  clear-cut  way. 

After  the  General  Assembly  has  provided  a  financial  program,  the 
Governor  needs  reports  from  each  of  the  revenue  collecting  agencies 
of  the  State,  showing  the  manner  in  which  it  is  proposed  to  collect 
revenue;  and  a  report  from  each  of  the  departments  and  institutions 
of  the  State,  showing  the  manner  in  which  each  department  and  each 
institution  proposes  to  spend  the  money  made  available  to  it  for  the 
next  biennium.  The  Governor  should  have  for  his  information  depart- 
mental and  institutional  budgets  that  will,  on  the  one  hand,  take  into 
account  the  revenue  available  to  the  department  or  institution  for  the 
biennium,  and  will,  on  the  other  hand,  take  into  account  the  allot- 
ments to  be  made  within  the  department  or  institution  for  the  various 
activities  of  the  department  or  institution  for  each  year  of  the  bien- 
nium. The  form  of  the  departmental  or  institutional  budget  is  dis- 
cussed further  in  considering  the  accounting  needs  of  departments  and 
institutions. 

After  the  Governor  has  received  a  report  from  each  revenue  col- 
lecting agency  of  the  State  as  to  the  revenue  collecting  plans  for  the 
biennium,  the  Governor  should  have  access  to  monthly  and  quarterly 
reports  showing  how  the  revenue  is  being  collected.  Without  access 
to  such  reports,  the  Governor  will  be  unable  to  make  an  intelligent 
study  of  the  revenue  collection.  Similarly,  after  the  Governor  has 
placed  before  him  the  internal  budget  of  each  department  and  of  each 
institution,  the   Governor   should  also  have  access  to  monthly  and 


234  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

quarterly  reports  showing  the  disbursements  and  outstanding  encum- 
brances under  each  one  of  the  allotments  made  for  the  internal  guid- 
ance of  each  department  and  institution. 

The  governor  should  have  access  to  frequent  reports,  perhaps 
monthly  reports,  showing  the  kinds  of  service  and  materials  purchased 
in  carrying  out  the  work  of  each  one  of  the  activities  of  each  depart- 
ment and  institution.  Without  free  access  to  such  cost  data,  the  Gov- 
ernor cannot  be  expected  to  exercise  any  check  upon  the  efficiency  and 
economy  with  which  departments  and  institutions  are  conducted. 

It  will  be  seen  that  the  Governor  needs  five  classes  of  reports. 
First  of  all,  the  Governor  needs  such  data  as  will  enable  him  to  make 
a  report  to  the  General  Assembly  comparing  the  financial  needs  of 
the  State  with  the  revenue  and  expenditure  of  the  State  for  the  last 
preceding  biennium  and  for  the  biennium  at  the  close  of  which  the 
General  Assembly  meets.  Second,  the  Governor  needs  a  report  at  the 
conclusion  of  the  meeting  of  the  General  Assembly  setting  forth  in 
definite  form  the  revenue  expected  under  the  revenue  laws  passed  by 
the  General  Assembly,  and  the  disbursements  possible  under  the  appro- 
priations passed  by  the  General  Assembly.  Third,  the  Governor  needs 
a  statement  as  to  the  proposed  internal  budget  of  each  department 
and  institution  of  the  State  for  the  coming  biennium,  showing  how 
each  department  and  institution  expects  to  spend  the  money  available 
for  its  use  in  carrying  out  each  one  of  its  various  activities.  Fourth, 
the  Governor  should  have  access  to  monthly  and  quarterly  statements 
as  to  disbursements  and  outstanding  encumbrances  under  each  one  of 
the  allotments  provided  for  the  carrying  on  of  the  work  of  each  depart- 
ment and  institution.  And,  fifth,  the  Governor  should  have  cost  data 
available  for  his  use,  showing  the  kinds  of  service  and  kinds  of  mate- 
rial purchased  and  ordered  by  each  department  and  institution  in  carry- 
ing out  its  activities.  With  these  reports  at  hand,  the  Governor  will 
be  enabled  to  write  his  message  to  the  General  Assembly;  to  stimulate 
public  interest  in  public  business ;  to  answer  in  a  satisfactory  way  the 
questions  raised  by  citizens  who  have  been  made  interested  in  any  one 
of  the  activities  of  any  department  or  institution ;  and  to  intervene 
intelligently  in  the  management  of  departments  and  institutions  both 
by  the  allocating  of  responsibility  and  the  ready  checking  of  such  detail 
as  may  become  important  in  its  relation  to  the  larger  problems  of  the 
State. 

The  office  of  the  Governor  is  now  provided  with  an  institutional 
auditor  whose  duty  it  is  to  check  the  receipts  and  disbursements  of 
most  of  the  departments  located  at  Springfield.  The  duties  of  this 
officer  arise  under  appropriation  Acts  providing  that  disbursements 
under  such  appropriations  shall  be  approved  by  the  Governor.  The 
Institutional  Auditor  also  reviews  the  semi-annual  financial  reports  as 
to  receipts  and  disbursements  now  made  to  the  Governor  by  the  de- 
partments and  institutions  of  the  State. 

Under  the  plan  of  the  accounting  proposed  herein,  the  Institutional 
Auditor  would  be  in  a  position  to  call  for  reports  from  departments 
and  institutions  and  to  review  them  for  the  Governor,  as  well  as  to 
make  certain  that  the  Governor  has  prompt  access  to  any  one  of  the 


REPORT  ON  ACCOUNTS. 


235 


reports  contemplated  by  the  accounting  system  of  the  State.  The  Insti- 
tutional Auditor  will  then  be  enabled  to  call  for  such  further  special 
reports  as  the  Governor  may  need  in  addition  to  the  regular  monthly, 
quarterly  and  annual  reports. 

REPORTS   NEEDED  BY  THE  STATE  TAX  BOARD. 

It  is  the  duty  of  the  State  Tax  Board  (composed  of  the  Governor, 
the  Auditor  of  Public  Accounts,  and  the  State  Treasurer)  to  fix  such 
a  rate  of  taxation  as  will  provide  receipts  for  the  various  funds  of  the 
State,  sufficient  in  amount  to  care  for  the  appropriations  passed  by 
the  General  Assembly.  The  State  Tax  Board  meets  for  work  at  the 
close  of  the  legislative  session,  and  must,  therefore,  know  the  status 
of  the  revenue  laws  and  of  appropriation  estimates  as  fixed  by  the  Acts 
of  the  Legislature.  After  the  State  Tax  Board  has  fixed  the  various 
rates  of  State  taxation,  a  public  report  should  be  made  showing  the 
bases  on  which  the  rates  have  been  fixed. 

REPORTS  NEEDED  BY  THE  STATE  BOARD  OF  EQUALIZATION. 

The  State  Board  of  Equalization  is  charged  wUh  the  duty  of 
equalizing  the  assessment  rolls  for  the  various  counties  of  the  State, 
and  with  the  further  duty  of  assessing  the  values  of  railroad  property 
and  of  the  capital  stock  of  corporations.  In  performing  their  duties, 
the  members  of  the  Board  of  Equalization  need  to  have  before  them 
a  very  considerable  amount  of  financial  data  having  to  do  with  values 
for  assessment  purposes.  The  Board  of  Equalization  should  be  fur- 
nished with  financial  data  in  classified  form.  If  a  staff  of  constructive 
accountants  is  employed  by  the  State  for  constructive  accounting  work, 
such  accountants  may  very  well  be  called  upon  to  assist  in  properly 
classifying  the  data  needed' by  the  State  Board  of  Equalization. 

The  needs  of  the  State  Tax  Board  and  of  the  State  Board  of 
Equalization  will  become  the  needs  of  the  State  Tax  Commission  or 
of  the  State  Finance  Commission  if  such  a  new  body  is  established. 

ACCOUNTS   AND  REPORTS   OF   THE   AUDITOR  OF  PUBLIC   ACCOUNTS. 

After  the  General  Assembly  adjourns,  the  responsibility  for  the 
carrying  out  of  its  will,  both  as  to  raising  revenue  and  as  to  the  ex- 
penditure of  public  money  and  public  credit,  devolves  upon  the  Auditor 
of  Public  Accounts.  The  Auditor  of  Public  Accounts  must  necessarily 
keep  such  accounts  as  will  enable  him  to  prove  that  moneys  collected 
have  been  collected  under  law,  and  such  accounts  as  will  enable  him 
to  prove  that  disbursements  have  been  made  in  accordance  with  ap- 
propriation Acts.  Any  real  reform  in  the  accounts  maintained  by  the 
State  Auditor  must,  therefore,  originate  in  the  budget-making  proc- 
ess of  the  Legislature.  If  the  General  Assembly  does  not  enact  a 
scientifically  classified  system  of  taxation  and  of  revenue  laws,  nor  a 
scientific  classified  system  of  appropriation  laws,  it  cannot  very  well 
expect  the  State  Auditor  to  maintain  scientific  accounts  under  the  laws 
enacted.  Of  course,  it  is  quite  possible  that  the  State  Auditor  may 
maintain  two  sets  of  accounts,  so  that  he  accounts  for  public  money 
under  law  and  also  under  a  scientific  classification  of  receipts  and  dis- 


236  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

biirsements.  It  is  doubtful  whether  such  an  artificial  system  can  long 
continue  under  a  representative  or  democratic  system  of  government. 
It  is  to  be  expected  that  the  State  Auditor  will  emphasize  the  accounts 
that  he  is  absolutely  required  to  keep,  and  that  he  will  minimize  the 
keeping  of  records  that  will  afford  information  not  necessary  for  the 
discharge  of  legal  responsibilities,  however  necessary  and  valuable  the 
information  may  be  in  the  proper  interpretation  of  the  financial  pro- 
gram of  the  State. 

The  State  Auditor's  records  are  of  vital  importance  in  any  con- 
sideration of  the  financial  system  of  the  State.  From  the  records  main- 
tained by  the  State  Auditor,  must  be  prepared  the  data  as  to  receipts 
and  disbursements  for  preceding  bienniums  necessary  for  the  use  of 
the  Legislature.  The  State  Auditor  should,  therefore,  keep  revenue 
accounts  so  analyzed  as  to  permit  of  the  making  of  comparisons  for 
budget  purposes,  as  well  as  to  permit  of  a  careful  audit  as  to  revenue 
collectable  and  outstanding.  The  Auditor's  accounts  as  to  the  dis- 
bursements under  appropriations  should  also  aft'ord  the  analysis  of 
disbursements  necessary  in  setting  up  the  disbursement  side  of  the 
budget  report. 

It  would  be  possible  for  the  Auditor  to  maintain  a  disbursement 
account  so  as  to  show  the  disbursements  for  each  of  the  activities  of 
each  department  and  institution,  and  also  so  as  to  show  the  disburse- 
ment for  each  kind  of  service  and  each  kind  of  materials  purchased 
for  each  such  activity.  Such  an  extended  analysis  of  disbursements 
would,  however,  greatly  hamper  the  efficiency  of  the  Auditor's  office 
as  a  collection  and  disbursement  agency.  The  same  information  is 
needed  at  each  of  the  departments  and  institutions.  The  purpose  can 
be  served  if  each  department  and  institution  is  required  to  keep  proper 
revenue  and  disbursement  accounts.  There  should  be  a  constructive 
accounting  authority  with  power  to  prescribe  standard  cost  accounts 
and  standard  revenue  accounts.  The  Auditor  should  review  monthly 
and  quarterly  reports  of  departments  and  institutions  so  as  to  make 
certain  that  proper  revenue  analysis  and  cost  accounts  are  being  main- 
tained. Th.e  Auditor  should  also  require  monthly  and  quarterly  re- 
.  ports  from  departments  and  institutions  as  to  outstanding  encum- 
brances and  free  balances  of  the  internal  allotments  of  the  departments 
and  institutions.  In  no  other  way  can  the  Auditor  assiu'e  himself  that 
departments  and  institutions  are  financing  their  work  in  such  a  way 
as  to  insure  the  sufficiency  of  the  appropriations  provided  by  the  Leg- 
islature for  the  whole  period  during  which  such  work  must  be  car- 
ried on. 

If  the  Auditor  maintains  the  accounts  so  far  discussed,  and  if  the 
Auditor  audits  the  accounting  systems  prescribed  for  departments  and 
institutions  as  to  internal  allotment  balances  and  as  to  revenue  analysis 
and  cost  data,  the  Auditor  will  have  such  a  system  of  accounts  as  he 
needs  in  making  a  proper  check  upon  the  receipts  and  disbursements  of 
the  State  Treasurer. 

The  present  State  Law  requires  the  State  Auditor  to  maintain  a 
perpetual  inventory  upon  all  the  property  of  the  State,  based  upon 
detailed  reports  submitted  every  ten  days  by  departments  and  insti- 


REPORT  ON  ACCOUNTS. 


237 


tutlons.  The  present  law  is  impracticable  and  should  be  repealed. 
The  Auditor  should  require  each  department  and  institution  to  main- 
tain a  perpetual  inventory,  and  to  make  at  least  quarterly  reports  to 
him  of  additions  to  the  inventory  or  disposal  of  property.  The  Auditor 
should  maintain  control  accounts  over  the  perpetual  inventories  main- 
tained by  departments  and  institutions,  and  should  audit  and  review 
the  quarterly  and  annual  reports  of  departments  and  institutions  so 
that  he  may  be  able  to  certify  that  the  permanent  property  of  the 
State  is  protected  by  proper  inventory  and  accounting  methods.  To 
this  end,  departments  and  institutions  should  follow  a  prescribed 
classification  of  permanent  property  in  maintaining  their  perpetual 
inventories. 

The  records  so  far  discussed  provide  for  controlling  accounts  in 
the  office  of  the  State  Auditor  with  revenue  collections  and  revenue 
collectable  and  with  disbursements  under  appropriations  and  outstand- 
ing encumbrances  against  appropriations.  The  records  provide  fur- 
ther for  controlling  accounts  summarizing  the  perpetual  inventories 
of  the  permanent  property  maintained  by  departments  and  institu- 
tions. From  this  data  the  State  Auditor  should  set  up  a  consolidated 
balance  sheet  for  the  State  showing  the  total  assets  and  liabilities  of 
the  State  as  at  the  close  of  each  year.  The  Auditor  should  set  up  such 
further  balance  sheets  as  may  be  necessary  to  show  surplus  of  the 
State  invested  in  permanent  property  for  various  classes  of  use,  and 
the  surplus  of  the  State  available  in  cash  and  stores  for  the  business 
transactions  of  the  coming  year. 

ACCOUNTING  NEEDS  OF  THE  STATE  TREASURER. 

The  State  Treasurer  requires  accounts  showing  his  transactions 
as  the  custodian  of  public  money.  For  all  auditing  purposes  accounts 
showing  receipts  and  disbursements  by  funds  are  sufficient  since  full 
detail  must  be  kept  by  the  State  Auditor. 

At  the  present  time,  the  State  Treasurer  maintains  a  ledger  show- 
ing the  amounts  of  public  money  deposited  in  the  banks  selected  as 
depositaries  of  State  funds.  This  ledger  is  not  an  official  record. 
Even  though  the  State  Treasurer  is  liable  on  his  bond  for  the  entire 
amount  of  public  money  in  his  charge,  it- seems  obvious  that  there 
should  be  a  public  record  of  the  depositaries  in  which  State  money  is 
deposited.  There  should  be  daily  reconcilements  between  accounts 
with  the  depositaries  and  the  accounts  showing  the  cash  balances  in 
each  of  the  funds  of  the  State. 

Further  than  this,  it  is  to  be  noted  that  the  treasurer  at  present 
acts  as  the  agent  of  the  State  in  paying  interest  on  certain  public  bonds. 
This  part  of  the  work  of  the  State  Treasurer's  office  should  be  fre- 
quently reviewed  by  the  State  Auditor,  and  the  State  Treasurer  should 
be  required  to  keep  such  accounts  as  will  clearly  set  forth  his  trans- 
actions in  this  particular. 

ACCOUNTING  NEEDS  OF  REVENUE  COLLECTING  AGENCIES. 

The  revenue  collecting  agencies  of  the  State  should  make  monthly 
reports  to  the  State  Auditor  showing  the  amount  of  each  kind  of  rev- 
enue collected  by  them  during  the  month  and  the  amount  of  revenue 
collectable  outstanding  at  the  close  of  the  month.     These  monthly  re- 


238  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

ports  of  receipts  and  revenue  collectable  should  be  made  in  schedules 
entirely  separate  from  any  reports  that  may  be  made  as  to  disburse- 
ments, excepting  in  the  case  of  industries  of  the  semi-commercial 
nature,  such  as  the  industries  of  the  State  prison.  It  should  be  borne 
in  mind  that  nearly  all  of  the  revenues  of  the  State  are  only  indirectly 
related  to  disbursements  under  appropriations. 

ACCOUXTIXG    NEEDS   OF   HEADS   OF  DEPARTMENTS  AND   BOARDS    IN 
CHARGE   OF   STATE   INSTITUTIONS. 

The  executive  officers  of  departments  and  institutions  need,  first 
of  all,  to  have  in  their  possession  a  copy  of  the  budget  proposal  con- 
sidered by  the  General  Assembly  and  a  copy  of  the  budget  passed  by 
the  General  Assembly.  This  information  is  needed  so  that  department 
and  institution  officers  may  properly  allocate  their  departments  and 
institutions  as  integral  parts  of  the  State  financial  program. 

After  the  General  Assembly  adjourns,  the  heads  of  departments 
and  institutional  officers  should  be  furnished  by  the  State  Auditor  with 
specific  information  as  to  the  revenue  available  for  their  use  during 
each  year  of  the  coming  biennium.  The  State  appropriations  available 
for  the  use  of  departments  and  institutions,  together  with  an  estimate 
of  the  revenue  collectable  by  the  department  or  institution  that  may  be 
retained  under  law,  constitutes  the  available  income  under  which  the 
work  of  the  department  or  institution  must  be  carried  on.  The  officer, 
or  governing  board,  should  build  up  a  budget  showing  the  available 
income  of  the  department  or  institution  as  over  against  allotments 
covering  the  estimated  cost  of  carrying  out  each  one  of  the  activities  of 
the  institution.  This  departmental  budget  should  be  approved  by  the 
head  of  the  department,  or  enacted  by  the  board  of  trustees  in  charge  of 
the  institution,  before  the  beginning  of  each  year  of  the  biennium. 

The  procedure  in  making  the  local  budget  for  a  department  or 
institution  should  follow  the  same  lines  as  the  procedure  already  indi- 
cated for  the  State  budget.  The  responsible  executives  of  the  depart- 
ment or  institution  should  first  of  all  compile  a  statement  of  budget 
proposals.  Allotment  requests  should  be  classified  so  as  to  show  the 
amounts  requested  for  each  project  under  additions  to  land,  buildings 
and  permanent  equipment,  and  so  as  to  show  the  total  amount  requested 
for  each  sub-department  or  activity  under  proposed  operation  and  main- 
tenance expense.  The  request  for  each  allotment  should  be  supported 
by  detail  giving  an  estimate  of  the  cost  of  each  kind  of  service  and  of 
each  kind  of  material  needed  in  carrying  on  the  work  of  the  activity 
for  which  the  allotment  is  requested.  The  financial  data  for  each 
project  and  activity  should  be  detailed  in  a  supplementary  statement 
together  with  data  as  to  the  work  program  proposed  under  the  project 
or  activity  for  the  year.  The  allotment  requests  should  be  summarized 
as  pver  against  an  estimate  of  the  revenue  available  to  the  department 
or  institution  for  the  year.  This  estimate  of  revenue  should  be  classified 
by  sources  and  kinds.  The  budget  proposals  should  be  compared  with 
the  revenue  and  disbursements  of  at  least  three  preceding  years.  The 
form  of  such  a  statement  of  budget  proposals  for  a  State  normal  school 
is  shown  in  schedule  5.  The  items  given  are  hypothetical  and  the 
schedule  is  shown  by  way  of  illustration  only. 


REPORT  ON  ACCOUNTS. 


239 


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240  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  statement  of  budget  proposals  for  the  year  should  be  accom- 
panied by  a  digest  of  State  laws  and  regulations  directly  affecting  the 
finances  of  the  department  or  institution. 

After  consideration,  the  governing  board  of  the  institution  or  head 
of  the  department  should  adopt  a  final  budget  for  the  year.  Allotments 
in  the  final  budget  should  be  by  projects  and  activities  and  should  not 
be  detailed  as  to  expense  items.  Expense  items  and  wages  of  non- 
technical employees  should  be  left  to  the  discretion  of  responsible 
executives.  There  are,  however,  important  arguments  to  support  the 
view  that  the  local  budget  of  each  department  and  institution  should 
give  the  salaries  of  permanent  positions  in  detail. 

The  final  budget  of  the  year  should  be  placed  in  the  hands  of  the 
financial  officer  of  the  department  or  institution  as  the  official  basis  for 
receipts  and  disbursements  and  for  accounts. 

The  statement  of  budget  proposals  with  its  auxiliary  statements 
of  work  programs  by  activities,  the  digest  of  laws  and  the  final  budget 
should  be  made  a  matter  of  systematic  record  even  in  the  case  of  small 
departments  and  institutions.  The  larger  institutions  of  the  State  now 
have  such  procedure,  although  in  some  cases  the  allotment  requests  and 
work  programs,  and  even  the  final  allotments,  are  made  informally 
and  without  sufficient  record  for  systematic  administration.  The  re- 
quirement of  such  records  in  writing  before  the  beginning  of  each  fiscal 
year  insures  careful  planning  and  aft"ords  an  authentic  basis  for  finan- 
cial administration  and  accounting. 

The  monthly  reports  of  departments  and  institutions  acting  as 
revenue  collection  agencies  should  include  schedules  showing  revenue 
collected  and  revenue  receivable  classified  by  kinds  of  revenue.  Such  a 
monthly  report  as  to  revenue  will  afford  a  record  of  receipts  and  will 
afford  also  a  statement  of  accounts  receivable  and  revenue  collectable 
comparable  with  the  estimate  of  rever^ue  contained  in  the  departmental 
or  institutional  budget  and  summarized  in  the  State  budget. 


REPORT  ON  ACCOUNTS. 


241 


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242  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Those  in  charge  of  departments  and  institutions  will  need  a  report 
at  the  close  of  each  month  showing  the  disbursements  and  outstanding 
encumbrances  under  each  one  of  the  allotments  made  by  them.  Such  a 
report  may  properly  be  put  in  the  form  shown  in  Schedule  6. 

The  monthly  statement  of  disbursements  and  encumbrances  under 
allotments  will  serve,  first  of  all,  to  acquaint  the  officers  of  the  depart- 
ment or  institution  with  the  balance  in  each  allotment,  against  which 
further  open  market  orders,  contracts  and  salary  assignments  can  be 
placed.  The  monthly  statement  of  disbursements  and  of  encumbrances 
will  also  be  comparable  with  the  statement  of  allotments  contained  in 
the  departmental  or  institutional  budget  for  the  year  and  will  be  com- 
parable with  the  appropriations  for  the  biennium  contained  in  the  State 
budget. 

Recent  writers  on  governmental  accounting  have  been  insistent  in 
demanding  records  of  accounts  payable.  Records  of  open  market 
orders  outstanding,  of  contracts  outstanding,  and  of  salary  assignments 
should  be  inclusive  both  of  accounts  payable  and  of  contractual  obliga- 
tions for  goods  and  services  not  yet  received  but  for  which  the  credit  of 
the  State  is  pledged  in  a  practical  sense.  Reports  from  such  records 
must  be  constantly  studied  if  administrators  are  to  keep  the  expenses 
of  a  year  within  the  legal  appropriations  for  the  period. 

Accounts  should  be  maintained  showing  the  kind  of  services  and 
kinds  of  materials  purchased  under  each  of  the  allotments  made  for 
carrying  out  each  activity,  and  this  cost  data  should  be  brought  together 
in  such  form  that  it  may  be  analyzed  by  responsible  executives  and 
trustees  in  connection  wdth  any  of  the  plans  of  the  department  or  insti- 
tution. A  perpetual  inventory  should  be  maintained  of  property  of  the 
department  or  institution,  and  quarterly  reports  should  be  made  as  to 
additions  to  permanent  property  and  as  to  disposal  of  permanent 
property. 

It  should  be  possible  to  set  up  an  annual  balance  sheet  from  the 
records  of  revenue  collectable  and  outstanding  encumbrances  and  from 
the  perpetual  inventory  records  maintained  by  each  department  or  insti- 
tution. In  addition  to  the  general  balance  sheet,  it  will  be  found  desir- 
able to  set  up  a  separate  balance  sheet  at  the  close  of  each  year  for  any 
trust  fund  held  by  the  department  or  institution. 

Not  less  frequently  than  once  a  year  each  department  and  institu- 
tion should  issue  a  public  report  setting  forth  the  receipts  under  each 
kind  of  revenue  collected  by  it  and  the  disbursements  for  each  of  its 
activities,  together  with  a  balance  sheet  giving  a  summary  of  the  assets 
and  liabilities  of  the  institution  with  supporting  schedules  summarizing 
the  perpetual  inventory  of  permanent  property.  It  is  advisable  that 
such  published  reports  should  contain  statistics  as  to  the  various  kinds 
of  work  carried  on  by  the  institution,  so  that  the  citizens  of  the  State 
may  compare  the  amounts  expended  for  each  class  of  work  with  the 
actual  work  accomplished. 

ACCOUNTING    NEEDS   OF   INSTITUTIONAL   AND  DEPARTMENTAL 
EXECUTIVES. 

The  responsible  executives  and  subordinate  officers  and  heads  of 
departments  need  to  have  before  them  all  of  the  information  which  we 


REPORT  ON  ACCOUNTS.  ,  243 

have  discussed  as  desirable  for  review  by  boards  of  trustees  and  heads 
of  departments.  That  is  to  say,  these  officers  should  have  a  report 
setting  forth  the  budget  passed  by  the  General  Assembly,  so  that  they 
may  allocate  their  activities  with  those  of  the  State  at  large.  The 
officers  should  have  an  institutional  or  departmental  budget  with 
monthly  reports  as  to  disbursements,  outstanding  encumbrances  and 
available  balances  in  allotments.  The  officers  should  have  monthly 
reports  giving  cost  data  and  statistics  showing  the  kind  of  service  and 
kind  of  materials  that  they  themselves  are  purchasing  for  their  own  use. 
Further,  the  officers  should  have  at  last  quarterly  reports  on  the 
inventory  of  the  property  for  which  they  are  responsible. 

The  officers  mentioned  will  be  responsible  for  the  making  out  of 
the  reports  discussed  under  preceding  headings.  They  should  be  pro- 
vided by  the  State  Auditor  with  regulations  as  to  accounting  methods 
and  prescribed  classifications  of  accounts  with  definitions. 

If  such  accounting  systems  are  maintained  at  the  institutions  and 
departments  as  will  enable  the  officers  to  prepare  and  have  before  them 
the  reports  mentioned,  it  is  obvious  that  accounts  must  be  kept  from 
day  to  day  showing  each  one  of  the  different  classes  of  information. 
These  accounts  will  be  frequently  referred  to  by  officers,  and  various 
abstracts  of  data  may  be  secured  from  the  accounts  of  value  in  solving 
particular  problems  of  administration. 

ACCOUNTING  NEEDS  OF  EMPLOYES  OF  DEPARTMENTS 
AND   INSTITUTIONS. 

The  employees  in  each  one  of  the  sub-departments  of  a  depart- 
ment or  institution  should  be  informed  from  month  to  month  as  to  the 
status  of  the  allotment  made  for  the  support  of  their  own  activities. 
More  than  this,  such  employees  should  be  provided  with  cost  data  not 
less  frequently  than  once  a  month,  so  that  they  themselves  may  feel  a 
sense  of  responsibility  for  the  volume  and  kinds  of  services  and  mater- 
ials they  are  using.  Such  employees  will  have  a  direct  responsibility 
in  connection  with  the  safeguarding  and  maintenance  of  permanent 
property,  and  for  that  reason  should  have  access  to  the  perpetual 
inventory  records  of  the  department  or  institution  with  which  they  are 
connected.  accounting  needs  of  the  public. 

The  citizens  of  the  State  will  be  concerned,  first  of  all,  as  tax 
payers,  and  for  that  reason  can  be  expected  to  welcome  and  use  a 
published  State  budget.  The  citizens  should  have  an  opportunity  to 
examine  and  discuss  the  proposed  revenue  collection  and  the  proposed 
appropriations  before  the  General  Assembly  goes  into  session.  Citizens 
should  be  given  an  opportunity  to  talk  with  members  of  the  General 
Assembly.  Interested  citizens  will  avail  themselves  of  this  opportunity 
whether  or  not  they  have  before  them  a  complete  statement  of  the 
financial  needs  of  the  entire  State  and  of  the  particular  financial  needs 
of  each  department  and  institution  of  the  State.  If  such  a  complete 
statement  is  before  them,  citizens  can  be  expected  to  use  far  more  in- 
telligence in  the  pressure  that  they  bring  upon  their  representatives  in 
the  General  Assembly,  and  upon  the  Governor  as  to  financing  of  par- 
ticular activities. 


244  EITICIENCY  AND  ECONOMY  COMMITTEE. 

At  the  conclusion  of  the  legislative  session,  the  General  Assembly 
should  be  put  squarely  on  record  before  the  citizens  of  the  State  by 
the  publication  of  a  statement  setting  forth  the  revenue  collection 
authorized  by  the  General  Assembly  for  the  next  biennium,  and  the 
appropriations  enacted,  classified  in  such  a  way  that  the  citizens  may 
understand  the  work  that  is  to  be  carried  on  under  the  appropriation 
Acts.  This  statement  may  also  be  used  by  the  State  Tax  Board  in 
announcing  its  reasons  to  the  public  as  to  the  fixing  of  State  tax  rates. 

The  citizens  of  the  State  have  a  right  to  expect  that  the  report  of 
the  State  Auditor  shall  show  the  safeguarding  of  public  money  and 
public  credit  so  far  as  the  report  provides  a  check  upon  the  cash  tran- 
sactions through  the  State  treasury.  This  much  the  present  report  of 
the  State  Auditor  does.  The  report  of  the  State  Auditor  should  include 
a  budget  summary  for  the  biennium,  and  should  include  further  an 
analysis  of  State  revenue  by  (1)  kinds  of  taxes  by  years  levied; 
(2)  various  kinds  of  fixed  licenses  and  permits;  (3)  various  kinds  of 
receipts  of  institutions  and  departments.  The  report  of  the  State 
Auditor  should  set  forth  disbursement  accounts  under  legislative  appro- 
priations, so  analyzed  as  to  show  the  amounts  of  public  money  expended 
for  each  department  and  institution  of  the  State,  and  so  analyzed  also 
as  to  show  the  amount  of  public  money  spent  for  each  principal  function 
of  State  government  in  each  one  of  the  State  departments  and  institu- 
tions and  for  the  State  as  a  whole.  The  report  of  the  State  Auditor 
should  contain  a  summary  of  the  perpetual  inventories  maintained  by 
departments  and  institutions,  and  balance  sheets  exhibiting  the  assets 
and  liabilities  of  the  State  in  summary  form. 

The  present  form  of  the  State  Treasurer's  report  should  be  con- 
tinued for  the  use  of  the  public,  and,  in  addition  thereto,  the  public 
should  be  given  information  as  to  the  amount  of  money  handled  by 
each  bank  acting  as  depository  of  State  funds. 

The  budget  reports  and  the  reports  of  the  State  Auditor  and  State 
Treasurer  should  furnish  the  general  information  desired  by  the  public. 
Particular  classes  of  the  public  will  be  interested  in  each  one  of  the 
departments  and  in  each  one  of  the  institutions  of  the  State.  Each 
department  and  each  institution  should  print  and  publish  annually  a 
financial  report  setting  forth  the  revenue  available  for  the  department 
or  institution,  classified  as  to  the  source  of  its  collection,  and  the  dis- 
bursements of  the  department  or  institution  on  account  of  each  one  of 
the  activities  carried  on  by  it.  Such  annual  reports  may  very  well 
give  the  budget  of  the  department  or  institution  as  passed  by  the  board 
of  trustees  or  executive  head  at  the  beginning  of  the  fiscal  year,  together 
with  a  statement  of  the  budget  as  at  the  close  of  the  year  reported. 
Further  than  this  the  printed  report  of  each  department  and  institution 
should  summarize  the  inventory  of  permanent  property  of  the  depart- 
ment or  institution,  and  should  present  a  balance  sheet  exhibiting  the 
assets  and  liabilities  of  the  department  or  institution  at  the  close  of  the 
year.  The  reports  of  the  departments  or  instituions  will  be  made  very 
much  more  valuable  for  the  use  by  the  public  generally,  and  especially 
for  use  by  persons  particularly  interested  in  the  work  of  a  particular  de- 
partment or  institution,  if  the  reports  combine  statistical  data  as  to  the 
activities  of  the  institution  with  the  statements  of  revenue  and  expendi- 
ture. 


REPORT  ON  ACCOUNTS.  245 

A   PLAN  OF  ACCOUNTING   FOR  THE   STATE. 

If  the  accounting  needs  of  each  of  the  various  classes  of  officers 
and  citizens  that  we  have  discussed  are  met,  there  must  be  established 
in  the  State  a  definite  plan  of  reporting  and  accounting.  The  following 
system  of  reports  is  suggested : 

1.  Upon  the  adjournment  of  the  General  Assembly,  the  Auditor 
of  Public  Accounts  shall  prepare  and  publish  schedules  setting  forth 
the  budget  of  the  State  as  passed  by  the  General  Assembly.  This 
published  statement  may  very  well  include  a  record  of  the  action  of  the 
State  board  in  the  fixing  of  State  tax  rates. 

2.  The  Auditor  of  Public  Accounts  shall  open  accounts  on  his 
books  with  each  of  the  sources  of  revenue  set  forth  in  the  State  budget, 
and  with  each  of  the  appropriation  Acts  at  the  beginning  of  the  bien- 
nium,  during  which  the  budget  is  to  have  effect. 

3.  The  State  Treasurer  shall  open  accounts  with  each  of  the  State 
funds  authorized  by  law,  and  with  each  of  the  depositaries  in  which 
money  is  deposited. 

4.  The  Auditor  of  Public  Accounts  shall  notify  each  revenue 
collection  agency  of  the  revenue  to  be  collected  by  the  agency  during 
each  year  of  the  biennium,  and  shall  notify  each  department  and  insti- 
tution of  the  authorization  contained  in  the  budget  for  its  support. 

5.  Each  department  and  institution  of  the  State  shall  prepare  an 
internal  budget  of  allotments,  definitely  assigning  a  portion  of  the 
income  at  its  disposal  for  the  support  of  each  one  of  the  activities  that 
it  carries  on.  These  internal  budgets  shall  be  formajly  approved  by 
the  board  of  trustees  of  each  institution,  or  by  the  responsible  heads 
of  departments,  before  the  beginning  of  each  year  of  the  biennium, 
and  copies  of  the  internal  budgets  so  approved  shall  be  sent  to  the 
State  Auditor  for  the  information  and  guidance  of  the  State  Auditor 
and  of  the  Governor, 

6.  The  financial  officer  of  lach  department  and  institution  shall 
open  accounts  with  each  of  the  sources  of  income  for  the  department 
or  institution,  and  with  each  of  the  allotments  contained  in  the  internal 
budget  for  the  department  or  institution.  Under  each  of  such  accounts, 
he  shall  maintain  such  an  analysis  and  classification  of  data  as  shall 
be  prescribed  for  his  use. 

7.  Each  department  and  each  institution  shall  open  and  maintain 
perpetual  inventory  accounts,  giving  complete  report  of  the  permanent 
property  held  by  the  department  or  institution,  following  such  classifica- 
tion as  may  be  prescribed  by  the  constructive  accounting  authority 
of  the  State. 

8.  The  financial  officer  of  each  revenue  collecting  agency  shall 
report  to  the  State  Auditor  from  month  to  month  the  revenue  collected 
by  him,  and  shall  fully  account  for  such  revenue  as  having  passed  into 
the  hands  of  the  State  Auditor  for  transmission  to  the  State  Treasurer 

9.  At  the  close  of  each  month,  the  financial  officers  of  each  de- 
partment and  institution  shall  make  a  complete  report  as  to  the  receipts 
and  revenue  collectable  under  each  of  the  sources  of  revenue  of  the 
department  or  institution,  and  as  to  the  disbursements,  outstanding 
encumbrances  and  available  balance  in  each  of  the  allotments  contained 


246  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

in  the  internal  budget  of  the  department  or  institution.  Copies  of  this 
report  shall  be  furnished  to  the  executive  head  of  each  department,  or 
to  the  members  of  the  board  of  trustees  in  charge  of  each  institution, 
and  to  the  State  Auditor.  Under  the  direction  of  the  head  of  the  de- 
partment, or  of  the  board  of  trustees,  as  the  case  may  be,  the  financial 
officer  shall  transmit  information  as  to  the  disbursements,  outstanding 
encumbrances  and  free  balance  in  each  allotment  to  such  employees 
of  the  department  or  institution  as  may  have  occasion  to  use  such  in- 
formation in  carrying  out  the  purpose  of  the  allotment. 

10.  At  the  close  of  the  quarter,  a  report  similar  in  scope  to  the 
monthly  report  shall  be  made  by  the  financial  officer  of  each  department 
and  institution,  and  shall  be  presented  to  the  State  Auditor.  The  State 
Auditor  shall  audit  such  reports  and  compare  them  with  his  controlling 
accounts.  Whenever  possible,  such  reports  shall  be  made  a  matter  of 
record  in  the  printed  minutes  of  the  governing  boards. 

11.  At  the  close  of  each  quarter,  each  department  and  institution 
shall  make  a  report  to  the  Auditor  of  Public  Accounts  as  to  the  perpetual 
inventory  of  permanent  property  of  the  department  or  institution. 

12.  At  the  close  of  each  year,  each  department  and  institution 
shall  publish  a  financial  report  addressed  to  the  Governor  of  the  State, 
and  certified  as  correct  by  the  Auditor  of  Public  Accounts,  giving  a 
detailed  analysis  of  the  collection  of  revenues,  and  giving  detailed 
analysis  of  disbursements  under  allotments,  together  with  a  balance 
sheet  and  summaries  of  the  permanent  property  held  by  the  depart- 
ment or  institution. 

13.  At  least  sixty  days  before  the  beginning  of  each  legislative 
session,  each  department  and  institution  of  the  State  shall  prepare  a 
statement  in  detail  of  its  disbursements  for  the  preceding  biennium, 
and  an  estimate  of  its  disbursements  for  the  present  biennium,  together 
with  an  estimate  of  its  needs  for  the  coming  biennium;  and  shall 
present  this  report  to  the  budget-making  authorities  of  the  State  and 
to  the  Governor  of  the  State. 

14.  The  budget-making  authorities  of  the  State  shall  combine  the 
reports  transmitted  by  the  departments  and  the  recommendations  of  the 
Governor  into  a  statement  setting  forth  the  proposed  financial  program 
of  the  State.  This  report  shall  be  printed  and  distributed  to  the  mem- 
bers of  the  General  Assembly  and  to  the  public  at  large  at  least  thirty 
days  before  the  meeting  of  the  General  Assembly. 

15.  At  the  close  of  each 'biennium,  the  Auditor  of  Public  Accounts 
shall  prepare  and  publish  a  report  setting  forth  a  summary  of  the  ac- 
counts of  his  office,  and  showing  the  revenue  collected  and  money  dis- 
bursed under  the  budget  adopted  by  the  General  Assembly  for  the 
biennium  under  review.  This  report  shall  include  a  reconcilement 
with  the  accounts  of  the  State  Treasurer,  and  a  balance  sheet  with 
summaries  of  the  inventories  of  permanent  property  of  the  State. 

It  will  be  seen  that  this  plan  of  reporting  and  accounting  pro- 
vides (1)  for  a  budget  for  the  State;  (2)  for  departmental  and  insti- 
tutional budgets  under  the  general  provisions  contained  in  the  State 
budget;  and  (3)  for  monthly,  quarterly  and  annual  reports  by  depart- 
ments and  institutions  following  classifications  to  be  prescribed  by  the 


REPORT  ON  ACCOUNTS.  247 

constructive  accounting  authority  of  the  State.  This  system  of  report- 
ing and  accounting  will  periodically  furnish  the  information  needed 
by  heads  of  departments  and  boards  of  institutions  in  making  internal 
budgets  for  their  departments  and  institutions,  and  in  presenting  their 
needs  to  the  budget-making  authorities  of  the  State.  The  system  will 
periodically  furnish  the  data  needed  for  a  complete  State  budget  for 
consideration  by  the  General  Assembly.  The  plan  provides  a  com- 
plete report  by  the  Auditor  of  Public  Accounts  at  the  close  of  the 
biennium  as  to  the  results  obtained  under  the  budget  for  the  biennium, 
and  provides  also  for  a  complete  annual  report  by  each  department 
and  institution. 

It  is  obvious,  of  course,  that  a  great  deal  of  constructive  account- 
ing work  must  be  done  in  providing  the  proper  classification  of  rev- 
enue and  expenditure,  and  in  providing  a  proper  classification  for  the 
perpetual  inventories  to  be  maintained  by  departments  and  institu- 
tions. The  plan  proposed  will  not  increase  the  volume  of  accounts 
as  over  against  the  present  volume  of  data  made  a  matter  of  record 
at  departments  and  institutions,  and  in  the  State  offices.  The  plan 
provides  for  systematic  reporting  of  data  maintained  under  uniform 
classifications  to  be  prescribed,  and  for  the  enforcement  of  the  system 
by  audits  of  the  Auditor  of  Public  Accounts. 

CONSTRUCTIVE  ACCOUNTING  WORK  TO  BE  DONE. 

To  provide  the  system  of  accounting  described  in  this  report,  a 
careful  study  must  be  made  of  the  present  State  organization.  Charts 
should  be  prepared  showing  the  organization  of  the  State  by  units  of 
organization,  and  by  functions. 

A  careful  study  must  be  made  of  the  present  laws  of  the  State, 
and  digests  should  be  set  up  so  as  to  show  in  outline  form  the  status 
of  the  present  laws  as  to  revenue  collections,  disbursements,  custody 
of  public  money,  auditing  of  transactions,  and  care  of  public  property, 
as  well  as  to  showing  the  financial  organization  of  the  State. 

The  present  financial  reports  of  the  State  should  be  carefully 
analyzed  so  as  to  show  the  kinds  of  revenue  now  collected  and  the 
nature  of  present  disbursements  and  present  appropriation  Acts. 

A  budget  classification  should  be  set  up  for  the  State  and  for 
each  department  and  institution.  Classifications  of  accounts  should  be 
prescribed  for  each  department  and  institution  and  the  accounts  named 
in  such  prescribed  classifications  should  be  carefully  defined.  The 
forms  of  schedules  in  reports  suggested  should  be  prescribed,  methods 
should  be  provided  for  the  auditing  of  accounts  and  reports,  and  care- 
ful study  should  be  done  in  the  establishment  of  accounting  procedure. 
Finally,  the  installation  of  such  an  accounting  system  as  the  one  asked 
for  in  this  report  demands  the  training  of  State  employees  so  that  they 
may  be  able  to  understand  the  requirements  of  the  proposed  system 
and  make  intelligent  use  of  the  data  that  the  system  affords. 

It  will  be  seen  that  the  problem  of  constructive  accounting  for 
the  State  of  Illinois  is  a  problem  large  in  scope  and  difficult  in  its 
requirements.  Something  can  be  accomplished  toward  better  State 
accounting  by  efforts  made  in  the  accounting  offices  of  the  departments 


243  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

and  institutions,  since  better  accounting  at  any  State  institution  or  by 
any  State  department  in  itself  tends  to  improve  the  accounts  kept  at 
other  State  offices.  •  Something  can  also  be  done  by  recommendations 
by  such  bodies  as  the  present  Economy  and  Efficiency  Committee, 
since  such  recommendations  will  be  studied  by  those  concerned  with 
the  administration  of  departments  and  institutions  and  it  is  to  be 
expected  that  many  of  the  recommendations  will  be  adopted.  The 
actual  installation  of  the  complete  system  of  accounts  for  the  State 
can  best  be  accomplished,  however,  by  the  creation  of  a  constructive 
accounting  agency,  either  within  the  office  of  the  State  Auditor  or 
under  the  control  of  the  Governor,  as  a  part  of  a  State  Tax  Commis- 
sion or  State  Finance  Commission.  A  permanent  staff  of  constructive 
accountants  of  experience  and  ability  should  be  employed  not  only  to 
install  a  system  but  to  review  its  operations  and  to  effect  changes  needed 
by  changing  conditions. 


A  REPORT 

ON 

ACCOUNTING  ADMINISTRATION 

FOR 

CORRECTIONAL  INSTITUTIONS 

BY 

SPURGEON  BELL 


CONTENTS 

PART  I. 

Financial  Information  Required  in  the  Administration  of  the  Correc- 
tional Institutions 255-294 

Purposes  of  a  Departmental  Classification  of  Accounts 255 

Schedule  1.  Department  of  Illinois   Correctional   Institutions 257 

Appropriation  and  Allotments 258 

Control  of  Appropriations  and   Allotments 259 

Schedule  2.  Appropriation   Estimates    260 

Schedule  3.  Outstanding  Liabilities  and  Available  Balances 262 

Operation  and   Maintenance 264 

Schedule  4.  Maintenance  and  Operation 265 

Property  Accounts  and  Inventory  Control 269 

Schedule  5.  Property — Inventory    Control    270 

Schedule  6.  Inventory  Control  over  Store  Accounts 271 

Schedule  7.  Property  Schedule  for  Separate  Institutions 271 

Incomes  and  Disbursements  of  the  Prison  Proper 272 

Schedule  8.  Cash  Receipts  and  Disbursements  of  the  Prison  Proper.  .273 

Financial  Reports  of  the  Prison  Proper 274 

Schedule  9.    Trial    Balance,  Income    Account    and    Balance  Sheet  of  the 

Prison  Proper    274 

Schedule   10.  Clothing  Room— Clearing   Account 278 

Reports  of  Manufacturing  Industries '•'^ 

Schedule  11.  Furniture  Industry,  Monthly  Summary 280 

Schedule  12.  Manufacturing  Industries,  Consolidated  Annual  Report  282 

Reports  of  the  Farm  and  Garden 283 

Schedule  13.  Operation  and  Maintenance  Expense  for  Farm  and  Garden  285 

Schedule  14.  Comparative  Annual  Report  of  the  Farm  and  Garden... 285 

Prisoner's   Deposits    ; ^" 

Financial  Reporting  and   Control   in   the   Correctional   Institutions   Com- 
pared with  that  secured  under  the  Proposed  Outline ..288 

Schedule   15.  Comparative   Appropriations  of  the  Correctional  Institu- 
tions of  Illinois 288 

Schedule   16.  Comparative  Expense  Statement  of  the  Correctional  in- 
stitutions     289 

Schedule  17.  Accounts  for  Industries 291 

Summary    .  ^ 

PART  II. 
Statutory  and  Proposed  Accounting  Requirements  of  the  Correctional 

Institutions   294-298 

Summary  of  Accounting  Requirements  of  the  Bill  and  General  Statutes  296 


PART  III. 

Schedule  of  Defined  Accounts  for  the  Departments  and  Industries  of 
THE   Correctional   Institutions 298-336 

Schedules  of  Operation  and  Maintenance  Accounts  by  Departments  ....298 

Departments  Supported  Mainly  by  General  Revenues 303 

Departments  Supported  Mainly  by  Earnings 311 

Clearing  Departments    320 

Schedule  of  Property  Accounts  by  Departments 325 

Departments  Supported  Mainly  by  General  Revenues 328 

Departments  Supported  Mainly  by  Earnings. 331 

Clearing  Departments    334 

PART  IV. 

Exhibits 337-339 

Exhibit  1.  Form  of  Exhibits  for  Food  Served  in  all  Kitchens  and  Dining 
Rooms    337 

Exhibit  2.  Extraordinary  Repairs  and  Property  Additions — Confinements  and 
Discipline  of  Male  Prisoners 338 

Exhibit  3.  A  Suggested  Form  of  Memorandum  Ledger  for  Outstanding  Or- 
ders, and  Available  Balances 339 


CHICAGO,  ILL.,  October  1,  1914. 


Dr.  John  A.  Fairlie,  Director  of  the  Efficiency  and  Economy  Com- 
mittee, Urbana,  III. 

sir:  I  have  the  honor  to  present  herewith  a  report  setting  forth 
an  Outline  of  Accounting  and  Financial  Administration  for  the  Cor- 
rectional Institutions  of  the  State  of  Illinois.  This  report  consists  of 
four  parts  as  follows:  Part  I,  Financial  Information  Required  in  tlie 
Administration  of  the  Penal  Institutions;  Part  II,  Statutory  and  Pro- 
posed Statutory  Accounting  Requirements  of  the  Penal  Institutions ; 
Part  III,  Schedule  of  Defined  Accounts  for  the  Departments  and 
Industries  of  the  Penal  Institutions;  Part  IV,  Exhibits. 

I  am  indebted  to  Professor  George  E.  Frazer,  C.  P.  A.,  Comp- 
troller of  the  University  of  Illinois,  for  valuable  suggestions  in  regard 
to  the  content  of  the  report.  Mr.  T.  P.  Waters  rendered  valuable 
assistance  in  the  collection  of  information  in  regard  to  the  present 
plan  of  accounts  in  the  penal  institutions.  I  am  also  under  obligations 
to  the  wardens  of  the  two  penitentiaries,  the  superintendent  of  the 
Reformatory  and  their -chief  clerks  for  their  cooperation  in  furnishing 
all  needed  information  in  connection  with  the  preparation  of  this 
report. 

Respectfully  submitted, 

Spurgeon  Bell. 


A  REPORT  ON 

ACCOUNTING  AND  FINANCIAL  ADMINISTRATION 

FOR  CORRECTIONAL  INSTITUTIONS 

BY  Spurgeon  Bell. 


PART  I. 

FINANCIAL    INFORMATION    REQUIRED    IN    THE 

ADMINISTRATION  OF  THE  CORRECTIONAL 

INSTITUTIONS. 

PURPOSES   OF  A  DEPARTMENTAL   CLASSIFICATION    OF   ACCOUNTS. 

The  authorities  who  need  financial  information  about  the  correc- 
tional institutions  are;  (1)  the  superintendents  and  officers  in 
immediate  charge  of  operations;  (2)  the  managing  officers  who  are 
charged  with  the  immediate  responsibility  for  all  operations  in  the 
respective  institutions;  (3)  the  managing  board  charged_  with  the 
responsibility  for  the  supervision  of  the  work  of  the  various  insti- 
tutions; (4)  the  General  Assembly,  which  appropriates  money  for 
their  support  and  makes  laws  and  regulations  to  be  carried  out  by  the 
executives;  (5)  the  Governor,  who  has  both  legislative  and  executive 
responsibilities  in  connection  with  their  administration;  and  (6)  the 
people  of  the  State  who  hold  the  Governor  and  the  General  Assembly 
responsible  for  their  stewardship.  It  is  the  function  of  a  set  of 
accounts  to  furnish  information  and  data,  which  will  supply  the  needs 
of  these  various  officers  and  authorities  charged  with  responsibility. 

The  superintendents  or  officers  in  charge  desire  to  know  each 
month  the  results  of  operations  in  their  departments.  If  the  depart- 
ment has  expenses  and  no  income  the  departmental  officer  in  charge 
should  have  a  classified  statement  of  its  expenses  placed  before  him 
from  time  to  time.  If  the  department  has  an  income  the  officer  in 
charge  should  have  a  statement  of  the  income  and  expenses  of  his 
department  at  frequent  intervals  in  order  that  he  may  check  unneces- 
sary expenses  and  enhance  the  income  or  service  of  his  department. 
It  would  not  be  sufficient  for  him  to  know  that  the  institution  as  a 
whole  had  shown  an  increase  in  expense  without  adequate  improve- 
ment in  the  income  and  service  unless  he  also  had  data  about  his  own 
department  that  would  indicate  his  own  responsibility  for  the  showing 
made.  For  departmental  officers,  information  must  be  classified  under 
departmental  captions  and  furnished  to  the  officers  in  charge. 


256  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  warden  or  superintendent  must  have  financial  information 
classified  by  departments  because  he  could  take  no  action  in  the  im- 
provement of  the  service  or  reduction  of  the  expense  without  knowing 
first  what  departmental  officer  was  responsible  for  waste,  inefficiency, 
or  overdraft  of  the  funds  allowed  for  disbursement. 

A  managing  board,  which  asks  the  General  Assembly  for  funds 
to  support  the  penal  institutions,  and  holds  the  warden  or  superin- 
tendent responsible  for  the  results  obtained  must  make  its  estimates 
for  each  institution  on  the  basis  of  the  requirements  of  the  separate 
departments  and  must  judge  of  the  efficiency  of  the  managing  officer 
by  the  results  secured  in  the  separate  departments. 

The  General  Assembly  must  have  the  costs  of  operation  and  main- 
tenance of  the  separate  departments  in  order  to  judge  whether  the 
estimated  requirements  for  support  are  reasonable  or  excessive. 

The  Governor  must  also  judge  of  the  efficiency  of  the  supervising 
board  by  the  results  shown  in  the  operations  of  the  separate  depart- 
ments. He  requires  also  the  same  information,  which  the  General 
Assembly  needs,  for  the  consideration  of  appropriations. 

The  people  of  the  State  judge  of  the  efficiency  of  an  institution 
by  the  work  of  the  warden  or  superintendent  through  the  separate 
departments.  Costs  of  goods  or  services  furnished  by  the  separate 
departments  must  be  reduced  to  a  per  capita  basis  and  compared  with 
similar  costs  for  other  institutions  before  the  average  citizen  can  reach 
a  conclusion  in  regard  to  the  services  of  the  institutions  in  comparison 
with  operation  and  maintenance  costs. 

A  comparison  of  the  costs  of  a  given  department  in  two  institu- 
tions involves  a  uniform  classification  of  departments  for  both.  If 
one  institution  reports  the  cost  of  food  purchased  for  the  whole  insti- 
tution under  an  account  while  another  reports  the  cost  of  food  for  the 
convict  kitchen  as  a  separate  total,  the  data  furnished,  even  if  reduced 
to  a  per  capita  basis,  cannot  be  compared  advantageously.  If  one  insti- 
tution reports  the  cost  of  food  for  convicts  and  the  expense  of  the 
convict  kitchen  as  an  undivided  sum  while  another  reports  the  cost 
of  food  as  a  distinct  item  but  does  not  give  the  other  operation  costs 
of  the  convict  kitchen  except  as  combined  with  sundry  outlays,  it  is 
impossible  to  compare  the  costs  of  food  per  capita  furnished  for 
prisoners.  But  if  both  institutions  report  tlie  cost  of  food  served  for 
so  many  meals  and  report  as  a  separate  total  the  operation  and  main- 
tenance costs  of  the  convict  kitchen  and  dining  room  the  average 
citizen  has  a  basis  of  comparing  the  costs.  For  comparative  purposes 
there  must  be  a  uniform  classification  of  departments  and  also  a  uni- 
form classification  and  definition  of  the  accounts  employed  in  the 
departments  for  which  comparative  data  are  desired. 

The  word  department,  as  used  above,  refers  to  a  distinct  operating 
unit  furnishing  a  commodity  or  service  to  the  officers  or  inmates  of  the 
institution.  If  the  department  concerned  furnishes  the  commodity  or 
service  to  other  departments  and  only  indirectly  to  inmates  and  officers 
it  is  called  a  clearing  department.  There  may  be  a  number  of  depart- 
ments under  one  officer.  The  production  of  a  distinct  commodity, 
service  or  class  of  commodities  is  taken  as  the  unit  of  operation.    The 


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS.  257 

boiler  room  is  a  department  because  it  produces  steam.  The  engine 
room  is  a  department  because  it  converts  the  steam  into  motive  power, 
which  is  again  a  service  to  be  sold  to  departments. 

Both  boiler  room  and  engine  room  are  clearing  departments. 
The  classification  of  departments  for  the  correctional  institutions 
of  Illinois  is  found  in  Schedule  1  below. 
Schedule  1. 

DEPARTMENTS  OF  ILLINOIS  CORRECTIONAL  INSTITUTIONS. 

DEPARTMENTS     SUPPORTED    MAINLY    BY    GENERAL    REVENUES. 

I.  General  Administration. 

1.  Board  of  Prison  Administration, 

II.  Prison  Administration. 

2.  Warden  or  Superintendent's  Office. 

3.  Warden  House  Building. 

4.  Institution  Grounds. 

5.  Warden  or  Superintendent's  Suite. 
5.1.  General  Accounting  Office. 

6.  Officers'  Substistence. 

7.  Women's  Prison — Officers'  Building. 

8.  Women's  Prison— Officers'  Kitchen  and  Dining  Room.  . 

9.  Women's  Prison — Confinement  and  Discipline  of  Prisoners. 

11.  Confinement  and  Discipline  of  Male  Prisoners. 

12.  Parole  of  Prisoners. 

13.  Receiving  and  Discharging  Prisoners. 

14.  Institution  Teams  and  Vehicles. 

15.  Institution  Automobiles. 

III.  Maintenance  of  Male  Prisoners. 

16.  Subsistence. 

17.  Sanitation. 

18.  Laundry. 

19.  Barber  Work. 

20.  Miscellaneous  Furnishings. 

20.1.  Farm  and  Garden — Prisoners'  House. 

20.2.  Farm  and  Garden — Prisoners'  Subsistence. 

IV.  Maintenance  of  Female  Prisoners. 

21.  Subsistence. 

22.  Sanitation.  ' 

23.  Laundry. 

24.  Miscellaneous  Furnishings. 

V.  Religious  and  Educational. 

25.  Religious  Instruction. 

26.  General  Education. 

27.  Trade  Schools. 

VI.  Outside  State  Services. 

28.  Camps — Camp  Dunne. 

29.  Stone  Department. 

DEPARTMENTS    SUPPORTED    MAINLY    BY    EARNINGS. 

VII.  Farm  and  Garden — Industry. 

30.  Administration. 

31.  Officers'  Subsistance. 

32.  Automobiles. 

33.  Machinery,  Implements,  Vehicles  and  Harness. 
33.1.  Power  Machinery. 

34.  Farm  Teams. 


258  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

35.  Land  and  Improvements. 

36.  Cora  Crop. 

37.  Hogs.  ^    ,        . 

VIII.  Manufacturing  Inaustrtes. 
30.      Furniture. 

41.  Rattan  or  Reed. 

42.  Printing. 

43.  Clothing. 

CLEARING    DEPARTMENTS. 

IX.  Power  Plant  and  Repair. 

44.  General  Administration. 

45.  Boiler  Room. 

46.  Electric  Generation  Plant. 

47.  Steam  Air  Compresser. 

48.  Engine  Room. 

49.  Electric  Air  Compresser. 

50.  Heating  Mains. 

51.  General  Repairs. 

52.  Store. 

X.  Other  Store  Rooms. 

53.  Subsistence  Store  Room. 
53.1.  Feed  Bam. 

54.  Fuel  Store. 

XI.  Miscellaneous  Products  and  Services. 

55.  Ice  Plant. 

56.  Laundry. 

57.  Clothing  Room. 

58.  Convict  Kitchen  and  Dining  Room. 

59.  Blacksmith  Shop. 

60.  Foundry. 

61.  Barber  Shop. 

62.  Hospital. 

63.  Officers'  Kitchen  and  Dining  Room. 

The  numbers  given  the  departments  are  the  same  as  the  numbers  given 
them  in  Part  III  so  that  the  schedule  for  any  department  can  be  referred  to  by 
the  use  of  the  departmental  numbers  above.  For  the  property  accounts  the  last 
two  figures  of  the  department  number  are  the  same  as  the  two  figures  for  the 
department  in  operation  and  maintenance,  but  the  figure  1  is  prefixed  so  as  to 
be  able  to  distinguisli  the  name  of  the  property  account  from  that  of  operation 
and  maintenance  for  the  same  department. 

APPROPRIATIONS   AND   ALLOTMENTS. 

Legislative  appropriations  should  have  as  their  basis  two  main  sets 
of  data:  (1)  the  estimates  of  the  requirements  of  the  separate  insti- 
tutions for  the  tv^^o  years  to  be  covered  by  the  appropriation  called  for ; 
and  (2)  the  actual  expenditures  during  the  preceding  two  years 
arranged  under  the  same  captions  as  the  estimates.  Parallel  columns 
showing  this  information  would  form  a  basis  for  a  discussion  of  the 
reasonableness  of  the  estimates  made.  These  estimates  should  be  made 
by  departments  or  operating  units.  If  a  warden  or  superintendent  asks 
for  $250,000  or  more  a  finance  committee  of  the  General  Assembly 
should  not  be  satisfied  with  knowing  that  this  is  an  increase  of  so  much 
over  the  appropriations  of  the  preceding  biennium.  It  should  ask  for  a 
statement  of  the  expenditures  by  departments,  comparisons  with  expen- 
ditures in  other  years,  and  an  explanation  of  why  the  excess  is 
required.  In  this  conn'ection  it  would  also  be  interesting  to  set  up  a 
comparison  between  preceding  estimates  and  actual  expenditures  from 
appropriations  based  thereon.  The  schedule  below  can  be  readily 
modified  to  furnish  the  additional  information  if  it  is  desired. 


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS.  259 

The  clearing  departments  included  in  the  miscellaneous  group  of 
departments  used  in  Schedule  2  would  require  an  allotment  for  inven- 
tory and  outlay  for  the  month.  They  would  not  require  more  than 
this  working  capital  because  their  funds  are  renewed  from  month  to 
month  by  charges  for  goods  and  services  to  other  departments.  For 
example,  the  subsistence  store  charges  to  the  allotment  account  of 
convict  subsistence  the  cost  of  all  supplies  furnished  to  the  convict 
kitchen  and  dining  room  during  the  month  plus  its  due  portion  of  the 
other  operating  costs,  which  are  ^prorated  on  the  basis  of  the  costs  of 
materials  and  supplies  furnished.  It  could  prorate  the  cost  of  the 
inventory  on  the  same  basis,  but  the  allowance  for  an  inventory  or 
working  capital  is,  perhaps,  more  satisfactory  since  it  gives  to  the 
departments  a  check  on  the  charges  made  against  their  respective  allot- 
ments. 

After  the  General  Assembly  has  made  appropriations  for  the  penal 
institutions  on  the  basis  of  the  estimated  requirements,  the  Board  ^of 
Prison  Administration  will  make  its  monthly  allotments  to  the  respec- 
tive departments  on  the  basis  of  monthly  estimates  in  the  same  form 
as  that  of  Schedule  2.  These  monthly  estimates  should  have  exhibits 
attached  showing  the  amounts  and  qualities  of  each  class  of  goods  and 
supplies  desired. 

It  will  not  be  necessary  for  the  Board  of  Prison  Administration 
to  keep  allotment  accounts  in  the  same  detail  in  which  they  are  kept 
in  the  various  institutions.  It  can  merely  credit  the  total  of  the 
departmental  lists  of  vouchers  which  come  from  the  institutions  from 
time  to  time  to  the  appropriate  allotment  accounts,  maintaining  a  con- 
trolling account  in  this  way  over  each  allotment. 

CONTROL  OF  APPROPRIATIONS  AND  ALLOTMENTS. 

In  the  operation  of  State  institutions  appropriations  and  allotments 
do  not  necessarily  serve  to  restrict  expenditures  within  the  allowed 
amount.  The  State  officer  authorised  to  purchase  supplies  for 
an  institution  or  department  incurs  a  liabilitv  when  he  makes  a  sup- 
plv  order.  The  State  auditor  can  prevent  the  payment  of  these  bills 
when  purchases  so  made  exceed  the  appropriations,  but  the  bills  may 
be  accumulated  in  large  amounts.  For  example,  outstanding  bills  of 
over  $50,000  have  been  carried  over  bv  institutions  with  a  total  appro- 
priation of  $250,000  to  $300,000.  When  there  is  no  more  definite 
control  of  appropriations  than  that  secured  by  the  auditor's  check  on 
vouchers  presented,  the  Legislature's  appropriation  may,  in  effect,  be 
exceeded  by  20  per  cent  or  more.  These  excess  purchases  may  be  made 
without  the  knowledge  that  they  do  exceed  the  allowed  amount  unless 
the  warden  or  superintendent,  the  purchasing  agent,  and  the  supervis- 
ing board  have  regular  information  available  in  regard  to  outstanding 
orders  and  outstanding  bills. 

A  statement  showing  outstanding  bills,  outstanding  orders,  and 
available  balances  like  that  shown  in  Schedule  3  below  should  be 
placed  before  the  warden  or  superintendent  and  the  supervising  board 
at  the  beginning  of  each  month.  The  warden  or  superintendent  should 
also  have  this  balance  available  at  all  times  in  connection  with  approv- 
ing orders  for  supplies. 


260 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


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ACCOUNTS  FOR  CORRECTIONAL  INSTITUTIONS. 


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ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  263 

The  estimate  of  requirements  for  the  succeeding  month,  which  is 
required  to  be  made  at  the  middle  of  each  month,  should  show  the 
allotments  for  the  month  then  current  and  the  incumbrances  against 
each  account.  In  like  manner  the  monthly  report  of  expenditures  by 
each  institution  should  show  fhe  allotments  made  for  the  month  cov- 
ered by  the  report  and  the  encumbrances  then  outstanding  against  each 
allotment.  This  expenditure  report  should  be  made  and  be  in  the  hands 
of  the  Fiscal  Supervisor  of  the  Board  of  Prison  Administration  not 
later  than  the  tenth  of  each  month  succeeding  the  month  for  which 
such  report  is  made. 

The  control  of  appropriations  and  allotments  also  requires  a  sys- 
tem of  institution  transfers  which  is  now  lacking  at  the  institutions. 
The  various  clearing  departments  must  be  able  to  charge  the  cost  of 
supplies  and  services  against  the  allotments  of  the  departments  to 
which  they  are  furnished.  This  plan  of  financial  administration  pro- 
motes economy  in  the  departments,  which  are  restrained  from  excessive 
purchases  by  the  existence  of  an  appropriation  and  allotment  control 
and  a  charge  against  their  allotments  of  the  cost  of  all  goods  and  serv- 
ices purchased.  They  are  made  fully  accountable  for  every  expense 
which  their  departments  incur. 

In  the  case  of  all  clearing  departments  the  charge  for  goods  and 
services  furnished  to  other  departments  should  be  based  on  their  cost 
to  the  clearing  department.  In  the  case  of  departments  or  industries 
supported  mainly  by  earnings  a  charge  by  the  department  equal  to 
current  prices  for  similar  goods  on  the  open  market  has  distinct  advan- 
tages in  affording  a  test  of  the  effectiveness  of  the  productive  activity 
of  the  prisoners  and  of  the  managerial  capacity  of  the  superintendent 
or  officer  in  charge  of  the  industry  in  question.  The  cost  of  producing 
certain  commodities  and  services  may  not  be  commonly  known  but 
when  an  industry  is  allowed  credit  for  the  earnings  made  on  the  basis 
of  a  charge  equal  to  current  market  prices,  the  industry  justifies  or 
condemns  itself  financially  by  the  showing  of  earnings  w'  ich  it  makes. 
In  a  reformatory  an  industry  operated  at  a  loss  may  be  still  justified 
by  its  educational  value,  but  the  financial  outcome  is  always  an  impor- 
tant consideration.  If  the  educational  value  of  two  industries  is 
approximately  equal  the  one  producing  larger  earnings  is  the  more 
advantageous. 

For  the  most  part,  the  clearing  departments  are  common  to  the 
various  penal  institutions.  The  efficiency  of  these  departments  is  there- 
fore best  tested  by  a  uniform  system  of  accounts  which  will  show  com- 
parative costs  for  the  various  institutions.  It  is  not  advantageous  to 
transfer  these  comomdities  at  any  other  price  than  their  cost  to  the 
clearing  department  because  they  are  not  commonly  sold  on  the  open 
market.  Comparative  results  and  official*  accountability  are  best 
secured  by  the  comparative  unit  costs  shown  by  the  reports  of  the 
various  penal  institutions. 


264  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

OPERATION  AND  MAINTENANCE. 

The  operation  and  maintenance  accounts  serve  the  purpose  (1)  of 
presenting  to  the  departmental  officers  a  classified  statement  of  the 
costs  of  operation  and  maintenance  in, their  departments,  so  that  they 
will  be  able  to  hold  their  subordinates  and  the  prisoners  responsible 
for  a  reasonable  performance;  (2)  of  furnishing  data  to  the  warden 
or  superintendent  so  that  he  will  be  in  a  position  to  require  his  sub- 
ordinate officers  to  show  reasonable  administrative  results;  (3)  of 
furnishing  information  to  the  Board  of  Prison  Administration  or 
supervising  body  to  serve  both  as  a  check  on  administrative  costs  and 
as  an  indication  of  the  requirements  for  the  future;  (4)  of  furnishing 
data  to  the  General  Assembly  so  that  it  may  be  informed  of  the  reason- 
able financial  requirements  of  the  penal  institutions;  (5)  of  furnishing, 
to  the  Governor  information  upon  which  he  may  act  in  preventing 
wasteful  management  on  the  part  of  those  having  a  more  immediate 
supervision  and,  through  the  cooperation  of  the  General  Assembly, 
make  reasonable  provisions  for  an  appropriate  development  of  the 
departmental  activities  of  the  respective  institutions;  and  (6)  of 
furnishing  to  the  citizens  of  the  State  a  basis  for  holding  the  Governor 
and  the  General  Assembly  responsible  for  preventing  waste  and  pro- 
viding for  the  appropriate  development  of  institutional  activities. 

The  officers  in  immediate  charge,  the  warden  or  superintendent, 
and  the  supervising  board,  should  receive  reports  of  operation  and 
maintenance  costs  in  the  form  set  forth  in  the  Operation  and  Main- 
tenance Schedules  of  Part  III.  These  administrative  officers  should 
also  require  special  exhibits  showing  more  detailed  costs  in  connection 
with  any  of  the  departmental  accounts  where  further  inquiry  seems 
to  be  required.  The  character  of  these  additional  exhibits  may  be 
judged  by  reference  to  Exhibit  1  Part  IV,  and  Schedule  10  of  Part 
I.  The  character  of  operation  and  maintenance  data  required  by 
the  General  Assembly  and  the  Governor  has  already  been  set  forth  in 
Schedule  2  of  Part  I.  Schedule  4  below  will  serve  as  a  comparative 
summary  of  information  useful  to  the  General  Assembly  and  all  admin- 
istrative officers  and  particularly  useful  to  the  citizen  who  wishes  to 
see  in  comparative  form  the  comparative  operating  costs  of  the  penal 
institutions. 


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS.  265 

SCHEDULE  4.     MAINTENANCE  AND   OPERATION. 

111.  Per         So.  Per  111.        Per 

St.  Pen.   Inmate       111.         Inmate  St.  Ref.  Inmate 
Board    of   Prison   Administra-  Cap.        Pen.        Cap.  Cap. 

tration. 

Salary  and  wages  of  board^i 

Other  salary  and  wage s^ 

Average     number     of     pris- 
oners  employed^ 

Other    operaton    and    main- 

tenancea     

Prison  Administration.  War- 
den's or  Supterintendent's 
Office. 

Salary  of  warden  or  supt 

Other  salary  and  wages 

Average  number  of  prisoners 

employed   • 

Other    operation    and    main- 
tenance     

Institution  Grounds. 

Salary  and  wages 

Average  number  of  prisoners 

employed    • 

Other    operation    and    main- 
tenance   

Prison  Administration.  War- 
den's or  Supterintendent's 
Suite. 

Salary  and   wages.... 

Average  number  of  prisoners 

employed   

Food   • ■  ■ 

Other   operation   and    main- 
tenance  

Prison  Administration.  Offi- 
cers' Kitchen  and  Dining 
Room. 

Salary  and  wages -. 

Average  number  of  prisoners 

employed   

Foodc 

Other   operation   and    main- 
tenance      

Prison    Administration.     War- 
den's House  Building. 
Average  number  of  prisoners 

employed    • 

Other    operation    and    main- 
tenance  

Prison  Administration.    Wom- 
en's    Prison.      Officers' 
Building. 
Average  number  of  prisoners 

employed    • 

Other    operation    and    main- 
tenance   


a      This  cost  shoukl  be  distributed  on  the  basis  of  the  total  operating  and  main- 
tenance expenditures  of  the  respective  institution. 

b.     This  average  is  obtained  by   dividing  the  number  of  hours  employed  by  the 
number  of  working  hours  in  the  day. 

c.    Per  capita  of  officers  instead  of  inmates. 


266  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

SCHEDULE  4.     MAINTENANCE   AND   OPERATION. 

111.  Per         So.  Per  111.        Per 

St.  Pen.   Inmate       111.         Inmate  St.  Ref.  Inmate 
Prison  Administration.    Wom-  Cap.        Pen.         Cap.  Cap. 

en's     Prison.       Officers' 
Kitchen  and  Dining  Room. 

Average  number  of  prisoners 

employed    

Foodc 

Other    operation    and    main- 
tenance   

Prison  Administration.  Wom- 
en's Prison.  Confinement 
and  Discipline.  Female 
Prisoners. 

Salary  and  wages 

Average  number  of  prisoners 
employed 

Other    operation    and    main- 
tenance   

Prison  Administration.  Gen- 
eral Accounting  Office. 

Salary  and  wages 

Average  number  of  prisoners 
employed 

Other    operation    and    main- 
tenance   

Prison  Administration.  Con- 
finement and  Discipline  of 
Male  Prisoners. 

Salary  and  wages 

Average  number  of  prisoners 

employed 

Other    operation    and    main- 
tenance   

Prison  Administration.  Parole 
of  Prisoners. 

Salary  and  wages 

Average  number  of  prisoners 

employed    

Operation  and  maintenance 

Prison  Administration.  Re- 
ceiving and  Discharging 
Prisoners. 

Salary  and  wages 

Average  number  of  prisoners 

employed    

Other    operation    and    main- 
tenance   

Prison  Administration.  Insti- 
tution Teams  and  Vehicles. 

Salary  and  wages 

Feedd    

Average  number  of  prisoners 

employed    

Other    operation    and    main- 
tenance   

Prison    Administration.     Insti-     

tution  Automobiles.  

Salary  and  wages 

c.  Per  capita   of  oflBcers  instead   of  inmates. 

d.  Feed  per  capita  of  stock  instead  of  per  capita  of  inmates. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  267 

SCHEDULE  4.     MAINTENANCE   AND   OPERATION. 

111.  Per         So.  Per  111.        Per 

St.  Pen.   Inmate       111.         Inmate  St.  Re£.  Inmate 
Cap.        Pen.        Cap.  Cap. 

Average  number  of  prisoners     

employed 

Other    operation    and    main- 
tenance   

Maintenance     of     Male     Pris- 
oners— Subsistence. 
Average  number  of  prisoners 

employed    

Food  served • 

Other    operation    and    main- 
tenance   

Maintenance     of     Male     Pris- 
oners— Laundry. 
Average  number  of  prisoners 

employed 

Other    operation    and    main- 
tenance   

Maintenance  of  Male  Pris- 
oners— Sanitation. 

Salary  and  wages ._ 

Average  number  of  prisoners 

employed 

Other    operation    and    main- 
tenance   

Maintenance  of  Male  Pris- 
oners— Barber  Shops. 

Salary  and  wages 

Average  number  of  prisoners 

employed 

Other    operation    and    main- 
tenance   

Maintenance  of  Male  Pris- 
oners— Miscellaneous  Fur- 
nishings. 

Clothing    

Shoes    

Hats  and  caps 

Baths   

Other  furnishings..... 

Average  number  of  prisoners 

employed    ._ 

Other    operation    and    main- 
tenance   

Maintenance   of   Female    Pris- 
oners— Subsistence. 
Average  number  of  prisoners 

employed    

Food  served 

Other    operation    and    main- 
tenance   

Maintenance  of  Female  Pris- 
oners— Sanitation. 

Salary  and  wages 

Average  number  of  prisoners 

employed 

Other    operation    and    main- 
tenance   


Per 

So. 

Per           111.         Per 

Inmate 

111. 

Inmate  St.  Ref.  Inmate 

Cap. 

Pen. 

Cap.                      Cap. 

268  EFFICIENCY  AND  ECONOMY  COMMITTEE. 


SCHEDULE  4.     MAINTENANCE   AND   OPERATION. 
111. 

St.  Pen. 
Maintenance    of   Female   Pris- 
oners— Laundry. 

Average  number  of  prisoners 

employed   

Other   operation   and    main- 
tenance   

Maintenance  of  Female  Pris- 
oners— Aliscellaneous  Fur- 
nishings. 

Clothing    

Shoes    

Hats  and  caps 

Baths   

Other  furnishings 

Average  number  of  prisoners 
employed   

Other    operation    and    main- 
tenance   

Religious  and  Educational — 
Religious   Instruction. 

Salary  and  wages 

Average  number  of  prisoners 
employed 

Other    operation    and    main- 
tenance   

Religious  and  Educational — 
Trade  Schools. 

Salary  and  wages 

Average  number  of  prisoners 

employed    

Material    for   manufacturing 

or  handicraft ' 

Other    operation    and    main- 
tenance   

Farm  and  Garden — Prisoners' 
House. 

Salary  and  wages 

Average  number  of  prisoners 

employed    

Other    operation    and    main- 
tenance   

Camp  Dunne. 

Average  number  of  prisoners 

employed    

Subsistence    

Other    operation    and    main- 
tenance   

S^one  Department. 

Salar>'  and  wages 

Average  number  of  prisoners 

employed    

Power — steam  and  electric 

Other    operation    and    main- 
tenance     


If  it  is  found  desirable  an  "interest  burden"  item  and  a  "rent  burden"  item  may 
be  added  to  each  department  as  a  statistical  item,  calling  attention  to  property  invest- 
ment involved.     See  Part  III,   pp.  54,  69. 


ACCOUNTS   FOR   CORRECTIONAL   INSTITUTIONS.  269 

PROPERTY    ACCOUNTS    AND    INVENTORY    CONTROL. 

The  penal  institutions  own  durable  property  worth  more  than 
$4,000,000.  A  large  portion  of  this  consists  of  live  stock  and  movable 
tools,  implements  and  office  equipment.  The  means  for  requiring  ap- 
propriate accountability  for  the  use  and  preservation  of  this  property 
is  no  less  important  than  the  means  for  auditing  the  disbursement  of 
funds.  The  departmental  officers  are  chiefly  responsible  for  the  prop- 
erty charged  to  their  departments.  The  accounts,  therefore,  must  show 
the  amounts  of  property  of  various  kinds  charged  to  the  separate 
departments. 

The  amount  of  property  charged  to  the  several  departments  is 
also  significant  as  indicating  the  total  investment  required  by  the  State 
in  the  furnishing  of  the  departmental  commodities  and  services.  If 
the  farm  and  farm  property  are  worth  $500,000  it  is  significant  to  bear 
this  fact  in  mind  when  the  earnings  of  the  farm  are  considered.  The 
educational  value  of  the  operations  of  the  farm  is  also  an  important 
factor,  but  that  alone  does  not  serve  to  justify  or  condemn  a  venture. 
Provided  the  educational  value  of  two  ventures  is  approximately  equal 
the  earnings  in  comparison  with  the  total  investment  might  become  the 
deciding  factor  in  justifying  the  existence  and  maintenance  of  one 
of  such  enterprises  instead  of  the  other. 

The  General  Assembly,  the  Governor,  and  the  supervising  board 
are  ultimately  responsible  for  investment  in  these  properties  and  for 
their  use  and  preservation.  These  representatives  and  officers  require 
a  classification  of  property  by  departments  both  for  the  purpose  of 
maintaining  responsibility  for  its  preservation  and  for  the  purpose  of 
properly  directing  the  development  of  institutional  functions. 

The  classification  of  departments  for  property  accounts  is  the  same 
as  that  for  operation  and  maintenance  accounts.  The  detailed  classi- 
fication of  proper  accounts  is  set  forth  in  Part  III.  These  accounts 
are  defined  in  the  introduction  to  that  Part  or  in  connection  with  the 
listed  accounts. 

The  taking  of  inventories  by  departments  under  the  same  accounts 
as  those  shown  in  the  operation  and  maintenance  schedules  and  the 
property  schedules  represents  the  means  by  which  property  control  is 
maintained.  The  operation  and  maintenance  accounts  under  which 
inventories  are  taken  are  those  representing  outlays  for  supplies. 

Schedules  5  and  7  below  show  the  information  required  for  a 
control  over  the  durable  property  accounts. 

Schedule  5  shows  the  amount  of  property  of  each  kind  for 
the  several  departments  which  has  been  worn  out,  lost  or  is  other- 
wise unaccounted  for.  The  shortage  and  loss  column  for  table 
furnishings  would  show  total  breakage,  shortage  and  loss  of  this 
class  of  property.  An  unreasonable  loss  under  the  caption  should 
require  an  additional  exhibit  comparing  the  detailed  inventories  with 
those  of  the  preceding  year  and  showing  an  analysis  of  the  purchases 
of  table  furnishings.  These  data  would  reveal  the  commodities  in 
which  the  loss  occurred  and  place  the  supervising  officer  in  a  position 
to  discover  the  cause  of  the  unusual  loss.     Any  other  of  the  above 


270  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

accounts  might  be  treated  in  the  same  way.  The  property  accounts 
indicate  the  cost  of  property  which  the  books  show  to  be  charged 
.  against  the  respective  departments.  The  inventory  shows  the  actual 
cost  of  such  property  on  hand.  The  difference  or  the  shortage 
and  loss  should  then  be  credited  to  (or  deducted  from)  the  property 
account  in  question.  The  detailed  inventory  will  also  show  under  each 
property  account  the  detailed  number  and  cost  of  items  of  each  kind 
of  property  owned.  The  folio  references  in  the  schedule  refer  to  the 
ledger  or  inventory  record  where  the  data  used  may  be  found  in 
detail. 

SCHEDULE  5.     PROPERTY — INVENTORY   CONTROL, 

Property  Over, 

Required  by  Property  Short- 

Folio      Property    Folio  On  Hand  Folio        age 
Acct.  at  Cost  and 

Board    of    Prison    Administra-  Loss 

tion: 

Furniture  and  fixtures 

Office  equipment 

Sundry   

Warden  House  Building: 

Building    

Furniture  and  fixtures 

Beds  and  bedding 

Heat,  light  and  water 

Machinery  and  equipment 

Sundry    

Officers'    Kitchen    and    Dining 
Room: 

Furniture  and  fixtures 

Kitchen  equipment 

Table    furnishings 

Sundry  

Schedule  6,  below,  represents  certain  sample  accounts  showing 
the  result  of  an  inventory  control  of  stores.  When  supplies  are  charged 
into  a  store  and  credited  out,  the  inventory  should  equal  the  balance 
of  the  controlling  account  for  the  store.  In  practice  errors  in  keeping 
the  record  and  in  measuring  the  amount  of  supplies  charged  out  cause 
some  discrepancy  in  these  items.  If  this  discrepancy  is  very  large,  as 
compared  with  a  reasonable  margin  of  error,  detailed  analysis  should 
be  made  showing  store  charges  and  credits  and  locating  the  commodity 
or  commodities  in  which  the  loss  occurred.  In  the  case  of  the  coal 
store  or  the  feed  barns  no  analysis  is  required.  In  the  case  of  the 
subsistence  store  no  analysis  would  be  required  if  a  perpetual  inventory 
record  were  kept  of  each  commodity.  Since  this  record  should  be  kept 
of  the  more  important  commodities  there  would  only  remain  for 
analysis  the  miscellaneous  commodities  for  which  the  perpetual  inven- 
tory record  was  kept  as  a  total.  The  same  principle  applies  to  the 
material  stores  of  the  industries.  A  perpetual  inventory  of  the  prin- 
cipal items  of  material  and  a  controlling  account  over  the  inventory 
as  a  whole  should  be  maintained. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS. 


271 


There  are  always  certain  commodities  such  as  stationery  and 
office  supplies  of  the  various  departments  for  which  no  perpetual 
inventory  is  kept.  The  inventory  of  these  supplies  should  be  taken 
under  the  account  names  to  which  they  are  charged  at  the  time  of 
their  purchase. 


SCHEDULE   6.     INVENTORY    CONTROL   OVER   STORE   ACCOUNTS. 


Store 
Folio      Balance 


Inventory 
at  Cost         Folio 


Over, 
Shortage 
and  Loss 


Coal    Supplies 

Feed   Barn 

Com    

Oats    

Power  House  and  Re- 
pair Store 

Subsistence  Store: 

Meats    

Groceries,   etc 

Furniture  Industry: 

Material   store 


SCHEDULE  7.    PROPERTY   SCHEDULE  FOR   SEPARATE  INSTITUTIONS. 


Inv. 
Sept. 
30th 


Depr 
Liab 


Board  of  Prison  Administration : 

Furniture  and  fixtures 

Office  equipment 

Office  supplies 

Inventory — currrent    supplies 

Inventory — current  materials 

Warden's  Office : 

Furniture  and  fixtures 

Office    equipment 

Inventory — current    supplies 

Inventory — current  materials. . . . 
Warden  House  Building: 

Building    

Furniture  and  fixtures 

Bed  and  bedding 

Heat,  light  and  water  equipment 

Machinery  and  equipment 

Inventory — current    supplies 

Inventory — current  materials. . . . 
Officers'  Kitchen  and  Dining  Room 

Building    ■;.... 

Furniture  and  fixtures 

Kitchen    equipment 

Table    furnishings 

Inventory — current    supplies... 

Inventory — current  materials.  . 


Tot 
Depr, 
Liab 


Pres. 
Val. 


Add.«i 
Dur. 
Yr. 


a.  Tlie  abbreviations  above  are:  Inv.  for  inventory,  Depr.  for  depreciation.  Tot. 
for  total,  Pres.  for  present,  Val.  for  value,  Add.  for  added,  Dur.  for  during,  Liab.  for 
libaility.    For  details  in  regard  to  handling  depreciation  see  Account  Z,  Part  III. 


272  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

If  it  is  desired  to  take  notice  of  the  depreciated  condition  in 
which  the  properties  are  found  this  may  be  done  by  setting  up  in 
parallel  columns  opposite  each  property  account  (see  Schedule  7)  a 
depreciation  liability  against  the  property  on  hand.  This  can  be  done 
for  all  machinery  and  durable  property  at  a  regular  depreciation  rate 
on  the  original  cost.  In  setting  up  such  a  depreciation  liability  the 
depreciation  account  of  the  appropriate  department  of  the  operation 
and  maintenance  accounts  should  be  debited  with  the  amount  credited 
to  the  depreciation  liability  account.  In  case  a  machine  or  a  piece  of 
durable  property  is  consigned  to  the  scrap  heap  the  appropriate  prop- 
erty account  should  be  credited  and  the  depreciation  liability  account 
for  this  class  of  property  debited  with  the  original  cost  of  the  prop- 
erty so  scrapped.  By  this  means  the  present  value  of  the  property 
scheduled  under  any  account  will  always  be  the  book  value  of  the 
property  less  the  depreciation  liability.  Without  a  treatment  similar 
to  this  the  property  accounts  of  an  institution  will  rapidly  get  out  of 
date  and  become  of  little  value  in  indicating  the  worth  of  the  perma- 
nent property  on  hand. 

This  property  schedule  for  the  separate  institutions  should  then 
be  followed  by  a  comparative  schedule  showing  present  value  with  the 
same  headings  on  the  left  but  with  headings  at  the  top  as  follows : 
111.    State  Inmate  So.    111.  Inmate  111.    State  Inmate 

Pen.  Per  Cap.  Pen.  Per  Cap.  Ref.  Per  Cap. 

This  schedule  would  give  the  property  investment  per  capita  by 
departments  in  each  of  the  three  institutions  in  parallel  columns. 

INCOME  AND  DISBURSEMENT   OF   THE  PRISON    PROPER. 

In  the  case  of  payments  between  departments  by  institution  trans- 
fer of  allotments  no  special  credit  records  of  the  character  of  sales 
need  to  be  kept  since  the  transfers  are  fully  accounted  for  in  the 
credits  to  the  department  furnishing  the  commodity  or  service  and  the 
debits  to  the  department  which  receives  it.  In  the  case  of  sales  which 
bring  a  pecuniary  income  to  the  institution  a  special  sales  account" 
should  be  set  up  to  account  for  the  income  to  be  received  oh  accounts 
receivable.  For  the  prison  proper  the  incomes  from  sales  are  small, 
but  they  should  be  set  forth  and  transmitted  to  the  State  Treasurer 
at  the  end  of  the  month  to  the  credit  of  the  institution,  subject  to  the 
allotment  of  tlie  Board  of  Prison  Administration,  provided  the  General 
Assembly  appropriates  the  miscellaneous  incomes  as  a  part  of  its  gen- 
eral appropriation.  Similarly  the  income  received  for  the  board  of 
United  States  prisoners  should  be  credited  to  the  sales  account  of  the 
convict  kitchen  and  dining  room.  The  miscellaneous  sales  at  Pontiac 
are  comparatively  large  because  of  the  output  of  the  trade  schools  and 
manual  training  department. 

In  every  annual  report  of  the  prison  proper  the  account  of  income 
from  all  sources  should  be  fully  set  forth.  In  Schedule  8,  below,  a 
form  is  suggested  for  setting  forth  such  incomes. 


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS.  273 

SCHEDULE  8.    CASH  RECEIPTS  AND  PAYMENTS  OF  THE  PIUSON   PROPER. 

Annual  Statement. 
Institution  Receipts.  111.    S.    P.      So.    111.    P.       111.    S.    R. 

Board  of  Inmates: 

United  States  prisoners 

Compensation  for  Prison  Labor: 

Income  for  labor  in  camps 

Sales  Receipts: 

Food   

Convict  kitchen  and  dining  room 

Heat,  light  and  water • 

Power    

Repairs  and  improvements 

Officers'  k'tchen  and  dining  room 

Farm  live  stock 

Convict  clothing 

Visitors'   tickets 

Sundry  

Miscellaneous  Receipts : 

Interest  on  bank  balances 

Rent    : 

Refunds  

Sundry  

Total     institution     receipts     of     prison 

proper    

General  Revenue  Receipts : 

Balances  end  of  preceding  year 

Appropriations   from  general   revenue 

for  year 

Total  general  revenue  receipts  of  prison 

proper    

Grand  total  receipts  of  prison  proper 

Vouchers  approved  year  ending  Sept. 
30.    19— 


Operation   and   Maintenance. 


Total  appropriations  and  balances 

Total  vouchers  approved 

Balances  reverting  to  State  Treasurer. . 


Total  appropriations  and  balances 

Total    vouchers 

Balances  reverting  to  State  Treasurer. 


Special. 


There  should  then  follow  this  general  schedule  of  receipts  and 
disbursements  a  detailed  comparative  schedule  showing  the  total 
vouchers  approved  against  the  allotments  of  each  allotment  account 
of  the  prison  proper  for  the  year. 

The  bill  proposed  by  the  Efficiency  and  Economy  Committee  pro- 
vides for  a  petty  cash  account  to  meet  urgent  local  requirements  of 
the  respective  institutions.  But  all  payments  from  this  fund  will  be 
covered  at  the  end  of  the  month  by  a  voucher  for  the  petty  cash  fund 
in  favor  of  the  managing  officer.  This  voucher  should  distribute  the 
outlay  to  the  cost  and  allotment  accounts  to  which  it  is  chargeable 
so  that  the  Board  of  Prison  Administration  and  the  State  Treasurer 
will  be  able  to  properly  administer  the  appropriations.  This  petty 
cash  fund  will  be  regularly  audited  by  the  Auditor  of  Public  Accounts. 


274  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

FINANCIAL  REPORTS   OF   THE   PRISON    PROPER. 

At  the  end  of  the  year  a  general  income  account  and  balance 
sheet  should  be  constructed  for  the  prison  proper.  This  serves  to 
bring  together  in  a  summary  all  the  accounts  of  the  prison  proper, 
testing  by  means  of  the  trial  balance  the  equality  of  charges  and  credits 
and  balancing  the  accounts  in  a  form  showing  the  financial  positibn 
of  the  institution.  Such  a  statement  is  also  useful  in  connection  with 
the  audits  of  the  financial  operations  of  the  prison  proper. 

Preparatory  to  making  this  report  a  trial  balance  is  first  con- 
structed in  which  the  balances  of  all  the  departmental  accounts  and 
of  the  general  accounts  are  brought  down. 

In  connection  with  closing  the  accounts  into  a  trial  balance  and  a 
general  balance  sheet,  capital  or  liability  accounts  with  the  general  des- 
ignation of  State  of  Illinois  should  be  created.  These  accounts  are 
credited  with  all  appropriations  from  general  revenue  and  with  all 
sales  of  the  departments  of  the  prison  proper.  The  inventories  of 
current  supplies  may  appear  on  the  debit'  side  of  this  trial  balance 
made  preparatory  to  closing,  provided  they  have  been  properly  credited 
to  the  appropriate  operation  and  maintenance  accounts.  The  con- 
trolling accounts  of  the  purchase  ledger  for  the  prison  proper  should 
show  the  total  of  credits  to  accounts  payable.  The  accounts  receiv- 
able and  cash  on  hand  are  the  main  additional  items  to  be  accounted 
for. 

Schedule  9.    Trial  Balance,  Income  Account  and  Balance  Sheet  for  the 
Prison  Proper. 
Trial  Balance.                                             Dr.                    Cr. 
Income : 
State  of  Illinois — Revenue  Appropriations  and  Balances.  ...  

State  of  Illinois — Institution  Sales  : 

Food   

Heatf  light  and  water 

Power    

Repairs  and  improvements 

Trade  schools: 

Manual  training  

Blacksmith  shop   


State  of  Illinois — Miscellaneous  Incomes : 

Interest  on  bank  balances 

Refunds   

Sundry    


Operation  and  Maintenance: 
Board  of  Prison  Administration: 

Salary  and  wages 

Stationery,  office  supplies  and  printing. 

Postal    supplies 

Heat,  light  and  water 

Ordinary    repairs 

Extraordinary  repairs 

Depreciation  and  loss 

Sundry    


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  275 

Dr.  Cr. 

Prison  Administration.   Warden's  Office  : 

Salaries  and  wages 

Stationery,  office  supplies  and  printing 

Postal    supplies. 

Travelling  expenses 

Depreciation  and  loss 

Sundry    

Prison  Administration.    Institution  Grounds: 

Salary  and  wages 

Food    supplies 

Laundry : 

Administration  and  operating  costs 

Laundry   supplies _ 

Prison  Administration.    Officers'  Subsistence : 

Food    served 

Administrative  and  operating 

Administration  and  maintenance  of  store 

Trade  Schools.  Manual  Training: 

Stationery,  office  supplies  and  printing. 

Heat,  light  and  water 

Materials  for  production 

Ordinary    repairs 

Extraordinary   repairs 

Depreciation  and  loss 

Sundry 

Prison  Administration.    Women's  Prison: 
Officers'  Building: 

Heat,  light  and  water : 

Seeds,   plants,   etc 

Ordinary    repairs 

Extraordinary   repairs 

Depreciation  and  loss 

Sundry    

Property  Accounts: 

General  Administration.    Board  of  Prison  Admin  stration : 

Furniture  and  fixtures 

Office   equipment 

Sundry    

Current  Inventories: 

Stationery  and  office  supplies 

Postal    supplies 

Sundry    ,. 

Prison  Administratiori.    Warden  or  Supterintendent's  Office: 

Furniture  and  fixtures 

Office   equipment 

Kitchen  and  dining  room 

Current  inventories : 

Stationery  and  office  supplies 

Postal    supplies .... 

Sundry    

Prison  Administration.    Institution  Grounds: 

Land   

Improvements  on  land 

Sundry    

Prison  Administration.    Officers'  Kitchen  and  Dining  Room : 

Furniture  and  fixtures 

Kitchen   equipment 

Table    furnishings 

Sundry    

Current  inventories 

Food    supplies 

Sundr}'    


276  ,  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Dr.  Cr. 

Trade  Schools.    Manual  Training: 

Building    

Furniture  and  fixtures 

Office   equipment 

Heat,  light  and  water  equipment 

Educational  apparatus  and  equipment 

Sundry    

Current  Inventories : 

Materials  on  hand 

Stationery  and  office  supplies 

Prison  Administration.    Women's  Prison.    Officers'  Building: 

Building    

Furniture  and  fixtures 

Heat,  light  and  water  equipment 

Beds  and  bedding 

Machinery  and  equipment — power 

Sundry    

Current  Accounts: 

Accounts    receivable 

Balances  of  allotments  accounts-'^ 

Accounts  receivable   

Balance  of  imallotted  funds 

Accounts  payable 

Trial  Balance,  Revenue  Statement  and  Balance  Sheet  for  the 
Prison  Proper. 
Revenue  Statement : 
Income : 

State  of  Illinois— Revenue  Appropriations. 

State  of  Illinois — Institution  Sales 

Prison  Administration — Officer's  Subsistence  : 

Sales  of  meal  tickets 

Trade   Schools' — ISIanual   Training ^ 

State  of  Illinois — ISIiscellaneous  Incomes  : 

Interest  on  bank  balances 

Refunds    

Sundry    

Total  revenue  and  sales 

Operation  and  Maintenance : 
Board  of  Prison  Administration  : 

Salary  and  wages 

Stationery,  office  supplies  and  printing 

Postal    supplies 

Heat,  light  and  water 

Ordinary   repairs 

Extraordinary   repairs 

Depreciation  and  loss 

Sundry    

Prison  Administration.   Warden's  Office : 

Salaries  and  wages 

Stationery,  office  supplies  and  printing 

Postal    supplies 

Travelling  expenses 

Depreciation  and  loss 

Sundry    

a.  As  a  matter  of  bookkeeping  this  can  be  properly  provided  for  by  orpdHing 
tlie  State  of  Illinois  accounts  which  receive  income  or  to  which  the  General  Assembly 
appropriates  and  debitiag  Unallotted  Funds.  When  the  funds  are  allotted  the  allot- 
ment accounts  may  be  debited  and  Unallotted  Funds  account  credited. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  277 

Prison  Administration    Institution  Grounds: 

Salary  and  wages 

Food    supplies 

Laundry : 

Administration  and  operating  costs 

Laundry    supplies 

Prison  Administration.    Officers'  Subsistence : 

Food    served 

Administrative  and  operating 

Administration  and  maintenance  of  store 

Trade  Schools.    Alanual  Training 

Stationery,  office  supplies  and  printing 

Heat,  light  and  water 

Materials  for  production 

Ordinary   repairs 

Extraordinary   repairs 

Depreciation  and  loss 

Sundry    

Balance  transferred  to  State  Treasury 


Total  operation  and  maintenance  plus  balances  transferred 
State  of  Illinois — Balance 

Balance  Sheet. 
Assets : 

Accounts   receivable ._ 

Cash  on  hand  and  in  bank 

General  Administration.    Board  of  Prison  Administration : 

Furniture  and  fixtures 

Office   equipment 

Stationery  and  office  supplies   (inv.) 

Postal   supplies    (inv.) 

Sundry    

Prison  Administration.    Warden  or  Superintendent's  Suite : 

Furniture  and  fixtures 

Dining  room  and  kitchen 

Office    equipment 

Stationery  and  office  supplies  (inv.) 

Postal  supplies   (inv.) 

Sundry  


Prison   Administration.     Institution   Grounds : 

Land    

Improvements  on  land 

Sundry    

Prison  Administration.    Officers'  Kitchen  and   Dining  Room; 

Furniture  and  fixtures 

Kitchen   equipment 

Table    furnishings 

Food  supplies   (inv.) 

Sundry    

Trade  Schools.    Manual  Training: 

Building 

Furniture  and  fixtures 

Office    equipment 

Heat,  light  and  water  equipment 

Educational  apparatus  and  equipment 

Materials  on  hand 

Stationery  and  office  supplies  (inv.) 

Sundry    


278  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Prison  Administration.    Women's  Prison.    Officers'  Building: 

Building    

Furniture  and  fixtures 

Heat,  light  and  water  equipment 

Beds  and  bedding 

Machinery  and  equipment — power 

Sundry    


Total   

Liabilities : 

State  of  Illinois — balance. 

Accounts  payable 


Total  liabilities 


Schedule  10.     Clothing  Room.     Clearing  Account. 
Trading  Account.  Dr.  Cr. 

Materials  on  hand  1st  of  year 

Materials  purchased  during  year 

Miscellaneous  furnishings  for  male  prisoners. 

■  Clothing    

Hats  and  caps 

Other    furnishings 

Materials  on  hand  end  of  year 

Balance  gross  end  of  year 

Profit  and  Loss: 

Balance  gross  down 

Expenses : 

Salary  and  wages 

Stationery  and  office  supplies 

Postal    supplies 

Heat,  light  and  water 

Power 

Ordinary   repairs 

Extraordinary   repairs 

Freight,  express,  cartage 

Sundry    

Balance^    (if   any) 

Balance  Sheet,  September  30,  19 — :  " 

Assets: 

Building 

Furniture  and  fixtures 

Office   equipment 

Heat,  light  and  water  quipment 

Machinery  and  equipment  power 

Machinery  and   equipment 

Other  tools  and  implements 

Current    inventories 

Miscellaneous   supplies 

Materials    


Total 


a.  The  value  sot  on  the  items  furnished  should  be  sufflpient  to  make  the  hnlnnre 
zero.  With  a  uniform  price,  however,  for  the  institutions  there  might  be  a  small 
gain  or  loss  for  any  one  of  the  iiuititutioiis. 

A  separate  operating  statenuMit  slimild  ho  constructed  for  each  clearing  account, 
showing  the  costs  and  the  crodits  classilicd  according  to  commodities  or  services. 
These  clearing  account  statements  shotild  lie  referred  to  as  exhibits  in  the  regular 
oiicration  and  maintenance  anniuil  report.  In  connection  with  the  regular  account 
of  Miscellaneous  Furnishings  reference  shoiild  be  made  to  the  clearing  accounts. 
Schedule  1  Obelow  shows  the  character  of  statement  which  should  be  constructed 
for  these  clearing  accounts. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  279 


Liabilities : 


State  of  Illinois — clothing  rooml>. 

Accounts   receivable 

Accounts  payable 

Balance  excess  or  deficit '. . . , 


REPORTS    OF    MANUFACTURING    INDUSTRIES. 

From  the  appropriation  side  the  problem  of  control  for  the 
mdustries  is  in  some  respects  different  from  that  in  the  case  of  the 
prison  proper.  The  bill  proposed  by  the  Efficiency  and  Economy  Com- 
mittee leaves  to  the  General  Assembly  the  question  of  whether  the 
proceeds  of  sales  from  these  industries  deposited  in  the  State  Treasury 
shall  be  made  subject  to  allotment  by  the  Board  of  Prison  Adminis- 
tration to  meet  the  reasonable  operating  requirements  of  the  industries. 
If  the  General  Assembly  merely  desires  a  thorough  control  over  dis- 
bursements and  the  option  of  appropriating,  as  it  may  determine,  any 
available  excess  from  the  respective  industries,  it  should  make  the 
proceeds  of  sale  from  commodities  available  to  meet  the  reasonable 
requirements  of  the  industries.  If  this  were  done  the  provisions  of 
the  bill  of  the  Efficiency  and  Economy  Committee  would  in  no  wise 
interfere  with  the  elasticity  of  the  development  of  the  prison  indus- 
tries, but  would  establish  a  more  satisfactory  check  on  the  receipts 
and  disbursement  of  funds.  On  the  other  hand  if  the  General 
Assembly  wishes  to  appropriate  two  years  in  advance  for  the  materials 
and  supplies  required  by  the  respective  industries  it  will  leave  the 
income  deposited  with  the  State  Treasurer  without  providing  for  the 
use  of  such  funds  in  meeting  the  requirements  of  the  industry.  Esti- 
mating the  requirements  of  industries  is  fraught  with  the  difficulty 
of  foreseeing  the  market  for  the  prospective  products  which  the  various 
industries  expect  to  produce.  Any  miscalculation  in  this  particular 
might  seriously  hamper  the  operation  of  prison  industries.  In  the 
past  the  industries  at  the  Illinois  State  Penitentiary  have  yielded  an 
excess  of  over  $200,000  to  the  State.  While  the  industries  for  the 
various  institutions,  in  their  initial  stages,  require  appropriations  for 
the  purchase  of  equipment  they  may  be  reasonably  expected  to  be 
thereafter  at  least  self-sustaining.. 

In  case  the  General  Assembly  should  adopt  the  second  alternative 
referred  to  above,  and  attempt  to  provide  from  revenue  appropriations 
for  the  expenses  of  the  industries,  the  plan  of  appropriation  control 
and  the  estimate  of  requirements  would  be  the  same  as  that  set  forth 
in  connection  with  the  discussion  of  provisions  for  the  prison  proper. 
In  case  the  first  plan  referred  to  above  were  adopted  the  provision 
for  the  industries  would  be  more  thoroughly  in  the  hands  of  the  Board 
of  Prison  Administration,  which  would  make  allotments  upon  the  basis 
of  monthly  estimates  just  as  in  the  case  of  the  prison  proper. 

b.  The  State  of  Illinois  account  is  credited  with  all  appropriations  to  the  clothing 
room.  It  is  debited  with  operatioJi  at  the  beginning  of  each  year  it  is  debited  or 
credited  with  the  loss  or  gain  of  the  preceding  year. 


280  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

These  allotments  would  require  the  same  kind  of  control  as  that 
required  for  the  prison  proper.  Outstanding  orders,  outstanding  bills 
and  available  balances  from  such  allotments  should  be  reported  as 
indicated  in  Schedule  3. 

These  industries  should  also  be  required  to  make  a  monthly  state- 
ment of  profit  and  loss.  They  can  do  this  readily  as  they  are  required 
to  keep  a  satisfactory  current  inventory  control  through  their  store 
accounts.  Even  in  the  absence  of  a  store  with  its  lock  and  key  a 
stock  section  should  be  maintained  in  the  rooms  of  the  industries  and 
removal  of  material  from  these  stocks  should  be  safe-guarded  and 
credited  as  indicated  in  the  discussion  of  accounts  for  the  separate 
industries.  The  form  of  the  monthly  report  for  each  industry  should 
be  similar  to  that  set  forth  for  the  clothing  room  (see  Schedule  10). 
Instead  of  the  item  of  miscellaneous  furnishings  found  in  this  schedule 
there  would  appear  an  item  of  net  sales  divided  into,  (1)  open  market 
sales,  (2)  State  institution  sales,  and  (3)  local  sales  to  other  indus- 
tries and  to  departments  of  the  prison  proper.  This  statement  would 
require  three  sales  accounts  for  each  industry  corresponding  to  the 
three  divisions  above. 

The  only  other  accounts  requiring  attention  are  purchases, 
accounts  payable,  accounts  receivable  and  cash.  It  will  be  necessary 
to  set  up  controlling  accounts  over  the  creditors'  ledger  and  the  cus- 
tomers' ledger  so  that  the  totals  of  accounts  receivable  and  accounts 
payable  will  be  available  at  all  times.  In  order  to  furnish  appropriate 
data  from  the  cash  book  under  this  caption  a  column  for  accounts 
receivable  niay  be  provided.  The  monthly  summary  for  each  industry 
may  be  made  out  in  the  form  shown  below  in  Schedule  11. 

Schedule  11.    Furniture  Industry— Monthly  Summary. 

Income  Account. 
Revenues : 
Net  sales: 

Open  market  

State  institutions   

Local   


Cost  of  Materials — first  of  year: 

Inventory  of  materials 

Materials  purchased  during  year... 

Total 

Less  materials  on  hand  end  of  year. 


Balance  gross  earnings 

Expenses : 

Salary  and   wages 

Stationery  and  office  supplies. 

Postal  supplies    

Heat,  light  and  water 

Power   

Freight,   express,   cartage 

Ordinary   repairs    

Extraordinary  repairs   

Depreciation  and  loss 

Sundry    


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS.  281 


Balance  net    

Overtime  to  prisoners. 


Balance  earnings    

Transmitted  to  State  Treasurer. 


Balance    

^ggg^g.  "  ^ 0 / u M c tT  Skect,  D ot 6 . 

Buildings 

Furniture  and  fixtures 

Office  equipment •  • 

Heat,  light  and  water  equipment 

Machiner>'  and  equipment — power 

Machinery  and  equipment — industry  proper 

Tools  and  implements 

Current  Inventories : 

Materials    for  manufacture 

Supplies    , 

Accounts   receivable    

Cash  on  hand   

Sundry    

Liabilities : 

State  of  Illinois — balance , 

Accounts  payable 

Balance  from  operation  and  maintenance 

Summary  of  Allotments  and  Treasury  Balance. 
Balance   excess   to   credit   of    furniture   industry   with    State 

Treasurer  first  of  year. 

Receipts  transmitted  to  Treasurer  during  year 

Total    

Vouchers  against  allotments 

Balance  of  unexpended  excess 

Bills  outstanding    

Orders  outstanding   

Balance  of  unencumbered  excess 

Allotment  Account. 
Balance    of    operation    and    maintenance    on    hand    first    of 

month    

Allotment  for  month 


Total    

Vouchered  against  allotments  during  month. 


Balance 

Outstanding  bills   

Outstanding  orders    

Available  balance  

The  production  of  stone  should  be  removed  from  the  list  of  indus- 
tries since  it  is  sui^iorted  entirely  from  operation  and  maintenance 
funds.  Its  financial  report  therefore  should  be  made  on  the  basis 
of  that  of  other  departments  of  operation  and  maintenance  (see  report 
of  clothing  industry,  Schedule  8). 

At  the  close  of  each  year  a  general  schedule  should  be  drawn  up 
covering  the  operations  of  all  the  industries  for  each  institution.  The 
summary  of  each  industry  would  be  of  the  same  character  as  the 
monthly  statement  of  the  furniture  industry  above.  The  character 
of  such  a  summary  is  indicated  below  in  Schedule  12 : 


282 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


Schedule    12.    Manufacturing    Industries,    Consolidated    Income    Account 
AND  Balance  Sheet  Year  Ending . 


Revenues: 
Income  Account: 
Net  sales: 

Open  market   

State  institutions   

Local    

Total    

Cost  of  materials 

Balance  gross  

Expenses: 

Salary  and   wages 

Stationery  and  office  supplies 

Postal   supplies    

Heat,  light  and  water 

Power    

Freight,   express,   cartage  .  . . 

Ordinary   repairs    

Extraordinary  repairs     

Depreciation  and  loss 

Sundry     

Total  expenses  

Balanc  e  net 

Overtime  to  prisoners 

Balance  earnings 

Assets: 

Building     

Furniture  and  fixtures 

Office   equipment   

Heat,    light    and    water   equip- 
ment     

Machinery     and      equipment- 
power     

Machinery     and      equipment- 
industry   

Tools   and   implements 

Current  Inventories: 

Material  for  manufacture. 
Supplies  on  hand 

Accounts  receivable  

Cash  on  hand 

Sundry    

Total  assets  


Furniture     Rattan 
or  Reed 


Printing     Clothing     Total 


Balance  Sheet,  Date 


Liabilities: 

State  of  Illinois — balance 

Accounts  payable   

Balance    from    operation    and 

maintenance  revenue   

Total  liabilities   


Summary  of  Allotments  and  Treasury  Balance. 

Balance  excess  with  Treasurer 

first  of  year 

Receipts     transmitted      during 

year    

Total    

Vouchered  against  allotments 


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS. 


283 


Furniture     Rattan     Printing     Clothing     Total 
or  Reed 

Balance  of  excess 

Outstanding  bills  and  orders 

Balance  unencumbered  excess 

Disbursement  of  Allotments. 
Operating     and     maintenance 

vouchers  for  the  year 

Property  and  special  vouchers 

during  year 

Total 

Cash  Receipts  and  Disbursements. 
Total      cash      transmitted      to 

Treasurer    

Total  cash  on  hand 

Total     cash     received     during 

year    

The  cash  book  should  show  the  amount  received  on  sales 
(accounts  receivable)  for  each  industry  and  the  amount  of  money 
placed  in  the  bank.  It  should  also  contain  the  usual  information  on 
discounts  and  allowances.  Since  the  funds  must  be  transferred  to  the 
State  Treasurer  at  the  end  of  the  month  the  credit  side  would  consist 
of  the  record  of  the  transfer  of  these  funds.  It  would  be  necessary 
to  show  discounts  on  purchases  in  the  purchase  or  voucher  record. 

The  discussion  of  the  means  of  furnishing  data  to  promote 
efficient  operation  in  the  respective  industries  is  discussed  in  connec- 
tion with  the  detail  schedule  in  the  respective  industries.    See  Part 

Reporting  for  the  industries  will  be  greatly  simplified  by  a  sys- 
tem of  appropriation  transfers  which  will  make  it  possible  for  the 
institution  proper  to  purchase  from  the  industries  and  sell  to  them. 
The  requirement  that  every  industry  and  every  department  pay  for 
what  it  uses  furnishes  the  appropriate  check  on^the  managerial  capacity 
of  the  superintendents  of  industries  and  of  the  managing  officers  of 
departments.  This  plan  also  enables  these  officers  to  secure  full  credit 
for  the  results  of  their  work  since  they  are  given  credit  for  all  products 
transferred  from  their  respective  departments  to  other  industries  or 
departments. 

REPORTS  OF  THE  FARM  AND  GARDEN. 

There  is  a  farm  and  garden  at  each  correctional  Institution ;  at  the 
Illinois  State  Penitentiary  there  is  a  farm  of  over  2,000  acres.  The 
farms  produce  standard  crops,  truck  and  live  stock.  While  any  show- 
ing of  the  results  secured  from  various  farm  and  garden  crops  or  live 
stock  production  requires  constant  attention  on  the  part  of  the  farm 
superintendent,  this  consta:nt  attention  is  just  what  the  farm  and  gar- 
den need. 

At  the  first  of  every  year  there  should  be  constructed  a  chart 
showing  the  number  of  acres  and  location  of  each  farm  and  garden 
crop  which  the  superintendent  proposes  to  raise  during  the  year.  This 
chart  should  be  made  in  triplicate,  one  copy  for  the  Board  of  Prison 
Administration,  one  copy  for  the  warden,  and  one  for  the  farm  super- 
intendent. 


284  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  farm  superintendent  or  a  foreman  under  his  charge  should 
also  prepare  for  each  day  an  assignment  of  work  providing  for  the 
employment  of  all  farm  prisoners,  the  assignment  of  farm  teams  and 
motive  power  machinery  on  the  farm,  leaving  space  on  the  form  for 
the  report  of  the  foreman  at  the  end  of  the  day,  showing  the  actual 
amount  of  prison,  team  and  power  machinery  work  devoted  to  each 
assignment.  Hours  of  work  to  the  respective  crops  should  be  charged 
to  a  ledger  account  for  this  crop.  Hours  of  horse  or  mule  labor  should 
also  be  charged  to  the  respective  crops.  At  the  end  of  the  year  the 
operation  and  maintenance  for  farm  teams  should  be  distributed  as  a 
cost  on  the  basis  of  the  number  of  hours  devoted  to  the  respective 
crops. 

The  expenses  of  the  department  of  administration  should  be 
charged  to  the  respective  crops,  and  live  stock  departments  on  the  basis 
of  the  number  of  hours  of  prison  labor  devoted  to  the  respective 
departments  in  question.  Subsistence  of  officers  maintained  at  the 
prisoners'  house  and  the  maintenance  and  operation  of  automobiles 
should  be  distributed  on  the  same  basis.  The  operation  and  main- 
tenance of  the  department  of  machinery,  vehicles  and  harness  should 
be  charged  to  the  various  departments  on  the  basis  of  the  horse  hours 
charged  thereto.  If  the  machinery  is  operated  by  fuel  or  gasoline 
engine  it  will  be  necessary  to  keep  a  special  time  sheet  for  such 
machinery  distributing  the  costs  of  its  operation  on  the  basis  of  the 
time  it  is  used  on  the  respective  crops. 

The  operation  and  maintenance  charges  against  land  and  improve- 
ments should  be  distributed  to  the  various  crops  on  the  basis  of  their 
respective  acreage.  This  brief  summary  will  give  an  indication  of  the 
appropriate  plan  of  procedure  in  setting  up  cost  accounts  for  the  farm 
and  garden. 

The  cash  account  and  the  accounts  receivable  and  payable  would 
be  handled  in  the  same  way  as  similar  accounts  are  treated  for  the 
manufacturing  industries. 

The  monthly  estimates  of  requirements  should  be  made  in  the 
same  way  as  those  for  the  manufacturing  industries. 

At  the  end  of  the  year  a  comparative  operation  and  maintenance 
expense  statement  for  the  farms  should  be  made  in  a  form  of  the 
kind  indicated  in  Schedule  13.  This  schedule  should  be  followed  by 
another  comparative  statement  showing  profit  and  loss  from  oper- 
ations and  the  pro'perty  of  the  farm  and  garden  (see  Schedule  14). 
A  general  balance  sheet  for  the  farm  and  garden  should  then  be  con- 
structed in  the  form  of  that  shown  in  Schedule  12  for  the  manufactur- 
ing industries.  The  summary  of  allotments  and  treasury  balances, 
disbursements  of  allotments,  and  cash  receipts  and  disbursements 
should  then  be  stated  as  in  Schedule  12.  For  further  discussion  of  the 
farm  accounts  see  the  detailed  accounts,  Part  IH. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  285 

SCHEDULE    13.     OPERATION    AND    MAINTENANCE   EXPENSES    FOR   FARMS. 

Administration.    Supt's  Residence :  111.    S.    P.      So.    111.    P.       111.    S.    R. 

Salary  and  wages 

Food   

Other  operation  and  maintenance 

Average    number    of    prisoners    em- 
ployed     

Officers'  Subsistence : 

Food   ; 

Other  operation  and  maintenance 

Automobiles : 

Operation  and  maintenance 

Average    number    of    prisoners    em- 
ployed     

Machinery,    Implements,    Vehicles    and 
Harness : 

Operation  and  maintenance 

Average    number    of    prisoners    em- 
ployed     

Machinery  and  Equipment — Power: 

Ga^Joline  and  oil 

Other  operation  and  maintenance 

Average     number    of    prisoners    em- 
ployed     

Farm  Teams: 

Feed    for   teams.. 

Other  operation  and  maintenance 

Average    number    of    prisoners    em- 
ployed          " 

Land  and  Improvements: 

Operation  and  maintenance 

Average    number    of    prisoners    em- 
ployed     ■ 

Total  General  Expenses 

Crop  Expenses : 

Seed,    fertilizer    and    other    expenses 

charged  to  crops 

Live  Stock : 

Cost  of  live  stock 

Frrd  of  live  stock 

Other  operation  and  maintenance 

Average    number    of    prisoners    em- 
ployed     


SCHEDULE    14.     PRODUCE 

FROM    FAR 

M    AND    r 

PROFIT   AND   LOSS   ACCOUNT 

AND   PROPERTY    STATEMENT. 

111. 

St.  Pen. 

South 

111.  Pen. 

111. 

St.R. 

Amt. 

Value 

Amt. 

Value 

Amt. 

Value 

Com : 

Sales: 

Open 

market 

State 

institutions 



Local 

Total    . 



Expenses  of  Corn  Crop  : 

Cost  of  paid  labor 

Administration    

Officers'    subsistence 

Automobile  service 

Machinery,    implements,    ve- 
hicles and  harness 


286  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

111.    S.    P.      So.    111.    P.      111.    S.    R. 

Farm   teams 

Land  and  improvement 

Other    operation    and    main- 
tenance    

Total    expenses 

Net  balance 

Average   number   of   prisoners 

emploj-ed    

Hogs: 
Sales : 

Open    market 

State    institutions 

Local    

Expenses: 

Cost  of  hogs  sold 

Man  hours  paid  labor 

Feed  of  hogs 

Other    operation    and    main- 
tenance     

Total    expenses 

Net  balance 

Average   number   of   prisoners 

employed    , 

Administration.     Superintendent's    Resi- 
dence : 

Buildings 

Furniture  and  fixtures. 

Heat,  light  and  water  equipment 

Kitchen  equipment 

Table    furnishings 

Current   inventories 

Fuel,   food  and  current  supplies 

Sundry   

Automobiles : 

Building  garage 

Automobiles    

Sundry    

Machinery,     Implements,    Vehicles    and 
Harness: 

Buildings   

Machinery  and  equipment 

Tools  and  implements 

Harness   

Vehicles 

Current  supplies  inventories 

Farm  Teams : 

Building,   hog  barns 

Furniture  and  fixtures,  hog  barns  and 
yard    

Current  inventories 

Hogs  on  hand 

Total    


PRISONERS     DEPOSITS. 


At  the  Illinois  State  Penitentiary  the  deposits  of  prisoners  amount 
to  about  $10,000  on  an  averajje.  This  money  is  placed  on  interest, 
no  separate  account  being  kept  for  interest  on  these  particular  deposits. 
The  sums  are  so  small  and  the  circulation  of  the  funds  such  that  it 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  287 

would  not  be  feasible  to  allow  an  interest  return  on  the  deposits  of 
each  prisoner.  It  would  be  possible  to  authorize  by  law  the  use  of 
this  interest  by  the  warden  as  trustee  in  furnishing  amusement  to  the 
prisoners  or  some  special  benefit  not  regularly  provided  for  in  the 
operation  of  the  penal  institutions.  There  is  some  question  whether 
its  use  for  the  regular  operation  of  the  penitentiary  is  legitimate  with- 
out special  authority. 

The  accounts  controlling  this  fund  should  be  a  separate  set  of 
accounts.  Receipts  for  cash  from  prisoners  should  be  issued  in  a 
regular  series  and  in  triplicate.  One  copy  should  be  given  to  the 
prisoner,  one  copy  to  the  parent,  nearest  relative  or  guardian,  and 
one  should  be  retained  in  the  office  of  the  chief  clerk  or  general 
accountant.  These  funds  are  frequently  furnished  by  relatives,  and 
even  if  they  arise  from  a  bonus  paid  the  prisoner  for  service,  the 
relative,  parent  or  guardian  should  know  the  amounts  received.  The 
bill  proposed  by  the  Efficiency  and  Economy  Committee  provides  the 
conditions  under  which  these  funds  may  be  used,  limiting  the  prisoner 
to  the  purchase  of  those  things  permitted  for  men  of  his  class.  An 
usher  or  officer  designated  by  the  warden  takes  orders  from  the  pris- 
oners once  each  week  for  certain  commodities  and  monthly  for  others. 
If  the  warden  approves  these  orders  the  supplies  are  furnished.  The 
orders  should  be  made  in  duplicate  and  in  serial  numbers  on  a  form 
usable  for  a  receipt.  A  copy  of  the  order  should  be"  left  with  the  pris- 
oner. The  warden's  approval  should  authorize  the  purchase.  The 
same  order  form  might  also  serve  as  a  delivery  slip,  which,  when 
signed  by  the  prisoner  in  a  receipt  blank,  would  constitute  a  voucher 
supporting  the  transactions  involved.  While  it  is  not  necessary  to 
carry  out  the  precise  procedure  suggested  here  for  illustration,  some 
similar  procedure  that  will  give  the  prisoner  a  memorandum  of  the 
withdrawal  and  the  general  auditor  or  chief  clerk  a  voucher  author- 
izing the  expenditure  should  be  required.  The  transaction  is  not  fully 
safeguarded  unless  the  prisoner's  signature  shows  receipt  of  the  goods 
ordered. 

There  should  be  a  cash  book  and  individual  accounts.  If  these 
are  combined  into  one  book  after  the  manner  of  bank  deposit  ledgers 
there  could  be  no  objection.  The  record  must  show  at  all  times  the 
total  available  balance  of  each  prisoner.  It  is  especially  important 
that  the  individual  balances  be  available  so  that  the  data  will  be  at 
hand  upon  which  his  orders  may  be  approved  or  rejected. 

The  prisoners'  deposits  are  a  trust  fund  for  which  the  warden 
must  be  responsible.  The  funds  should,  therefore,  be  withdrawn  only 
on  the  warden's  check  covering  approved  orders.  The  warden  should 
at  all  times  have  vouchers  on  hand  covering  the  total  of  such  with- 
drawals. A  controlling  account  over  the  individual  deposit  record 
should  be  kept  showing  totals  of  daily  deposits  and  withdrawals  from 
this  trust  fund  account. 


288  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

FINANCIAL    REPORTING    AND    CONTROL    IN    THE    CORRECTIONAL 

INSTITUTIONS    COMPARED    WITH    THAT    SECURED 

UNDER  THE  PROPOSED  OUTLINE. 

It  seems  desirable  to  present  a  comparison  of  the  proposed  plan 
of  accounts  with  the  accounting  procedure  now  in  use,  in  order  to 
point  out  some  of  the  advantages  of  the  proposed  plan.  The  present 
methods  are  survivals  of  systems  installed  more  than  a  decade  ago. 
Changes  have  been  made  from  time  to  time,  in  accordance  with  the 
suggestions  of  representatives  of  the  auditor  of  public  accounts,  or 
in  compliance  with  the  request  of  institutions'  auditors,  or  upon  the 
initiative  of  some  local  officer.  In  most  instances  the  procedure  in  use 
is  carried  out  in  an  efficient  and  orderly  way;  and  while  at  some  of 
the  institutions  deficiencies  in  the  administration  of  the  accounts  might 
be  cited,  this  comparison  should  not  be  considered  as  an  adverse  criti- 
cism of  the  managing  or  accounting  officers  of  these  institutions. 

The  appropriations  to  the  penal  institutions  for  the  years  1913-15 
were  made  in  the  following  form,  shown  in  Schedule  15. 


SCKF.DULE    15.     CORRIXTIONAL    INSTITUTIOXS    OF    ILLIX( 
1913-15. 

111.     S.     P. 

Ordinary  expenses S;^.^nnnn 

DIS.      APPROPRIA 

So.    111.    p. 
$400,000 
10,000 

6,000 
5,000 

700 
6,000 

TIONS    FOR 

111.    S.   R. 
$340,000 

Parole  expenses    

20  000 

Discharge   and   parole 

Painting    and    repairs 

•  25  000 

20,000 
20,000 

Repairs    and    refinishing 

Repairs  in  heating  system 

Stone  crusher  

15  000 

5,000^ 

Cars,  dynamos  and  motors , 

10  000 

Library  and  chapel 

New  barn 

Laundry  building   

Laundry  machiner>'  

Maintenance  electric  light 

Manual  training  school 

5,650 
5,000 
2,000 
10,000 

Trade   school— material 

5,000 

School  books,  desks,  seats,  etc.... 
Ice  plant   

2,500 
3  900 

Farm  buildings,  teams,  cows,  etc.. 
Lectures    

1,000 

1,000 

400 

Maintenance  Y.  M.  C.  A 

$600,000  $427,700  $401,450 

The  dissimilarity  in  appropriation  items  arises  from  the  variations 
m  reports,  estimates,  and  accounts  upon  which  such  reports  and  esti- 
mates are  based. 

The  lack  of  comparable  information  and  reports  arising  from  the 
accounts  of  the  separate  penal  institutions  is  also  shown  in  the  expense 
statements  of  Schedule  16  below. 


a.     Repair*  and  improvements. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  289 

SCHl'.DULE    16.      COMIWKATIVK    STATEMENT    OF    EXPENSE    FOK    THE    ILLINOIS 
COKKECTIONAL    INSTITUTIONS. 

•  So.  111.  Pen.  III.  St.  Pen.      III.  St.  Ref. 

Yr.  End.  Yr.  End.           Yr.  End. 

Sept.  Sept.                  June 

30, 1912  30,  1912            30, 1914" 

Salaries    $54,548.15  $88,026.29<'     $77,726.31 

Convict  kitchen  and  dining  room 54,756.94  70,542.56         57,100.06ff 

Convict  clothing    6,483.82  1,215.65^'        16,222.53 

Warden  House   l-'^^l'^  

Machinery  department  2,875.62  

Chapel  in  yard   (Cath.) 33.12  

Team  department   9,765.12  4,212.57        

Cell  houses  440.73  5,507.41^      

Solitary  and  deputy  warden's  office 5U3.60  

Chapel  and  library 1,117.33  

Farm  and  garden 2,479.22  

Hospital  4,779.61  1,140.74-'         1,564.97 

Electric   light,    heat,    motive   power   and 

water                  5,673.42  53,380.56-?             878.80» 

Repairs    11,137.08  

Tobacco  shop 2,742.88 

Farm  live  stock 3,587.59         266.67'' 

Convict  discharge  expenses 6,897.16  2,903.18          11,078.96"' 

Freight 3,482.66         1,199.69; 

Office  expense  and  fixtures 734.19  3,461.80^          1,029.63^ 

Deputy  warden's  kitchen 179.36  

Discount   1,040.01  

Ice  plant  and  cold  storage 515.66  •  •  •  •••••• 

Laundry    329.15  1,156.27 

Warden's  kitchen  and  dining  room 2,149.44  

Broom  factory 355.60  

Usher's  department   605.85  

Deputy  warden's  house 262.85  

Prison  yard  1-20  

Pouhry  yard   900.21  ■  •  k'.A  ' 

General  expense    3,265.95         '  4,770.22" 

Parole  expense    4,673.97  

Allowances    14.00  

Officers'  kitchen  and  dining  room 10,883.18  

Incidental  (shop  yard,  etc.) 7,815.32                477.19 

Travelling  adv.  and  holiday  expenses 3,498.33  

Furniture    3,585.81 

Coal 18,313.53 

Trade  school,  material 470.53 

Library  school,  books,  etc 968.52 

Farm  building   711.01 

Lectures,  etc : 356.77 

Total $199,095.11  $250,704.41       $197,877.47 

a.  Salary,  l)0;"ir(l   and   lodf^ing  of  offifers. 

b.  Convict   rlotliiny-   ami    bedding. 

c.  Cell  hon!<e,  inchidiiiK'  toba'-co  inid  writing  material. 

d.  Sanitary  and  medical  supplies, 

e.  Motive  power  and  steam  for  cooking,  heating  and  lighting. 

f.  General  Office  expense. 

h.  Live  stock  and  implements. 

i.  Steam  heating  and  [iluinbing. 

g.  Food-stuffs  for  whole  institution, 
j.  Transportation  and  telegraph 

k.    Office  supplies  and  postage, 
m.     Discharge  and  parole.  n.     Miscellaneous. 

o.*  The  data  for  this  analysis  were  taken  from  a  journal  analysis  of  the  books  of 
the  Reformatory.  Some  modiiications  and  adjustments  jiiay  be  made  in  preparing 
the  data  for  publication.  It  sei'ves  tli(>  puri)()se,  liowevor.  of  showing  the  character 
of  cost  distribution  made  by  tlie  Keforniatory  and  the  e.xteiit  to  which  the  accounts 
are  on  a  comparative  basis  with  the  other  penal  institutions. 


290  EFFICIENCY  AND  ECONOMY  CO^[MjTT£E. 

The  large  number  of  notes  necessary  to  indicate  the  differences 
in  content  of  the  accounts  shown  above  illustrates  one  of  the  important 
defects  of  the  present  accounting  of  the  penal  institutions.  Even  in 
the  case  of  the  salary  account  one  of  the  institutions  states  a  consoli- 
dated total  of  salaries,  board  and  lodging  of  officers  while  the  other 
institutions  state  the  salaries  alone.  One  institution  has  an  account 
showing  the  expense  of  the  chapel  and  library  while  another  has  a 
separate  account  for  the  library,  the  third  institution  having  separate 
accounts  for  Catholic  and  Protestant  chapel.  One  institution  makes 
a  charge  to  cell  houses  which  includes  only  the  miscellaneous  costs 
of  their  care  and  furnishing,  while  another  institution  charges  tobacco 
and  writing  material  to  an  account  of  the  same  name.  Even  convict 
clothing  costs  for  the  separate  institutions  can  not  be  compared  since 
one  of  the  institutions  combines  in  one  account  the  cost  of  clothing  and 
bedding,  while  the  other  two  make  a  statement  of  clothing  alone.  The 
notes  on  the  schedule  above  make  further  comment  on  this  phase  of 
the  accounting  of  the  institutions  unnecessary. 

The  only  one  of  the  institutions  which  has. any  extensive  depart- 
mental segregation  of  expense  is  the  Southern  Illinois  Penitentiary. 
Statements  of  salaries  and  repairs  are  made  in  detail  for  the  various 
departments  both  at  the  Illinois  State  Penitentiary  and  the  Southern 
Illinois  Penitentiary.  The  accounting  segregation  of  expense  by 
departments  is  less  complete  for  the  Reformatory  and  the  Illinois  State 
Penitentiary.  Neither  of  the  three  penal  institutions  makes  a  reason- 
able classification  of  expense  under  departmental  captions.  For 
example,  how  much  of  the  expense  of  the  convict  kitchen  is  for  food 
supplies?  How  much  is  for  fuel?  What  are  the  total  departmental 
administrative  operating  and  maintenance  costs  as  compared  with  the 
cost  of  food  supplies?  These  facts  are  not  available  at  once  from 
the  accounts."  The  same  lack  of  a  reasonable  classification  of  expenses 
appears  in  the  case  of  the  power  plant  and  repair  departments.  They 
do  not  in  some  cases  have  satisfactory  log  sheets,  showing  the  daily 
consumption  of  fuel,  the  output  of  steam,  or  electricity  and  other  data 
which  is  important  from  the  standpoint  of  efficiency  tests  on  boiler 
rooms,  engine  rooms,  and  generating  plants. 

In  addition  to  the  absence  of  uniformity  and  a  reasonable  class- 
ification of  expenses  under  departmental  captions  there  is  also  lack- 
ing a  proper  coordination  and  use  of  the  data  at  hand.  A  glance  at 
the  biennial  report  for  both  the  Illinois  State  Penitentiary  and  the 
Southern  Illinois  Penitentiary  will  show  a  list  of  the  repairs  by  depart- 
ments. An  examination  of  the  book  accounts  of  the  subsistence  store 
will  also  show  the  charges  for  food  to  departments.  There  are  also 
salary  lists  from  which  one  can  readily  secure  the  departmental  salary 
accounts.  But  the  information  available  from  these  various  sources 
is  not  drawn  together  and  organized  into  a  departmental  statement  of 
classified  expense  and  furnished  to  the  officers  in  charge  of  operations, 
the  warden  or  superintendent,  the  supervising  board,  the  Governor  and 
the  General  Assembly. 

One  reason  for  this  improper  organization  of  data  is  found  in  the 
absence  of  a  system  of  internal  charges  and  transfers.  The  subsis- 
tence store  does  not  present  a  bill  to  an  industry  for  goods  furnished 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  291 

because  the  payment  would  go  to  the  State  Treasurer  and  could  not 
be  used  by  the  institution.  Consequently  the  subsistence  store  counts 
out  a  list  of  its  own  bills  'about  equal  in  amount  to  the  cost  of  goods 
which  it  furnishes  to  the  industry.  The  industry  pays  these  bills  and 
thus  the  funds,  which  would  otherwise  go  to  Springfield  are  retained 
under  institution  control.  While  there  may  be  good  reason  for  retain- 
ing these  funds  under  institution  control,  there  should  be  a  regular 
transfer  system  by  which  the  funds  alloted  to  an  industry  could  be 
transferred  to  the  prison  proper  in  payment  for  goods  furnished  to 
the  industr}'.  According  to  the  present  plan  an  analysis  of  the 
expenses  of  the  furniture  industry  might  show  items  of  butter,  bacon 
and  groceries  as  expenses  since  the  bills  actually  paid  with  furniture 
vouchers  are  not  for  materials  and  supplies  used  by  the  industry. 
There  is  no  doubt  that  a  system  of  transfers  would  promote 
a  more  satisfactory  coordination  and  statement  of  departmental  oper- 
ating costs  than  that  which  prevails.  The  ruling  of  the  auditors  of 
public  accounts  in  the  past  have  been  unfavorable  to  the  development 
of  a  reasonable  system  of  transfers,  but  in  some  of  the  institutions  of 
the  State  these  transfers  are  now  in  use  and  the  practice  could  doubt- 
less be  extended  under  proper  restrictions  to  other  institutions. 

At  the  Illinois  State  Penitentiary  the  practices  which  have  grown 
out  of  this  miscellaneous  distribution  of  bills  materially  interfere  with 
any  accurate  statement  of  the  earnings  of  the  local  industries.  The 
distribution  of  bills  has  extended  beyond  a  mere  transfer  of  liability 
in  payment  for  a  debt  to  a  transfer  of  liability  without  the  existence 
of  debt.  During  the  summer  months  of  1914  large  amounts  of  coal 
were  paid  for  by  the  industries  which  were  not  using  it,  because  the 
funds  of  the  prison  proper  were  low.  This  practically  amounts  to 
institution  appropriation  of  the  excess  from  the  operation  of  industries 
and  charging  the  funds  so  absorbed  to  the  expenses  of  operating  the 
industries.  The  Illinois  State  Penitentiary  never  publishes  the  earning 
accounts  of  the  industries  and  the  Board  of  Prison  Industries  never 
publishes  such  data.  Unless  the  accounts  of  the  industries  were  more 
definitely  defined  and  systematically  charged  these  reports  would  be 
misleading.  These  practices  would  be  impossible  if  a  system  of  defined 
accounts  were  in  use  for  all  departments  and  every  department  were 
charged  a  fair  price  for  the  goods  and  services  which  it  employs. 

The  cost  and  property  reports  of  the  operations  of  prison  indus- 
tries are  stated  in  the  various  institutions  under  the  following  account' 
ing  captions  shown  in  Schedule  17  below. 

SCHEDULE   17.     .ACCOUNTS   FOR  INDUSTRIES. 

Illinois  Illinois   State  Illinois   Southern 

State  Penitentiary  Reformatory  Penitentiary 

Plart    Plant    Plant    

Material   Material    Material    

Expense    Expense    

Salaries    

Repairs    

There  is  the  same  lack  of  a  reasonable  analysis  of  expense  in  the 
operation  of  industries  as  was  noted  in  connection  with  the  operation 


292  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

of  departments.  The  superintendents  of  industries  need  a  classified 
statement  of  incomes  and  expenses  each  month.  A  supervising  board 
could  not  properly  check  the  accounting  charges  of  the  institution 
unless  it  had  placed  before  it  from  month  to  month  a  statement  in 
more  detail.  The  supervising  board  should  know  how  the  cost  of 
power,  heat,  light,  water  and  repairs  are  distributed  as  charges  against 
the  industries  and  they  should  be  reminded  from  month  to  month  that 
these  charges  are  being  fairly  made  by  seeing  the  classified  operating 
costs  of  the  departments  and  industries. 

Summary. 

A  complete  departmental  distribution  of  the  operation  and  main- 
tenance outlays  with  a  reasonable  classification  of  costs  under  these 
departments  is  lacking  in  all  the  institutions.  This  departmental  segre- 
gation and  the  classifications  thereunder  are  fundamental  in  the  prepar- 
ation of  data  for  the  use  of  institution  managers,  the  proposed  Board 
of  Prison  Administration,  the  General  Assembly,  the  Governor  and 
the  citizens  of  the  State.  None  of  the  institutions  maintains  an  appro- 
priation and  allotment  control  that  would  enable  the  institution  warden 
or  superintendent  to  prevent  departments  from  overdrawing  their 
allotments.  If  the  departments  can  not  be  prevented  f'om  overdraw- 
ing allotments  then  the  institution  itself  cannot  be  prevented  from 
overdrawing  allotments  and  carrying  its  purchases  far  beyond  the 
appropriations  of  the  General  Assembly.  This  results  in  encroach- 
ment on  the  appropriations  of  the  succeeding  General  Assembly  and 
a  large  deficit  from  time  to  time  covered  by  outstanding  accounts. 
The  warden  or  superintendent  should  be  in  a  position  to  know  just 
what  department  is  responsible  for  such  a  tendency  and  be  able  there- 
fore, to  check  the  purchases  which  produce  the  overdrafts. 

The  lack  of  a  uniform  classification  of  accounts  which  would 
make  the  cost  data  of  the  various  institutions  comparable  is  fully  illus- 
trated in  the  discussion  of  the  accounts  of  the  various  institutions 
above  given.  One  institution  has  a  cell  house  account  while  the  others 
have  no  such  general  account.  One  institution  has  a  team  account 
which  is  lacking  in  the  general  accounts  of  the  others.  There  is  no  data 
showing  a  comparative  feed  cost  per  horse  or  a  comparative  unit  cost 
of  maintaining  horses.  There  is  no  means  of  comparing  the  results 
of  the  farm  and  garden  production  per  acre  or  per  thousand  dollar 
land  value  of  farm  land.  The  farm  accounts  of  the  institutions  are 
the  rtiost  unsatisfactory  part  of  the  whole  accounting  procedure  be- 
cause they  do  not  permit  of  a  check  or  audit  of  the  disposition  of 
all  farm  products  which  the  farm  and  garden  yield  and  give  little 
evidence  concerning  the  efficiency  or  inefficiency  of  farm  and  garden 
maintainance. 

The  present  defects  can  only  be  corrected  by  the  introduction  of 
a  uniform  accounting  classification  for  these  institutions,  by  such 
definitions  of  the  accounts  as  will  render  data  from  the  separate  insti- 
tutions comparable;  and  by  the  installation  of  departmental  records 
that  will  enable  the  warden  or  superintendent  to  hold  every  depart- 
mental officer  responsible  for  the  expense  and  property  outlays  in- 
curred in  his  department. 


ACCOUNTS   FOR   CORRECTIONAL   INSTITUTIONS.  293 

It  may  be  contended  that  the  keeping  of  the  accounts  proposed 
would  involve  large  clerical  expense.  The  record  of  outstanding  lia- 
bilities proposed  in  this  report  represents  the  chief  addition  to  the 
clerical  work  of  accounting  for  the  various  institutions.  This  infor- 
mation will  require  an  additional  ledger.  The  setting  up  of  the  depart- 
mental accounts  specified  in  this  report  would  not  necessitate  any 
material  increase  in  expense.  The  whole  cost  accounting  plan  sug- 
gested in  this  report  could  be  carried  on  by  the  clerical  force  now 
employed  at  the  institutions.  Since  each  voucher  must  be  entered  the 
question  of  entry  under  a  few  headings  or  under  a  larger  number  of 
headings  is  not  material.  The  distribution  of  the  entry  as  depart- 
mental cost  data  requires  a  second  entry  of  the  figures  but  not  of  the 
dates,  descriptive  matter,  folios,  etc. 

The  installation  of  a  plan  of  internal  reports  to  departmental 
officers,  as  suggested  in  this  report,  will  make  unnecessary  the  larger 
portion  of  the  departmental  accounting  forces  now  employed.  It  is 
probably  true  that  the  clerical  work  now  carried  on  at  the  institutions 
including  the  clerical  work  of  the  separate  departments  is  as  great  or 
greater  in  amount  for  the  two  penitentiaries  than  it  would  be  under 
the  plan  here  proposed.  The  elimination  of  unnecessary  accounts 
would  probably  ofifset  the  addition  of  accounts  called  for  in  this  report. 
This  statement  is  based  on  a  rough  estimate.  It  is  safe  to  say,  how- 
ever, that  the  information  called  for  in  this  report  can  be  obtained 
without  any  extensive  increase  in  the  amount  of  clerical  work  in 
the  institutions. 

In  conclusion  it  may  be  said  that  many  commendable  activities  of 
the  Illinois  penal  institutions  could  be  cited  if  they  came  within  the 
scope  of  this  report.  The  attitude  of  the  wardens  and  superintendent 
to  the  inmates  is  humane  and  presents  a  sharp  contrast  to  the  unfav- 
orable comments  which  have  been  frequently  made  in  regard  to  prisons 
in  other  states.  This  report,  however,  is  limited  to  the  accounting  and 
financial  administration  of  these  institutions  and  touches  only  inci- 
dentally on  the  educational  work. 


294  EFFICIENCY  AND  ECONOMY  COMMITTEE. 


PART  II. 

STATUTORY  AND  PROPOSED  STATUTORY  ACCOUNTING 

REQUIREMENTS  OF  THE  CORRECTIONAL 

INSTITUTIONS. 

ACCOUNTANCY    REQUIREMENTS    OF    THE    PROPOSED    BILL    AND    STATUTES 
NOT  REPEALED   THEREBY. 

The  provision  in  the  proposed  bill  for  consolidating  the  manage- 
ment of  the  penal  institutions  and  the  creation  of  a  Board  of  Prison 
Administration  to  take  the  place  of  the  separate  boards  which  now 
manage  the  several  institutions  will  require,  if  enacted'  into  law,  a 
centralization  in  their  accountancy.  The  character  of  the  accounts 
required  is  indicated  below  in  the  summary  of  sections  bearing  on 
accounts. 

Section  9  of  the  bill  requires  an  annual  inventory  of  permanent 
property  w4iich 

Section  11  of  the  bill  requires  a  biennial  report  to  the  Governor 
before  the  regular  meeting  of  the  Assembly. 

which  report  shall  contain  a  statement  of  the  financial  and  other  trans- 
actions of  the  Board  during  the  preceding  year.  The  report  shall  contain 
the  name  and  salary  of  every  employee  of  the  Board,  and  of  each  insti- 
tution subject  to  its  control,  the  per  capita  cost  of  maintenance  of  each 
institution,  the  total  expenditures  on  account  of  the  institution,  the  receipts 
from  every  source,  a  statement  of  all  sums  of  money  paid  into  the  State 
treasury  by  each  institution,  the  amount  of  supplies  furnished  the  insti- 
tution and  the  amount  used,  the  kinds  of  industries  conducted  in  each  insti- 
tution, the  amount  and  value  of  the  materials  purchased,  and  used  in  the 
prosecution  of  such  industries,  and  the  amount  remaining  on  hand,  the 
value  of  the  articles  manufactured  or  produced  during  the  year,  and  the 
manner  of  their  disposition,  the  amount  sold  and  the  receipts  therefrom, 
a  statement  of  any  changes  that  may  have  been  made  in  the  methods  of 
administration  of  the  institutions  or  the  rules  of  discipline  and  such  other 
information  of  importance  as  may  relate  to  the  general  conditions  of  the 
institutions. 

Under  the  provisions  of  the  bill  it  is  important  that  the  estimated 
costs  of  all  buildings  and  large  repair  jobs  be  reported  to  the  Fiscal 
Supervisor  since  he  is  required  to 

receive,  examine,  and  present  to  the  Board  with  his  opinion  thereon  all 
plans  and  specifications  for  the  construction  of  new  buildings  or  repairs 
the  estimated  cost  of  which  shall  exceed  two  hundred  dollars,  provided 
that  in  case  of  an  emergency  which  interferes  with  the  operation  of  any 
prison  industry  or  which  endangers  the  safety  and  security  of  the  prisoners 
the  fiscal  supervisor  may  with  the  approval  of  the  Board  resort  to  the  open 
market  in  order  to  secure  sucli  repairs  as  may  be  necessary  to  restore  the 
operating  efficiency  of  the  institution  at  the  earliest  possible  time.    A  surety 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  295 

bond,  in  such  sum  as  may  be  determined  by  the  fiscal  supervisor,  shall  if 
required  by  the  fiscal  supervisor  be  furnished  by  the  contractor  whenever 
the  value  of  any  work  exceeds  five  hundred  dollars. 

Section  13  requires  an  itemized  estimate  of  all  appropriation  re- 
quirements. 

Section  16  of  the  bill  provides  that 

the  managing  officers  of  the  penitentiaries  and  the  reformatory  shall  pre- 
pare and  present  to  the  fiscal  supervisor,  in  triplicate,  not  less  than  fifteen 
days  before  the  beginning  of  each  period  an  itemized  estimate  of  all 
supplies  for  general  maintenance  and  of  all  machinery,  raw  materials  or 
other  articles  needed  for  use  in  the  operation  of  the  prison  industries 
in  their  respective  institutions,  during  the  succeeding  period,  and  the  amount 
of  money  necessary  for  the  payment  of  salaries  and  to  cover  the  cost  of 
making  any  improvements  which,  in  their  judgment  are  necessary  to  be 
made  during  such  period.  The  estimate  so  presented  by  each  man- 
aging officer  may  include  a  contingent  fund  not  exceeding  five  per  cent 
of  the  total  amount  of  the  estimate  for  maintenance,  to  be  used  for 
emergencies,  under  such  restrictions  and  conditions  as  the  Board  of  Prison 

Administration    may    prescribe The    fiscal    supervisor    shall 

return  to  the  managing  officer  of  each  institution  one  copy  of  the  said  esti- 
mates as  approved  by  him  ;  he  shall  file  one  copy  with  the  Auditor  of  Public 
Accounts,  and  one  cop}^  shall  be  retained  by  himself.  It  shall  be  the  duty 
of  the  Auditor  to  issue  warrants  on  the  State  Treasurer  for  the 
contingent  fund  of  each  institution  and  such  fund  shall  be  turned  over 
to  the  managing  officers  thereof.  Itemized  vouchers  for  all  funds,  includ- 
ing payrolls,  shall  be  drawn  ih  triplicate,  one  copy  being  held  by  the 
managing  officer  issuing  such  voucher  ,one  copy  presented  to  the  fiscal 
supervisor  and  one  copy  to  the  Auditor  of  Public  Accounts,  who  shall  issue 
a  warrant  on  the  State  Treasurer  for  each  voucher.  Each  voucher  shall 
contain  a  sworn  affidavit  of  the  managing  officer,  or  some  other  bonded 
officer  designated  by  the  managing  officer,  certifying  that  the  supplies  and 
materials  purchased  or  improvements  or  repairs  made  or  special  service 
rendered  were  fully  satisfactory,  or  conforming  to  sample  as  the  case  may 
be;  that  the  approving  officer  was  in  no  way  financially  interested  in  the 
purchase  of  the  work  performed,  and  that  he  has  full  knowledge  of  the 
value  of  the  purchase  or  work  performed,  such  affidavit  to  be  made  in 
accordance  with  forms  provided  for  the  Board ;  provided  that  payrolls 
for  temporary  employees  employed  in  cases  of  emergency  may  be  made 
at  any  time  the  services  are  performed.  All  such  payrolls  shall  show  that 
each  and  every  person  named  in  the  payroll  actually  performed  the  services 
for  the  time  and  at  the  rate  charged  in  the  payrolls. 

Other  sections  provide  that : 

the  State  Treasurer  shall  act  as  treasurer  of  all  funds  within  control  of  the 
Board  of  Prison  Administration,  of  all  appropriations  made  by  the  General 
Assembly  for  the  benefit  and  use  of  the  penitentiaries  and  the  reformatory, 
and  of  all  moneys  received  by  thcfpianaging  officers  therefrom  the  sale  of 
articles  manufactured  or  produced  by  the  labor  of  convicts  or  from  any 
other  source,  provided  that  the  monthly  contingent  fund  shall  be  placed 
not  later  than  the  first  day  of  the  period  during  which  it  is  to  be  used, 
to  the  managing  officer  of  the  institution  who  shall  be  treasurer  of  such 
funds.  All  moneys  collected  by  the  managing  officer  of  each  institution 
from  the  sale  of  the  products  of  convict  labor  or  from  any  other  source 
whatsoever  shall  be  covered  monthly  into  the  State  treasury  and  a  detailed 
statement  of  all  such  receipts  shall  be  made  montlily  to  the  fiscal  super- 
visor, by  the  managing  officer  of  the  institution. 

They  (the  managing  officers)  shall  be  appointed  by  the  Board  of  Prison 
Administration  for  a  term  of  six  years  and  may  be  removed  by  the  Board 
only  for  incompetency,  neglect  of  duty  or  other  causes  which  render  them 

incapable  of  discharging  their  duties They  and  their 

families  (wife  and  minor  children)  shall  be  provided  with  suitably  furnished 
apartments    for    residence    purposes    within    the    institution,    and    shall    be 


296  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

allowed  the  necessary  food  supplies  for  their  sustenance.  But  such  sup- 
plies shall  be  only  such  as  may  be  drawn  from  the  general  stock  purchased 
for  the  subsistence  of  the  prisoners,  and  each  warden  or  superintendent 
shall  make  a  monthly  report  to  the  Board  of  Prison  Administration  show- 
ing the  amount  and  value  of  such  supplies  drawn  by  him  durmg  the  pre- 
ceding month.  s      ,    „       ,        ,  r     1. 

They  (the  managing  officers)   shall  take  charge  of  all  money 

and  other  property  in  the  possession  of  each  convict  at  the  time  of  his 
admission  to  the  institution,  furnish  him  a  receipt  therefor  and  return  same 
to  him  upon  his  discharge  or  deliver  it  to  any  other  person  who  has  a  legal 
right  thereto.  They  shall  furnish  each  convict  at  the  time  of  his  discharge 
a  suit  of  clothes,  transportation  to  the  place  where  he  was  convicted  or  to 
any  other  place  equidistant  and  in  addition  pay  him  ten  dollars  in  money. 
They  shall  make  monthly  reports  to  the  Board  of  Prison  Administration 
showing  the  number  of  prisoners  admitted  to  the  institution  durmg  the 
preceding  month,  the  number  discharged,  the  number  remaining  at  the  time 
of  the  report,  the  pay  roll  of  tlie  institution  during  the  month  and  such 
other  matters  of  information  as  they  may  be   required  by  the   Board  to 

furnish They  shall  also  make  an  annual  report The 

annual  report  shall  also  contain  full  information  in  regard  to  any  and_  all 
industries  operated  by  the  institution,  including  expenditures  and  receipts 
The  said  report  shall  be  incorporated  in  extenso  or  in  sum- 
marized form  in  the  report  of  the  Board  of  Prison  Administration. 

Section  38  provides  that 

The  amount  of  surplus  standing  on  the  books  of  the  penitentiary  or 
reformatory  to  the  credit  of  any  prisoner  may  be  drawn  by  the  prisoner 
during  his  imprisonment  only  upon  the  certified  approval  of  the  warden 
of  said  penitentiary  or  -superintendent  of  said  reformatory  to  aid  the 
family  of  such  prisoner,  or  for  books,  instruments,  and  instruction,  not 
supplied  by  the  penitentiar>'  or  reformatory  to  men  of  his  grade ;  or  rnay, 
with  the  approval  of  said  warden  or  superintendent,  be  so  disbursed  with- 
out the  consent  of  the  prisoner 

So  far  as  could  be  ascertained  all  other  laws  affecting  directly 
the  accounting  procedure  of  the  penal  institutions  are  repealed  by  the 
provisions  of  the  bill  with  the  exception  of  an  act  requiring  an  inven- 
tory of  State  property  which  was  approved  June  23,  1913.  This  act 
was  made  to  apply  to  all  State  institutions  excepting  those  under  the 
supervision  of  the  Board  of  Administration  and  the  Charities  Com- 
mission. This  law  requires  a  perpetual  inventory  of  all  property  and 
supplies. 

The  law  passed  in  1913  creating  the  Legislative  Reference  Bureau 
made  certain  accounting  requirements  of  the  State  departments  and 
institutions.  These  requirements  are  found  in  paragraph  6  of  the  law 
as  follows : 

The  officers  of  the  several  departments  of  the  State  government 
shall  make  duplicate  reports  by  the  first  day  of  November  next  preceding 
the  convening  of  the  next  regular  session  of  the  General  Assembly  of  the 
appropriations  which  are  required  for  their  several  departments  for  the 
biennium  for  which  appropriations  are  to  be  made  by  the  next  General 
Assembly.  One  of  the  said  duplicate  reports  shall  be  filed  with  the  Gov- 
ernor, and  the  other  with  the  secretary  of  said  reference  bureau. 

SUMMARY   OF   ACCOUNTING   REQUIREMENTS   OF   THE   BILL   AND   GENERAL 
STATUTES. 

(1)  An  annual  inventory  of  permanent  property. 

(2)  Annual  report  containing: 

a.  Salaries  and  names  of  all  employees  of  the  Board  and  the  respec- 
tive institutions. 


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS. 


297 


b    Per  capita  cost  of  maintenance  of  each  institution. 

c    The  total  expenditures  on  account  of  the  institution.  ^ 

d.  A  statement  of  all  moneys  paid  into  the  treasury  from  each  insti- 
tution. 

e.  The  receipts  from  every  source.  .  ,    ,  j 

f.  Amount  of  supplies  furnished  the  institution  and  the  amount  used. 

g.  Reports  on  industries  showing: 

(1)  Amount  and  value  of  materials  purchased. 

(2)  Amount  used  in  carrying  on  the  industries. 

(3)  Balance  of  materials  on  hand.  ,    ,     .         , 

(4)  Value  of  articles  produced  or  manufactured  during  the  year. 

(5)  Amount  sold  and   receipts  therefrom  and  the  manner  of  dis- 
position of  all  commodities  produced  or  manufactured. 

(3)  All  appropriation  requests  to  be  itemized. 

(4)  Managing  officers  must  make  to  the  Board  periodical  reports 
estimating  amount  of  supplies  required  for: 

a.  General  maintenance. 

b.  Machiner3^  .  .         .    , 

c.  Other  articles  and  supplies  used  in  the  operation  of  prison  indus- 
tries. 

(5)  The  above  report  and  all  vouchers  to  be  made  in  triplicate, 
one  fo  rthe  managing  officer,  one  for  the  Fiscal  Supervisor,  and  one 
for  the  Auditor  of  Public  Accounts. 

(6)  State  Treasurer  to  act  as  treasurer  for  all  funds  except  petty 

cash.  ,        •        t- 

(7)  Managing  officers  must  make  a  monthly  report  showing  the 
amount  and  value  of  supplies  drawn  by  them  during  the  month. 

(8)  The  managing  officers  have  charge  of  funds  of  prisoners. 

(9)  In  addition  to  the  requirements  of  the  bill  proposing  the 
Board  of  Prison  Administration,  there  is  a  State  law  which  practically 
requires  a  perpetual  inventory  of  the  property  and  supplies  of  the 
penal  institutions. 

(10)  There  is  also  a  State  law  requiring  all  departments  of  the 
State  government  to  file  estimates  of  appropriations  required  for  the 
succeeding  biennium  on  or  before  the  first  Monday  of  November  pre- 
ceding a  session  of  the  General  Assembly. 


298  EFFICIENCY  AND  ECONOMY  COMMITTEE. 


PART  III. 

SCHEDULES   OF  DEFINED   ACCOUNTS   FOR   THE 

DEPARTMENTS  AND  INDUSTRIES  OF  THE 

CORRECTIONAL  INSTITUTIONS 

SCHEDULES    OF    OPERATION    AND    MAINTENANCE    ACCOUNTS    BY 
DEPARTMENTS. 

Many  of  the  accounts  appearing  in  the  operation  and  maintenance 
schedules  below  occur  as  departmental  accounts  in  a  large  number  of 
departments.  Their  definitions  below  will  serve  as  definitions  for  the 
same  accounts  in  various  departments. 

A.  Salary  and  luages.  Charge  to  these  accounts  the  salary  and 
wages  of  all  employees  whose  time  is  devoted  to  the  work  of  the 
respective  departments  concerned: 

B.  Stationery,  office  supplies  and  printing.  .These  accounts 
should  in  each  case  be  debited  with  the  cost  of  all  stationery,  office 
supplies  and  printing  purchased  for  the  respective  departments.  The 
accounts  should  be  credited  at  the  time  of  taking  the  regular  inven- 
tory with  the  stationery  and  ofhce  supplies  then  on  hand. 

C.  Postal  supplies.  The  postal  supplies  accounts  should  be  debited 
with  the  cost  of  all  postal  supplies  purchased  for  the  respective  de- 
departments  and  credited  with  the  postal  supplies  on  hand  at  the  time 
the  regular  inventory  is  taken. 

D.  Heat,  light  and  water.  This  account  should  be  charged  with 
the  cost  of  heat,  light  and  water  used  by  the  various  departments. 
There  should  be  no  credits  to  this  account  except  refunds  or  com- 
pensation for  errors  in  charges.  Any  local  power  plant  furnishing 
these  services  should  be  credited  with  the  cost  of  the  services  so 
furnished,  as  indicated  by  the  operation  and  maintenance  accounts  of 
the  department. 

E.  Fuel.  The  fuel  used  by  the  power  plants  is  usually  kept  in 
stores.  A  log  sheet  for  the  boiler  in  question  should  show  the  amount 
of  fuel  devoted  to  boiler  use  each  day.  The  cost  of  this  fuel  should 
be  charged  to  the  boiler  account  in  question  and  credited  to  the  fuel 
store.  In  the  operation  of  the  industries  and  departments  the  boiler 
room  is  one  of  the  clearing  accounts  and  makes  a  sufficient  charge  for 
steam  to  cover  the  boiler  room  costs  including  the  cost  of  fuel 
used.  When  fuel  is  used  by  departments  in  furnishing  steam  or  heat 
direct  it  is  charged  as  fuel  to  such  departments. 

F.  Steam.  These  accounts  appear  as  a  cost  of  operation  in  the 
engine  room  and  in  the  kitchen  securing  steam  from  the  boiler  room. 


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS. 


299 


The  boiler  room  should  charge  for  this  steam  on  the  basis  of  the  cost 
of  its  production  as  shown  by  the  boiler  room  operation  and  main- 
tenance accounts.  The  boiler  room,  as  a  clearing  account,  would  take 
credit  for  the  amount  so  charged.  While  steam  meters  may  be  used 
for  some  of  the  main  pipes  leading  out  of  the  boiler  room  it  will 
probably  be  necessary  to  make  engineering  estimates  of  amounts  used 
in  some  cases.  Under  the  account  of  heat,  light  and  water,  the  chief 
item  will  be  steam  furnished  from  the  power  plants  for  heating  pur- 
poses. It  may  be  necessary  to  charge  this  steam  to  the  industries  and 
other  departments  partly  on  the  basis  of  the  floor  space  heated.  At 
any  rate  competent  engineers  agree  that  it  is  possible  to  reach  a  fair 
approximation  to  the  amounts  of  steam  used  in  various  connections. 
The  particular  experiments  required  to  make  these  approximations 
depend  partly  on  the  local  situations. 

G.  Electrical  power.  In  case  this  is  purchased  the  amounts  used 
by  the  various  departments  and  industries  can  be  readily  determined 
by  the  use  of  meters  and  the  charge  for  its  use  should  be  made  on  this 
basis.  Operation  and  maintenance  of  transmission  mains  or  regular 
stations  equipped  with  motors  should  also  be  charged  to  the  various 
departments  on  the  basis  of  the  amounts  of  electricity  used.  Where 
there  is  a  regular  station  equipped  with  motors  as  in  the  case  of  the 
stone  department  its  maintenance  and  operation  should  be  charged  to 
the  stone  department  as  administrative  costs  to  be  added  as  a  power 
cost  to  the  outlay  for  the  power  purchased.  The  charges  for  electric 
light  should  be  made  on  the  basis  of  electric  light  meters  used  for  the 
various  industries  and  departments. 

H.  Materials  for  production.  In  the  case  of  the  clothing  room  the 
cost  of  cloth  and  trimmings  will  be  a  charge  to  materials  of  produc- 
tion. The  term,  supplies,  as  distinct  from  materials  usually  refers  to 
commodities  used  up  in  production  and  not  constituting  the  essential 
parts  of  the  finished  products.  Coal  and  fuel  are  supplies  and  not  raw 
materials.  The  trade  schools  and  the  manual  training  department, 
which  may  be  classed  as  a  trade  school  for  purposes  of  accounting, 
use  materials  in  their  handicraft  work.  The  various  industries  and 
departments  have  materials  on  hand  when  the  inventories  are  taken 
preparatory  to  closing  the  books.  The  cost  of  these  materials  should 
be  credited  to  the  material  account. 

I.  Food  supplies.  Charge  to  these  accounts  the  cost  of  all  food 
furnished  to  the  various  kitchens.  The  accounts  should  be  credited 
with  the  cost  of  all  food  on  hand  at  the  time  of  taking  an  inventory. 
The  food  charged  out  to  the  various  departments  will  be  credited  to 
the  subsistence  store. 

J.  Administrative  and  operating  costs.  In  the  schedules  supple- 
mentary to  the  general  schedules  of  the  departments  it  is  convenient 
to  group  all  of  the  operation  and  maintenance  costs  other  than  one 
principal  item  such  as  food  or  medical  supplies  under  one  total,  which 
may  be  designated  as  administrative  and  operating  costs  for  the  de- 
partment. The  administrative  and  operating  costs  of  the  subsistence 
store  must  be  distributed  on  the  basis  of  sales  to  the  departments. 

K.  Feed  for  live  stock.  If  the  farm  superintendent,  or  officer 
charged  with  supervising  the  feeding  of  live  stock,  w^ould  make  speci- 


300  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

fication  feed  rations  for  live  stock  of  every  kind  a  daily  report  show- 
ing numbers  of  animals  fed  would  also  carry  the  total  of  feed  of  each 
kind  to  be  credited  to  the  feed  barns.  Since  this  kind  of  supervision 
represents  the  approved  method,  it  was  presumed  to  be  the  plan  for 
which  accounts  should  be  prepared.  It  will  be  necessary  therefore  to 
charge  each  barn  with  the  feed  supplies  stored  there  under  separate 
accounts  for  each  kind  of  feed.  These  feed  accounts  of  the  feed 
barn  should  then  be  credited  with  the  amount  of  feed  of  the  several 
kinds  taken  out  as  shown  by  the  daily  feed  report.  The  adminis- 
trative and  operating  costs  of  the  barn  would  be  charged  to  the  main- 
tenance of  the  various  kinds  of  stock  on  the  basis  of  the  value  of  feed 
charged  to  that  kind  of  stock. 

L.  Clothing.  (Material.)  This  account  is  charged  with  the  cost 
of  material  going  into  the  garments.  The  administrative  costs  are 
distributed  on  the  basis  of  the  hours  of  prison  labor  shown  in  the 
specification  cost  of  each  kind  of  garment.  This  specification  labor, 
if  checked  by  the  efficiency  sheets  of  the  laborers,  will  serve  as  a  satis- 
factory basis  of  distribution. 

M.  Cash  for  discharged  prisoners.  Charge  to  this  account  the 
cash  paid  to  discharged  prisoners  as  required  by  statute. 

N,  Gasoline,  oil  and  waste.  Charge  to  these  accounts  the  cost  of 
all  gasoline,  oil,  waste  purchased  for  the  respective  departments,  credit- 
ing them  with  these  supplies  on  hand  at  the  time  of  taking  the  inven- 
tory. 

O.  Tobacco.  Charge  to  this  account  the  cost  of  all  tobacco 
furnished  to  the  prisoners.  The  store  room  or  tobacco  shop  can  readily 
handle  these  supplies  and  take  credit  for  all  supplies  furnished. 

P.  Medical  supplies  for  prisoners.  Charge  to  this  account  the 
cost  of  all  medical  supplies  purchased  by  the  hospital  and  credit  it 
with  supplies  on  hand  at  the  time  of  taking  an  inventory. 

Q.  Barber  supplies.  Charge  to  this  account  the  cost  of  all  barber 
supplies.  Credit  the  account  with  the  cost  of  supplies  on  hand  at  the 
time  of  taking  a  regular  inventory. 

R.  Hats  and  caps.  Charge  to  these  accounts  the  cost  of  all 
materials  used  in  making  hats  and  caps  as  shown  by  the  material 
charged  to  these  accounts  by  the  clothing  rooms,  plus  administration 
costs,  or  the  purchase  price  of  these  commodities  if  they  are  not  manu- 
factured locally. 

S.  Shoes  for  prisoners.  Charge  to  this  account  the  cost  of  shoes 
sold  to  the  institution  by  the  shoe  industry.  They  should  be  sold  by 
the  shoe  industry  at  the  regular  price  for  such  commodities. 

T.  Laundry  supplies.  In  order  to  properly  distribute  these  sup- 
plies to  the  various  departments  some  regular  list  price  for  pieces  of 
every  description  must  be  adopted  a§  a  basis  for  the  distribution  of 
tlie  total  charge  of  laundry  supplies  purchased  by  the  respective  laun- 
dries. Every  order  for  laundry  work  should  then  bear  a  charge  by 
the  laundry.  At  the  end  of  the  month  or  at  the  time  of  closing  the 
accounts  the  actual  cost  of  supplies  used  may  be  charged  against  the 
respective  departments  in  proportion  to  these  operating  charges  made 
to  the  departments  when  the  work  was  done.     The  laundries  them- 


ACCOUNTS  FOR  CORRECTIONAL   INSTITUTIONS.  301 

selves,  which  are  clearing  accounts,  will  charge  to  laundry  supplies  the 
cost  of  these  supplies  purchased  and  credit  the  account  with  the  sup- 
plies on  hand  at  the  time  of  closing. 

U.  Ammunition.  Charge  to  these  accounts  the  cost  of  all  amniu- 
nition  bought  for  the  respective  departments  and  credit  them  with 
amm*unition  on  hand  at  the  time  of  taking  an  inventory.       * 

V.  Travelling  expenses.  This  should  be  charged  to  the  depart- 
ments whose  employees  incur  the  expense.  In  case  one  departmental 
officer  travels  for  another  department  the  travelling  account  of  the 
department  incurring  the  expense  may  be  credited  and  the  other 
department  charged.  This  plan  is  important  in  giving  a  managing 
board  appropriate  control  over  the  outlays  in  this  connection. 

W.  Seed,  plants,  etc.  Charge  to  these  accounts  the  cost  of_  seed, 
plants,  cuttings,  etc.,  used  on  the  lawns  and  in  greenhouses,  or  in  the 
gardens  or  officers'  buildings. 

X.  Ordinary  repairs.  Charge  to  these  accounts  the  cost  of  all 
ordinary  repairs  on  the  property  listed  under  the  respective  depart- 
mental property  accounts.  Ordinary  repairs  are  those  recurring  in 
amounts  approximately  equal  from  year  to  year. 

Y.  Extraordinary  repairs.  Charge  to  these  accounts  the  cost  of 
all  extraordinary  repairs  made  on  the  property  of  the  respective  de- 
partment^.  These  repairs  are  those  annual  repairs  which  do  not  recur 
in  approximately  equal  amounts  from  year  to  year. 

ZL.  Over,  shortage  and  loss.  In  connection  with  the  inventory  of 
the  kinds  of  property  listed  in  the  various  departments  there  will  be 
amounts  missing,  if  the  preceding  inventory  and  purchases  for  the 
year  are  taken  into  consideration.  This  difference  between  total  prop- 
erty of  a  given  department  as  shown  by  the  property  account  and  the 
inventory  should  be  credited  to  the  property  account  as  a  loss  and 
debited  to  over,  shortage  and  loss.  This  amount  under  tools  and  imple- 
ments would  be  expected  to  be  comparatively  large.  Table  furnish- 
ings, breakages  and  condemned  linen  would  also  be  credited  to  the 
departments  concerned  at  the  inventory  period  or  when  the  property 
is  condemned.  In  this  way  the  inventory  will  serve  to  correct  the 
property  accounts  and  hold  the  departments  responsible  for  property 
charged  to  them.  This  account  is  not  listed  in  the  schedules  below  but 
should  be  inserted  wherever  there  is  occasion  for  it. 

Z.  Depreciation  and  loss.  The  durable  equipment  is  also  subject 
to  a  regular  depreciation  from  wear  and  tear  and  obsolescence.  This 
depreciation  may  be  taken  account  of  before  the  property  is  condemned 
as  scrap  by  setting  up  a  depreciation  liability  account  against  these 
various  property  accounts  in  connecton  with  drawing  up  the  property 
schedule  at  inventory  time.  The  amount  credited  to  these  various  de- 
preciation liability  accounts  should  also  be  debited  to  the  respective 
depreciation  and  loss  accounts.  If  any  durable  property  is  consigned 
to  the  scrap  heap  the  property  account  concerned  should  be  credited 
with  its  cost  and  the  depreciation  liability  opposite  this  property  ac- 
count should  be  debited  with  a  similar  amount.  The  cost  of  replace- 
ment would  then  be  debited  to  the  respective  departmcnlal  property 
accounts.     In  this  way  the  inventory  at  cost,  less  the  respective  de- 


302  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

preciation  liability  accounts  will  always  equal  the  present  value  of  the 
property.  Unless  some  such  plan  is  employed  the  property  accounts 
will  soon  get  out  of  date  and  the  operatng  costs  will  be  improperly 
stated. 

IZ.  Sundry.  Charge  to  these  accounts  the  unclassified  expenses 
of  the  various  departments.  • 

AZ.  Overtime  for  prison  labor.  Charge  to  these  accounts  any 
amounts  paid  to  prisoners  for  work  performed.  The  account  is  used 
only  in  the  industries  because  at  the  present  time  it  does  not  occur  else- 
where. But  it  may  be  set  down  as  an  account  in  any  department  where 
the  expense  is  incurred. 

HZ.  Hours  of  prison  labor.  This  information  may  be  kept  by 
departments  without  making  it  a  financial  account.  There  are  reasons 
which  might  be  assigned  for  setting  the  amount  of  prison  labor  down 
as  both  an  income  and  an  expense  at  fifty  to  seventy-five  cents  per  day. 
But  at  any  rate  it  should  be  kept  by  departments  as  statistics.  It  is 
put  down  with  the  financial  accounts  in  order  that  it  may  be  properly 
defined  for  the  departments. 

In  addition  to  the  statistical  item  of  hours  of  prison  labor,  record 
may  be  kept  for  each  department  of  industry  of  the  "rent  burden"  and 
"interest  burden"  occasioned  by  the  State  investment  involved. 

ZR.  Rent  burden.  This  term  refers,  in  this  report  to  an  estimated 
rental  on  buildings  and  building  space.  It  is  not  included  in  the 
financial  schedules  but  it  is  of  significance  as  a  statistical  item  and  calls 
attention  to  the  saving  involved  in  the  furnishing  of  buildings  and 
building  sites.' instead  of  incurring  an  outlay  for  their  rental.  So  far 
as  possible  the  rate  should  correspond  closely  to  what  would  be  the 
market  rate  for  such  accommodations. 

ZP.  Interest  burden.  This  term  refers  to  an  estimated  interest 
on  the  investment  in  machinery  and  other  assets  not  included  in  the 
items  of  buildings  and  building  sites.  The  reason  for  separating  the 
"interest  burden"  and  "rent  burden"  into  two  items  is  that  there  is 
often  an  alternative  of  renting  space,  while  still  making  investment  in 
machinery^  and  other  assets.  The  interest-burden  rate  should  be  ap- 
proximately equal  to  what  the  state  would  have  to  pay  for  the  use  of 
funds  or  approximately  equal  to  the  current  rate  of  interest  on  long- 
term  state  bonds.  As  a  statistical  item  the  "interest  burden"  serves 
the  same  purpose  as  the  "rent  burden"  discussed  above.  It  is  not 
included  in  the  financial  accounts  of  this  report  but  may  be  added  to 
the  statistical  tables.  Wherever  used  both  the  "interest  burden,"  and 
the  "rent  burden,"  terms  should  be  accompanied  by  a  note  calling  at- 
tention to  the  fact  that  they  do  not  represent  outlays  of  money  during 
the  period  under  consideration  but  are  used  for  the  purpose  of  calling 
attention  to  the  significance  of  the  property  investment  involved. 

In  order  to  make  the  accounting  schedules  more  complete  the 
account  of  board  of  officers  could  be  appropriately  created  in  con- 
nection with  the  departments  and  industries.  In  case  this  account  is 
used,  it  should  be  charged  with  the  cost  of  the  board  of  the  officers  of 
the  respective  departments  in  which  it  occurs.  At  the  same  time  the 
officers'  kitchen  and  dining  room  would  be  credited  with  the  amount 


ACCOUNTS  FOR  CORRECTIONAL   INSTITUTIONS.  303 

SO  charged.  The  accounts  appearing  in  the  schedules,  as  they  now 
stand,  under  the  caption  of  officers'  subsistence  would  disappear 
except  as  statistics  in  the  annual  report  if  the  officers'  kitchen  and 
dining  room  account  were  cleared  by  means  of  the  charges  to  the 
respective  departments. 

The  departments  are  numbered  consecutively.  If  it  is  desired  to 
insert  a  department  number  without  changing  the  numbers  of  other 
departments,  decimal  units  may  be  used.  For  example  a  departmental 
account  between  29  and  30  might  be  called  29.1.  The  letters  used  in 
connection  with  the  departmental  numbers  refer  to  the  definitions  of 
accounts  preceding  the  schedules.  The  letters  Nl,  N2,  etc.,  always 
refer  to  new  accounts  not  defined  in  the  introduction.  Numbers  alone 
or  numbers  preceding  letters  always  refer  to  department  numbers. 
Divisions  of  any  of  the  regular  accounts  defined  in  the  introduction 
are  indicated  by  repeating  the  letter  for  each  division  added.  For 
example  a  second  administrative  and  operating  under  a  given  depart- 
ment would  be  designated  by  JJ  instead  of  J. 

DEPART4IENTS  SUPPORTED  MAINLY  BY  GENERAL  REVENUES. 

Board  of  Prison  Administration,     i. 

lA.  Salary  and  wages. 

IB.  Stationery,  office  supplies  and  printing. 

IC.  Postal  supplies. 

ID.  Heat,  light  and  water. 

IX.  Ordinary  repairs. 

lY.  Extraordinary  repairs. 

IZ.  Depreciation  and  loss. 

ISZ.  Sundry. 

IHZ.  Hours  of  prison  labor.    (Statistics.) 

Prison  Administration — Warden   or  Superintendent's   Office,   2. 
Prison  Administration,  i. 
2A.      Salaries  and  wages. 
5. IB.   Stationery,  office  supplies  and  printing. 
2C.      Postal  supplies. 
2V.      Travelling  expenses. 
2Z.      Depreciation  and  loss. 
2SZ.    Sundry. 
2HZ.  Hours  of  prison  labor.     (Statistics.) 

Prison  Administration — Warden  House  Building,  j. 
3A.      Salary  and  wages. 
3D.      Heat,  light  and  water. 
3W.     Seed,  plants,  etc. 
3X.      Ordinary  repairs. 
3Y.      Extraordinary  repairs. 
3Z.      Depreciation  and  loss. 
3SZ.    Sundry. 
3HZ.  Hours  of  prison  labor.    (Statistics.) 


304  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Prison  Administration — Institution  Grounds,  4. 

4A.  Salary  and  wages. 

4W.  Seeds  and  plants. 

4D.  Heat,  light  and  water. 

4SZ.  Sundry. 

4HZ.  Hours  of  prison  labor.    (Statistics.) 

Prison  Administration — Warden  or  Superintendent's  Suite,  5. 

5A.  Salary  and  wages. 

51.    Food  supplies.    See  Exhibit  1. 

5J.    Laundry,  administrative  and  operating  costs. 

Charge  to  this  account  the  fair  proportion  of  the  balance  of 
accounts  under  department  56  after  crediting  the  account  with  laundry 
supplies.   See  account  T. 

5T.      Laundry  supplies. 

5F.      Steam  furnished  for  kitchen. 

5E.      Fuel  for  kitchen. 

5X.      Ordinary  repairs. 

5Y.      Extraordinary  repairs. 

5Z.      Depreciation  and  loss. 

5SZ.    Sundry. 

5HZ.  Hours  of  prison  labor.    (Statistics.) 

Prison  Administration — General  Accounting  Office,  5.1 

5.1  A.  Salary  and  wages. 

5.1  B.  Stationery,  office  supplies  and  printing. 

5.1c.  Postal  supplies. 

5. IX.  Ordinary  repairs. 

5.1Y.  Extraordinary  repairs. 

5.1Z.  Depreciation  and  loss. 

5.1  SZ.  Sundry. 

5.1HZ.  Hours  of  prison  labor.    (Statistics.) 

Prison  Administration — Officers'  Subsistence.  6. 

See  Department  63. 
61.     Food  served. 

6T.    Administrative  and  operating.    See  also  5J. 
6JJ.  Administration  and  maintenance  of  store.    See  also  SJ.  and 
16JJ. 
Prison  Administration — Women's  Prison — Officers'  Building,  7. 

7D.  Heat,  light  and  water. 

Charge  to  this  account  the  cost  of  heat,  light  and  water  funiished 
to  the  officers'  buildings  of  the  women's  prison  with  the  exception  of 
the  cost  of  the  steam  furnished  the  officers'  kitchen  for  cooking  pur- 
poses. The  steam  for  cooking  purposes  is  furnished  during  the  sum- 
mer by  the  power  house  of  the  men's  prison.  The  rate  of  consumption 
of  steam  for  cooking  purposes  may  be  assumed  to  be  the  same  durmg 
the  winter  months  as  it  is  in  summer.  The  boiler  room  of  the  women's 
prison  furnishes  heat  during  the  winter  months.  The  entire  cost  of 
the  operation  of  this  boiler  room  should  be  charged  to  the  account 


ACCOUNTS   FOR   CORRECTIONAL   INSTITUTIONS.  305 

of  light,  heat  and  water.  The  account  should  then  be  credited  with 
the  heat  used  for  cooking  purposes  in  the  officers'  building,  the  bal- 
ance of  the  account  being  the  cost  of  heat,  light  and  water  for  the 
building.  The  amount  of  light  and  water  consumed  should  be 
determined  by  meters. 

8J.       Laundry,  administrative  and  operating.     (See  also  5J.) 
7T.      Laundry  supplies. 
7W.     Seed,  plants,  etc. 
7X.      Ordinary  repairs. 
7Y.      Extraordinary  repairs. 
7Z.      Depreciation  and  loss. 
7SZ.    Sundry. 

7HZ.  Hours  of  prison  labor.    (Statistics.) 
Prison     Administration — Women's     Prison — Officers'     Kitchen     and 
^  Dining  Room,  8. 

8A.      Salary  and  wages. 

8B.      Stationery,  office  supplies  and  printing. 
8E.      Fuel. 

8F.      Steam  furnished  for  kitchen. 
8L       Food  supplies.     (See  also  Account  63L) 
8J.       Laundry,  administrative  and  operating.     (See  also  5J.) 
8T.      Laundry  supplies. 
8X.      Ordinary  repairs. 
8Z.      Depreciation  and  loss. 
8SZ.    Sundry. 

8HZ.  Hours  of  prison  labor. 
Prison  Administration — Women's  Prison — Confinement  and  Discipline 
Prisoners,  g. 
9A.      Salary  and  wages. 

9B.      Stationery,  office  supplies  and  printing. 
9C.      Postal  supplies. 
9D.      Heat,  light  and  water. 
9X.      Ordinary  repairs. 
9Y.      Extraordinary  repairs. 
9Z.      Depreciation  and  loss. 
9SZ.    Sundry. 

9HZ.  Hours  of  prison  labor.    (Statistics.) 
Prison  Administration — Confinement  and  Discipline  of  Male 
Prisoners,  ii. 

UA.      Salary  and  wages. 

IIB.      Stationery,  office  supplies  and  printing. 

lie.      Postal  supplies. 

IID.      Heat,  light  and  water. 

HE.      Fuel. 

IIU.      Ammunition. 

IIX.      Ordinary  repairs. 

IIY.      Extraordinary  repairs. 

HZ.      Depreciation  and  loss. 

11 SZ.    Sundry. 

IIHZ.  Hours  of  prison  labor.    (Statistics.) 


306  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Prison  Administration — Parole  of  Prisoners,  12. 

12A.  Salary  and  wages. 

12B.  Stationery,  office  supplies  and  printing. 

12c.  Postal  supplies. 

12V.  Travelling  expenses. 

12X.  Ordinary  expenses. 

12Y.  Extraordinary  repairs. 

12Z.  Depreciation  and  loss. 

12SZ.  Sundry. 

12HZ.  Hours  of  prison  labor.    (Statistics.) 

Prison  Administration — Receiving  and  Discharging  Prisoners,   JJ. 

13A.  Salary  and  wages. 

13B.  Stationery',  office  supplies  and  printing. 

13C.  Postal  supplies. 

13J.  Administrative  and  operating — clothing  room.   See  also  5. 

13L.  Discharge  clothing. 

13M.  Cash  allowance. 

13SZ.  Sundry. 

13HZ.  Hours  of  prison  labor.    (Statistics.) 

Prison  Administration — Institution  Teams  and  Vehicles,  14. 

14A.      Salary  and  wages. 
14K.      Feed. 
14NI.    Care  of  teams. 

Charge   to   this    account   the    cost    of    all    hUcksmithing   and    all 
veterinary  supplies  and  services. 
14K.      Ordinary  repairs. 
14Y.      Extraordinary  repairs. 
14SZ.    Sundry. 
14Z.      Depreciation  and  loss. 
14HZ.  Hours  of  prison  labor.    (Statistics.) 

Prison  Administration — Institution  Automobiles,  15. 

15 A.      Salary  and  wages. 

15NI.    Gasoline,  oil  and  waste. 

Charge  to  this  account  the  cost  of  all  gasoline,  oil  and  waste  pur- 
chased for  use  in  the  operation  and  maintenance  of  automobiles,  for 
the  institution  work, 

15X.      Ordinary  repairs. 

15Y.      Extraordinary  repairs. 

15Z.      Depreciation  and  loss.  • 

15SZ.    Sundry. 

15HZ.  Hours  of  prison  labor.    (Statistics.) 

Maintenance  of  Male  Prisoners — Subsistence,   16. 

See  Department  58. 
16T.     Food  served. 

16J.     Administrative  and  operating.     See  also  5J. 
16JJ.  Administration  and  maintenance  of  store.    See  also  5J. 
The  cost  of  the  operation  of  the  prison  store  room  should  be  dis- 
tributed on  the  basis  of  the  total  amount  charged  from  the  store  to 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  307 

the  respective  accounts.  The  total  amount  charged  from  the  store 
to  the  convict  kitchen  and  dining  room  divided  by  the  total  charge 
from  the  store  to  all  departments  will  give  the  fraction  of  the  cost  of 
operation  of  the  store  which  should  be  charged  to  the  operation  of  the 
convict  kitchen  and  dining  room.  At  the  same  time  the  clearing 
account  of  prison  store  operation  should  be  credited  with  the  amount 
so  charged. 

16TZ.  Tobacco. 

16SZ.  Hours  of  prison  labor.    (Statistics.) 

Maintenance  of  Male  Prisoners — Sanitation,  ij. 

17F.      Cost  of  medical  supplies  furnished  prisoners. 
17J.       Administration  and  operating  hospital.    See  also  5J. 
\71^T..  Hours  of  prison  labor.    (Statistics.) 

Charge  this  account  with  the  total  number  of  hours  of  prison  labor 
devoted  to  the  operation  and  maintenance  of  the  institution  hospital. 
See  also  department  62.  

Maintenance  of  Male  Prisoners — Laundry,  i8. 
18J.       Laundry  administration  and  operating.    See  also  5J. 
18T.      Laundry  supplies. 
18HZ.  Hours  of  prison  labor.    (Statistics.) 

Maintenance  of  Male  Prisoners — Barber  Work,  19. 
19G.      Cost  of  barber  supplies. 

19J.       Administration  and  operating  barber  shop.    See  also  5J. 
19HZ.  Hours  of  prison  labor.    (Statistics.) 

Maintenance  of  Male  Prisoners — Miscellaneous  Furnishings,  20. 

20J.       Administrative  and  operating — clothing.   See  also  5 J. 

20L.      Clothing.     (Material.) 

20Z.       Shoes  for  prisoners. 

20NL    Shoe  repairs. 

Charge  to  this  account  the  cost  of  all  shoe  repairs.  The  repair 
shop  or  clothing  room  should  be  credited  for  the  amount  so  charged. 

20L       Hats  and  caps.    (Material.) 

20JJ.     Administrative  and  operating — hats  and  caps, 

20HZ.  Hours  of  prison  labor.    (Statistics.) 

20NL   Baths. 

Charge  to  this  account  the  cost  of  all  supplies  furnished  for  male 
prisoners'  bathing  facilities. 

Farms  and  Garden — Prisoners'  House,  20.1 
20.1  A.      Salary  and  wages. 

20.1  B.      Stationery,  office  supplies  and  printing. 
20.1c.      Heat,  light  and  water. 

Farm  and  Garden — Prisoners'  House,  20.1. 
20.  IL.      Fuel. 
20.1X      Ordinary  repairs. 

20.1Y      Extraordinary  repairs.  • 

20.1Z      Depreciation  and  loss. 
20.1SZ    Sundry. 


308  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Farm  and  Garden — Prisoners'  Subsistence,  20.2. 

20.21.    Food  supplies. 

20.2L.  Fuel. 

Charge  to  this  account  the  cost  of  all  fuel  used  in  cooking  for  the 
farm  and  garden  prison  house.  At  the  same  time  the  stock  of  fuel 
for  the  farm  prison  house  should  be  credited. 

20.2X.  Ordinary  repairs. 

Charge  to  this  account  all  ordinary  repairs  on  the  furniture,  fix- 
tures and  equipment  of  the  convict  kitchen  and  dining  room  of  the 
farm  prison  house. 

20.2Z.  Depreciation  and  loss. 

20.2Y.  Extraordinary  repairs. 

Charge  to  this  account  all  extraordinary  repairs  on  the  furniture, 
fixtures  and  equipment  of  the  convict  kitchen  and  dining  room  of  the 
farm  prison  house. 

20.2SZ.  Sundry. 

Maintenance  of  Female  Prisoners — Subsistence,  21. 

211.  Food  supplies. 

Charge  to  this  account  the  cost  of  all  food  furnished  the  regular 
convict  kitchen  from  the  store  room  and  other  sources.  At  the  same 
time  the  store  room  should  be  credited  for  the  food  so  furnished.  See 
also  Account  631. 

21  J.  Administration  and  operating— convict  kitchen  and  dining 
room.    See  also  Account  5J. 

21JJ.  Administration  and  operating — store. 

The  cost  of  the  operation  of  the  prison  store  room  should  be  dis- 
tributed on  the  basis  of  the  total  amount  charged  from  the  store  to  the 
respective  accounts.  The  total  amount  charged  from  the  store  to  the 
convict  kitchen  and  dining  room  divided  by  the  total  charge  from  the 
fetore  to  all  departments  will  give  the  fraction  of  the  cost  of  operation 
of  the  store  which  should  be  charged  to  the  operation  of  the  convict 
k-tchen  and  dining  room.  At  the  same  time  the  clearing  account  of 
prison  store  operation  should  be  credited  with  the  amount  so  charged. 

21,  Hours  of  prison  labor.    (Statistics.) 

Charge  to  the  account  the  total  number  of  hours  of  prison 
labor  employed  in  the  convict  kitchen  and  dining  room,  at  the  same 
time  crediting  the  clearing  account  with  the  same  number.  Charge 
this  account  also  with  the  same  fraction  of  the  total  number  of  hours 
of  prison  labor  employed  in  the  administration  of  the  store  that  was 
used  in  determining  the  proportion  of  the  total  cost  of  store  admin- 
istration chargeable  under  the  subsistence  department. 

Maintenance  of  Female  Prisoners — Sanitation,  22. 

22F.  Medical  supplies  furnished  prisoners. 

Charge  to  this  account  the  cost  of  all  medical  supplies  furnished 
the  convicts.  The  hospital  account,  which  is  made  a  clearing  account, 
should  1^  credited  with  the  supplies  so  charged. 

22J.     Administration  and  operating — hospital.    See  also  5J. 

22HZ.  Hours  of  prison  labor.    (Statistics.)    See  also  21HS. 


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS.  309 

Maintenance  of  Female  Prisoners — Laundry,  23. 

23T.      Laundry  supplies. 

Charge  to  this  account  the  cost  of  all  laundry  supplies  used  in  the 
operation  of  the  prison  laundry. 

23J.       Administration  and  operating — laundry.    See  also  Account 

23HS.  Hours  of  prison  labor.    (Statistics.) 
Maintenance  of  Female  Prisoners — Miscellaneous  Furnishings,  24. 

24L.      Clothing. 

24R.      Hats,  caps,  etc. 

24J.       Administration  and  operating — clothing. 

24JJ.     Hats  and  caps.  Administration  and  operating.   See  also  5J. 

24S.      Shoes. 

24NI.    Baths. 

Charge  to  this  account  the  cost  of  all  supplies  furnished  for  bath- 
ing facilities  for  women  prisoners. 

24HS.  Hours  of  prison  labor.    (Statistics.) 

Charge  to  this  account  the  hours  of  prison  labor  devoted  to  the 
production  or  purchase  of  all  commodities  classed  under  furnishings. 
Religious  and  Educationals — Religious  Instruction,   25. 

25A.  Salary  and  wages. 

25B.  Stationery,  office  supplies  and  printing. 

25C.  Postal  supplies. 

25D.  Heat,  light  and  water. 

25X.  Ordinary  repairs. 

25Y.  Extraordinary  repairs. 

25Z.  Depreciation  and  loss. 

25HZ.  Hours  of  prison  labor.    (Statistics.) 

Religious  and  Educational — General  Education,  26. 

26A.      Salary  and  wages. 

26B.      Stationery,  office  supplies  and  printing. 

26D.      Heat,  light  and  water. 

26L.      Fuel. 

26X.      Ordinary  repairs. 

26Y.      Extraordinary  repairs. 

26Z.      Depreciation  and  loss. 

26SZ.    Sundry. 

26HZ.  Hours  of  prison  labor.    (Statistics.) 

Charge  to  this  account  the  total  number  of  hours  of  prison  labor 
devoted  to  general  education  or  to  the  operation  and  maintenance  of 
the  building  and  equipment  devoted  to  general  education.  The  power 
and  repair  plant  should  be  credited  with  all  labor  furnished  in  connec- 
tion with  the  repair  and  maintenance  of  the  building  and  equipment 
used  for  general  educational  purposes. 

Religious  and  Educational — Trade  Schools,  2"/. 

The  accounts  scheduled  under  the  caption  of  "Trade  Schools"  are 
intended   for  use  in   recording  the  operations  of  each   trade  school 


310  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

which  may  be  conducted  in  any  of  the  institutions.  In  case  any  de- 
partment of  an  institution  produces  commodities  for  sale  to  merchants 
on  the  open  market,  or  to  state  institutions,  the  department  should  be 
classed  as  an  industry  in  the  application  of  the  accounts  which  are 
scheduled  in  this  report.  In  case  a  specific  set  of  accounts  is  sug- 
gested for  some  department  which  may  be  classed  as  a  trade  school 
this  set  of  accounts  should  be  employed  instead  of  the  one  suggested 
under  this  caption.  Manual  training  departments  require  the  same 
accounts  as  the  trade  schools. 

27A.      Stationery,  office  supplies  and  printing. 

27D.      Heat,  light  and  water. 

27R.      Materials  for  production. 

27X.      Ordinary  repa'irs. 

27Y.      Extraordinary  repairs. 

27Z.      Depreciation  and  loss. 

27SZ.    Sundry. 

27HZ.  Hours  of  prison  labor  (Statistics). 

Charge  to  this  account  the  number  of  hours  of  prison  labor  de- 
voted to  the  production  of  articles  and  commodities  made  in  the  trade 
schools,  or  to  the  maintenance  and  operation  of  the  school. 

28HZ.  Hours  of  prison  labor  (Statistics). 

Charge  to  this  account  the  number  of  hours  of  prison  labor  de- 
voted to  the  maintenance  and  operation  of  the  farm  prison  house.  Do 
not  charge  to  this  account  the  number  of  hours  of  prison  labor  em- 
ployed in  connection  with  the  maintenance  and  operation  of  the  kitchen 
and  dining  room  of  the  farm  prison  house. 
Camps — Camp  Dunne,  28. 

28A.      Salary  and  wages. 

281.       Food  supplies. 

28V.      Travelling  expenses. 

28Z.      Depreciation  and  loss. 

28HZ.  Sundry. 
Stone  Department,  2Q. 

29A.      Salary  and  wages. 

29B.      Stationery,  office  supplies  and  printing. 

29C.      Postal  supplies. 

29D.      Heat,  light  and  water. 

29K.      Ordinary  repairs. 

29Y.      Extraordinary  repairs. 

29NI.   Freight,  express  and  cartage. 

Charge  to  this  account  the  cost  of  all  freight,  express  and  cartage 
paid  on  material  or  supplies  received  or  shipped  by  the  Stone  Depart- 
ment. Credit  this  account  with  the  reimbursements  of  money  so  ex- 
pended and  for  all  freight,  express  and  cartage  chargeable  to  installa- 
tion or  property  accounts. 

29G.      Electric  power. 

29N2.  Compressed  air  power. 
Charge  to  this  account  the  cost  of  compressed  air  power  used^in  the 
stone  department,  as  shown  by  the  clearing  account  entitled  "Com- 
pressed Air  Plant."     Credit  the    compressed    air  account   with   the 
amount  so  charged. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  311 

29N3.  Steam  power. 

Charge  to"  this  account  the  cost  of  operating  the  steam  power 
plant  as  shown  by  the  clearing  account  of  the  steam  power  plant  of 
the  stone  department.  Credit  the  clearing  account  of  the  steam  power 
plant  with  the  amount  so  charged. 

29Z.      Depreciation  and  loss. 

29SZ.    Sundry. 

29HZ.  Hours  of  prison  labor  (statistics). 

In  the  stone  department  work  is  done  by  groups  of  men  and  tasks 
are  set  for  groups  rather  than  for  the  individual.  The  unit  of  per- 
formance is  the  breaking,  loading  and  delivering  a  yard  of  stone  to  the 
crusher.  Tasks  are  set  in  the  terms  of  this  unit.  It  has  been  the 
practice  in  one  of  the  penitentiaries  to  allow  any  squad  of  prisoners 
to  quit  for  the  day  when  it  had  finished  the  task  assigned  and  this  plan 
seems  to  have  secured  good  results. 

It  is  not  clear  why  the  prisoners  in  the  stone  department  should 
not  be  allowed  to  earn  overtime  by  overtime  work  just  as  in  the  case 
of  the  industries.  In  case  this  is  done  the  foreman  of  the  stone  de- 
partment should  report  the  performance  of  each  squad  of  men,  indi- 
cating the  convict  numbers  of  the  men  constituting  the  squad.  The 
overtime  should  be  stated  in  terms  of  fractions  of  the  regular  task  set. 

DEPARTMENTS   SUPPORTED    MAINLY   BY   EARNINGS. 

Farm  and  Garden — Administration,  50. 

30A.      Salary  and  wages. 

Charge  to  this  account  the  salaries  and  wages  of  the  farm  super- 
intendent and  all  other  employees  who  are  hired  in  connection  with 
the  administration  of  the  farm  and  garden.  Do  not  charge  to  this 
account  the  salaries  of  guards  for  farm  prisoners. 

30B.      Stationery,  office  supplies  and  printing. 

30D.      Heat,  light  and  water. 

Charge  to  this  account  the  cost  of  heat,  light  and  water  furnished 
to  the  superintendent's  house. 

In  case  the  superintendent  is  not  furnished  with  a  home  and  sub- 
sistence some  of  the  accounts  scheduled  under  .this  department  will  not 
be  required.  In  case  the  farm  prisoners  are  maintained  in  the  institu- 
tion proper  other  of  the  accounts  scheduled  under  this  department  will 
not  be  required. 

30L.      Fuel. 

Charge  to  this  account  the  cost  of  fuel  used  in  the  maintenance  of 
the  farm  superintendent's  home.  In  case  the  house  is  heated  with 
fuel  the  item  of  heat  may  be  deducted  from  account  30D. 

301.       Food  supplies.     See  Exhibit  No.  1. 

30X.      Ordinary  repairs. 

30Y.      Extraordinary  repairs. 

30Z.      Depreciation  and  loss. 

30SZ.    Sundry. 

30HZ.  Hours  of  prison  labor.    (Statistics.) 


312  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

Farm  and  Garden — Officers'  Subsistence,  ji. 

311.       Food  supplies. 

In  so  far  as  the  menu  of  officers  is  the  same  as  that  of  the  prison- 
ers, the  officers  should  be  charged  with  a  per  capita  cost  equal  to  that 
of  the  prisoners.  They  should  be  charged  in  addition  with  all  addi- 
tional food  supplies  furnished  the  prison  house  kitchen  and  dining 
room  for  officers'  consumption.  After  a  careful  preparation  of  the 
menus  both  for  prisoners  and  officers  and  a  further  careful  examina- 
tion of  the  average  portions  required  for  prisoners  and  officers,  it  will 
be  possible  to  properly  apportion  the  charges  for  food  between  prison- 
ers and  officers. 

31  J.     Administrative  and  operating.     See  6N2. 

The  subsistence  of  guards  should  be  credited  to  accounts  311.  and 
31  J.  respectively  and  the  board  of  such  officers  charged  to  account 
61.  and  6J. 
Farm  and  Garden — Automobile,  ^2. 

32N.      Gasoline,  oil  and  waste. 

32X      Ordinary  repairs. 

32Y.      Extraordinary  repairs. 

32Z.      Depreciation  and  loss. 

32SZ.    Sundry. 

32HZ.  Hours  of  prison  labor  (Statistics). 
Farm  and  Garden — Machinery,  Implements,  Vehicles  and  Harness,  S3- 

33X.      Ordinary  repairs. 

33Y.      Extraordinary  repairs. 

33Z.      Depreciation  and  loss. 

33SZ.    Sundry. 

33HZ.  Hours  of  prison  labor.    (Statistics.) 
Farm  and  Garden — Power  Machinery,  33.1. 

33. IN.      Gasoline  and  oil. 

33. IX.      Ordinary  repairs. 

33. lY.      Extraordinary  repairs. 

33.  IZ.      Depreciation  and  loss. 

33.1  SZ.    Sundry. 

33.1HZ.  Hours  of  prison  labor.    (Statistics.) 
Farm  and  Garden — Farm  Teams,  34. 

34A.      Salary  and  wages. 

34K.      Feed. 

34X.      Ordinary  repairs. 

34Y.      Extraordinary  repairs. 

34Z.      Sundry. 

34SZ.    Depreciation  and  loss. 

34HZ.  Hours  of  prison  labor.    (Statistics.) 
Farm  and  Garden — Land  and  Improvements,  35. 

35X.      Ordinary  repairs. 

36Z.      lJ)eprecialion  and  loss. 

35Y.      Extraordinary  repairs. 

35Z.      Depreciation  and  loss. 

35HZ.  Hours  of  prison  labor  (Statistics). 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  313 

Farm  and  Garden — Corn  Crop,  jd. 

36A.      Salary  and  wages — hours  of  paid  labor. 

36W.     Seed,  plants,  etc. 

36NI.    Fertilizer. 

Charge  to  this  account  the  cost  of  all  fertilizer  used  in  enriching 
land  planted  in  corn.  In  case  land  is  fertilized  less  often  than  once  a 
year  it  should  be  charged  over  the  period  of  years  elapsing  between  the 
several  periods  when  the  fertilizer  is  used,  being  charged  to  the  re- 
spective crops  planted  in  the  fertilized  soil.  All  fertilizer  not  charged 
against  the  crop  in  the  year  in  which  it  was  purchased  should  be  car- 
ried in  the  inventory  of  property  accounts  as  a  deferred  expense,  the 
fertilizer  account  being  credited  with  the  amount  charged  to  the  ac- 
count of  fertilizer  deferred  expense. 

36N2.    Horse  hours. 

Charge  to  this  account  the  number  of  hours  of  horse  labor 
devoted  to  the  cultivation  and  harvesting  of  the  corn  crop.  At  the 
end  of  the  year  the  total  cost  of  the  maintenance  of  farm  teams  should 
be  distributed  between  the  various  crops  on  the  basis  of  the  hours  of 
horse  labor  devoted  to  the  respective  crops.  At  that  time  the  hours 
of  horse  labor  can  be  given  their  appropriate  cost  as  an  item  of  outlay 
incurred  in  the  production  of  corn.  In  the  monthly  reports  this  cost 
may  be  approximated  leaving  the  final  adjustment  to  the  end  of  the 
year 
Farm  and  Garden — Corn  Crop,  ^6. 

36X.      Ordinary  repairs. 

36Y.      Extraordinary  repairs. 

36Z.      Depreciation  and  loss. 

36SZ.    Sundry. 

36HZ.  Hours  of  prison  labor  (Statistics). 

The  schedule  of  cost  accounts  provided  for  the  corn  crop   (Ac- 
counting Department  No.  36)  will  serve  also  as  cost  accounts  for  the 
production  of  other  crops  which  are  raised  on  the  farm  and  garden. 
Farm  and  Garden — Hogs,  57. 

37A.      Salary  and  wages — hours  of  paid  labor. 

37NI.    Cost  of  hogs. 

Charge  to  this  account  the  cost  of  all  farm  hogs  purchased.  This 
account  should  be  credited  with  the  value  of  hogs  on  hand  at  the  end 
of  the  year  when  the  inventory  is  taken.  The  inventory  showing  live 
stock  on  hand  should  be  debited  with  the  value  of  hogs  thus  credited 
to  this  account. 

37K.      Feed  of  hogs. 

37X.      Ordinary  repairs. 

37Y.      Extraordinary  repairs. 

37N2.  Freight  and  cartage. 

Charge  to  this  account  the  freight  and  cartage  on  all  hogs  supplied 
by  the  store  or  otherwise  transported  to  and  from  the  farm  hog  yard. 

37Z.      Depreciation  and  loss. 

Charge  to  this  account  all  depreciation  and  loss  incurred  in  con- 
nection with  the  production  and  sale  of  hogs.  All  charges  for  the  loss 
of  hogs  from  sickness  should  be  credited  to  the  perpetual  inventory  of 
live  hogs  kept  in  the  general  accountant's  office. 


314  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

37SZ.    Sundry. 

37HZ.  Hours  of  prison  labor  (Statistics). 

A  similar  operation  and  maintenance  account  should  be  kept  for 
dairy  cows,  for  poultry,  and  for  any  other  type  of  live  stock  produced 
on  the  prison  farm. 

The  schedule  of  accounts  indicated  above  under  hogs  would  not 
furnish  all  the  data  required  in  the  case  of  the  poultry  and  dairy.  In 
the  case  of  the  dairy  the  production  record  of  each  dairy  cow  should 
be  kept  and  tests  should  be  made  showing  butter  fat  for  each  cow. 
In  the  case  of  the  poultry  barn,  statistics  would  be  required  concern- 
ing each  breed  of  poultry  covering  egg  production,  death  rate,  etc. 
Special  breeds  of  hogs  could  be  treated  in  the  same  way.  The  feeding 
record  for  the  special  breeds  together  with  their  respective  weights  at 
the  time  of  slaughter  would  furnish  valuable  data  indicating  what 
breed  of  hogs  could  be  fed  to  the  greatest  advantage. 

Manufacturing  Industries — Furniture,  40. 

40A.     Salary  and  wages. 

40B.     Stationery,  office  supplies  and  printing. 

40C.     Postal  supplies. 

40D.     Heat,  light  and  water. 

Charge  to  this  account  the  cost  of  heat,  light  and  water  furnished 
to  the  plant  in  the  furniture  industry.  The  heat  for  the  furniture 
industry  in  the  Illinois  State  Penitentiary  is  furnished  from  a  boiler 
in  the  furniture  plant.  The  cost  of  operation  of  the  boiler  plant  as 
shown  in  the  clearing  account  should  be  charged  to  the  production  of 
steam  for  heat  and  to  the  production  of  steam  for  power.  In  case  it 
is  not  feasible  to  determine  the  amount  of  steam  used  for  the  produc- 
tion of  heat,  as  separate  from  the  amount  of  steam  used  for  the  pro- 
dution  of  power,  the  amounts  may  be  approximated  by  the  estimates 
and  experiments  of  the  chief  engineer.  The  fraction  of  the  total 
amount  of  steam  used  for  heating  purposes  would  be  the  fraction  of 
the  cost  of  operation  of  the  boiler  which  should  be  charged  to  the  heat, 
light  and  water  account  of  the  furniture  industry.  The  boiler  room 
should  at  the  same  time  be  credited  with  the  amounts  so  charged. 

40FG.  Power.'i 

Charge  to  this  account  the  cost  of  power  furnished  for  the  opera- 
tion of  the  machinery  and  equipment  of  the  furniture  industry.  The 
cost  of  this  power  in  the  case  of  the  furniture  industry  of  the  Illinois 
State  Penitentiary  is  the  balance  of  the  cost  of  the  maintenance  and 
operation  of  the  boiler  room  after  the  proper  charge  for  heat  has 
been  made,  with  the  addition  of  the  cost  of  the  maintenance  and 
operation  of  the  engine  room  of  the  furniture  industry.  In  case  any 
electric  power  were  used  the  cost  of  such  power,  as  determined  by  a 
meter,  should  be  charged  to  the  power  account.  For  the  cost  of  all 
power  furnished  from  the  steam  engine  room  the  account  should  be 
charged  and  the  engine  room  credited. 
40H.  Materials  for  production. 
40NI.   Freight,  express  and  cartage. 

a.  The  FG.  refers  both  to  steam  and  electric  power  accounts  as  defined  in  the 
introduction  to  this  schedule. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  315 

Charge  to  this  account  the  cost  of  freight,  express  and  cartage 
incurred  in  connection  with  the  operation  and  maintenance  of  the 
furniture  industry.  The  account  should  be  credited  with  freight  and 
express  later  reimbursed,  or  with  any  freight,  express  or  cartage  which 
may  be  charged  to  the  installation  of  machinery,  or  to  permanent  im- 
provements of  the  furniture  industry. 

40X.      Ordinary  repairs. 

40Y.      Extraordinary  repairs. 

40Z.      Depreciation  and  loss. 

40SZ.    Sundry. 

40AZ.    Overtime  for  prison  labor. 

40HZ.  Hours  of  prison  labor  (Statistics). 

Certain  additional  accounts  should  be  kept  in  the  furniture  indus- 
try for  the  purpose  of  promoting  efficiency  and  giving  to  the  superin- 
tendent the  information  which  he  needs  for  the  purpose  of  controlling 
the  operations  of  the  industry. 

The  larger  portion  of  the  work  done  by  prisoners  in  the  furniture 
industry  can  be  reduced  to  piece  work  operations.  Wherever  this  is 
possible  a  task  should  be  set  as  a  reasonable  performance  for  a  pris- 
oner to  accomplish  in  a  day.  The  report  should  give  prisoners  credit 
for  all  accomplished  in  excess  of  the  reasonable  day's  work  in  terms 
of  a  fraction  of  the  reasonable  task.  In  this  way  the  prisoner  may 
earn  overtime  which  will  be  made  the  basis  of  pay  allowed  from  the 
profits  of  the  industries. 

In  some  lines  of  work,  such  as  the  distribution  of  stock,  the  work 
of  a  runner,  and  other  similar  tasks,  it  is  not  so  easy  to  provide  for 
overtime  work.  It  is  not  difficult,  however,  to  have  an  industiy's  fore- 
man determine  whether  such  prisoners  are  performing  theii  work 
efficiently,  and  the  degree  of  proficiency  should  be  indicated  each  day 
in  the  record  of  such  prisoners  so  that  a  fair  allowance  for  overtime 
may  be  given  them. 

A  regular  stock  account  should  be  kept  for  the  store  room  of  the 
furniture  shop.  A  specification  cost  should  be  made  for  every  chair 
number  or  furniture  piece  which  is  manufactured  in  the  furniture 
industry.  These  specification  costs  will  show  in  detail  the  costs  of 
material  required  for  the  manufacture  of  the  furniture  pieces  in  ques- 
tion. These  items  also  furnish  the  detail  costs  in  which  stock  should 
be  charged  from  the  store  to  be  used  in  the  manufacture  of  furniture. 
All  lumber  and  raw  material  thus  taken  from  the  store  room  should 
be  credited  to  the  store  and  charged  to  unfinished  stock  of  the  kind 
designated.  When  any  furniture  is  finished,  unfinished  stock  should 
be  credited  with  the  specification  costs  of  material  for  the  stock  so 
furnished,  and  finished  stock  should  be  debited  with  the  specification 
cost  of  such  finished  goods.  In  this  way  a  perpetual  inventory  will 
be  kept  of  total  raw  materials  on  hand,  unfinished  stock  and  finished 
stock.  The  finished  stock  inventory  should  be  kept  under  chair  num- 
ber or  list  number  so  that  a  detailed  record  will  be  kept  of  the  output 
of  the  furniture  shop  classified  according  to  the  kind  or  list  number 
of  furniture  produced.  Once  each  month  an  inventory  should  be 
taken  of  the  finished  stock  under  the  classification  used  in  recording 
output.     The  output  of  unfinished  stock  should  be  taken  under  the 


\ 

316  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

classification  provided  in  setting  up  piece  tasks  for  the  prisoners.  The 
inventory  so  taken  will  indicate  the  actual  amount  of  material  used  in 
the  production  of  the  finished  product  and  the  unfinished  pieces  found 
in  the  unfinished  stock.  The  actual  amount  of  material  used  should 
then  be  compared  with  the  specification  amount  of  material  required 
for  the  unfinished  and  finished  stock  on  hand. 

In  periods  when  practically  the  whole  force  of  prison  labor  em- 
ployed in  the  furniture  industry  is  engaged  in  the  production  of  one 
specific  kind  of  output  it  will  be  feasible  to  keep  a  job  cost  of  the 
furniture  produced  and  the  material  may  be  definitely  charged  to  this 
particular  job.  At  the  completion  of  this  job  lot  it  will  then  be  pos- 
sible to  compare  the  actual  with  the  specified  cost  of  the  production  of 
this  lot. 

Manufacturing  Industries — Rattan  or  Reed,  41. 

41A.     Salary  and  wages. 

41B.     Stationery,  office  supplies  and  printing. 

41 C.     Postal  supplies. 

41 D.     Heat,  light  and  water. 

41 G.     Power. 

41H.     Materials  for  production. 

41  NT.  Freight,  express  and  cartage. 

Charge  to  this  account  the  cost  of  all  freight,  express  and  cartage 
paid  on  material  or  supplies  received  or  shipped  by  the  rattan  or  reed 
industry.  Credit  the  account  with  the  reimbursements  of  money  so 
expended  and  for  all  freight  and  cartage  chargeable  to  installation  or 
property  accounts. 

41X.      Ordinary  repairs. 

41Y.      Extraordinary  repairs. 

41 Z,      Depreciation  and  loss. 

41 SZ.    Sundry. 

41AZ.  Overtime  for  prison  labor. 

41HZ.  Hours  of  prison  labor  (Statistics). 

The  same  type  of  subsidiary  accounts  suggested  for  the  furniture 
industry  will  also  serve  for  the  rattan  or  reed  industry.     See  under 
Department  account  No.  40. 
Manufacturing  Industries — Printing,  42. 

42A.      Salary  and  wages. 

42B.      Stationery,  office  supplies  and  office  printing. 

Charge  to  this  account  the  cost  of  all  stationery  and  office  supplies 
used  in  the  office  operations  of  the  printing  industry,  crediting  the  ac- 
count with  any  stationery  and  office  supplies  on  hand  at  the  time  a 
regular  inventory  is  taken.  All  office  supplies  and  unused  stationery 
so  credited  should  be  debited  to  an  inventory  account  of  the  same  name. 

42C.      Postal  supplies. 

42D.      Heat,  light  and  water. 

42X.      Ordinary  repairs. 

42Y.      Extraordinary  repairs. 

42N2.    Spoiled  work.  ^ 

Charge  to  this  account  the  cost  of  all  spoiled  work  of  the  printing 
industry. 


ACCOUNTS   FOR   CORRECTIONAL   INSTITUTIONS.  317 

42Z.       Depreciation  and  loss. 

42SZ.   Sundry. 

42AZ.  Overtime  for  prison  labor. 

42HZ.  Hours  of  prison  labor  (Statistics). 

While  these  general  costs  are  kept  they  must  be  supplemented  by 
the  job  cost  of  each  job  of  work  done  by  the  industry.  In  that  way 
the  various  items  of  expense  classified  above  will  be  distributed  over 
the  total  number  of  jobs  of  work  done.  The  supervision  payroll 
should  be  distributed  on  the  basis  of  the  hours  of  prison  labor  devoted 
to  the  respective  jobs.  The  hours  of  prison  labor  should  be  classified 
under  the  headings  of  hours  spent  in  stock  handling  and  shipping,  hand 
composition,  machine  composition,  job  presses,  cylinder  presses  and 
bindery. 

It  will  be  necessary  not  only  to  keep  a  record  of  the  time  spent  by 
prisoners  in  the  completion  of  a  job,  but  it  will  also  be  necessary  to 
keep  a  record  of  the  time  each  machine  used  by  the  laborer  is  in  use. 
This  data  will  serve  as  basis  of  charges  of  power  to  the  job  in 
question.^ 

It  will  be  necessary  to  add  a  percentage  of  the  direct  calculated 
cost  of  each  job,  in  order  to  cover  the  general  expense  which  cannot 
be  distributed  directly  to  the  jobs. 

a.  In  order  to  oharcre  machine  time  to  jobs  properly  it  is  neeessary  to  constrnct 
n  machine  rate  for  each  machine.  The  calculation  of  this  rate  raises  accounting  ques- 
tions, which  have  been  purposely  avoided  in  the  preparation  of  the  report.  Every 
machine  should  carry  its  proportionate  share  of  taxes,  insurance,  repairs,  and  dejire- 
ciation.  These  are  expenses  actually  and  necessarily  incurred  in  the  operation  of 
the  shop.  But  what  shall  be  said  of  interest  and  rent?  Or,  of  light,  heat,  and 
power? 

The  argument  against  the  inclusion  of  interest  and  rent  would  be  that  there  is 
no  appreciable  outlay  of  this  character.  It  may  be  further  urged  that  the  State  does 
not  consider  the  alternative  of  renting  buildings  for  penal  and  correctional  insti- 
tutions since  ordinary  Iniildings  are  not  constructed  for  such  purposes.  In  the  course 
of  such  argument  one  might  conclude  that  an  interest  and  rent  charge  would  not 
be  useful  as  a  part  of  the  machine  rate. 

On  the  other  hand  there  are  important  reasons  for  the  inclusion  of  rent  and 
interest  both  as  a  part  of  a  machine  rate  and  as  accounts  in  connection  with  the 
deiiartments  and  industries  for  which  schedules  have  been  prepared.  One  of  tv» 
important  functions  of  cost  data  is  to  enable  responsible  executives  to  compare  the 
costs  of  departments  in  different  institutions  and  to  compare  the  costs  of  the  pro- 
duction of  commodities  produced  in  different  institutions.  If  expensive  machinery 
is  used  in  a  given  industry  or  department  in  one  institution  as  compared  with  the 
equipment  of  anther,  its  costs  exclusive  of  interest  and  rent  might  be  reduced  much 
below  the  costs  of  the  industry  or  department  in  the  institution  having  inferior 
equipment.  If  interest  and  rent  were  included  as  costs  in  both  cases  the  unit  cost 
of  production  in  the  department  or  Industry  with  superior  equipment  might  be  as 
high  or  higher  than  those  of  the  same  department  or  industry  with  the  inferior 
equipment.  The  question  is:  Shall  the  accounting  plan  have  no  indication  in  its 
cost  data  of  the  significance  of  the  amount  of  money  invested  in  its  departments  and 
industries?  If  no  interest  or  rent  item  appears  in  the  accounts,  will  not  large  invest- 
ments in  plant  and  machinery  seem  to  be  justified  by  lower  costs  when  in  fact  thev 
are  not  justified  if  interest  on  the  investment  were  considered?  Shall  there  be  no 
indication  in  the  accounts  of  what  may  be  the  most  profitable  direction  for  the  State 
to  give  its  available  funds?* 

It  seems  clear  that  some  account  should  be  t.aken  of  interest  and  rent.  While  it 
may  not  be  best  to  include  this  record  in  the  financial  accounts,  it  should  appear  in 
statistical  tables  if  omitted  from  tlie  financial  accounts.  In  tlie  List-Percentage  Tlan 
of  accounting  there  is  a  provision  for  profits.  Similarlv,  an  interest  and  rent  return 
may  be  set  up  as  an  appropriate  economy  which  a  State  investment  should  yield 
before  it  is  justified.  It  is  hardly  justifiable  to  speak  of  interest  or  rent  of'  thi.s 
character  in  the  same  terms  as  actual  interest  or  rent  outlavs.  The  intention  is  to 
set  up  arbitrarily  an  economy,  which  an  investment  should  vield  in  productive  costs, 
before  the  investment  is  iustifiM.  To  distinguish  the  charge  from  outlav  interest  or 
rent  it  may  be  designated  as  "interest  burden,"  and  rent  statistics  may  be  designated 
as  "rent-burden." 

The  "interest-burden"  and  the  rent-burden"  should  be  a  part  of  the  machine 
rate.  If  tliis  compilation  is  made  a  part  of  tlie  (innncial  data,  there  should  be  a 
statistical  record  covering  all  charges  in  the  compilation  which  were  not  made  as 
estimates   of   outlays   to   be   incurred    in   the   productive   process.      Tlie   final    credit   to 

♦Of.  Cole— Cost  Accounting  for  Institutions,  p.  103. 


318  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  accounting  procedure  here  suggested  is  sufficient  to  indicate 
the  character  of  an  appropriate  accountancy  for  the  printing  industr}'. 
The  details  can  readily  be  worked  out  in  the  preparation  of  specific 
forms  suitable  to  the  needs  of  the  locality  in  question.  There  is  a 
number  of  well  known  systems  of  accounts  for  job  printing  work 
recommended  by  unions  and  clubs  of  printers  and  the  principles  used 
in  these  systems  can  be  applied  in  determining  the  exact  forms  to  be 
drafted  for  the  local  situation. 

It  may  be  urged  that  hours  of  prison  labor  spent  on  a  job  do  not 
serve  as  a  fair  basis  for  the  distribution  of  the  supervision  payroll  on 
account  of  the  loafing  of  prisoners.  The  reply  to  this  is  that  a  system 
of  management  which  does  not  tend  to  eliminate  this  loafing  in  a  re- 
formatory is  just  as  much  of  a  failure  as  a  system  of  management  in 
private  business  which  does  not  eliminate  it.  With  appropriate  ad- 
justments of  the  bonus  for  overtime  or  task  work  and  a  further  ap- 
propriate adjustment  of  inmates  to  the  work  to  be  done,   giving  to 

cost  of  finished  stock  can  then  be  readily  divided  into  outlay  cost  and  cost  in  terms 
of  investment  burden.  The  outlay  cost  is  always  a  significant  item  and  should  not 
be  lost  sight  of  in  attempts  to  load  the  costs  with  required  returns.  This  distinction 
is  especially  important  in  State  accounting,  which  must  furnish  data  upon  which 
appropriations  may  be  based. 

For  the  purposes  of  the  printing  industry  each  machine  should  bear  a  fixed  rate 
*o  be  applied  whether  the  machine  is  idle  or  in  operation,  composed  of  the  follow- 
ing items:  (1)  taxes  (if  taxes  are  paid),  (2)  depreciation,  (3)  interest,  (4)  rent, 
(5)  insurance,  (6)  heat,  and  (7)  light.  In  addition  to  these  items  of  fixed  costs  there 
must  be  added  the  following  operating  costs:  (1)  repairs,  and  (2)  power.  If  heat 
and  light  could  be  dispensed  with  for  certain  machines  when  not  in  operation,  these 
items  would  become  operating  costs.  When  a  power  company  sells  electric  power 
it  takes  into  consideration,  in  determining  the  rate,  the  peak  load  and  the  consump- 
tion of  power.  These  two  items  should  also  be  taken  into  consideration  in  fixing 
machine  rates  for  power.  If  the  machine  rate  for  power  were  changed  in  terms  of 
an  estimated  consumption  instead  of  a  capacity  the  rate  should  be  higher  for  a 
machine  subject  to  occasional  use  on  account  of  the  increase  in  the  peak  load  which 
such  a  machine  necessitates. 

The  repairs  should  be  estimated  as  an  annual  charge  based  upon  an  estimated 
number  of  hours  of  use  of  the  machine.  The  repair  charge  can  then  be  applied  as  a 
rate  per  hour  used. 

Now  let  us  apply  the  rates  above  together  with  other  burden  costs  in  figuring 
.iob  costs.  It  would  seem  a  simple  matter  to  charge  the  fixed  rate  plus  the  operating 
rate  against  the  .iob  in  proportion  to  the  number  of  hours  the  machine  was  used  in 
its  completion.  Tliis  would  not  cover,  however,  the  fixed  rate,  which  accrues  during 
the  time  the  machine  is  idle.  It  is  not  difficult  to  provide  for  distributing  idle  time 
costs  at  the  end  of  a  period  such  as  the  r.ionth  or  the  year,  but  this  does  not  suffice 
as  a  basis  for  a  charge  to  be  made  for  a  job  at  the  time  of  its  completion.  Certainly 
no  machine  should  be  purchased  unless  an  estimate  can  be  made  of  the  average 
amount  of  time  per  year  such  machine  will  be  used.  For  the  purpose  of  the  printing 
plant,  therefore,  the  idle  time  should  be  estimated  for  each  machine.  This  estimate 
would  give  a  ratio  of  idle  time  to  used  time  and  a  per  cent  which  must  be  added  per 
hour  of  use  in  order  to  cover  idle  time.  The  actual  and  estimated  idle  time  may 
then  be  compared  each  month  and  at  the  end  of  the  year  the  cost  of  work  done 
may  be  adjusted  to  correspond  to  actual  costs. 

This  plan  contemplates  charging  idle  time  for  machines  used  at  the  Reformatory 
against  the  jobs  done  on  the  machines.  If  the  job  cost  should  exceed  the  market 
price  of  such  worl:  outside  of  the  Ileformatory  the  loss,  wliich  the  Reformatory  must 
incur,  is  cither  an  educational  expense  or  a  Reformatory  loss  arising  from  a  mis- 
taken investnipiit  in  machinery.  ' 

The  application  of  the  principles  above  set  forth  to  the  calculation  of  machine 
rates  for  the  printing  machines  of  the  Reformatory  requires  a  more  detailed  study 
than  could  be  made  in  tliis  report  on  the  accounts  of  the  institutions.  The  compu- 
tation of  such  rates  and  the  designing  of  forms  were  postponed  to  the  time  when  a 
reorganization  of  the  accounts  should  be  undertaken. 

The  material  used  on  a  given  job  should  be  made  a  direct  charge  to  the  job. 
The  cost  of  supervision  should  be  distributed  to  the  jobs  on  the  basis  of  the  hours 
of  prison  labor  devoted  to  their  completion.  Other  miscellaneous  burden  costs  may 
also  be  distributed  in  the  same  way  unless  their  naUire  clearly  indicates  that  they 
are  incurred  more  nearly  in  proportion  to  the  machine  hours  devoted  to  the  jobs, 
in  which  case  the  latter  may  be  made  the  basis  of  their  distribution.  .Viiy  overtime 
payment  to  prisoners  should  be  charged  to  the  jobs  on  the  basis  of  the  number  of 
hours  of  prison  labor  devoted  thereto.  If  the  superintendent  found  it  feasible  to 
estimate  (he  time  to  1)0  required  for  each  job,  thereby  setting  a  task  for  tl-.e  prison 
labor,  the  actual  overtime  earned  on  the  job  in  question  would  be  appropriately 
charged  to  it. 


ACCOUNTS   FOR   CGRRl- CTIONAL   INSTITUTIONS.  319 

each  the  task  for  which  he  is  most  fitted,  shop  loafing  can  be  largely 
eliminated.  No  man  ought  to  be  permitted  to  loaf  in  a  shop.  If  loaf- 
ing must  be  done  some  place  other  than  the  shop  should  be  provided 
for  it. 

Manufacturing  Industries — Clothing,  4^. 

43A.     Salary  and  wages. 

43B,     Stationery,  office  supplies  and  printing. 

43C.     Postal  supplies.  ^ 

43D.     Heat,  light  and  water. 

43X.     Ordinary  repairs. 

43Y.     Extraordinary  repairs. 

43G.     Power. 

43H.     Materials  for  manufacture. 

43NI.  Freight,  express  and  cartage. 

Charge  to  this  account  the  cost  of  all  freight,  express  and  cartage 
Daid  on  material  or  supplies  received  or  shipped  by  the  clothing  indus- 
try. Credit  the  account  with  the  reimbursements  of  money  so  ex- 
pended and  for  all  freight,  express  and  cartage  chargeable  to  installa- 
tion or  property  accounts. 

43Z.      Depreciation  and  loss. 

43SZ.   Sundry. 

43HZ.  Hours  of  prison  labor  (Statistics). 

The  clothing  industry  should  also  be  operated  on  the  job  cost  plan. 
Every  type  of  garment  made  should  have  an  estimated  or  specification 
cost.  This  cost  shows  in  detail  the  materials  going  into  the  finished 
garment.  At  any  time  the  clothing  industry,  or  the  clothing  room 
may  receive  an  order  to  make  a  certain  number  of  garments,  the  fore- 
man, or  superintendent,  by  the  use  of  the  specification  costs  should 
estimate  the  am.ount  of  material  required  for  the  job.  The  cuttet 
,should  be  charged  by  the  store  room  with  the  material  furnished  him, 
and  credited  with  the  material  returned  after  the  cutting  has  been 
done  for  the  order  number  in  question.  The  amount  of  goods  or 
cloth  used  in  cutting  should  be  charged  to  the  job,  likewise  the  trim- 
mings of  all  kinds  should  be  charged  to  the  job.  Wheri  the  job  is 
completed  the  actual  amount  of  material  used  should  be  compared 
with  the  specification  amount  estimated  to  be  required.  In  this  way 
it  will  be  possible  to  hold  the  prisoners  responsible  for  wasted  ma- 
terials and  spoiled  stock. 

There  should  also  be  set  up  for  the  clothing  industry,  or  the 
clothing  room,  a  reasonable  task  as  the  amount  which  each  prisoner 
should  perform  in  a  day.  The  prisoner  should  be  credited  with  over- 
time in  his  efficiency  record,  as  provided  in  the  case  of  the  furniture 
industry.  This  plan  can  be  worked  out  in  detail  tD  meet  the  needs  of 
the  locality  for  each  prison. 

The  industries  discussed  above  are  the  main  industries  now  car- 
ried on  at  tlie  prisons  in  Illinois.  While  there  are  other  industries  of 
some  consequences  not  provided  for,  the  accounting  plans  indicated 
will  be  sufficient  to  show  the  type  of  manufacturing  accounts  for  such 
other  manufactures  as  may  be  in  operation,  or  may  be  later  introduced. 


320  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

CLEARING  DEPARTMENTS. 

Power  Plant  and  Repair — General  Administration,  44. 

44A.  Salary  and  wages. 

44B,  Stationery,  office  supplies  and  printing. 

44C.  Postal  supplies. 

44X.  Ordinary  repairs. 

44Y.  Extraordinary  repairs. 

44Z.  Depreciation  and  loss. 

44SZ.  Sundry. 

44HZ.  Hours  of  prison  labor  (Statistics). 

Power  Plant  and  Repair — Boiler  Room,  45. 

45L.     Fuel. 

45N.     Water. 

Charge  to  this  account  the  cost  of  water  used  in  the  boiler  room 
as  may  be  indicated  by  the  water  meter  used. 

45X.      Ordinary  repairs. 

45Y.       Extraordinary  repairs. 

45Z.       Depreciation  and  loss. 

45HZ.  Hours  of  prison  labor  (Statistics). 

45  SZ.   Sundry. 
Power  Plant  and  Repair — Electric  Generation  Plant,  46. 

46A.      Salary  and  wages. 

46T.      Oil  and  engine  room  supplies. 

46F.      Steam. 

46X.      Ordinary  repairs. 

46Y.      Extraordinary  repairs. 

46Z.      Depreciation  and  loss. 

46SZ.   Sundry. 

46HZ.  Hours  of  prison  labor  (Statistics). 
Poiver  Plant  and  Repair — Steam  Air  Compressor,  47. 

47G.      Steam. 

47X.      Ordinary  repairs. 

47Y.      Extraordinary  repairs. 

47Z.       Depreciation  and  loss. 

47HZ.  Hours  of  prison  labor  (Statistics). 
Power  Plant  and  Repair — Engine  Room,  48. 

48G.      Steam. 

48X.      Ordinary  repairs. 

48Y.      Extraordinary  repairs. 

48Z.       Depreciation  and  loss. 

48SZ.   Sundry. 

48HZ.  Hours  of  prison  labor  (Statistics). 

It  will  be  necessary  to  design  a  log  sheet  for  the  boiler  and  engine 
rooms  of  all  the  separate  boiler  and  steam  engine  rooms  that  may  be 
operated  in  the  institutions.  This  log  sheet  should  be  so  designed  as 
to  yield  the  cost  information  called  for  in  the  accounts  of  the  boiler 
room  and  engine  room  and  the  different  plants  scheduled  under  power 
house  and  repair.     It  should  also  add  such  additional  information  as 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  321 

an  expert  engineer  may  require  to  enable  him  to  keep  constant  check 
on  the  efficiency  of  the  respective  plants  under  his  control.  If  an 
electric  air  compressor  were  used  exclusively  for  the  operation  or 
pumping  machinery  to  supply  water  the  cost  of  operation  of  this  pump- 
ing machinery  should  be  scheduled  under  the  same  department  as  the 
cost  of  operation  of  the  air  compressor  in  question,  the  operation  of 
both  of  the  machinery  units  being  costs  of  supplying  water. 

The  accounting  schedules  above  will  also  serve  to  indicate  the 
character  of  the  power  plant  accounts  which  should  be  kept  in  the 
furniture  industry  and  stone  department. 

49G.     Electric  power. 

49X.     Ordinary  repairs. 

49Y.     Extraordinary  repairs. 

49Z.     Depreciation  and  loss. 
Power  Plant  and  Repair — Electric  Air  Compressor,  49. 

49SZ.    Sundry. 

49HZ.  Hours  of  prison  labor  (Statistics). 
Pozver  Plant  and  Repair — Heating  Mains,  50. 

SOX.      Ordinary  repairs. 

SOY.      Extraordinary  repairs. 

SOZ.       Depreciation  and  loss. 

SOHZ.  Hours  of  prison  labor  (Statistics). 

The  same  set  of  accounts  will  also  apply  to  the  electric  distributive 
systems  required  in  furnishing  electricity  to  the  various  buildings.  The 
cost  of  the  maintenance  and  repair  of  electrical  and  heating  equipment 
of  the  various  buildings  is  properly  chargeable  to  the  maintenance  of 
those  buildings. 
Pozver  House  and  Repair — General  Repairs,  51. 

51 NI.  Material — ordinary  repairs. 

Charge  to  this  account  all  material  used  in  ordinary  repairs  made 
on  the  property  of  the  various  departments  of  the  institution.  This 
account  should  be  credited  and  the  departmental  account  of  ordinary 
repairs  charged  as  each  ordinary  repair  job  is  finished  for  the  various 
departments  of  the  institutions. 

51N3.  Hours  of  prison  labor — ordinary  repairs   (Statistics). 

Charge  to  this  account  the  number  of  hours  of  prison  labor  de- 
voted to  ordinary  repairs  for  the  various  departments  of  the  institu- 
tion. This  account  should  be  credited  and  the  departmental  account 
of  hours  of  prison  labor  debited  as  each  repair  job  is  completed. 

S1N2.  Material — extraordinary   repairs. 

Charge  to  this  account  alb  material  used  in  extraordinary  repairs 
made  on  the  property  of  the  various  departments  of  the  institution. 
This  account  should  be  credited  and  the  departmental  account  of  extra- 
ordinary repairs  charged  as  each  ordinary  repair  job  is  finished  for  the 
various  departments  of  the  institution. 

51N4.  Hours  of  prison  labor — extraordinary  repairs  (Statistics). 

Charge  to  this  account  the  number  of  hours  of  prison  labor  de- 
voted to  extraordinary  repairs  for  the  various  departments  of  the  in- 
stitutions. This  account  should  be  credited  and  the  departmental  ac- 
count of  hours  of  prison  labor  debited  as  each  repair  job  is  completed. 


322  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Power  Plant  and  Repair — Store,  ^2. 

52A.      Salary  and  wages. 

52B,      Stationery,  office  supplies  and  printing. 

52C.      Postal  supplies. 

52D.      Heat,  light  and  water  equipment. 

52Q.      Materials — repair  and  engineering. 

52\V.     Ordinary  repairs. 

52X.      Extraordinary  repairs. 

52Y.      Depreciation  and  loss. 

52SZ.    Sundry. 

52HZ.  Hours  of  prison  labor  (Statistics). 
Subsistence  Store  Room.  jj. 

53A.     Salary  and  wages.    • 

In  one  institution  the  prison  steward  buys  the  supplies  for  the 
store  room  and  has  complete  supervision  of  its  operation,  and  his  salary- 
will  be  properly  chargeable  to  this  account.  In  another  institution  a 
store  room  clerk  is  employed  to  take  charge  of  all  store  room  property 
and  his  salary  will  be  properly  chargeable  to  this  account. 

53B.      Stationery,  office  supplies  and  printing. 

53C.      Postal  supplies. 

53NI.    General  supplies. 

Charge  to  this  account  the  cost  of  all  supplies  rec(  ived  in  the 
store  room.  This  account  should  be  credited  with  the  cost  of  supplies 
furnished  to  the  various  departments  of  the  institution. 

At  the  end  of  each  month  the  entire  balance  cost  of  the  mainten- 
ance and  operation  of  this  department,  after  crediting  the  department 
with  supplies  furnished  and  on  hand,  should  be  distributed  to  the  var- 
ious departments  of  the  institutions  on  the  basis  of  the  cost  of  supplies 
which  these  departments  purchase  from  the  store  room  and  the  store 
should  be  credited  with  the  amount  thus  charged  to  the  various  other 
departments. 

53NI.  Cold  storage. 

Charge  to  this  account  the  cost  of  the  maintenance  of  refrigera- 
tion in  cold  storage  rooms.  In  case  this  service  is  furnished  by  an  ice 
or  refrigeration  plant,  operation  and  maintenance  clearing  account 
should  be  credit  for  the  charge.     See  department  55. 

53X.      Ordinary  repairs. 

53Y.      Extraordinary  repairs. 

53Z.      Depreciation  and  loss. 

53SZ.    Sundry. 

53HZ.  Hours  of  prison  labor  (Statistics). 
Farm  and  Garden — Feed  Barn,  43.1. 

43.1  A.     Salary  and  wages. 

43.1  NI.  Feed— corn. 

Charge  to  this  account  all  corn  gathered  from  the  farm  and  placed 
in  the  store  at  the  current  price  for  corn  at  that  time.  Credit  this 
account  with  corn  removed  from  the  barn  for  sale  or  feed.  Corn 
purchased  and  placed  in  store  should  be  charged  to  the  store  at  cost. 

43.1N2.  Feed — oats.       See  Account  43. NI. 

43. IX.     Ordinary  repairs. 


ACCOUNTS   FOR  CORRECTIONAL  INSTITUTIONS.  323 

43. lY.  Extraordinary  repairs. 
43.  IZ.  Depreciation  and  loss. 
43.1  NZ.  Hours  of  prison  labor  (Statistics). 

Fuel  Store,  54. 

54Q.  Materials — coal. 

54NI.  Freight,  cartage  and  express.     See  account  <1N1 

54X.  Ordinary  repairs. 

54Y.  Extraordinary  repairs. 

54Z.  Depreciation  and  loss. 

54HZ.  Hours  of  prison  labor  (Statistics). 

Ice  Plant,  55. 

55A.  Salary  and  wages. 

55B.  Stationery,  office  supplies  and  printing. 

55C.  Postal  supplies. 

55D.  Water  and  light, 

55G.  Power. 

55H.  Materials  for  production. 

55X.  Ordinary  repairs. 

55Y.  Extraordinary  repairs. 

55Z.  Depreciation  and  loss. 

55SZ.  Sundry. 

55HZ.  Hours  of  prison  labor.    (Statistics.) 

Laundry,  j6. 

56B.      Stationery,  office  supplies  and  printing. 

56D.      Heat,  light  and  water. 

56G.      Power.    (Electric  and  steam.) 

56T.      Laundry  supplies. 

56X.      Ordinary  repairs. 

56Y.      Extraordinary  repairs. 

56Z.       Depreciation  and  loss. 

56SZ.    Sundry. 

56Z.       Hours  of  prison  labor.    (Statistics.) 

Charge  to  this  account  the  number  of  hours  of  prison  labor 
devoted  to  the  laundry. 

There  are  likewise  laundry  accounts  for  the  women's  prison  and 
warden  or  superintendent's  suites.     The  classification  of  accounts  will 
be  the  same  as  that  for  the  prison  laundry. 
Clothing  Room,  57. 

The  clothing  room  should  be  treated  as  a  clearing  account  incase 
clothing  is  made  exclusively  for  the  inmates  and  officers  of  the  insti- 
tution. The  plan  of  accounts  would  be  the  same,  however,  as  that  for 
the  clothing  industry  discussed  under  the  caption  of  Manufacturing 
Industries— Clothing.  See  Account  No.  43. 
Convict  Kitchen  and  Dining  Roofh,  58. 

The  scheduled  accounts  of  operation  and  maintenance  for  this 
department  is  the  same  as  that  for  the  officers'  kitchen  and  dining 
room  found  under  Department  No.  63. 


324  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Blacksmith  Shop,  jp. 

S9A.      Salary  and  wages. 

59B.      Stationery,  office  supplies  and  printing. 

59E.     Fuel. 

59H.      Material  for  production. 

59X.      Ordinary  repairs. 

59Y.      Extraordinary  repairs. 

59Z.      Depreciation  and  loss. 

59SZ.    Sundry. 

59HZ.  Hours  of  prison  labor.    (Statistics.) 
Foundry,  60. 

60A.      Salary  and  wages. 

60B.      Stationery,  office  supplies  -and  printing. 

60D.      Heat,  light  and  water. 

60E.      Fuel. 

60H.      Materials  for  production. 

60X.      Ordinary  repairs. 

60Y.      Extraordinary  repairs. 

60Z.       Depreciation  and  loss. 

60SZ.    Sundry. 

60HZ.  Hours  of  prison  labor.    (Statistics.) 

In  connection  with  the  operation  of  the  foundr}^  a  job  cost  record 
should  be  kept  of  all  work  done,  the  material  used  being  charged  to 
the  job  in  question.  It  will  be  necessary  to  add  to  the  job  cost  as 
indicated  by  the  charge  of  direct  labor  and  material  used,  an  additional 
percentage  charge  required  to  cover  the  expense  of  the  maintenance 
and  operation  of  the  foundry  as  shown  by  the  accounts  scheduled 
above  under  this  department.  It  is  also  feasible  in  connection  with 
much  of  the  work  done  by  the  foundry  to  determine  a  reasonable  task 
to  be  performed  by  individual  prisoners,  or  groups  of  prisoners,  who 
may  be  employed  in  connection  with  the  work  of  the  foundry  plant. 

While  the  foundry  plant  at  one  of  the  prisons  is  now  scheduled 
as  an  industry  under  the  supervision  of  the  Board  of  Prison  Indus- 
tries, this  situation  is  a  heritage  from  the  time  when  the  output  of  the 
foundry  was  disposed  of  in  part  in  the  open  market.  At  the  present 
time  the  foundry  receives  no  income  from  the  sale  of  its  output  either 
on  the  open  market  or  to  State  institutions.  Consequently  it-is  appro- 
oriate  that  it  should  be  scheduled  as  a  clearing  account  just  as  the 
clothing  room  is  treated  in  case  its  output  is  used  exclusively  in  the 
institution. 

The  material  used  by  the  foundrv^  is  furnished  largely  from  the 
store  controlled  by  the  power  plant  and  repair  department.    This  store 
account  should  be  credited  for  all  materials  so  furnished. 
Barber  Shop,  6t. 

61  A.      Salary  and  wages. 

61B.      Stationery,  office  supplies  and  printing. 
61D.      Heat,  light  and  water. 
61 NI.    Barber  supplies. 

Charge  to  this  account  all  soap,  toilet  water,  hair  tonic,  washes, 
etc.,  required  for  the  operation  of  the  barber  shop. 


ACCOUNTS   FOR   CORRECTIONAL   INSTITUTIONS.  325 

61X.      Ordinary  repairs. 
61Y.      Extraordinary  repairs. 
61Z.       Depreciation  and  loss. 
61 SZ.    Sundry. 

61HZ.  Hours  of  prison  labor    (Statistics.) 
Hospital,  62. 

62A.  Salary  and  wages. 

62B.  Stationery,  office  supplies  and  printing. 

62C.  Postal  supplies. 

62D.  Heat,  light  and  water. 

62H.  Materials — medical  supplies. 

62X.  Ordinary  repairs. 

62Y.  Extraordinary  repairs. 

62Z.  Depreciation  and  loss. 

62SZ.  Sundry. 

62HZ.  Hours  of  prison  labor.    (Statistics.) 

Prison  Administration — Officers'  Kitchen  and  Dining  Room,  (5j. 

63A.      Salary  and  wages. 

63B.      Stationery,  office  supplies  and  printing. 

63F.      Steam  furnished  for  kitchen. 

63E.      Fuel. 

631.       Food  supplies. 

Credit  631.  with  the  cost  of  food  served  to  prisoners  in  the  convict 
kitchen  connected  with  the  officers'  kitchen  and  dining  room,  debiting 
Account  2n.  with  the  amount  so  credited.  In  case  the  same  bill  of 
fare  is  used  for  the  prisoners  as  that  for  the  officers,  the  per  capita 
charge  for  food  should  be  the  same  as  that  for  the  officers'  dining 
room.  In  case  the  daily  menu  of  the  convicts  of  the  officers'  kitchen 
differs  from  that  of  the  officers,  the  indication  of  this  difference  Avill 
furnish  the  basis  for  crediting  the  officers'  regular  kitchen  and  dining 
room  with  a  fair  cost  of  food  for  the  prisoners. 

63X.      Ordinary  repairs. 

63Y.      Extraordinary  repairs. 

63Z.       Depreciation  and  loss. 

63SZ.    Sundry, 

63HZ.  Hours  of  prison  labor.    (Statistics.) 

SCHEDULE   OF   PROPERTY   ACCOUNTS   BY   DEPARTMENTS. 

In  order  to  abbreviate  the  definitions  of  the  property  accounts  in 
the  various  departments  a  brief  general  discussion  of  the  accounts 
appearing  under  the  -various  captions  is  made  as  an  introduction  to 
the  schedule. 

The  departmental  property  accounts  are  given  a  number  equal 
in  each  case  to  100  plus  the  number  of  the  operation  and  maintenance 
for  the  same  department.  For  example,  the  operation  and  main- 
tenance number  for  the  office  of  the  chief  clerk  or  general  accountant 
is  5.1  and  the  corresponding  number  for  the  department  property 
accounts  is  105.1.     The  letters  refer  to  the  account  definitions  in  the 


326  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

introduction.  Accounts  in  any  department  not  defined  in  this  intro- 
duction are  given  the  number  of  the  department  with  Nl,  N2,  etc., 
added.  Any  division  of  an  account  is  indicated  by  repeating  the  letter 
designating  the  account  in  the  introduction.  The  second  division  of 
furniture  and  fixtures  being  cc.  instead  of  c. 

a — Land. 

No  definite  plot  of  land  is  connected  with  the  respective  build- 
ings of  the  institution  grounds,  so  that  it  becomes  necessary,  in  case 
of  the  land  used  for  institution  buildings,  to  schedule  a  general  land 
account.  The  account  is  debited  with  the  original  cost  of  the  land 
upon  which  the  buildings  are  located. 

b — Buildings. 

These  accounts  as  appearing  in  the  various  departments  of  the 
institution  always  refer  to  the  cost  of  a  building  in  which  an  industry 
or  department  is  operated.  In  the  case  of  the  offices  of  the  warden 
house  this  item  of  the  property  account  is  omitted  since  it  is  included 
in  the  property  accounts  of  the  warden  house.  If  it  were  found 
desirable  to  distribute  the  cost  of  the  warden  house  as  a  property 
charge  to  the  various  departments  some  arbitrary  basis  might  be  taken 
for  such  a  distribution.  Similarly  the  cost  of  operation  of  the  warden 
house  might  have  been  distributed  to  the  various  departments  located 
therein. 

c — Furniture  and  fixtures. 

The  furniture  and  fixtures  of  the  various  departments  refer 
mainly  to  office  furniture,  dining  room  furniture,  book-cases,  etc.  The 
fixtures  refer  to  feed  boxes,  sinks,  tanks,  rails,  shelves  and  all  fixtures 
added  from  time  to  time  and  not  included  in  the  original  cost  of  the 
building.  The  account  is  credited  with  depreciation  and  loss.  Any 
furniture  removed  from  one  department  to  another  should  be  credited 
to  the  department  from  which  it  is  taken  and  debited  to  the  depart- 
ment to  which  it  is  moved.  If  such  removals  are  taken  due  account 
of  the  furniture  and  fixtures  of  the  preceding  inventory  plus  the  pur- 
chases during  a  given  year  should  represent  the  inventory  at  the  end 
of  the  year.  Any  shortage  should  be  debited  to  the  account  of  oz'cr, 
shortage  and  loss  and  credited  to  the  property  account. 

d — Office  equipment. 

The  term,  office  equipment,  refers  to  typewriters  and  various  ap- 
pliances of  a  similar  nature  used  for  the  purpose  of  increasing  or  im- 
provng  the  effectiveness  of  office  work.  The  depreciation  and  loss 
account  for  this  equipment  should  be  treated  in  the  same  way  as  the 
similar  account  for  furniture  and  fixtures.  See  account  c.  The  account 
should  be  debited  with  all  additions  of  office  equipment  and  credited 
with  any  equipment  w^hich  may  be  scrapped  or  removed  from  one 
office  to  some  other  department. 

e — Heat,  light  and  water  equipment. 

This  account  should  be  debited  with  the  cost  of  heat,  light  and 
water  equipment  of  the  various  buildings  and  all  additions  thereto. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS  327 

Do  not  charge  to  this  account  the  cost  of  mains  and  distributive  equip- 
ment connecting  the  power  plant  with  the  various  buildings.  The 
account  is  credited  with  depreciation  and  loss,  as  indicated  in  account 
Z,  Chapter  1,  Part  III. 

/ — Machinery  and  equipment. 

This  account  found  under  the  various  departments  refers  to  the 
durable  machinery  and  equipment  of  the  department  other  than  the 
office  equipment  noted  above.  The  account  should  be  debited  with 
the  cost  of  all  machinery  purchased  for  the  use  of  the  department  in 
question,  with  the  cost  of  installing  this  machinery  purchased  for  the 
use  of  the  department  and  with  the  cost  of  freight  and  cartage  there- 
on. It  should  be  credited  with  the  original  cost  of  all  machinery  and 
equipment  consigned  to  the  scrap  heap,  and  should  be  debited  with 
the  cost  of  new  equipment  purchased,  either  as  an  addition  or  a  re- 
placement. 
<7 — Tools  and  implements. 

This  account  should  be  debited  with  the  cost  of  tools  and  imple- 
ments transferred  from  one  department  to  some  other  department, 
which  should  be  debited  with  the  amount  so  credited.  The  depart- 
mental tools  and  implements  found  in  the  inventory  at  the  first  of  the 
new  year  or  period  plus  the  purchases  during  the  period  should  be  the 
inventory  on  hand  at  the  end  of  the  period  in  question,  when  a  new 
inventory  is  taken,  if  no  depreciation  and  loss  took  place.  The  cost 
of  the  tools  not  so  found  in  taking  the  new  inventory  should  be  credited 
to  the  account  and  charged  to  oz'cr  shortage  and  loss  of  tools  and 
implements  for  the  year. 

h — Beds  and  bedding. 

Charge  to  this  account  the  cost  of  all  beds  and  bedding  including 
bed-springs,  bedsteads,  mattresses,  blankets,  pillows,  quilts,  sheeting, 
etc.  The  account  should  be  credited  with  all  bedding  condemned,  lost 
or  consigned  to  the  scrap  heap  during  the  year,  over,  shortage  and  loss 
being  debited  with  the  amount  credited. 

i — Kitchen  equipment. 

The  term  kitchen  equipment  as  employed  in  this  report  refers  to 
ranges,  boilers,  kettles,  pans,  and  all  of  the  appliances  which  in  the 
regular  industries  may  be  classed  under  the  caption  of  machinery  and 
equipment.  In  addition  to  ordinary  depreciation  in  the  department 
there  will  be  losses,  as  found  by  comparing  the  new  inventory  with 
the  preceding  inventory  and  the  purchases  during  the  year,  which 
should  be  credited  to  the  account  and  charged  to  over,  shortage  and 
loss. 

j — Table  furnishings. 

Charge  to  this  account  the  cost  of  all  crockery,  glassware,  dishes, 
cutlery,  table  linen  and  other  miscellaneous  items  of  table  furnishings 
used  in  the  dining  rooms  of  the  various  departments  in  which  the 
account  is  found.  In  addition  to  the  ordinary  depreciation  of  these 
furnishings  the  account  should  be  credited  with  all  table  linens  con- 
demned, or  all  table   furnishings   condemned,   and  with  all  breakage 


328  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

and  loss,  which  may  be  found  by  comparing  the  new  inventory  with 
the  preceding  inventory  plus  purchases  made  during  the  period 
between  inventories. 

k — Live  stock. 

The  respective  live  stock  accounts  should  be  charged  with  the 
cost  of  teams,  dairy  cows,  and  such  live  stock  as  may  be  properly 
regarded  as  a  permanent  investment  of  the  operating  department.  In 
the  case  of  hogs  and  chickens  which  are  raised  and  disposed  of  largely 
within  the  year  produced,  the  outlays  should  be  charged  to  the  oper- 
ation and  maintenance  account  and  no  regular  property  account  would 
appear  except  in  connection  with  the  regular  inventories  when  the 
inventories  of  live  stock  on  hand  would  be  debited  at  the  same  time 
the  rtrofit  and  loss  accounts  w-ere  credited. 

z — Sundry. 

Charge  to  this  account  the  unclassified  expense  of  the  various 
departments  in  which  the  account  appears. 

DEPARTMENTS  SbPPORTED  MAINLY  BY  GENERAL  REI'ENUES. 

General  Administration — Board  of  Prison  Administration,  loi. 

101c.   Furniture  and  fixtures. 
101  d.  Office  equipment. 
lOlz.   Sundry, 

Prison  Administration — Warden  s  Office,  102. 

102c.  Furniture  and  fixtures. 
102d.  Office  equipment. 
102z.   Sundry. 

Prison  Administration — Warden  House  Building,  10;^. 

103b.  Buildings. 

103c.  Furniture  and  fixtures. 

Charge  to  this  account  the  cost  of  all  furniture  an^!  fixtures, 
except  that  charged  to  the  property  accounts  of  the  warden  office  or 
the  general  accountant's  office,  the  kitchen  and  dining  room  of  the 
warden  suite  and  such  other  offices  as  may  be  given  departmental 
accounts  with  departmental  furniture,  fixtures,  etc. 

103h.  Beds  and  bedding. 

103e.  Heat,  light  and  water  equipment.  - 

103f.    Machinery  and  equipment — power. 

103z.   Sundry. 
Prison  Administration — Institution  Grounds,  104. 

104a.  Land. 

Charge  to  this  account  the  cost  of  the  land  upon  which  the  prison 
industries  and  buildings  of  the  institution  proper  are  located. 

104nl.  Improvements. 

Charge  to  this  account  the  cost  of  fences,  platforms  and  mis- 
cellaneous improvements  on  the  institution  grounds. 

104z.  Sundry. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS. 


329 


Prison  Administration— Warden  or  Superintendent's  Suite,  105. 

105c.  Furniture  and  fixtures  of  the  dining  room  and  kitchen. 

105i.    Kitchen  equipment. 

105j.   Table  furnishings. 

105z.  Sundry. 
Prison  Administration — General  Accountant's  Office,  103.1. 

105.1c.   Furniture. and  fixtures. 

105. Id.  Office  equipment. 

105. Iz.   Sundry. 
Prison  Administration — Officers'  Subsistence,  106. 

See  Department  No.  163. 
Prison  Administration — Women's  Prison — Officers'  Building,  loy. 

107b.  Building. 
107c.  Furniture  and  fixtures. 
107e.  Heat,  light  and  water  equipment. 

This  account  should  not  include  the  power  house  equipment  of 
the  women's  prison  which  is  included  in  the  property  clearmg 
accounts. 

107h.  Beds  and  bedding. 
107f.    Machinery  and  equipment — power. 

Charge  to  this  account  the  power  equipment  of  the  women's 
prison  with  the  exception  of  the  power  equipment  of  the  engine  and 
boiler  rooms  of  the  power  plant. 

107SZ.  Sundry. 
Prison  Administration — Women's  Prison — Officers'  Kitchen  and  Din- 
ing Room,  108. 
108c.  Furniture  and  fixtures. 
108i.   Kitchen  equipment. 
lOSj.  Table  furnishings. 
lOSz.  Sundry. 
Prison    Administration — Women's    Prison — Confinement    and    Disci- 
pline, I  op. 

109b.     Building,  cell  houses  and  cells. 
109c.     Furniture  and  fixtures— office. 
109cc.  Furniture  and  fixtures — cell  houses. 
109e.     Heat,  light  and  water  equipment. 
109h.    Beds  and  bedding. 
109z.     Sundry. 
Prison  Administration — Confinement  and  Discipine  of  Mole  Prisoners, 
III. 

11  lb.     Building,   cell  houses  and  cells. 
111c.     Furniture  and  fixtures— cell  houses. 
nice.  Furniture  and  fixtures— offices. 
Ulh.    Beds  and  bedding. 
lUe.     Heat,  light  and  water  equipment, 
lllz.     Sundry. 


330  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Prison  Administration — Parole  Prisoners,  112. 

112c.   Furniture  and  fixtures. 

112d.  Office  equipment. 

112z.  Sundry, 
Prison  Administration — Receiving  and  Discharging  Prisoners,  113. 

113c.  Furniture  and  fixtures. 

113d.  Office  equipment. 

113z.  Sundry. 
Prison  Administration — Institution  Teams  and  Vehicles,  114. 

114b.    Buildings. 

114k.  Teams. 

114z.    Sundry. 

IMnl.Vehicles. 

Charge  to  this  account  the  cost  of  all  vehicles  purchased  for  the 
use  of  the  administrative  officers  of  the  institutions.  The  account 
should  be  credited  with  the  cost  of  vehicles  purchased  for  the  use  of 
administrative  officers  of  the  institution.  The  account  should  be 
credited  with  the  cost  of  vehicles  that  are  consigned  to  the  scrap  heap. 

114nl.  Harness. 

Charge  to  this  account  the  cost  of  all  harness  purchased  for  insti- 
tution teams.    Credit  the  account  with  condemned  harness  and  harness 
consigned  to  the  scrap  heap. 
Prison  Administration — Institution  Automobiles,  115. 

115b.    Buildings — garages. 

llSnl.  Automobiles. 

Charge  to  this  account  the  cost  of  all  automobiles  purchased  for 
the  use  of  the  administrative  officers  of  the  institution  proper.  Do  not 
charge  to  this  account  the  cost  of  farm  automobiles.  Credit  this 
account  with  the  automobiles  consigned  to  the  scrap  heap. 

Il5z.  Sundry. 
Maintenance  of  Male  Prisoners — Subsistence,  116. 

Property  accounts  under  department  158. 
Maintenance  of  Male  Prisoners — Sanitation,  117. 

Property  accounts  under  department  No.  162. 
Maintenance  of  Male  Prisoners — Laundry,  118. 

Property  accounts  under  department  No.  156. 
Maintenance  of  Male  Prisoners — Barber  Work,  119 

Property  accounts  under  department  No.  161. 
Maintenance  of  Male  Prisoners — Miscellaneous  Furnishings,   ^20. 

Property  accounts  under  department  No.  143. 
Maintenance  of  Female  Prisoners — Subsistence,  121. 

Property  accounts  under  department  No.  158. 
Maintenance  of  Female  Prisoners — Sanitation,  122. 
Property  accounts  under  department  No.  162. 
Maintenance  of  Female  Prisoners — Laundry,  123. 
Property  accounts  under  department  No.  156. 


ACCOUNTS    FOR   CORRECTIONAL    INSTITUTIONS  331 

Maintenance  of  Female  Prisoners — Miscellaneous  Furnishings,  124. 

Property  accounts  under  department  No.  157. 
Religions  and  Educational — Religious  Instructions,  12^. 

125b.  Building. 

125c.  Furniture  and  fixtures. 

125d.  Office  equipment. 

125c.  Heat,  light  and  water  equioment. 

125z.  Sundry. 
Religious  and  Educational — General  Education,  126. 

126b.    Building. 

126c.    Furniture  and  fixtures. 

126d.    Office  equipment. 

126e.    Heat,  light  and  power. 

126nl.  Educational  apparatus  and  equipment. 

Charge  to  this  account  the  cost  of  all  laboratory  equipment,  maps, 
and  illustrative  material  used  for  educational  purposes.  The  account 
should  be  credited  with  depreciation  and  loss  of  scrapped  equipment 
at  the  time  of  taking  the  regular  inventory  and  with  any  apparatus 
and  equipment  removed  from  the  building  during  the  year 

126z.  Sundry. 
Religious  and  Educational — Trade  Schools,  I2J. 

127b.    Buildings. 

127c.    Furniture  and  fixtures. 

127d.    Office  equipment. 

127e.    Heat,  light  and  water  equipment. 

127nl.  Educational   apparatus  and   equipment.     See  account   No. 
126nl. 

127z.    Sundry. 
Farm  and  Garden — Prisoners'  House,  128. 

128b.   Building. 

128c.   Furniture  and  fixtures. 

128e.   Heat,  light  and  water  equipment. 

128h.  Beds  and  bedding. 
Farm  and  Garden — Prisoners'  House,  Subsistence,  I2p. 

For  form  of  property  statement  see  department  106. 

DEPARTMENTS  SUPPORTED  ^lALNLY  BY  EARNINGS. 

Farm  and  Garden — Administration,  1^0. 

130b.  Buildings. 

Charge  to  this  account  the  cost  of  buildings  on  premises  of  the 
superintendent,  or  of  any  other  farm  officer  employed  to  supervise 
farming  operations  and  assigned  to  a  farm  building  ouned  by  ihe 
institution.     See  Account  B. 

130c.  Furniture  and  fixtures. 

130e.  Heat,  light  and  water. 

130i.   Kitchen  equipment. 

130j.   Table  furnishings. 

130z.  Sundry. 


332  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Farm  and  Garden — Officers'  Subsistence,  131. 

Property  accounts  under  department  No.  129.     , 
Farm  and  Garden — Automobiles,  132. 

Of  the  same  form  as  property  accounts  under  prison  -.dminis- 
tration. 

Farm  and   Garden— Machinery,   Implenienis,    Vehicles   and   Harness, 
183- 

133a.   Land. 
133b.  Buildings. 

Charge  to  this  account  the  cost  of  buildings  used  m  housing  farm 
implements,  vehicles  and  harness. 

133f.    Machinery  and  equipment. 
133g.    Tools  and  implements. 
133nl.  Harness. 

Charge  to  this  account  the  cost  of  all  harness  purchased  for  the 
use  of  farm  teams.  Credit  the  account  with  depreciation  and  loss  on 
harness. 

133n2.  Vehicles. 

Charge  to  this  account  the  cost  of  all  wagons,  buggies  and  other 
vehicles  purchased  for  the  use  of  the  farm  and  garden._  Credit  the 
account  with  depreciation  and  loss  on  farm  wagons,  buggies,and  other 
vehicles,  consigned  to  the  scrap  heap. 

133z.  Sundry. 
Farm  and  Garden — Power  Machinery,  133.1. 
133.1b.  Buildings. 

133.1  f.   Machinery  and  equipment — power. 
133. Iz.  Sundry. 
Farm  and  Garden — Farm  Teams,  134. 
134a.  Land. 
134b.  Buildings. 

Charge  to  this  account  the  cost  of  buildings  used  as  stables  for 
farm  teams. 

134nl.  Farm  teams. 

Charge  to  this  account  the  cost  of  farm  teams,  crediting  the 
account  with  depreciation  and  loss  of  farm  teams. 

133z.  Sundry. 
Farm  and  Garden — Land  and  Improvements,  135. 
135a.  Land. 

Charge  to  this  account  the  cost  of  all  land  devoted  to  farm  and 
garden  purposes. 

135nl.  Land  improvements. 

Charge  to  this  account  the  cost  of  roads,  drainage,  equipment, 
fences  and  other  miscellaneous  improvements  on  the  farm  and  garden. 

135z.  Sundry. 
Farm  and  Garden — Corn  Crop,  136. 
136a.  Land. 

Charge"  to  this  account  all  land  planted  in  corn  for  the  year. 
Credit  the  clearing  account  of   Land   No.    135a   with  the  amount  so 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  333 

charged  to  the  corn  crop.  In  taking  the  inventory  of  the  year  this 
account  should  be  closed  into  the  general  farm  and  garden  land 
account,  No.  135. 

Charge  this  account  with  a  fraction  of  the  total  investment  in  the 
property  listed  ur;der  departmental  accounts  Nos.  133,  133.1,  and  134. 
This  fraction  should  be  the  ratio  of  the  number  of  horse  hours 
devoted  to  the  cultivation  of  corn  to  the  total  number  of  horse  hours 
devoted  to  the  cultivation  of  farm  corn  crops.  The  account  should  be 
closed  out  at  the  end  of  the  year  into  the  accounts  here  referred  to  by 
numbers. 
Farm  and  Garden — Hogs,  13/. 

137a.  Land. 

137b.  Buildings — hog  barns. 

137c.  Furniture  and  fixtures— hog  barns  and  yard.    See  account  c. 

137z.  Sundry. 

At  the  end  of  the  year  the  inventory  of  hogs  on  hand  should  be 
closed  out   into  the   current   inventory  of   stock   on   hand   under   the 
department  of  farm  and  garden  hogs. 
Camps — Camp  Dunne,  138. 

138f.    Machinery  and  equipment — kitchen. 

138nl.  Automobiles. 

138z.    Sundry. 
Stone  Department,  139.. 

The  property  accounts  of  the  stone  industry  are  the  same  as  those 
for  the  furniture  industry,  except  that  in  addition  to  one  steam  power 
plant  there  is  an  electric  station  with  several  motors  and  a  compressed 
air  plant  to  be  closed  out  in  the  power  equipment  account  at  the  end 
of  the  year  in  the  case  of  the  stone  department. 
Manufacturing  Industries — Furniture,  140. 

140b.  Buildings. 

140c.  Furniture  and  fixtures. 

140d.  Office  equipment. 

140e.  Heat,  light  and  water  equipment. 

140f.   Machinery  and  equipment — power. 

At  the  end  of  the  year  the  power  plant  of  the  furniture  industry 
will  be  closed  out  into  the  general  property  accounts  of  the  furniture 
industry,  the  account  of  power  equipment  being  debited  with  the  total 
property  of  the  power  plant. 

140ff.  Machinery  and  equipment — industry  proper. 

140g.    Tools  and  implements. 

140z.    Sundry. 

At  the  end  of  the  year  when  the  inventories  are  taken  there  will 
be  an  inventory  account  of  raw  materials  on  hand,  one  for  unfinished 
stock,  and  one  for  finished  stock  on  hand.  There  will  also  be  inven- 
tory accounts  under  the  furniture  industry  for  stationery  and  office 
supplies  on  hand  and  one  for  postal  supplies  on  hand. 
Manufacturing  Industries — Rattan  and  Reed,  141. 

The  property  accounts  of  the  rattan  and  reed  industry  will  be  the 
same  as  those  of  the  furniture  industry,  with  the  exception  that  no 
power  house  accounts  will  be  found  for  rattan  and  reed. 


3'^4  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Manufacturing  Industries — Printing,  142.^ 

142b.  Building. 

142c.  Furniture  and  fixtures — office. 

142e.  Heat,  light  and  water  equipment. 

142f.  Machinery  and  equipment — power.     • 

142ff.         Machinery  and  equipment — printing  machines. 

142fff.       Machinery  and  equipment — hand  presses. 

142ffff.    Machinery   and   equipment — punching   and   perforating 
machines 

142fffff.  Machinery  and  equipment — sundry. 

142g.  Tools  and  implements. 

142z.  Sundry. 

Manufacturing  Industries — Clothing,  14s. 

The  schedule  of  property  accounts   for  the  clothing  industry  is 
the  same  is  that  for  the  furniture  industry. 

CLEARING    DEPARTMENTS. 

Farm  and  Garden — Feed  Barn,  143.1. 
143a.     Land. 
I43.ib.  Building. 
143  ;c.  Furniture  and  fixtures. 
143.1z.  Sundry. 

Fozver  Plant  and  Repair — General,  144. 

144b.  Building. 

144c.  Furniture  and  fixtures. 

144d.  Office  equipment. 

144z.  Sundn.'. 
Power  Plant  and  liepiiir — Boiler  Room,  145. 

145 f.  Machinery  and  equipment. 

145g.  Tools  and  "mplements. 

145z.  Sundry 
Power  Plant  and  Repair — Electric  Generation  Plant.  146. 

146b.  Building. 

146f.   Machinery  and  equipment,  including  electric  m^.ins. 

146g.  Tools  and  implements. 

146z.  Sundry. 

146c.  Furniture  and  fixtures. 
Power  Plant  and  Repair — Steam  Air  Compressor,  147. 

147f.  Machinery  and  equipment — steam  air  compressor. 

147z.  Sundry. 
Power  Plant  and  Repair — Engine  Room,  148. 

148f.   Machinery  and  equipment. 

148g.  Tools  and  implements 

148z.     Sundry. 
Power  Plant  and  Repair — Electric  Air  Compressor,  149. 

149f.   Machinery  and  equipment. 

149z.  Sundry. 

!i.     See   ;ilso    Note,    Maiiitenjince   aiitl    Operation    Accounts,   42112,    p.   C9. 


ACCOUNTS   FOR  CORRECTIONAL   INSTITUTIONS.  335 

Power  Plant  and  Repair — Heating  Mains,  150. 
ISOnl.  Heating  mains. 

Charge  to  this  account  the  cost  of  all  heating  mains  connecting 
the  boiler  plant  with  the  various  buildings,  industries  and  (le[)artments 
of  the  institution.  The  account  should  be  credited  with  depreciation 
and  loss  of  replaced  mains. 

150z.  Sundry. 
Power  House  and  Repair — Repair,  Workshop,  131. 
151g.  Tools  and  implements. 
I51z.  Sundry, 
Subsistence  Store  Room,  152. 
152b.  Building. 
152c.  Furniture  and  fixtures, 
I52f,   Machinery  and  equipment. 
152z,  Sundry. 
Power  Plant  and  Repair — Store,  133. 
153b.     Building. 

153c.     Furniture  and  fixtures— store  room. 
153cc.  Office  equipment, 
153z.     Sundry. 
Fuel  Store,  154. 

154b,  Buildmgs. 
154g,  Tools  and  implements. 
.  154z.  Sundry, 
Ice  Plant,  155. 

155b.  Building. 
155c.  Furniture  and  fixtures. 
155f,   Machinery  and  equipment. 
155g.  Tools  and  implements. 
I55z.  Sundry. 
Laundry,  136. 

156c.  Furniture  and  fixtures. 
I56f.   Machinery  and  equipment. 
156z.  Sundry, 
Clothing  Room,  13'/. 

The  property  accounts  of  the  clothing  room  will  be  the  same  as 
the  property  accounts  of  the  clothing  industry  referred  to  in  account 
No.  143, 
Convict  Kitchen  and  Dining  Room,  138. 

The  accounts  are  the  same  as  those  scheduled  under  ]:)epartment 
No,  106,  with  the  exception  that  an  account  of  building  is  required 
for  the  convict  kitchen  and  dinirg  room. 
Blacksmith  Shop,  139. 
159b.  Building 

159f.   Machinery  and  equipment. 
159g.  Tools  and  implements. 


336  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Foundry,  i6o. 

160b.  Building. 

160c.  Furniture  and  fixtures. 

160c.  Heat,  liglit  and  water  equipment. 

160g.  Tools  and  implements. 
Barber  Shop,  i6i. 

161c.  Furniture  and  fixtures. 

161g.  Tools  and  implements. 

161z.  Sundry. 
Hospital,  162. 

162b.  Building. 

162c.  Furniture  and  fixtures — office. 

162e.  Heat,  light  and  water  equipment. 

162g.  Tools  and  implements. 

162h.  Beds  and  bedding. 

162z.  Sundry. 
Prison  Administration — Officers'  Kitchen  and  Dining  Room,  i6j. 

163c.  Furniture  and  fixtures. 

163i.   Kitchen  equipment. 

163j.   Table  furnishings. 

163z.  Sundr>% 


ACCOUNTS  FOR  CORRECTIONAL   INSTITUTIONS.  337 


PART  IV. 
EXHIBITS. 

EXHIBIT    1.     FORM    OF    EXHIBITS    FOR    FOOD    SERVED    IN     ALL    KITCHENS    AND    DINING 

ROOMS. 

This  exhibit  should  be  employed  in  connection  with  subsistence  accounts  of 
all  departments.  ^,,  „         _, 

So.  111.      Per         Ills.       Per        111.  S.       Per 
Pen.      Capita      Pen.       Capita      Re£.      Capita 

Butter    

Butterine 

Beans    •     

F  read  and  crackers 

Cereals,   rice,  etc 

Cheese 

Coin  meal 

Eygs •     

Flotr 

Fruits    (dry)    

Fruits  ( fresh) 

Meats — 

Beef  (fresh)    

Beef  (corn  or  dry) 

Pork  (fresh)    

Pork  (salt)   

Sausage    

Sundry    

Macaroni 

Milk 

Molasses 

Spices,  seasoning,  etc 

Sugar    

Tea,  coffee,  cocoa 

Vegetables — 

Cabbage    

Onions 

Tomatoes    

Green  vegetables 

Other  sundry  vegetables 

Yeast    

Sundries    


338 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


g         c 


Won     • 


!2o 


<:2 


<2 


I'd 


^1 


:s 


2    H 
2h  «, 


a  a  „  4) 

^   0)   ?    !- 


•3  a;  Li  g 


13    to 


-  <" , 


-.  =S  M   L,  O 


ACCOUNTS   FOR   CORRECTIONAL   INSTITUTIONS.  339 

EXHIBIT    3.       A    SUGGESTED    FORM    OF    MEMORANDUM    LEDGER    FOR    OUT- 
STANDING ORDERS  AND  AVAILABLE  BALANCES. 

On  the  left  or  debit  side  of  the  account. 

1.  Date  of  order. 

2.  Order  number. 

3.  Order  estimate. 

4.  Amount   of   invoice. 

On  the  right  or  credit  side  of  the  account. 

5.  Order  number. 

6.  Order  estimate. 

7.  Voucher  number. 

8.  Amount  vouchered. 

Then  on  the  extreme  right  or  elsewhere  on  the  ledger  page  there 
should  be  the  following  information : 

9.  Date. 

10.  Outstanding  orders. 

11.  Outstanding  invoices  or  bills. 

As  orders  are  made,  they  should  be  entered  in  columns  (1),  (2), 
and  (3).  When  the  invoice  covering  an  order  is  received  entries 
should  be  made  in  columns  (4),  (5),  and  (6).  When  vouchers  are 
made  out,  entries  should  be  made  in  columns  (7)  and  (8).  The  total 
of  column  (3)  less  the  total  of  column  (6)  will  equal  the  amount  of 
outstanding  orders  for  which  bills  have  not  been  received.  The  total 
of  column  (4)  less  the  total  of  column  (8)  will  be  the  balance  of 
outstanding  bills  against  any  account.  A  requirement  that  all 
invoices  refer  to  the  institution  order  number  will  facilitate  the  keep- 
ing of  this  record.  The  procedure  above  outlined  requires  that  all 
orders  arise  within  the  institutions.  While  the  Fiscal  Supervisor 
makes  all  contracts  and  awards,  the  routine  of  purchasing  under 
arrangements  made  would  be  done  in  the  institutions.  No  purchases 
on  any  account  in  excess  of  the  amount  allotted  for  the  month  should 
be  made  except  in  cases  of  emergency  unless  such  excess  is  first 
approved  by  the  Board  of  Prison  Administration. 


A  REPORT 


ON 


CHARITABLE  and  CORRECTIONAL 
INSTITUTIONS 


BY 


JAMES  W.  GARNER 

PROFESSOR  OF  POLITICAL  SCIENCE 
UNIVERSITY  OF  ILLINOIS 


CONTENTS. 

Page 

I.  Charitable  and  Penal  Administration  in  Illinois 345-371 

A.  General  Observations   ^45 

B.  Charitable    Institutions ^46 

1.  Organization  and  Administration  before    1910 34/ 

The  State  Board  of  Public  Charities 348 

2.  Present   Organization    351 

The  Board  of  Administration 351 

Fiscal    Supervisor    ^p 

The   Charities   Commission •  •  354 

Boards   of  Visitors ^ ^^^ 

Appropriations    35o 

C.  Penal  and   Reformatory  Institutions 357 

1.  Separate   Boards    ^^'^ 

2.  The   Board  of  Prison  Industries 359 

3.  Board   of   Classification 359 

4.  The  Penitentiary  Commission 359 

5.  The   State   Board  of  Pardons 360 

D.  Comparison  of  the  Charitable  and  Penal  Systems .362 

Advantages  of  the  Central  Board  System 363 

Criticism  of  the  Central  Board  System 371 

II.  Charitable  and  Penal  Administration  in  Other  States  and  Countries. 

Countries.  372-395 

A.  In  Other  States 372 

1.  Central    Boards   of   Control 372 

2.  State  Boards  of  Charity 381 

3.  Boards  of  Pardon  and  Parole 382 

4.  Opinions  on  the  Central  Board  System 383 

Success  in  Other  States 383 

Expert  Opinion  in   Favor  of   Centralized   Control   of   Penal 

Institutions    386 

Criticism   of   Centralized    Administration 388 

B.  In  Foreign  Countries 391 

1.  In  England — 

Poor  Relief  391 

Care  of  the  Insane •• . .  391 

Penal  Institutions    392 

2.  In  France — 

Charity  Administration   393 

Prison    Administration    394 

3.  In  Germany — 

Charitable    Institutions    395 

Penal  Institutions    395 

III.  Suggestions  and  Recommendations.  396-402 

A.  Charitable   Institutions    396 

B.  Penal  and  Reformatory  Institutions 397 

Comparative   Expense 401 


A  REPORT  ON 
CHARITABLE  and  CORRECTIONAL  INSTITUTIONS 

By  Professor  James  W.  Garner,  University  of  Illinois. 


I.     CHARITABLE    AND     PENAL    ADMINISTRATION 
IN     ILLINOIS. 

A.       GENERAL  OBSERVATIONS. 

For  the  care  and  maintenance  of  the  defective,  delinquent  and  other 
dependent  classes  and  for  the  confinement  of  convicted  criminals,  the 
State  of  Illinois  maintains  twenty-five  institutions,  counting  three  that 
have  been  authorized  but  which  have  not  yet  been  established,  namely, 
the  Alton  State  Hospital,  the  Epileptic  Colony,  and  the  Surgical  Insti- 
tute for  Crippled  Children. 

Administratively  speaking,  they  fall  into  two  classes:  First,  the 
twenty-two  charitable  institutions  which  are  under  the  control  and 
management  of  a  central  body  known  as  the  Board  of  Administration 
and  which  are  subject  to  the  visitation  and  inspection  of  the  State 
Charities  Commission ;  second,  the  two  State  penitentiaries  at  Joliet  and 
Menard  and  the  State  reformatory  at  Pontiac,  each  of  which  is  under 
the  control  and  management  of  a  separate  board.  There  is  also  another 
board  which  has  charge  of  the  construction  of  a  new  penitentiary,  a 
board  of  prison  industries,  a  board  of  classification,  and  a  board  of 
pardons.  None  of  the  seven  last  named  boards  are  under  the  juris- 
diction of  the  Board  of  Administration  or  the  Charities  Commission. 

The  following  table  contains  a  list  of  the  charitable,  penal  and 
reformatory  institutions  of  the  State,  with  the  date  of  their  establish- 
ment, the  place  of  location,  the  value  of  their  property  (1910-1912), 
the  number  of  their  employees,  and  the  per  capita  cost  of  maintenance. 


346 


EFFICIENCY    AND    ECONOMY    COMMITTEE. 


STATISTICS  RELATING  TO 
ILLINOIS  STATE  CHARITABLE  AND  CORRECTIONAL  INSTITUTIONS 


CHARI'^ABLE 
INSTITUTIONS 

si 

la 

"3 

Value  of 
Property. 

L 

Oca  ■ 

^£2 

rm 

£3i2 

Hospital.  Elgin  State 

1869 
1877 
1847 
1869 
1895 
1895 
1889 
1912 

1865 
1839 
1849 

1887 

1885 

1895 

1865 

1871 

1893 

1901 

1911  " 

1913 

1911 

Elgin 

29 
61 
32 
22 
47 
43 
11 
42 

34 
22 

17 

2 
56 

3 
20 

1 

47 

510 
840 
343 
449 
593 
576 
17 
234 

529 
158 
40 

7a 

222 

15 

96 

4a 

240 

921 

.■g   1,247,603 
1,914,833 
1,237,527 
1,300,465 
1,020,010 
1,283,942 
125,388 
1,519,128 

1,009,937 
4.32,243 
361,244 

110,171 

871,328 

67,075 

281,916 

290,747 

499,991 

753,921 

277 
450 
246 
222 
180 
294 
29 
306 

185 
124 

67 

14 

73 

52 
50 

84 
70 

1,475 
2,653 
1,599 
1,572 
1.401 
2.034 
220 
674 

1,357 

398 
190 

100 

1,417 

71 

271 

169 

448 

522 

S140.00 

Kankakee  .. 

Jacksonville 

"          Anna      

Kankakee  .. 
Jacksonville 
Anna 

138.71 
130.12 
142.03 

Watertown.. 

Watertown. 

121.73 
139.59 

Chester 

Chicago  

Lincoln  State  School 
and  Colony 

Menard 

Dunning 

Lincoln 

Jacksonville 
Jacksonville 

Chicago  

Quincv 

188.90 
170.32 

149.08 

School  for  Deaf 

297.41 

School  for  Blind 

Industrial  Home  for 

the  Blind 

Soldiers'  and  Sailors' 

Home 

308.25 
295.46 
151.98 

Soldier's  Widows' 
Home 

Wilmington 

Normal 

Chicago 

Geneva 

St.  Charles  ■ 

360.25 

Soldier's  Orphans' 
Home 

Charitable  Eye  and 
Ear  Infirmary 

Training   School  for 
Girls 

248.08 
279.63 
208.91 

St.    Charles    School 

237.03 

Psycopathic  Institute 

Alton  St.  Ho.spital.... 

Epileptic  Colony 

Surgical  Institute 

Totals.  Charitable 
Institutions 

511 

5,783 

$14,327,472 

S   1,887,279 
1.602,401 
1,022,661 

2,751 

16,578 

S1C6.87 

CORRECTIONAL 
INSTITUTIONS 

Illinois  state  Pen'ry 

South,  in.  Pen'ry 

Illinois  State  Reformatory 
Totals,    Correctional 

1857 
1877 
1807 

JoUet 

116 
109 
107 

19 

1,376 

1,185 

681 

0-12 

S  175.20 

Menard 

197.10 

255.50 

$  4,512,341 

332 

3,242 

$208.05 

$18,839,813 

3,083 

19,820 

a — City  Lots. 

From  the  standpoint  of  the  classes  of  dependents  for  the  care 
and  maintenance  of  whom  these  institutions  have  been  estabHshed,  the 
charitable  institutions  may  be  grouped  into  four  divisions:  (a)  those 
for  mental  defectives,  including  the  criminal  insane  and  feeble  minded 
children;  (b)  those  for  physical  defectives,  such  as  the  blind,  the  deaf, 
the  dumb,  crippled  children,  and  those  afflicted  with  diseases  of  the  eye 
or  ear;  (c)  those  for  honorably  discharged  soldiers  and  sailors  and 
their  dependent  orphans  and  widows;  and  (d)  those  for  delinquent 
boys  and  girls.  The  law  denominates  as  "charitable"  all  the  institu- 
tions created  for  the  care  of  these  several  classes  of  persons,  although 
strictly  speaking  some  of  them,  like  the  training  schools  for  delinquent 
children  and  the  asylum  for  insane  criminals,  are  not  in  reality  charit- 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  347 

able  institutions,  and  they  were  not  so  designated  by  law  prior  to  1909. 
The  Act  of  June  15,  1909,  however,  includes  them  in  the  category  of 
"charitable"  institutions  and  subjects  them  to  the  inspection  and  inves- 
tigation of  the  State  Charities  Commission,  along  with  the  other  more 
strictly  charitable  institutions. 

It  will  be  seen  from  the  accompanying  statistical  tables  that  the 
total  number  of  inmates  in  all  these  institutions  is  about  20,000,  that 
they  embrace  an  aggregate  of  more  than  500  buildings,  and  that  the 
total  valuation  of  their  property  is  about  $19,000,000.  The  total  legis- 
lative appropriations  for  1913-15  am.ount  to  $12,775,993. 

B.       CHARITABLE  INSTITUTIONS. 

1.  Orgam::ation  and  Administration  Before  1910. 
The  first  State  charitable  institution  to  be  established  in  Illinois 
was  the  asylum  for  the  education  of  the  deaf  and  dumb,  which  was 
located  at  Tacksonville  in  1839.  It  was  placed  under  the  control  of 
a  board  of  directors  appointed  by  the  Governor,  the  immediate  man- 
agement being  vested  in  the  hands  of  a  superintendent  chosen  by  the 
board.  In  1847  a  hospital  for  the  insane  was  established,  and  it,  too, 
was  located  at  Jacksonville.  It  was  placed  under  the  control  of  a  board 
of  trustees  appointed  by  the  Governor  for  a  term  of  three  years.  The 
board  was  empowered  to  choose  a  superintendent  for  a  term  of  two 
years  and  to  remove  him  for  unfaithfulness  or  incompetency. _  The  in- 
mates of  the  asylum  were  required  to  pay  the  cost  of  their  maintenance 
wherever  possible ;  in  case  they  were  unable,  the  expense  was  borne  by 
the  counties  from  which  they  came.  In  1851  the  expense  of  main- 
taining insane  paupers  was  transferred  from  the  counties  to  the  State, 
thus  making  the  asylum  more  definitely  a  State  institution.  The  num- 
ber of  persons  received  from  each  county  was  based  upon  the  popu- 
lation of  the  county.  The  third  of  the  State  charitable  institutions  to 
be  established  was  the  institution  for  the  blind,  also  located  at  Jackson- 
ville ( 1849) .  It  was  placed  under  the  control' of  a  board  of  five  trustees 
appointed  by  the  Governor  for  a  term  of  four  years.  In  1851  the  term 
was  reduced  to  two  years. 

By  an  act  of  1853  the  government  of  the  three  institutions  was 
somewliat  modified  with  a  view  to  uniformity.  The  number  of  mem- 
bers of  the  boards  of  trustees  of  the  asylum  for  the  insane  and  the 
institution  for  the  deaf  and  dumb  was  fixed  at  six  and  their  terms  of 
service  at  four  years.  The  size  and  term  of  the  board  of  trustees  of 
the  institution  for  the  education  of  the  blind  w^as  unaflrected  by  the  act. 

None  of  the  trustees  had  received'any  compensation  for  their  serv- 
ices or  an  allowance  for  their  expenses.  The  Act  of  1853,  however, 
provided  that  henceforth  their  travelling  and  personal  expenses  in- 
curred in  the  performance  of  their  official  duties  should  be  paid  out 
of  the  funds  of  the  institution.  Accounts  of  each  institution  were 
required  to  be  kept  and  reported  so  as  to  show  the  kind,  quality  and 
cost  of  every  article  purchased  for  the  institution  and  the  name  of  the 
person  of  whom  bought.  The  law  contained  other  provisions  which 
indicated  a  centralizing  tendency  and  a  desire  to  secure  greater  uni- 
formity in  the  organization  and  management  of  the  institutions. 


348  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

In  1865  provision  was  made  for  two  other  institutions.  These 
were  the  Soldiers'  Orphans'  Home,  located  at  Normal,  and  the  school 
for  the  instruction  and  training  of  idiots  and  feeble  minded  children, 
located  at  Lincoln,  and  now  known  as  the  Lincoln  State  School  and 
Colony.  The  former  was  placed  under  the  control  of  a  board  of  nine 
trustees  appointed  by  the  Governor  for  a  term  of  two  years;  the  latter 
was  placed  under  the  control  of  the  directors  of  the  asylum  for  the 
deaf  and  dumb,  so  far  as  the  expenditures  of  its  funds  were  concerned. 
In  1869  two  additional  hospitals  for  the  insane  were  created,  one  being 
located  "at  Elgin,  the  other  at  Anna.  Like  the  other  charitable  insti- 
tutions each  was  put  under  the  control  of  a  board  of  trustees. 

At  the  time  of  the  adoption  of  the  present  constitution,  therefore, 
seven  State  charitable  institutions  had  been  established,  each  under  the 
control  of  a  separate  board  of  trustees  of  varying  size  and  terms  of 
office.  There  was  no  correlation  among  the  different  institutions  and 
but  little  uniformity  of  policy.  Each  purchased  its  own  supplies  and 
managed  its  own  affairs  without  respect  to  the  others.  The  boards  of 
trustees  were  required  to  make  reports  to  the  Legislature  and  the  in- 
stitutions were  biennially  visited  by  committees  of  the  Legislature,  but 
further  than  this  there  was  no  machinery  of  inspection,  no  unifying 
agency,  no  legally  recognized  body  of  experts  with  the  power  to  inves- 
tigate the  conditions  of  the  institutions  and  recommend  legislative  or 
administrative  measures  for  their  improvement. 

The  State  Board  of  Public  Chanties. 

Some  degree  of  central  supervision  over  these  institutions  was 
provided  by  the  creation,  in  1869,  of  the  Board  of  State  Commissioners 
of  Public  Charities,  popularly  known  as  the  State  Board  of  Charities. 

The  board  was  composed  of  five  members  appointed  by  the  Gov- 
ernor, with  the  consent  of  the  Senate,  for  a  term  of  five  years.  The 
members  received  no  compensation  other  than  an  allowance  for  their 
expenses  and  for  any  necessary  outlay  incurred  in  making  investiga- 
tions. They  were  authorized  to  employ  a  salaried  secretary.  It  was 
made  their  duty,  or  that  of  some  one  of  their  number,  to  visit  all  the 
charitable  and  correctional  institutions,  except  prisons  receiving  State 
aid,i  twice  a  year  and  to  ascertain  whether  the  funds  appropriated  for 
their  aid  had  been  economically  and  judiciously  expended,  whether  the 
laws  had  been  complied  with  and  whether  the  institution  had  "accom- 
plished its  purpose."  They  were  required  to  report  the  results  of 
their  investigations  to  the  Governor  annually  and  to  make  any  special 
investigations  which  he  might  direct  them  to  make.  They  were  also 
required  to  visit  at  least  once  a  year  and  examine  into  the  condition 
of  each  county  and  city  alms  house  and  other  places  where  the  insane 
were  confined  and  to  report  thereon  in  writing  to  the  Legislature.  They 
were  empowered  to  appoint  a  board  of  auxiliary  visitors  in  each 
county,  consisting  of  three  persons,  to  visit  all  county  alms  houses,  jails 
and  other  places  (other  than  State  institutions  or  licensed  private  insti- 
tutions for  the  care  of  the  insane),  in  which  any  person  of  unsound 
mind  was  confined. 


1.  There  were  then  two  correctional  institutions:  the  Tenitentiiiry  at  .Toliet, 
created  In  1857.  and  the  Reformatory  at  Pontiac,  created  In  1867.  The  Southern 
Ililnois  Penitentiary  at  Menard  was  not  established  until  1877. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  349 

The  trustees  and  directors  of  each  mstitution  were  required  to 
make  a  full  and  detailed  biennial  report  to  the  board  concerning  their 
financial  and  other  transactions,  which  report,  if  found  correct  by  the 
board  of  charities,  was  to  be  delivered  by  them  to  the  Governor. 

The  creation  of  the  State  Board  of  Charities  was  an  important  step 
in  a  slow  movement  toward  a  more  centralized  system  of  administra- 
tion for  the  charitable  institutions,  a  movement  which  finally  resulted 
in  the  creation  of  the  Board  of  Administration  in  1909. 

The  Act  of  1869  also  made  certain  changes  in  the  administrative 
organization  of  the  charitable  institutions.  The  number  of  trustees  on 
the  governing  boards  of  most  of  the  institutions  was  reduced  to  three, 
a  measure  designed  to  secure  a  more  effective  responsibility  and 
efficiency  of  management;  and  the  Governor  was  given  power  to 
remove  any  trustee  or  director  whenever  in  his  judgment  the  best 
interests  of  the  institution  required,  the  only  limitation  being  that  he 
was  required  to  communicate  to  the  General  Assembly  the  reasons 
for  his  action. 

The  first  State  Board  of  Charities  was  organized  in  April,  1869. 
It  divided  the  State  into  five  districts  and  assigned  one  member  of  the 
board  to  each  district.  During  the  first  year  of  its  existence  43  alms 
houses  and  60  jails  were  inspected.  One  of  its  first  acts  was  to  take 
a  census  of  idiots  and  insane  persons,  and,  upon  its  recommendation, 
the  Legislature,  in  1872,  gave  it  full  authority  to  collect  and  tabulate 
statistical  and  other  information  regarding  the  number  of  persons  in 
the 'State  who  were  receiving  charitable  relief  and  the  methods  by 
which  this  relief  was  distributed. 

Upon  the  urgent  recommendation  of  the  State  Board  of  Charities 
the  Legislature  in  1875  enacted  an  important  law  "to  regulate  the  State 
charitable  institutions  (then  eight  in  number)  and  the  State  reform 
school  (at  Pontiac)  and  to  improve  their  organization  and  increase 
their  efficiency."  The  act  provided  that  each  institution  should  be 
under  the  control  of  a  board  of  three  trustees  appointed  by  the  Gov- 
ernor for  a  term  of  six  years,  no  county  to  be  represented  by  more 
than  one  trustee  on  any  board;  the  Governor  was  given  the  power  to 
remove  any  trustee  for  good  cause;  the  superintendents  of  the  insane 
asylums  and  the  institution  for  the  feeble  minded  were  required  to  be 
"educated  and  competent  physicians;"  the  principal  executive  officer 
of  each  institution  was  to  be  a  superintendent  appointed  by  the  board 
of  trustees  and  he  was  to  be  the  financial  agent  of  the  trustees;  each 
institution  was  to  have  a  treasurer  whose  books  and  papers  were  to  be 
open  to  the  inspection  of  the  trustees  at  all  times ;  the  trustees  were  to 
receive  no  compensation  other  than  their  actual  expenses  and  they  were 
required  to  hold  meetings  at  the  institution  at  least  once  every  three 
months ;  they  were  required  to  purchase  supplies  wherever  they  could 
obtain  the  best  quality  at  the  lowest  price,  and  in  so  far  as  practicable 
in  large  rather  than  in  small  quantities ;  each  institution  was  required  to 
keep  a  record  of  the  number  of  officers,  employees,  and  inmates  pres- 
ent each  day  ;  also  records  of  the  amount  of  stores  and  supplies  re- 
ceived and  issued;  and  finally  the  board  of  trustees  of  each  institution 


350  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

was  required  to  make  biennial  reports  to  the  State  Board  of  Charities 
concerning  the  administration  of  the  institution  during  the  two  preced- 
ing years. 

From  time  to  time  new  institutions  were  established,  as  shown 
below : 

1871 — Charitable  Eye  and  Ear  Infirmary,  Chicago.^  • 
1877 — Eastern  Hospital  for  the  Insane,  Kankakee. 
1885 — Soldiers'  and  Sailors'  Home,  Quincy.  " 

1887 — Industrial  Home  for  the  Blind,  Chicago. 
1889 — Asylum  for  Insane  Criminals,  Chester. 
1893 — Home  for  Juvenile  Female  Offenders,  Geneva.^ 
1895 — Western  Hospital  for  the  Insane,  Watertown. 

General  Hospital  for  the  Insane,  South  Bartonville. 
Soldiers'  W^idows'  Home,  Wilmington. 
1901— St.  Charles  School  for  Boys,  St.  Charles. 

The  Act  of  1875  was  the  organic  law  for  the  government  of  all 
the  charitable  institutions  until  1910,  although  it  was  amended  in 
unimportant  particulars  in  1887,  1905  and  1907.  The  State  Board  of 
Charities  commended  the  law  as  one  of  the  best  on  the  statute  books ; 
but  it  complained  that  its  own  powers  were  insufficient,  its  functions 
including  merely  the  power  to  investigate  and  recommend. 

In  its  report  for  the  year  1900  (p.  42)  the  Board  thus  described 
the  situation :  "These  fifteen  charitable  institutions  have  forty-nine 
trustees  and  there  are  five  members  of  the  board  of  commissioners  of 
public  charities,  making  in  all  fifty-four  persons  who  are  charged  with 
the  duty  of  seeing  that  these  institutions  are  properly  managed  under 
the  law.  In  addition  they  have  fifteen  local  treasurers.  All  of  the 
institutions  are  under  the  supervision  of  this  board.  Our  duties,  how- 
ever, are  merely  advisory,  we  having  no  real  executive  or  controlling 
power.  Under  the  law  we  are  required  to  visit  each  of  them  at  least 
twice  a  year  to  see  that  the  moneys  appropriated  for  their  support  are 
economically  and  judiciously  expended,  to  see  whether  their  purposes 
are  accomplished  and  whether  the  laws  in  relation  to  them  are  complied 
with.  It  also  requires  us  to  inquire  and  examine  into  their  methods  of 
government  and  management,  the  conduct  of  their  trustees,  officers  and 
employees,  the  condition  of  the  property  and  into  all  matters  pertaining 
to  their  usefulness  and  management.  In  addition  to  this  the  law  re- 
quires us  to  approve  their  accounts.  Notwithstanding  all  these  require- 
ments this  board  as  constituted  has  no  such  executive  power  to  enforce 
any  of  its  recommendations  as  should  be  lodged  in  a  central  governing 
body." 

As  stated  in  the  above  quotation  each  institution  had  its  own 
treasurer  and  each  purchased  its  own  supplies,  the  result  being  a  wide 
variation  of  prices  and  sometimes  of  quality  as  between  the  different 
institutions. 

The  trustees  being  unpaid  gave  only  a  small  portion  of  their  time 
to  the  performance  of  their  duties,  which  tended  to  become  merely 

2.  Founded   ns  a   private  institution  in   18.5S:   aided   by   State   appropriations   be- 
ginning in  1867,  and   organized   as  a   State  institution  in   1871. 

3.  Name  changed  to  the  State  Training  School  for  Girls,  in  1901. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  351 

perfunctory.  Attendance  upon  the  meetings  (ordinarily  there  was  one 
meeting  a  quarter)  was  irregular;  and  instances  were  not  wanting  in 
which  the  control  over  a  particular  institution  was  in  fact  exercised 
for  a  considerable  period  of  time  by  a  single  trustee.  The  natural 
result  of  such  a  system  was  want  of  uniformity  of  policy,  loss  of 
efficiency  and  unnecessary  financial  waste.  As  time  passed  the  dissatis- 
faction with  the  system  increased.  The  State  Board  of  Charities,  the 
State  Conference  of  Charities  and  Corrections  and  other  interested 
organizations  inaugurated  a  campaign  for  a  reorganization  of  the  exist- 
ing system.  This  movement  was  supported  by  the  press  and  by  public 
sentiment  generally  and  a  radical  reorganization  was  advocated  by  sev- 
eral legislative  committees  of  investigation. 

The  State  Civil  Service  law  of  1905  was  enacted  to  eliminate 
political  influences  in  the  management  of  these  institutions,  and  at  the 
same  tim.e  centralized  the  selection  of  subordinate  employees,  by  pro- 
viding for  their  appointment  on  the  basis  of  competitive  examinations 
under  the  State  Civil  Service  Commission.  Finally  by  an  Act  approved 
June  15,  1909,  the  former  system  of  administration  for  these  institu- 
tions was  abolished,  and  the  present  centralized  system  was  established. 

2.     Present  Organisation. 

With  a  view  to  standardizing  the  administration  of  the  charitable 
institutions,  increasing  the  efficiency  of  their  management  and  securing 
greater  economy  of  their  expenditures,  the  Act  of  1909  abolished  the 
separate  boards  of  trustees  and  managers  and  cceated  a  single  central 
authority  called  the  Board  of  Administration,  in  whose  hands  were  con- 
centrated the  management  and  control  of  all  the  charitable  institutions, 
though  not  the  penal  and  reformatory  institutions.  The  latter  were  left 
untouched  by  the  act  of  1909  and  are  still  under  the  management  of 
separate  boards.  The  treasurers  of  the  several  institutions  were  like- 
wise abolished  and  the  funds  of  each  were  required  to  be  transferred 
to  the  State  Treasurer,  who  was  declared  to  be  henceforth  the  custodian 
of  the  funds  of  all  institutions  subject  to  the  control  of  the  Board  of 
Administration,  with  the  exception  of  the  monthly  salary  and  contingent 
funds  which  were  to  be  left  in  the  hands  of  the  superintendent  or  other 
managing  officers.  The  act  directed  that  all  moneys  collected  by  the 
institutional  heads  from  the  sale  of  products  or  from  other  sources 
should  be  transmitted  to  the  State  Treasurer  each  month,  together  with 
a  detailed  statement  to  the  fiscal  supervisor. 

In  addition  the  Act  of  1909  abolished  the  State  Board  of  Charities 
and  created  in  its  place  a  Charities  Commission  to  be  described  here- 
after. It  also  conferred  a  legal  status  on  the  State  Conference  of 
Charities  and  Corrections  by  permitting  various  bodies  to  pay  the  ex- 
penses of  delegates  to  attend  its  sessions. 

The  Board  of  Administration,  created  by  the  Act  of  1909,  is 
composed  of  five  members  appointed  by  the  Governor,  with  the  consent 
of  the  Senate,  and  removable  by  him  for  incompetency,  neglect  of  duty 
or  malfeasance  in  office.  Not  more  than  three  members  of  the  board 
may  belong  to  the  same  political  party ;  one  member  must  be  qualified 
by  experience  to  advise  the  board  regarding  the  care  and  treatment  of 


352  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

the  insane,  the  feeble  minded  and  epileptics ;  one  member  must  be 
designated  by  the  Governor  as  president  of  the  board;  the  other  three 
members  must  be  reputable  citizens.  The  board  is  required  to  elect 
one  of  its  members  as  fiscal  supervisor  and  one  as  secretary;  and  it  is 
empowered  to  employ  such  other  officers,  agents  and  employes  as  it 
may  deem  necessary  for  the  efficient  conduct  of  its  business. 

The  term  of  the  members  of  the  Board  of  Administration  is  fixed 
at  six  years  and  the  salary  of  each  member  at  $6,000  per  year  plus  an 
allowance  for  the  necessary  travelling  expenses  incurred  while  in  the 
discharge  of  their  duties.  Each  member  is  required  to  devote  his 
entire  time  to  the  duties  of  his  office. 

The  principal  powers  and  duties  of  the  Board  of  Administration 
may  be  grouped  in  the  following  divisions : 

1.  To  exercise  executive  and  administrative  supervision  over  all  State 
charitable  institutions,  succeeding  to  all  the  propertj',  rights,  powers  and 
duties  of  the  former  boards  of  trustees,  managers  or  commissioners,  and 
with  power  to  accept  and  hold  grants,  gifts  and  bequests ; 

To  appoint  and  remove  the  superintendents  or  managing  officers  of 
the  State  charitable  institutions,  and  (subject  to  the  civil  service  laws) 
'all  other  employees  of  the  several  institutions  as  well  as  its  own  employ- 
ees, and  with  the  approval  of  the  civil  service  commission  to  determine 
the  salaries  of  all  institutional  emploj^ees  (except  the  superintendent  and 
managing  officers),  which  shall  be  as  nearly  uniform  as  practicable  for 
like  services; 

To  regulate  the  admission  of  inmates  into  the  State  hospitals,  and  to 
cause  the  removal  to  the  State  hospitals  of  all  insane  persons  confined 
in  the  county  almshouses,  and  of  feeble  minded  women  and  children 
from  such  hous'es  to  the  Lincoln  school  and  colony; 

To  cause  one  of  its  members  to  visit  each  institution  under  its  con- 
trol at  least  once  each  quarter,  and  in  addition  as  often  as  may  be 
deemed  necessary,  and  to  make  an  inspection  of  every  part  thereof,  in- 
cluding an  examination  of  the  records,  stores,  and  methods  of  admin- 
istration ; 

To  make  contracts  for  the  purchase  of  material  and  supplies  for  all 
institutions  subject  to  its  control. 

2.  To  inspect  and  investigate  county  jails,  city  prisons,  houses  of 
correction,  workhouses,  and  all  places  in  which  persons  convicted  or 
suspected  of  crime  are  confined,  to  ascertain  their  sanitary  condition  and 
how  the  insane  are  treated ;  no  county,  city  or  village  may  erect,  add  to 
or  remodel  a  jail,  almshouse  (or  similar  institution)  without  submitting 
plans  and  specifications  to  the  board  for  criticism  and  suggestions. 

3.  To  exercise  supervision  over  private  charities,  by  inspecting,  on 
complaint  of  at  least  two  reputable  citizens,  any  charitable  association 
which  appeals  to  the  public  for  aid  or  is  supported  by  trust  funds;  by 
licensing  and  inspecting  all  institutions  or  houses  in  which  persons  are 
detained  for  care  or  treatment  for  mental  or  nervous  diseases;  by  licens- 
ing (and  revoking  licenses),  and  supervising  home  finding  associations  and 
orphanages,  and  examining  and  reporting  to  the  Secretary  of  State  upon 
the  merits  of  all  associations  for  the  care  of  dependent  or  delinquent 
children  which  seek  incorporation;  by  the  visitation  of  children  who  have 
been  placed  in  family  homes;  and  by  the  visitation  and  instruction  of 
the  adult  blind. 

4.  The  board  is  to  report  to  the  Governor  each  year  its  acts,  proceedings 
and  conclusions,  which  report  must  contain  a  complete  financial  statement 
of  the  several  institutions,  and  state  whether  the  moneys  appropriated  for 
their  aid  have  been  economically  and  judiciously  expended,  whether  the 
laws  have  been  complied  with,  and  such  other  information  and  recom- 
mendations as  it  may  deem  proper. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  353 

From  this  summary  it  will  be  seen  that  the  powers  of  the  Board 
of  Administration  are  extensive  and  varied.  They  include  the  powers 
of  visitation,  inspection  and  investigation  over  both  State  and  local 
institutions  and  over  those  which  are  private  as  well  as  those  which  are 
.public;  in  some  cases  it  includes  the  power  of  licensing  and  of  revokmg 
licenses  for  certain  reasons.  Over  the  twenty-two  State  institutions 
under  its  jurisdiction  its  power  of  control  is  practically  absolute. 

The  Fiscal  Supervisor  is  elected  by  the  board  from  among  its 
members.  He  is  charged,  under  the  supervision  of  the  board,  with 
examining  into  the  condition  of  all  property  belonging  to  the  charit- 
able institutions,  wdth  inquiring  into  the  methods  of  bookkeeping,  store- 
keeping  and  all  financial  and  business  operations  generally  of  the  sev- 
eral institutions,  and  with  receiving,  examining  and  presenting  with 
this  opinion  to  the  board  all  plans  and  specifications  for  the  construc- 
tion of  new  buildings.  He  is  empowered  to  require  of  the  managing 
officers  of  the  institutions  the  presentation  of  estimates  of  their  needs, 
which  estimates  he  is  required  to  tabulate  and  present  to  the  board 
with  his  recommendation.  It  is  then  the  duty  of  the  board,  with  the 
approval  of  the  Governor,  to  present  the  needs  of  the  institutions  to 
the  Legislature. 

At  least  once  a  year  the  fiscal  supervisor  is  required  to  call  the 
managing  officers  of  the  several  institutions  to  a  joint  meeting  with  a 
committee  of  the  board  for  the  purpose  of  classifying  the  supplies  and 
estimating  the  requirements  of  each  institution  so  as  to  provide  for 
their  most  practical  and  economical  purchase.  This  body  is  knowm  as  the 
Board  of  Joint  Estimate  whose  duty  it  is  to  provide  for  the  purchase 
of  supplies  in  large  quantities  on  contracts  for  periods  not  exceeding 
fifteen  months.  The  law  declares  that  the  purchase  of  all  supplies 
shall  be  on  the  basis  of  competitive  bidding  after  an  advertisement  of 
proposals  in  one  or  more  newspapers  in  each  of  the  seven  largest  cities 
of  the  State.  The  managing  officer  of  each  institution  is  required  to 
present  to  the  fiscal  supervisor  a  detailed  monthly  estimate  of  needed 
supplies,  materials,  salaries,  etc.,  which  estimates  may  be  altered  by 
the  fiscal  supervisor  for  reasons  which  he  is  required  to  give  in  writing. 
Upon  the  filing  by  him  of  a  copy  of  the  estimates  with  the  State  auditor, 
it  is  made  the  duty  of  the  latter  official  to  draw  w'arrents  on  the  State 
Treasurer  for  the  amounts.  The  salary  and  contingent  funds  for  each 
institution  are  placed  in  the  hands  of  the  managing  officer. 

An  Act  of  1911  provides  for  a  supervising  engineer  to  be  appointed 
by  the  Board  of  Administration,  to  advise  the  board  and  the  General 
Assembly  in  matters  relating  to  the  construction,  repair  and  economical 
management  of  the  State  institutions,  and  to  prepare  plans  and  speci- 
fications. 

An  Act  of  1913  creates  the  office  of  State  Deportation  Agent  and 
an  assistant,  to  be  appointed  by  the  Board  of  Administration,  to 
arrange  for  the  deportation  of  alien  inmates  in  the  State  hospitals  and 
other  charitable  institutions. 


354  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

The  staff  of  the  Board  of  Administration  in  October,  1913,  and 
salaries  and  appropriations  in  1913  were  as  follows: 

Per  Year. 

Five  members  of  Board  of  Administration  at  $6,000 $30,000 

Supervising  engineer  4.000 

State  Agent,  Home  Visitation 2,000 

Deportation  Agent  3,600 

Assistant  Deportation  Agent 2,400 

Total  statutor>-  positions $42,000 

Chief  clerk    $2,500 

Statistician 2,100 

Bookkeeper    1,800 

Storekeeper  and  assistant  bookkeeper 1,800 

Two  reimbursing  clerks  at  $1,500 3,000 

Two  male  clerks  at  $1,800 3,600 

Two  male  clerks  and  stenographers  at  $1,200 2,400 

One  female  stenographer 1,200 

Two  female  stenographers  at  $1,000 2,000 

Filing  clerk 1,200 

Messenger    900 

Two  assistant  Home  visitors  at  $1,200 2,400 

One  assistant  Home  visitor ^ 1,000 

One  stenographer    1^000 

One  superintendent  adult  blind 1  ^400 

Seven  instructors  adult  blind 3,500       31,800 

Total  salaries   (36  positions) $73,800 

Annual  appropriations  for  expenses — 

Office  and  traveling  expenses $14,000 

Office  and  traveling  expenses  Home  Visitors 5,000 

Clerk  hire   and   tabulating 1,750 

Total  administrative  expenses 20,750 

Total  salaries  and  expenses $94,550 

The  Charities  Commission. 

This  takes  the  place  of  the  old  board  of  charities,  and  is  com- 
posed of  five  persons,  not  more  than  three  of  whom  may  belong  to  the 
same  political  party.  They  are  appointed  by  the  Governor,  with  the 
consent  of  the  Senate,  for  a  term  of  five  years;  and  the  law  contains 
no  provision  in  regard  to  the  right  of  the  Governor  to  remove  them 
for  cause  or  otherwise.  They  receive  no  compensation  other  than  an 
allowance  for  necessary  travelling  expenses  incurred  in  the  perform- 
ance of  their  duties.  The  commission  is  authorized  to  employ  an 
executive  secretary  at  a  salary  of  $3,600  per  year,  and  such  other 
officers,  agents  and  employees  as  it  may  deem  necessary.  The  powers 
of  the  commission  are  merely  visitorial,  investigational  and  recom- 
mendatory in  character ;  but  they  extend  to  both  State  and  local,  public 
and  private  institutions.  They  include  the  investigation  of  all  State 
charitable  institutions,  especially  the  State  hospitals,  and  certain  local 
institutions,  such  as  county  jails  and  alms  houses,  with  particular 
reference  to  their  condition  and  management;  and  the  commission  may 
at  its  discretion  inquire  into  the  equipment,  management  and  policies 
of  all  other  institutions  subject  to  the  supervision  and  inspection  of  the 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  355 

Board  of  Administration,  such  as  orphanages,  lying-in  hospitals,  home- 
finding  associations  and  the  like.  It  also  has  supervision  over  the 
local  boards  of  visitors  to  charitable  institutions,  to  be  described  later. 
The  commission  is  required  to  collect  and  publish  criminal  statistics 
and  to  make  an  annual  report  to  the  Governor,  which  report  shall  con- 
tain such  suggestions  and  recommendations  as  it  deems  necessary  and 
pertinent. 

The  inspectional  duties  of  the  commission  are  for  the  m.ost  part 
carried  out  by  the  executive  secretary.  He  also  edits  the  Institutional 
Quarterly,  a  publication  dealing  v/ith  the  conditions  and  progress  of 
the  charitable  institutions,  conducts  investigations  of  accidents,  pre- 
pares reports,  arranges  the  program  of  the  annual  meeting  of  the  State 
Conference  of  Charities  and  Corrections,  and,  in  general,  watches  over 
the  execution  of  the  laws  relating  to  the  charitable  institutions. 

The   staff  of  the  charities   commission  and  annual   salaries   and 
appropriations  in  1913  were  as   follows: 
Five  members,  no  salary  but  expenses  paid  :  Per  Year. 

Executive  secretary   $  3,600 

Assistant  secretary  and  stenographer 1,200 

Stenographer   900 

Inspector  of  institutions 1,200 

Messenger  and  janitor 800 

Total  salaries $  7,700 

Office  and  traveling  expenses $5,000 

Expenses  of  auxiUary  visitors 1,500 

Expenses  conference  of  charity 750 

Purchase  of  books  for  library'. 500        7,750 

Total    salaries   and    appropriations $15,450 

Boards  of  Visitors. 

The  Act  of  1909  further  provides  for  a  Board  of  Visitors  for 
each  of  the  several  institutions  under  the  control  of  the  Board  of 
Administration.  Each  board  of  visitors  consists  of  three  members 
appointed  by  the  Governor,  with  the  consent  of  the  Senate,  for  a  term 
of  six  years.  They  receive  no  compensation  for  their  services,  but 
the  law  authorizes  an  allowance  for  the  payment  of  their  expenses. 
It  is  made  their  duty  to  visit  and  inspect  the  institution  for  which  they 
are  appointed  at  least  once  each  quarter  in  the  case  of  institutions 
having  the  whole  State  for  a  district,  and  at  least  once  a  month  in  the 
case  of  institutions  whose  districts  are  fractional  parts  of  the  State. 
They  are  required  to  make  a  written  report  to  the  charities  commission 
within  ten  days  after  such  inspection,  which  report  shall  state  in  detail 
the  condition  of  the  institution  and  of  its  inmates,  and  shall  include 
such  other  matters  pertaining  to  the  management  and  affairs  thereof 
as  it  may  deem  proper.  It  is  further  made  the  duty  of  each  board  to 
make  an  annual  report  to  the  charities  commission  in  regard  to  the 
results  of  its  visits  and  inspections. 

So  far,  this  provision  of  the  law  has  remained  practically  a  dead 
letter,  since  only  one  or  two  such  boards  have  in  fact  been  appointed 
since  the  enactment  of  the  law. 


356  ci'yiciKNCY  and  economy  committee. 

Appropriations. 

The  appropriations  made  in  1913  for  the  administration  and  sup- 
port of  State  charities  for  two  years,  including  salaries  paid  out  of  the 
general  salaiy  appropriations,  are  shown  below  : 
Board  of  Administration  : 

Salaries $147,600.00 

Expenses    41,500.00    $      189,100.00 

Charities  Commission : 

Salaries $  15,400.00 

Expenses    15,500.00    $       30,900.00 

Charitable  Institutions : 

Ordinary  operating  expenses $7,123,337.42 

Ordinary^  repairs  and  improvements 716,900.00 

Ordinary  care  of  grounds 64,400.00 

Total   ordinary  expenses $7,904,637.42 

Special  appropriations   3,441,814.04    $11,346,451.46 

Special  Appropriations :  

Cherry   mine   sufferers $43,025.18 

Secretar>-  Cherry  mine  relief  committee 600.00 

Relief  of  William  Baker 10,000.00 

Aid  of  B.  C.  B.  Jorgensen 6,540.00 

Aid  of  Henry  Prj-or ....     2,000.00    $       62,165.18 

Grand  total  $11,628,616.64 

ESTIMATES   FOR   ORDINARY  EXPENSES   AND   SPECIAL   APPROPRIATIONS    FOR 
STATE  CHARITABLE  IN.STITUTIONS,    1913-1915. 
Estimates  for        Special 
Ordinarj-  Appro- 
Institutions.                               Expenses.  priations.  Totals. 

Elgin    State    Hospital $    606,771.32  $    151,500.00  $    758,271.32 

Kankakee   State   Hospital 1,090,659.00  289,898.90  *tl,380,557.90 

Kankakee  Psychopathic  Institute 34,600.00          34,600.00 

Jacksonville   State  Hospital 580,586.10  21,190.00  601.776.10 

Anna  State  Hospital 599,354.00  200,674.27  *S00,028.27 

Watertown  State  Hospital 477,896.20  217,300.00  *695.196.20 

Peoria    State   Hospital 890,101.30  165,700.00  1,055,801.30 

Chester    State    Hospital 96,324.00  500.00  96,824.00 

Chicago  State  Hospital 1,081,240.00  830,966.21  *1,912,206.21 

Lincoln  State  School  and  Colony 506,722  00  102,000.00  608,722.00 

The  Illinois  School  for  the  Deaf 271,007.00  2,000.00  273,007.00 

The  Illinois  School  for  the  Blind 144,726.80  12,700.00  157,426  80 

The  Illinois  Industrial  Home  for  Blind  64,488.00  135,750.00  200,238.00 
The  Illinois  Soldiers'  and  Sailors  Home  482,180.40  15,780.00  487,960.40 
The  Soldiers'  Widows'  Home  of  Illinois  97,165.00  1,000.00  98,165.00 
The  Illinois  Soldiers'  Orphans'  Home.  .  170,192.30  22,300.00  192,492.30 
The  Illinois  Charitable  Eye  and  Ear  In- 
firmary       110,004.00         110,004.00 

State  Training  School  for  Girls 225,860.00  65,935.47  291,795.47 

St.  Charles  School  for  Boys 374,760.00  206,500.00  581,260.00 

Alton  State  Hospital 500,119.19  *500,119.19 

State  Colony  for  Epileptics 500,000.00  500,000.00 

Totals $7,904,637.42  $3,441,814.04  $11,346,451.46 


♦Includes  re-appropriations  as  follows : 

Kankakee  State  Hospital $  23,348.90 

Anna  State  Hospital 145,274.27 

Watertown    State   Hospital 75!000.00 

Chicago  State  Hospital 76,666.21 

Alton  State  Hospital 295,119.19 

fKankakee  (emergency)   15,000.00 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  357 

C.       PENAL    AND   REFORMATORY    INSTITUTIONS. 

1.     Separate  Boards. 

The  first  State  Penitentiary  was  authorized  in  1827,  and  was 
established  at  Alton.  The  site  and  buildings  were  sold  by  the  State 
when  the  new  penitentiary  at  Joliet  was  provided.  The  Illinois  State 
Penitentiary  at  Joliet  was  authorized  in  1857.  The  Southern  Illinois 
Penitentiary  at  Chester  was  created  by  Act  of  187^.  The  General 
Assembly  in  1867  provided  for  a  State  Reform  School,  which  was 
located  at  Pontiac,  and  this  institution  was  reorganized  in  1891,  and 
its  name  changed  to  the  Illinois  State  Reformatory, 

The  bill  to  establish  the  Board  of  Administration,  as  originally 
drafted  and  reported,  included  the  two  penitentiaries  and  the  reform- 
atory among  the  institutions  placed  under  its  control ;  but  they  were 
stricken  out  during  the  discussion  on  the  bill.  As  finally  passed,  the 
bill  did  not  apply  to  these  three  institutions ;  the  system  under  which 
they  are  managed  and  controlled  remained  as  before.  Instead  of  being 
subject  to  the  administration  of  a  common  board,  as  are  the  charitable 
institutions,  each  remains  under  the  control  of  a  separate  board 
appointed  by  the  Governor,  with  the  consent  of  the  Senate. 

In  the  case  of  the  penitentiaries,  there  is  a  board  of  commissioners 
for  each  institution,  composed  of  three  members  appointed  for  a  term 
of  six  years;  in  the  case  of  the  reformatory,  there  is  a  board  of  man- 
agers composed  of  five  members  appointed  for  a  term  of  ten  years, 
not  more  than  three  of  whom  shall  belong  to  the  same  political  party. 
The  Governor  is  empowered  to  remove  the  penitentiary  commissioners 
at  his  discretion ;  he  may  remove  the  members  of  the  board  of  managers 
of  the  reformatory  for  misconduct,  incompetency  or  neglect  of  duty 
and  after  opportunity  shall  have  been  given  for  a  hearing  upon  written 
charges.  The  penitentiary  commissioners  are  each  required  to  furnish 
a  bond  for  the  sum  of  $25,000,  which  may  be  increased  by  the  Governor 
and  Auditor  in  certain  contingencies ;  the  members  of  the  board  of 
managers  of  the  reformatory  are  each  required  to  furnish  bonds  to 
the  amount  of  $5,000.  The  compensation  of  members  of  these  boards 
is  fixed  by  law;  for  the  penitentiary  commissioners  it  is  $1,500  per 
annum;  for  the  members  of  the  reformatory  board  it  is  $1,200  per 
annum.  They  are  not  required  to  give  their  whole  time  to  their  official 
duties. 

The  powers  and  duties  of  the  three  boards  are  in  general  the 
same.  They  have  full  control,  management  and  supervision  of  their 
respective  institutions.  They  may  appoint  the  chief  officers  thereof, 
such  as  wardens,  superintendents,  chaplains,  physicians,  etc.,  and  may 
remove  them;  in  the  case  of  the  penitentiary,  at  their  discretion;  in  the 
case  of  the  reformatory,  only  after  an  opportunity  has  been  given  the 
accused  to  be  heard  upon  written  charges.  They  may  make  and  enforce 
disciplinary  regulations,  examine  accounts  and  expenditures,  and  exer- 
cise general  supervision  over  the  financial  and  business  affairs  of  the 
institution. 

The  board  of  managers  of  the  reformator}'  are  required  to  certify 
to  the  Governor,  with  their  approval  or  disapproval,  the  accounts  of 


358  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

the  institution ;  to  provide  a  thorough  system  of  training  for  every 
inmate  in  the  "common  branches  of  an  English  education"  and  in  such 
trades  and  handicrafts  as  will  enable  him,  upon  his  release,  to  earn 
his  support ;  and  to  this  end  they  are  required  to  establish  schools  in 
the  reformatory;  they  are  empowered  to  transfer  incorrigible  inmates 
to  the  penitentiary*;  to  establish  rules  and  regulations  for  the  release 
of  prisoners  on  parole ;  and  it  is  made  their  duty  to  adopt  such  methods 
as  shall  prevent  prisoners  from  returning  to  criminal  habits.  Finally, 
they  are  required  to  report  biennially  to  the  Legislature,  through  the 
Governor,  concerning  the  condition  of  the  reformator}'-,  which  report 
shall  contain  such  recommendations  as  the  board  mxay  deem  fit,  together 
with  a  detailed  statement  of  all  moneys  expended. 

The  penitentiary  commissioners  are  required  to  meet  at  the  peni- 
tentiary at  least  once  a  month,  to  keep  minutes  of  their  meetings  and 
proceedings,  make  regulations  concerning  the  quality  and  quantity  of 
food  for  prisoners,  and  the  number  of  hours  of  labor  required  of  them 
per  day,  and  to  enter  into  contracts  for  the  purchase  of  provisions, 
clothing,  medicine,  forage,  fuel,  and  other  supplies  for  any  period  not 
exceeding  one  year.  They  are  required  to  make  an  annual  inventory 
and  appraisement  of  all  property  of  the  institution,  and  to  report  to 
the  Governor  biennially  concerning  the  condition  of  their  respective 
institutions,  particularly  with  respect  to  all  moneys  received  and  ex- 
pended, and  of  all  contracts  entered  into.  Unlike  the  board  of  man- 
agers of"  the  reformatory,  they  do  not  have  the  power  to  release 
prisoners  on  parole,  that  power  being  conferred  upon  the  Board  of 
Pardons. 

It  will  be  observed  that  while  the  administrative  organizations  of 
the  two  penitentiaries  are  identical,  the  laws  which  apply  to  one  apply- 
ing at  the  same  time  to  the  other,  there  are  some  differences  between 
their  organization  and  that  of  the  reformatory.  These  differences 
relate  principally  to  the  organization,  size,  name,  term  and  compensa- 
tion of  the  two  classes  of  boards.  The  reformatory  board  is  larger 
in  size,  the  salaries  of  its  members  are  smaller,  and  it  is  bipartisan  in 
organization ;  its  members  have  terms  almost  twice  as  long  as  those  of 
the  penitentiary  commissioners,  and  they  may  be  removed  by  the  Gov- 
ernor only  for  cause  and  after  a  hearing  upon  written  charges,  whereas 
he  may  remove  the  penitentiary  commissioners  at  his  discretion  and 
without  a  hearing;  the  bond  required  of  the  penitentiar}'-  commissioners 
is  five  times  as  large  as  that  required  of  members  of  the  reformatory 
board;  the  wardens  of  the  penitentiary  may  be  removed  by  the  com- 
missioners at  their  discretion,  whereas  the  superintendent  of  the  re- 
formatory can  only  be  removed  for  cause  and  after  a  hearing;  the 
Governor  is  required  to  visit  the  penitentiaries  twice  a  year  and 
examine  into  their  condition,  but  no  such  duty  is  imposed  upon  him  in 
respect  to  the  reformatory;  and,  finally,  the  board  of  managers  of  the 
reformatory  is  required  to  report  to  the  Legislature,  whereas  the 
penitentiary  commissioners  report  to  the  Governor. 

4.  Holfl  iinconstitutioiiMl  In  the  onse  of  People  v.  Mnllary,  im  111.  582.  on  tlie 
pround  thnt  the  traiisferrinfr  of  Inni.ntes  from  the  reformatory  to  the  penitentiary 
Involves  the  exercise  of  judlcliil  power,  which  the  Legislature  cannot  confer  upon  an 
administrative  body. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  359 

In  general,  the  law  defines  the  duties  of  the  penitentiary  commis- 
sioners with  much  more  detail  than  those  of  the  board  of  managers 
of  the  reformatory.  Whether,  in  view  of  the  very  similar  character  of 
the  reformatory  and  the  penitentiaries,  the  more  important  of  these 
differences  in  the  organization  by  which  they  are  controlled  and  man- 
aged are  justified,  is  a  question  which  is  worthy  of  consideration. 

2.  Board  of  Prison  Industries. 

In  addition  to  the  above  mentioned  powers  and  duties,  the  members 
of  the  three  boards  of  control  collectively  constitute  the  Board  of 
Prison  Industries  of  Illinois,  although  they  receive  no  extra  compensa- 
tion on  account  of  this  additional  duty.  This  board,  created  by  an 
Act  approved  May  11,  1903  (amended  by  an  Act  of  May  18,  1905,  and 
by  an  Act  of  June  16,  1909)  was  charged  with  putting  into  effect  the 
laws  relating  to  prison  industries.  It  was  made  their  duty  to  establish 
a  system  of  prison  industry  in  each  institution,  mainly  for  the  manufac- 
ture of  supplies  for  the  State  and  its  institutions ;  to  attend  to  the 
disposition  and  distribution  of  the  products  of  convict  labor;  to  see 
that  no  such  products  should  be  sold  in  the  open  market,  except  where 
the  demands  of  the  State,  its  institutions  and  school  and  road  districts 
for  such  products  shall  not  be  sufficient  to  furnish  employment  to  all  the 
prisoners.  In  the  latter  case  the  Board  of  Prison  Industries  may  em- 
ploy not  more  than  40  per  cent  of  the  convicts  in  the  manufacture  of 
products  for  sale  in  the  open  market,  except  that  under  the  direction  of 
the  Governor  the  board  may  employ  not  more, than  40  per  cent  of  said 
prisoners  for  the  improvement  of  the  channels  of  the  Okaw,  Cache, 
Little  Wabash,  Big  Muddy,  Saline  and  Sangamon  rivers.  This  board 
is  also  required  to  furnish  crushed  rock  and  other  manufactured  road 
material  produced  by  convicts  to  the  State  Highway  Commission.  The 
aggregate  value  of  products  manufactured  during  the  year  1912  was 
$577,943,  of  which  $290,601  represented  the  output  of  the  penitentiary 
at  Joliet,  $216,601  that  of  the  penitentiary  at  Chester,  and  $70,437  that 
of  the  reformatory  at  Pontiac.  In  January,  1905,  the  board  established 
a  central  office  in  Springfield  and  appointed  a  sales  manager  to  tak<} 
charge  of  it. 

3.  Board  of  Classification. 

The  president  of  the  board  of  prison  industries,  the  president  -of 
the  State  Board  of  Public  Charities  (Board  of  Administration)  and  the 
Auditor  of  Public  Accounts  constitute  a  board  of  classification  which 
is  authorized  to  fix  and  determine  the  schedule  of  prices  of  all  labor 
performed  and  of  all  articles  manufactured  and  furnished  to  the  State 
or  the  institutions  thereof. 

4.  Penitentiary  Commission. 

In  addition  to  the  three  boards  for  the  management  of  the  existing 
correctional  institutions,  there  was  created,  by  Act  of  1907,  another 
commission  known  as  the  penitentiary  commission.  This  commission 
consists  of  three  members,  appointed  by  the  Governor,  no  definite  term 
being  named.     This  commission  is  authorized  to  acquire  land   for  a 


360  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

new  penitentiary  and  hospital  for  the  insane  criminals,  to  prepare  plans 
and  specifications  for  all  necessary  buildings,  and  to  control  the  con- 
struction of  said  buildings. 

5.     State  Board  of  Pardons. 

Another  State  board  whose  functions  relate  to  the  inmates  of  cor- 
rectional institutions  is  the  State  Board  of  Pardons,  established  in  1897. 
This  board  consists  of  three  members,  appointed  by  the  Governor,  by 
and  with  the  advice  and  consent  of  the  Senate,  for  terms  of  three  years, 
one  member  retiring  each  year.  Not  more  than  two  members  may 
belong  to  the  same  political  party.  The  Governor  may  remove  any 
member  for  misconduct,  incompetency  or  neglect  of  duty. 

The  State  Board  of  Pardons  gives  hearings  on  applications  for 
pardons,  reprieves  and  commutations  addressed  to  the  Governor,  and 
makes  a  report  upon  each  case  to  the  Governor.  The  reports  and 
recommendations  of  the  board  are  advisory  only,  to  aid  the  Governor 
in  exercising  his  constitutional  power  of  pardon.  Regular  meetings 
of  the  board  are  required  by  law  to  be  held  on  the  second  Tuesday  of 
January,  April,  July  and  October  of  each  year.  Special  meetings  may 
be  called  by  the  Governor  or  the  chairman  of  the  board.  In  practice, 
monthly  meetings  are  held  at  Joliet  and  Menard. 

"By  Act  of  1899,  the  Board  of  Pardons  was  given  power  to  establish 

rules  and  regulations  under  which  prisoners  in  the  penitentiaries  might 
be  allowed  on  parole  outside  the  penitentiary  buildings,  and  also  to 
grant  parole  leave  to  such  prisoners.  The  board  of  managers  of  the 
State  reformatory  has  similar  powers  in  regard  to  prisoners  in  that 
institution.  Thus  the  work  of  the  Board  of  Pardons  embraces  two 
separate  and  distinct  functions :  that  of  examining  applications  for 
executive  clemency,  and  that  of  passing  upon  cases  of  prisoners  who 
desire  to  be  released  on  parole  or  to  have  their  sentences  definitely  fixed. 
The  parole  work  occupies  the  attention  of  the  board  about  two  weeks 
of  every  month. 

The  original  act  creating  the  Board  of  Pardons  fixed  their  salaries 
at  $2,000  per  year  and  an  allowance  of  5  cents  per  mile  to  cover  their 
traveling  expenses.  The  Act  of  1899  relating  to  parole  provided  that 
the  members  should  receive  $1,500  for  each  year  for  services  performed 
in  pursuance  thereof,  making  their  total  salary  $3,500  per  year,  plus 
traveling  expenses. 

A  clerk  is  appointed  by  the  board,  at  an  annual  salary  of  $2,000, 
whose  duty  it  is  to  receive,  file  and  safely  keep  all  papers  and  docu- 
ments and  a  record  of  the  proceedings  and  recommendations  of  the 
board.  The  board  also  employs  a  stenographer  at  a  salary  of  $1,200 
per  annum.  The  total  expenses  for  the  two  years  1910-12  were 
$31,923.27. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS. 


361 


The  following  table  shows  the  number  of  parole  cases  acted  upon 
by  the  Board  of  Pardons  during  the  year  1913  at  the  Joliet  and  Chester 
penitentiaries : 


PAROLE  CASES  :   STATE  BOARD  OF  PARDONS,  1913. 


Toliet. 

Chester. 

Month. 

Cases  on 
docket. 

Ordered 
paroled. 

Sentences 
fixed  or 

otherwise 
handled. 

Totals. 

Cases  on 
docket. 

Ordered 
paroled. 

Sentences 
fixed  or 

otherwise 
handled. 

Totals. 

January  

February    

March   

April 

76 
65 

59 
67 
65 
44 
67 
70 
83 
74 
84 
78 

25 
25 
36 
23 
29 
22 
26 
31 
41 
41 
43 
31 

51 

40 

36 
22 
41 
39 
42 
33 
41 
47 

76 
65 
59 
67 
65 
44 
67 
70 
83 
74 
84 
78 

21 

128 
72 
27 
74 
82 
21 
64 
99 
63 
43 
50 

21 
41 
48 
27 
33 
35 
21 
17 
66 
34 
23 
23 

0 
87 
24 

0 
41 
47 

0 
47 
33 
29 
20 
27 

21 

128 
72 
27 

May    

June 

74 
82 

July    

21 

August    

September    .... 

October    

November    .... 
December  

64 
99 
63 
43 
50 

Totals. 


I     832     I     373     I    459.    |     832     ||     744     | 


I     355     I     744 


The  following  table  shows  the  number  of  final  discharges  under 
the  parole  law  ordered  by  the  board  of  pardons  during  the  year  1913 
at  the  two  penitentiaries  and  the  reformatory: 


FINAL  DISCHARGES   UNDER  THE  PAROLE  LAW,    1913. 


Months. 


Joliet. 


Chester. 


Pontiac.   '       Totals. 


January  . . . 
February  . . 
March    .... 

April  

May 

June   

July  

August  .. .  . 
September  . 
October  .  . . 
November  . 
December  . 
Totals. 


223 


231 


242 


696 


The  following  table  is  a  summary  of  all  cases  handled  by  the 
State  board  of  pardons  under  the  parole  law  (not  including  pardon 
cases)   for  the  year  1913: 


362 


EFFICIENCY    AND    ECONOMY    COMMITTEE, 


ALL  cases: 

STATE   BOARD   OF   PARDONS,    1913. 

Joliet. 

Chester. 

Pontiac. 

Totals. 

Paroled 

2,72, 

459 
223 
300 

389 

355 
231 
225 

242 

762 

Sentences    fixed    or    other- 
wi'^e  handled 

814 

696 

Specials,  estimated 

525 

Total  number  of  cases  handled,  2,797. 


D.      COMPARISON  OF  THE  CHARITABLE  AND  PENAL  SYSTEMS  OF  ADMINIS- 
TRATION. 

Although  the  two  classes  of  institutions  (charitable  and  penal)' 
are  in  many  respects  similar,  and  in  any  strictly  scientific  or  logical 
scheme  of  administrative  organization  would  be  subject  to  the  same 
system  of  management  and  control,  they  have  in  fact  very  different 
organizations  based  upon  opposite  principles  of  government. 

The  management  and  control  of  the  charitable  institutions,  and 
these,  as  has  been  said,  include  some  that  are  in  a  sense  not  strictly 
charitable,  but  in  a  sense  correctional,  reformatory  and  educational,  are 
concentrated  in  a  single  central  body  wdiich  gives  all  its  time  to  the 
service  with  which  it  is  charged ;  while  the  management  and  control 
of  the  penal  and  reformatory  institutions  proper  are  divided  between 
different  boards,  one  for  each  institution,  the  members  of  which  are 
paid  small  salaries  and  are  not  required  to  devote  their  entire  time  to 
the  discharge  of  their  official  duties.  Furthermore,  while  the  law 
requires  that  one  member  of  the  Board  of  Administration  of  the  char- 
itable institutions  shall  be  a  trained  specialist  in  the  care  and  treatment 
of  those  committed  to  the  institutions  under  its  management,  there  is 
no  such  requirement  in  respect  to  the  boards  of  control  of  the  penal 
and  reformatory  institutions,  and  in  fact  these  boards  are  generally 
composed  of  persons  who  have  no  special  qualifications,  either  from 
experience  or  training,  for  penological  administration. 

For  the  charitable  institutions  there  is  a  single  central  treasurer 
(the  State  Treasurer),  whereas  each  of  the  penal  and  reformatory 
institutions  has  its  own  local  treasurer  (the  warden  or  superintendent). 
In  the  fiscal  supervisor  the  charitable  institutions  have  a  financial  and 
business  manager,  and  provision  is  made  for  estimating  the  aggregate 
amount  of  the  necessary  supplies  for  all  the  institutions,  and  these  are 
required  to  be  purchased,  as  far  as  practicable,  in  large  quantities  upon 
the  basis  of  competitive  bids.  They  are  then  allotted  to  the  various 
institutions  on  the  basis  of  monthly  estimates.  In  the  case  of  the  penal 
and  reformatory  institutions,  there  is  no  common  business  or  financial 
agent,  no  joint  purchase  of  supplies — in  fact,  the  law  scarcely  deals 
with  the  subject  of  financial  management,  the  purchase  of  supplies  and 
the  like,  except  to  declare  that  the  wardens  of  the  penitentiaries  shall 
attend  to  the  fiscal  concerns  under  the  direction  of  the  commissioners, 
and  shall  act  under  their  direction  in  making  contracts  for  the  purchase 
of  supplies.     The  law  relating  to  the  reformatory  deals  still  less  with 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS, 


363 


these  matters.  It  is,  therefore,  left  to  each  institution  to  adopt  such 
business  and  financial  methods  as  it  may  see  fit.  Consequently  there 
is  no  uniformity  of  accounting,  of  keeping  institution  records  or  of 
purchasing  supplies. 

For  the  charitable  institutions  an  elaborate  system  of  visitation, 
inspection  and  investigation  has  been  provided,  with  a  view  to  insunng 
efficient  and  economical  management  and  the  keeping  of  the  institutioris 
up  to  a  high  standard  of  efficiency.  This  inspectional  machmery  is 
triple  in  character. 

1.  The  Board  of  Administration  itself  is  required  by  the  law  to 
visit  and  inspect  the  institutions  under  its  control,  it  being  made  the 
duty  of  one  member  to  visit  each  institution  at  least  four  times  a  year 
and  as  many  other  times  as  the  board  may  deem  necessary, 

2.  With  a  view  to  securing  the  benefit  of  criticism  and  suggestion 
by  those  who  are  not  active  administrative  officers — the  need  of  which 
is  important,  since  the  Board  of  Administration  is  primarily  an  admin- 
istrative body,  and  may  be  disposed  to  emphasize  considerations  of 
economy  and  business  management  to  the  neglect  of  the  proper  care 
and  treatment  of  the  inmates  of  the  institutions— the  law  created  the 
Charities  Commission  and  charged  it  especially  with  the  duty  of  inves- 
tigating the  condition  and  management  of  all  the  institutions  under 
the  authority  of  the  board,  and  of  reporting  to  the  Governor  the 
results  of  its  investigations,  with  such  recommendations  and  sugges- 
tions as  it  might  deem  necessary  and  pertinent, 

3.  Finally,  provision  is  made  for  the  inspection  of  each  charitable 
institution,  by  a  local  board  of  visitors,  at  least  four  times  a  year  in 
the  case  of  state-wide  institutions,  and  at  least  once  a  month  in  the 
case  of  those  whose  districts  are  fractional  parts  of  the  State, 

But  in  the  case  of  the  penal  and  reformatory  institutions,  no 
visitorial  and  inspection  machinery  has  been  provided  other  than  that 
of  the  boards  of  managers.  The  Charities  Commission  has  no  power 
to  visit  and  inspect  either  the  penitentiaries  or  the  reformatory;  and 
no  provision  has  been  made  for  their  inspection  by  local  boards  of 
visitors,  as  in  the  case  with  the  charitable  institutions.  Thus,  whereas 
the  administrative  methods  and  policies  of  the  board  which  manages 
and  controls  the  charitable  institutions  are  subject  to  the  inspection 
and  investigation  of  two  entirely  separate  and  independent  bodies,  those 
of  the  penitentiary  and  reformatory  boards  are  subject  to  the  inspection 
of  no  authority  but  tliemselves. 

Advantages  of  the  Central  Board  System. 

In  favor  of  the  single  central  board  system  the  following  advan- 
tages are  claimed: 

1.  It  is  a  system  by  which  uniformity  in  the  organization  and  admin- 
istration of  the  various  institutions  may  be  secured.  Under  such  a  system 
the  central  board  may  be  made  a  clearing  house  of  statistical  information 
relating  to  the  condition  of  inmates,  admissions,  discharges,  releases  on 
parole,  accidents,  deaths,  etc.  It  makes  possible  the  standardization  ot 
services  and  as  a  result  conduces  to  economy  and  efficiency.  Under  it 
uniformity  of  policies  and  methods,  uniformity  of  financial  accounting, 
uniformity  of  records  and  reports  generally,  uniformity  of  salaries,  wages, 


364 


EFFICIENCY    AND    ECONOMY    COMMITTEE. 
DIAGRAM  I. 


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CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS. 
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366  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

and  prices,  uniformity  o£  standards  o£  diet — quality  and  quantity  of  food 
and  other  supplies — may  be  secured  as  between  the  various  institutions. 
Justice  requires  that  there  should  be  equality  of  treatment  as  between  the 
different  institutions,  which  it  is  difficult  to  secure  where  each  institution 
is  treated  as  a  separate  unit  and  is  under  the  management  and  control  of  a 
separate  board.  There  is  always  a  possibility  that  some  of  them  will  get 
more  than  they  really  need,  while  others  will  get  less.  The  central  board 
system  also  affords  the  means  of  eliminating  rivalry  among  local  boards 
for  appropriations.  In  some  states  where  the  separate  board  system  pre- 
vails there  is  a  tendency  to  regard  the  State  institutions  as  local,  and  a 
strong  local  pressure  is  brought  to  bear  upon  the  Legislature  for  large 
appropriations,  because  the  larger  they  are  the  more  money  will  be  avail- 
able for  expenditures  in  the  community  interested.  Instances  are  alleged 
in  which  local  boards  with  stronger  political  influences  have  been  able  to 
obtain  from  the  Legislature  larger  appropriations  than  the  actual  needs  of 
the  institution  required,  while  others  suffered  from  inadequate  appropria- 
tions. [See  letter  from  C.  C.  Aspinwall,  Secretary,  State  Board  of  Control 
of  the  State  of  Washington  in  the  special  report  of  the  Illinois  State  Board 
of  Charities  to  Governor  Deneen,  1908,  p.  57.] 

2.  The  central  board  system  conduces  to  economy  through  the  elim- 
ination of  duplicate  local  institutional  officials,  such  as  commissioners, 
treasurers,  bookkeepers,  etc. ;  it  makes  possible  a  more  rigorous  super- 
vision of  financial  expenditures  and  through  the  centralization  of  the  pur- 
chase of  supplies  for  all  the  institutions,  it  is  possible  to  purchase  in  larger 
quantities  and  at  lower  rates.  These  supplies  .may  then  be  distributed 
among  the  institutions  from  time  to  time  on  the  basis  of  their  actual  needs. 
It  is  the  experience  in  other  states  where  the  separate  board  system  pre- 
vails, and  it  was  true  in  this  State  under  the  former  system  of  administer- 
ing the  charitable  institutions,  that  there  is  a  wide  variation  as  between  the 
different  institutions  in  respect  to  the  prices  paid  for  supplies  and  a  varia- 
tion in  the  quality  as  well.  Sometimes  the  supplies  for  each  institution  are 
purchased  from  local  dealers  (in  obedience  to  the  pressure  of  local  de- 
mand) at  retail  prices  as  they  are  needed,  sometimes  without  weighing, 
measuring  or  testing. 

A  committee  of  the  Illinois  Legislature  in  1908  criticised  the  boards  of 
two  of  the  State  institutions  for  purchasing  most  of  their  supplies  from 
local  dealers  in  small  quantities  instead  of  by  contract  at  wholesale  prices. 
The  secretary  of  the  New  York  Commission  in  Lunacy  recently  testified 
that  the  prices  paid  for  coffee  by  the  different  institutions,  before  the 
system  of  joint  purchase  was  introduced,  ranged  from  16  cents  a  pound 
for  coffee  that  was  two-thirds  chicory,  to  22  cents  a  pound,  whereas  now 
good  coffee  is  purchased  for  all  the  institutions  at  10  cents  a  pound.  When 
the  hospitals  bought  carbon  paper,  pens,  tooth  brushes,  typewriter  ribbons, 
etc.,  separately,  he  says,  the  prices  paid  varied  from  $6.00  to  $9.00  per 
dozen  in  the  case  of  ribbons,  whereas  they  are  now  purchased  in  large  lots 
and  furnished  to  the  institutions  at  $4,25  per  dozen.  Pens  which  formerly 
cost  $1.50  per  l)ox  now  cost  $1.00,  and  a  better  quality  of  supplies  is  now 
obtained.  (See  report  Illinois  State  Board  of  Charities,  1908,  pp.  207-208.) 
In  Illinois  the  same  conditions  prevailed  in  respect  to  the  purchase  of  sup- 
plies for  the  charitable  institutions  when  each  was  governed  by  a  separate 
board. 

It  was  found  in  1908  that  the  average  prices  paid  for  coal  at  the 
seventeen  charitable  institutions  varied  from  $1.24  a  ton  at  the  Southern 
Hospital  for  the  Insane  at  Anna  to  $4.20  a  ton  at  the  Eye  and  Ear 
Infirmary  at  Chicago.  (See  Diagram  I.)  A  committed  of  the  Legislature 
in  1908  reported  that  at  several  of  the  institutions  there  were  no  scales  for 
the  weighing  of  coal  or  other  methods  for  determining  whether  the  institu- 
tion was  receiving  the  amount  for  which  it  paid.  Where  it  was  weighed, 
and  checked,  as  at  Kankakee,  there  was  found  a  marked  difference  be- 
tween the  institution  weights  and  those  of  the  contractors.  Likewise  the 
prices  paid  for  flour  ranged  from  $1.95  per  100  pounds  at  Anna  to  $2.78  at 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  367 

the  Home   for  the   Blind  in   Chicago.     (Report   Illinois   State   Board   of 
Charities,  pp.  29-31,  1908.    See  Diagram  II.) 

These  inequalities  have  been  eliminated  since  the  introduction  of  the 
system  of  joint  purchase  for  all  the  institutions  and  by  means  of  purchases 
in  large  quantities  lower  prices  are  secured.  For  example,  coal  is  now 
purchased  for  all  the  institutions  upon  contract,  the  award  being  given  to 
the  lowest  bidder  after  an  advertisement  of  proposals.  Samples  are  re- 
quired to  be  submitted  by  the  contractor  and  these  are  analyzed  at  the 
State  University,  and  the  price  paid  is  determined  on  the  basis  of  these 
analyses,  whereas  formerly  the  institutions  paid  for  coal  regardless  of  dirt 
and  cleanings  from  the  mines.  If  the  coal  delivered  shows  a  heat-pro- 
ducing capacity  in  excess  of  the  standard,  the  contractor  is  paid  accordingly 
and  vice  versa.  (Institution  Quarterly,  March,  1913,  p.  156.)  So  in  regard 
to  the  purchase  of  other  supplies.  The  board  specifies  a  uniform  quality 
for  articles  used  by  all  the  institutions  and  the  quality  specified  is  quite 
different  from  that  required  before  1910.  For  example,  beef  must  weigh 
not  less  than  575  pounds  to  the  carcass,  and  a  uniform  weight  is  required 
in  the  case  of  bacon  and  hams.  One  grade  of  flour  is  now  purchased  for 
all  the  institutions,  whereas  formerly  many  different  grades  were  fur- 
nished. The  same  is  true  in  respect  to  tea,  coffee,  sugar  and  potatoes. 
Formerly  an  inferior  grade  of  butteriue  was  purchased  by  many  of  the 
charitable  institutions  (and  is  still  done  by  one  of  the  penitentiaries 
and  the  reformatory)  ;  now  a  uniform  quality  is  purchased  for  all  the 
institutions,  so  that  there  is  no  discrimination  in  this  respect  against 
inmates  of  any  institution. 

The  abolition  of  the  separate  boards  of  trustees  of  the  charitable 
institutions  and  the  consolidation  of  control  in  a  single  central  board  made 
it  possible  to  establish  uniformity  among  the  various  institutions  in 
respect  to  salaries,  wages,  number  of  employees,  accounting,  prices  of 
supplies  and  materials,  and,  in  general,  to  standardize  the  services,  diets, 
quality  of  food  and  supplies,  methods  of  keeping  records,  etc.  Among  the 
penal  and  reformatory  institutions,  however,  differences  in  respect  to  most 
of  these  rriatters  still  exist  and  will  continue  to  exist  so  long  as  the  insti- 
tutions are  managed  by  separate  boards.  Some  of  these  differences  may 
be  noted.  First,  in  respect  to  salaries:  The  compensation  of  the  peniten- 
tiary commissioners  is  $1,500  per  year;  that  of  the  reformatory  manager 
is  $1,200  per  year.  "The  salary  of  the  warden  of  the  penitentiary  at  Joliet 
is  $5,000  per  year,  that  at  Chester  $4,000  per  year  and  that  of  the  superin- 
tendent of  the  reformatory  $4,000.  The  deputy  warden  at  Joliet  receives 
a  salary  of  $2,200  per  year;  that  of  Chester  $1,500.  The  physician  at  the 
Joliet  penitentiary  receives  $2,300  per  year;  at  the  Southern  penitentiary 
he  receives  $1,500.  There  are  five  parole  agents  at  Joliet,  while  at  Chester, 
with  about  the  same  number  of  prisoners,  there  are  only  two. 

In  respect  to  certain  items  of  expenditure,  the  differences  among  the 
three  institutions  are  in  some  instances  very  great.  'Thus  for  the  fiscal 
year  ending  September  30,  1912,  the  disbursements  for  salaries  at  the 
Chester  penitentiary,  with  an  average  of  1,088  inmates,  amounted  to 
$55,977,  while  those  at  Pontiac,  with  only  690  inmates,  amounted  to 
$77,126.  The  number  of  employees  at  the  Joliet  penitentiary  was  116;  at 
Chester  109,  and  at  Pontiac  107.  The  disbursements  for  bedding  and 
clothing  at  the  Joliet  penitentiary,  with  an  average  of  1,394  prisoners, 
amounted  to  a  trifle  more  than  those  at  Pontiac,  with  half  the  number  of 
inmates.  The  expenses  on  account  of  motive  power,  light  and  steam 
amounted  to  $53,380  at  Joliet  and  $9,523  at  Chester;  the  office  expenses  of 
the  two  institutions  were  $3,461  and  $1,891,  respectively  (for  the  year 
ending  September  30,  1911,  they  were  $9,119  and  $1,068,  respectively)  ; 
traveling  expenses,  $2,498  and  $1,040,  respectively.  For  the  year  ending 
September  30,  1911,  the  expenditures  on  account  of  laundry  amounted  to 
$334  at  Chester  and  $1,285  at  Pontiac;  in  the  following  year  the  amounts 
were  $225  and  $1,462,  respectively. 


368  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

With  regard  to  the  amount  and  quality  of  food  consumed,  there  are 
striking  differences  among  the  institutions.  Thus,  during  the  year  ending 
September  30,  1911,  the  number  of  pounds  of  coffee  purchased  at  Chester 
was  11,235,  whereas  at  Joliet,  with  nearly  30  per  cent  more  prisoners,  the 
amount  was  6,282.  During  the  year  1912  Chester  purchased  20,874  pounds 
of  sugar,  Joliet  11.663  pounds;  on  the  other  hand,  Joliet  purchased  8,909 
bushels  of  potatoes  and  Chester  but  4,475 ;  Joliet  consumed  10,079  pounds 
of  rice  and  Chester  4,414  pounds.  The  expenditure  for  meats  amounted  to 
$31,346  at  Joliet  and  $25,941  at  Pontiac,  with  about  half  the  number  of 
inmates.  At  Chester  the  prisoners  were  fed  on  butter  costing  23  cents  per 
pound;  at  Joliet  on  "butter"  costing  12  cents  per  pound  (evidently  butter- 
ine),  and  at  Pontiac  on  "butter"  costing  13  cents  per  pound.  Chester 
used  14,058  pounds  of  lard  and  Joliet  only  120  pounds,  butterine  apparently 
being  used  instead.  At  Chester  the  price  paid  for  beef  ranged  from  11 
to  16^  cents  per  pound;  at  Pontiac  11  cents,  and  at  Joliet  9.7  cents. 

It  is  evident,  therefore,  that  there  is  no  standard  of  subsistence,  no 
uniformity  in  respect  to  rations  in  the  several  institutions.  In  one,  meat 
constitutes  a  much  larger  proportion  of  the  ration  than  in  the  others ;  in 
one,  syrup  is  served  the  prisoners  much  more  extensively  than  in  others; 
in  one,  a  much  higher  grade  of  meat  is  served  than  in  the  others;  and  in 
some  the  prisoners  are  fed  on  butterine,  while  in  others  they  are  ser\'ed 
butter.  Whether  such  varying  standards  of  diet  involving,  as  they  do, 
unequal  treatment  of  the  inmates  of  the  several  institutions,  should  be 
permitted,  is  a  question  which  deserves  consideration.  They  do  not  exist 
in  the  charitable  institutions,  and  have  not  existed  since  these  institutions 
came  under  the  control  of  the  Board  of  Administration.  It  naturally  fol- 
lows from  these  facts  that  the  per  capita  cost  of  subsistence  in  the  several 
institutions  varies  more  or  less  widely.  At  Joliet,  the  per  capita^total 
expenditures  for  the  year  ending  September  30,  1912,  amounted  to  $179.84; 
at  Chester,  $201.26,  and  at  Pontiac  $255.35.  The  estimated  per  capita  net 
cost  of  maintenance  per  day  is  48  cents  at  Joliet,  54  cents  at  Chester  (this 
includes  an  estimated  charge  for  food  supplies  from  the  prison  farm),  and 
70  cents  at  Pontiac.  The  lowest  of  these  figures  (that  for  the  Joliet  peni- 
tentiary) is  considerably  higher  than  the  per  capita  qost  in  the  insane 
hospitals  (with  about  the  same  number  of  inmates)  under  the  Board  of 
Administration,  which  ranged  in  1910-12  from  $130.12  at  the  Jacksonville 
hospital  to  $170.32  at  the  Chicago  hospital,  and  averaged  about  $140.00. 
The  average  per  capita  cost  in  the  correctional  institutions  for  1911-12  was 
$208.00.  If  the  penitentiaries  and  reformatories  were  maintained  at  the 
same  per  capita  cost  as  the  insane  hospitals,  there  would  be  a  saving  of 
more  than  $200,000  a  year. 

So  far  as  can  be  ascertained,  there  has  been  a  marked  saving  in  the 
cost  of  maintaining  the  seventeen  charitable  institutions  since  they  were 
placed  under  the  control  of  the  Board  of  Administration.  On  account  of 
the  increased  cost  of  foodstuffs  and  other  supplies  during  recent  years, 
however,  the  reduction  in  the  per  capita  cost  of  supplies  has  naturally  not 
been  considerable.  During  the  past  two  years,  for  example,  the  price  of 
beef  in  some  instances  has  increased  40  per  cent,  and  there  has  been  a 
marked  advance  in  the  price  of  many  other  articles.  From  the  following 
statement,  prepared  for  the  Efificicncy  and  Economy  Committee  by  Hon. 
F.  D.  Whipp,  fiscal  supervisor,  in  March,  1914,  it  appears  that  there  has 
been  a  reduction  in  the  ordinary  operating  expenses  of  the  institutions 
.  durinj;  the  four  years  since  the  creation  of  the  board  of  $418,450.33. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  369 

Statement  No.  1. — showing  gross  cost  of  maintaining  the 

INMATES      OF      THE      ILLINOIS      CHARITABLE      INSTITUTIONS      FOR      THE 

YEARS  1909,  1910,  1911,  1912  and  1913,  based  on  the  ordinary  oper- 
ating PER  capita  costs,  SHOWING  EXPENDITURES  OF  THE  BOARD  OF 
ADMINISTRATION  AND  MAKING  ALLOWANCES  FOR  THE  CHANGE  IN  THE 
BASIS  OF  APPROPRIATIONS  MADE  BY  THE  GENERAL  ASSEMBLY. 

Cost  on 
Gross  cost  of  maintaining  inmates  based  on  15,705.98,    Current    Per       Total  on 

the  average  number  present  during  tlie  calendar    Capita,    Plus  1909 

year  1910 :  Additional      Per  Capita. 

Items. 

15,705.98,  at  $194.87  gross  per  capita,  cost  1909 $  3,060.624.32 

15,705.98,  at  $175.35  gross  per  capita,  cost  1910 $  2,754,043.47 

Expenditures  of  Board  of  Administration,  1910 58,400.68 

Gross  cost  of  maintaining  inmates  based  on  15,860.40, 

the  average  number  present  during  the  calendar 

year  1911: 

15,860.40,  at  $194.87  gross  per  capita,  1909 3,090,716.14 

15,860.40,  at  $172.22  gross  per  capita,  1911 2,731,401.41 

Expenditures  of  Board  of  Administration,  1911 67,145.70 

Increase  in  bills  incurred  for  repairs,  improvements 

and  grounds  six  months  (basis  of  appropriation 

changed)     57,242.31 

Gross  cost  of  maintaining  inmates  based  on  15,956.50, 

the  average  number  present  during  the  calendar 

year  1912: 

15,956.50,  at  $194.87  gross  per  capita,  1909 3,109,443.15 

*15,956.50,  at  $181.81  gross  per  capita,  1912 2,901,129.35 

Expenditures  Board  of  Administration,  1912 69,940.77 

Increase  in  bills  incurred  for  repairs,  improvements 

and  grounds,  1912  over  1909 , 185,073.90 

Gross  cost  of  maintaining  inmates  based  on  16,801.85, 

the  average  number  present  during  the  calendar 

year  1913: 

16,801.85,  at  $194.87  gross  per  capita,  1909 3,274,176.46 

*16,801.85,  at  $182.82  gross  per  capita,  1913 3,071,754.48 

Expenditures  of  Board  of  Administration,  1913 75,714.43 

Increase  in  bills  incurred  for  repairs,  improvements 

and  grounds,  1913  over  1909 144,663.24 

Net  reduction  four  years ' 418,450.33 

$12,534,960.07    $12,534,960.07 

A  comparison  of  prices  paid  by  the  Board  of  Administration  for  standard 
articles  like  flour,  sugar,  tea,  cofifee,  butter,  etc.,  with  those  paid  by  the  separate 
boards  before  1910  is  difficult  because  of  the  advance  in  prices  and  because,  under 
the  present  system  of  purchasing  supplies  a  uniform  quality  is  specified  and 
generally  a  superior  quality  is  purchased.  As  has  been  said,  many  of  the  institu- 
tions formerly  purchased  an  inferior  grade  of  butterine,  whereas  the  Board  of 
Administration  specifies  that  butterine  furnished  shall  contain  at  least  20  per  cent 
of  pure  creamery  butter,  with  not  over  10  per  cent  moisture  and  3  per  cent  salt. 
It  will  be  seen  from  the  following  table,  prepared  by  the  fiscal  supervisor,  that  the 
prices  paid  in  1913  by  the  Kankakee  hospital  for  beef,  ham,  coffee,  tea,  potatoes 
and  butterine  were  perceptibly  higher  than  in  1909,  and  that  only  on  bacon,  flour 
and  sugar  has  there  been  a  reduction. 

♦Dunning  excluded. 


370  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

AVERAGE    COST    OF    SUNDRY    FOOD    SUPPLIES    AT    THE    KANKAKEE    STATE 
HOSPITAL. 

Quarter  ending  Quarter  ending 

Dec.  31,  1909.  Dec.  31,  1913. 

Fresh  beef  carcass $  6.00 

Fore  quarters  9.75 

Hind  quarters 12.00 

Bacon    $17.76  16.72 

Ham  12.93  15.45 

Flour 4.98  3.79 

Coffee    13  .17% 

Tea  20y2  .231/ 

Sugar  5.03  4.33 

Potatoes    43  .69/ 

Butterine    11/  .15/ 

After  this  comparison  of  results  under  the  central  board  and 
separate  board  systems  in  Illinois,  we  may  now  return  to  the  general 
discussion  of  the  merits  and  demerits  of  the  two  systems. 

3.  Finally,  it  is  claimed  that  the  single  board  system  conduces  to 
greater  efficiency  in  the  administration  of  the  institutions,  as  a  result  of 
the  centralization  of  power  and  responsibiUty.  The  doings  of  a  single 
board  may  be  more  easily  followed,  as  public  opinion  is  focused  upon  its 
policies,  than  is  possible  where  there  are  twenty  or  more  boards.  Unhke 
the  separate  boards  which  formerly  controlled  the  charitable  institutions 
and  which  now  control  the  penal  and  reformatory  institutions,  the  Board 
of  Administration  gives  its  whole  time  to  the  affairs  of  the  institutions 
under  its  jurisdiction;  it  is  permanently  in  session  and,  through  an  exten- 
sive system  of  reports  required  of  the  institutions  (daily  in  respect  to 
certain  matters),  it  is  enabled  to  keep  in  close  touch  with  what  is  happen- 
ing in  them  and  with  the  manner  in  which  they  are  managed  by  the  head 
officials.  It  is,  therefore,  able  to  compare  results  of  each  with  those  of  the 
others  and  to  enforce  upon  all  the  highest  standard  attained  in  any  one. 
By  reason  of  its  close  touch  with  all  the  institutions,  it  is  in  a  position  to 
recommend  legislation  for  improving  the  conditions  of  all  and  for  meeting 
their  needs  upon  the  basis  of  equal  and  uniform  treatment.  Being  always 
in  existence,  such  a  board  can  develop  systematic  business  methods  and 
will  acquire  a  familiarity  with  its  duties  such  as  local  boards  which  meet 
only  occasionally  for  the  perfunctory  performance  of  their  duties  and 
which,  therefore,  have  no  permanent  organization,  can  never  attain. 

By  relieving  the  managing  heads'  of  the  institutions  from  a  mass  of 
business  and  financial  details,  wiiich  consume  their  time  and  for  which 
they  are  often  unfitted,  they  are  left  free  to  devote  their  time  to  affairs 
which  relate  more  immediately  to  the  care  and  welfare  of  tlie  inmates.  The 
separate  board  sj'stem  in  effect  requires  them  to  be  not  only  experts  in 
charity  administration,  penology  and  the  care  of  the  insane,  but  business 
and  financial  managers  as  well — a  very  difficult  combination  and  one  which 
is  probably  not  often  found. 

It  is  the  testimony  of  the  Board  of  Administration  that  there  has  been 
a  marked  increase  in  the  efficiency  of  the  institutions  since  the  institution 
of  central  control  in  the  place  of  local  management.  (See  its  report  in 
1910,  ch.  2.)  Governor  Denccn  declared,  in  his  message  of  January  8, 
1913,  that  "the  general  result  has  been  a  great  increase  of  efficiency,  accom- 
panied by  greater  economy  and  uniformity  of  service,  placing  all  institu- 
tions upon  a  level  with  the  best  similar  institutions  in  this  country  or  in 
Europe." 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  371 

Criticism  of  the  Central  Board  System. 

Some  objections  have  been  urged  against  the  system  of  adminis- 
tering a  large  number  of  institution  by  a  single  central  board,  even 
though  they  are  similar  in  character  and  logically  fall  within  the  same 
category. 

1.  In  the  first  place,  it  is  sometimes  claimed  that  such  a  board  tends 
to  emphasize  the  business  side  of  the  administration  to  the  neglect  of 
interests  of  the  inmates  of  the  institutions.  It  is  apt  to  attach  greater 
importance  to  considerations  of  economy  and  to  purely  admlnisrative  effi- 
ciency than  to  those  affecting  the  immediate  welfare  of  the  persons  for 
whose  care  the  institutions  have  been  created.  It  is  a  common  complaint 
among  specialists  and  experts  in  the  field  of  charitable  and  penological 
administration  that  the  members  of  administrative  boards  take  little  inter- 
est in  the  activities  of  organizations  and  movements  for  the  advancement 
of  the  penological  and  philanthropic  sciences.  They  are,  therefore,  non- 
progressive and  little  affected  by  the  progress  of  enlightened  sentiment 
concerning  the  best  methods  of  dealing  with  the  difficult  problems  of 
charity  and  penal  administration. 

2.  In  the  second  place,  it  is  sometimes  claimed  that  the  single  board 
system  tends  to  develop  expensive  machinery  and  to  become  both  autocra- 
tic'in  its  powers  and  bureaucratic  in  its  methods. 

3.  In  the  third  place,  it  is  contended  by  some  that  each  institution, 
however  much  it  may  resemble  others  in  its  character  and  purpose,  has 
its  own  peculiar  problems  and  heeds  and  its  own  individuality,  and  can, 
therefore,  be  more  wisely  managed  by  a  local  board  than  is  possible  where 
it  is  thrown  into  a  class  with  perhaps  a  score  of  other  institutions  and 
governed  by  a  central  body  which  has  no  respect  for  local  peculiarities 
and  conditions.  Conditions  in  the  various  institutions,  it  is  said,  are  often 
widely  different  and  do  not  lend  themselves  to  the  same  treatment.  Where 
there  is  a  large  number  of  institutions  widely  scattered  throughout  the 
state  it  is  difficult  for  a  single  board  sitting  at  the  center  to  become 
familiar  with  the  problems  and  conditions  of  them  all. 

4.  Finally,  it  is  contended  that  the  local  board  system  affords  a 
means  of  enlisting  the  services  of  a  large  number  of  competent  and  public- 
spirited  citizens  who  are  not  politicians  by  trade  and  whose  interest  in  the 
welfare  of  the  unfortunate  classes  committed  to  their  care  is  a  sufficient 
guarantee  that  they  will  devote  their  best  efforts  to  the  performance  of 
the  responsible  duties  of  their  offices.  Where  the  central  board  system 
prevails,  membership  on  the  board  tends  to  become  a  political  prize  and 
appointments  are  more  apt  to  be  given  as  rewards  for  political  service 
than  is  the  case  where  appointments  to  membership  on  local  boards  carry 
a  small  salary,  if  any  at  all.  It  is,  therefore,  said  to  be  better  to  have  a 
separate  unpaid  or  nominally  paid  board  for  each  institution  (with  possible 
provision  for  joint  purchase  of  supplies),  and  over  them  all  a  central 
board  of  charities  or  similar  authority,  with  the  power  of  visitation, 
inspection  and  recommendation. 


11.    CHARITABLE  AND  PENAL  ADMINISTRATION  IN 
OTHER  STATES  AND  COUNTRIES. 

A.      IN  OTHER  STATES. 

1.     Central  Boards  of  Control. 

In  the  majority  of  states  the  charitable  and  penal  institutions  are 
under  the  management  and  control  of  separate  boards,  one  for  each 
institution.  There  is,  however,  a  marked  tendency  toward  the  abolition 
ol  local  boards  and  the  substitution  of  a  single  central  board  for  the 
control  of  all  the  institutions,  or  for  the  control  of  those  of  each  class. 
This  movement  began  about  forty  years  ago,  although  it  was  not  until 
recently  that  its  progress  became  marked.  The  indications -now  are 
tliat  this  movement  will  continue  and  that  the  central  board  system 
is  destined  to  become  the  general  method  of  institutional  administra- 
tion throughout  the  United  States. 

Kansas  (1873)  was  the  first  state  to  vest  the  management  of  its 
several  state  charitable  institutions  in  the  hands  of  a  central  board ; 
and  recently  it  has  adopted  the  same  system  for  the  management  of 
its  penal  institutions.  New  York,  as  early  as  1877,  consolidated  the 
management  of  the  state  prisons  and  the  hospitals  for  the  insane  crim- 
inals in  a  single  authority — the  state  superintendent  of  prisons — in  1889 
partial  control  of  the  other  insane  hospitals  was  entrusted  to  a  com- 
mission in  lunacy,  and  in  1902  this  control  was  made  more  complete. 
In  the  latter  year  the  office  of  fiscal  supervisor  was  also  created,  and 
given  an  extensive  control  over  the  financial  and  business  affairs  of  the 
charitable  institutions.  Wisconsin,  in  1881,  created  a  single  central 
board  of  control  for  the  management  of  its  charitable  and  penal  insti- 
tutions. Arizona  followed  its  example  in  1895,  Iowa  in  1898,  \\'ash- 
ington  in  1900,  Minnesota  in  1901,  West  Virginia  in  1909.  Ohio  and 
North  Dakota  in  1911,  Rhode  Island  in  1912,  and  Nebraska  and  New 
Hampshire  in  1913.  Arkansas  and  Kentucky,  in  1905,  each  created 
a  single  board  for  the  control  of  its  charitable  institutions,  and  Illinois 
did  likewise  in  1909.  In  1911,  California  created  a  central  board  with 
powers  of  inspection,  supervision  and  a  limited  control  over  all  the 
charitable,  penal  and  other  institutions  of  the  state.  In  1913,  Vermont 
passed  a  law  providing  for  the  centralization  in  a  single  authority  of 
the  purchase  of  supplies  for  the  various  institutions  of  the  state.  Plans 
for  a  more  centralized  system  of  administration  of  charitable  and 
correctional  institutions  have  also  been  proposed  in  Massachusetts  and 
New  York. 

The  various  types  of  central  control  may  be  classified  as  follows : 
First,  that  under  which  all  (or  nearly  all)  the  state  charitable  Institu- 
tions are  subject  to  the  full  management  and  control  of  a  single  board, 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  373 

while  the  penal  and  reformatory  institutions  are  under  the  management 
of  a  separate  and  distinct  board.  Second,  that  under  which  the  man- 
agement of  the  penal  and  reformatory  institutions,  but  not  the  char- 
itable institutions,  is  vested  in  a  single  central  board.  Third,  that  under 
which  only  the  financial  operations  (such  as  the  letting  of  contracts, 
the  purchase  of  supplies,  etc.)  of  the  charitable  and  penal  institutions 
are  managed  and  controlled  by  a  central  authority.  Fourth,  a  mixed 
system  under  which  certain  classes  of  institutions  are  subject  to  the 
control  of  a  central  board,  while  others  are  managed  by  separate  boards 
or  which  are  subject  to  the  control  of  a  single  central  authority  only 
in  respect  to  certain  matters.  Fifth,  finally,  there  is  the  system  under 
which  the  management  and  control  of  all  the  charitable,  penal  and 
reformatory  institutions  (and  in  some  states  even  the  higher  educa- 
tional institutions,  for  certain  purposes)  is  vested  in  a  single  central 
board,  there  being  no  separate  board  of  managers  for  any  institution. 

The  states  falling  in  the  first  group,  that  is,  those  in  which  the  char- 
itable institutions  (or  certain  of  them)  are  under  the  management  and 
control  of  a  single  state  board,  the  penal  institutions  being  placed  under 
the  control  of  another  central  board  and  under  local  boards  are  Ala- 
bama, Arkansas,  Kentucky,  Kansas  and  Virginia.  This  is  also  the 
class  to  which  Illinois  belongs. 

In  Alabama  the  hospitals  for  the  insane  are  under  the  management 
of  a  single  board ;  but  the  other  charitable  institutions  and  also  the 
penitentiary  are  each  under  the  management  of  separate  boards. 

In  Arkansas  the  schools  for  the  blind,  the  deaf  and  the  dumb, 
together  with  the  asylum  for  the  insane,  were  all  placed  under  the 
management  and  control  of  a  single  board  of  trustees  in  1905,  and  in 
1911  the  Confederate  Soldiers'  Home  was  added  to  the  list.  The 
board  consists  of  seven  members,  each  of  whom  receives  compensa- 
tion at  the  rate  of  $5  per  day,  plus  traveling  expenses. 

In  Kentucky  the  three  insane  asylums  and  tlie  asylum  for  the 
feeble-minded  are  under  the  management  of  a  board  entitled  the  board 
of  control  for  the  charitable  institutions  (created  by  an  Act  of  1908). 
The  board  consists  of  four  members,  appointed  by  the  governor  for 
a  term  of  four  years.  Two  members  must  be  taken  from  the  majority 
political  party  in  the  state.  The  salary  of  each  member  is  $2,500  per 
year,  plus  an  allowance  for  their  traveling  expenses.  The  board  has 
"full  and  complete  management  and  control"  of  the  several  institutions 
mentioned. 

In  Kansas  all  the  state  charitable  institutions,  including  the  hos- 
pitals, schools  for  the  deaf,  the  blind  and  the  feeble-minded,  the 
orphans'  homes,  etc.,  are  under  the  "management,  government  and 
control"  of  a  central  board  created  in  1905,  and  consisting  of  three 
members  appointed  by  the  governor  for  a  term  of  four  years.  Each 
member  receives  a  salary  of  $2,500  per  year.  At  present  there  are 
seven  (7)  institutions  under  the  control  of  the  board,  and  two  others 
will  soon  be  completed.  The  total  number  of  inmates  in  the  institutions 
is  about  5,000.  The  board  has  also  the  power  of  visitation,  inspection 
and  supervision  over  private  asylums,  children's  aid  societies  and  all 


374  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

charitable  and  all  semi-charitable  institutions  receiving  state  aid.  The 
penal  and  reformator}^  institutions  were  excluded  from  the  control  of 
the  board,  and  were  left  under  the  management  of  separate  boards 
until  1913,  when  the  Legislature  placed  them  under  the  management  of 
the  state  board  of  corrections.  At  the  same  time  the  industrial  schools 
for  boys  and  girls,  which  had  formerly  been  under  the  board  of  control, 
were  placed  with  the  penitentiaries  under  the  state  board  of  corrections. 
No  institution  of  Kansas  at  the  present  time  is  under  the  management 
of  a  separate  board. 

In  Virginia  each  of  the  hospitals  for  the  insane  is  under  the  man- 
agement of  a  separate  board;  but  the  several  boards  together  constitute 
a  central  board  of  control  for  the  appointment  of  superintendents,  the 
oversight  of  expenditures  and  certain  other  matters  for  all  the  hospitals. 

The  states  belonging  to  the  second  group — those  in  which  the 
penal  institutions  are  put  in  a  separate  class  from  the  charitable  insti- 
tutions and  are  under  the  management  of  a  single  central  board,  are 
California,  Kansas,  Kentucky,  Tennessee  and  Texas.  In  each  of  these 
states  there  is  a  board  of  prison  commissioners  which  is  charged  with 
the  management  of  the  several  state  prisons  and  reformatories. 

In  1911  the  legislature  of  California  created  a  state  board  of 
control,  with  power  to  examine  the  books  of  the  state  prisons,  reforma- 
tories, state  hospitals  and  other  institutions,  commissions,  bureaus  and 
offices.  It  is  required  to  visit  at  least  once  each  year  every  public 
institution  maintained  wholly  or  in  part  by  the  state,  and  to  ascertain 
the  conditions  prevailing  therein  and  its  needs ;  to  visit  public  buildings 
in  course  of  constructon  and  to  ascertain  whether  the  provisions  of 
the  law  and  the  contracts  relating  thereto  are  being  complied  with ; 
to  exercise  equal  supervision  over  all  the  state  institutions  in  respect 
to  their  financial  and  business  policies ;  to  institute  court  proceedings 
to  conserve  the  rights  and  interests  of  the  state;  all  contracts  entered 
into  by  state  officers,  boards  and  commissions  must  be  submitted  for 
its  approval ;  reports  of  all  supplies  purchased  by  the  state  or  any 
institution  thereof  must  be  made  to  it;  no  supplies  may  be  purchased 
in  the  open  market  without  its  approval ;  it  performs  the  duties  of  a 
court  of  claims  and  its  approval  is  necessary  before  any  claim  against 
the  state  may  be  paid ;  it  is  charged  with  investing  school  funds ;  bond 
sales  by  cities,  counties  and  other  local  authorities  must  be  notified  to 
it ;  it  is  empowered  to  sell  or  exchange  property  belonging  to  the  state ; 
it  is  required  to  establish  a  system  of  uniform  accounting  and  of 
keeping  records  in  all  institutions  and  offices ;  and  it  performs  all 
duties  formerly  exercised  by  the  various  state  boards  of  examiners. 
With  all  its  varied  powers  it  is  not,  however,  a  board  of  control  in  the 
sense  that  it  is  charged  with  the  actual  management  of  the  institutions ; 
it  is  rather  an  inspectional  and  supervisory  authority.  The  board 
consists  of  three  members  appointed  by  the  governor  and  they  are 
required  to  give  all  their  time  to  the  discharge  of  their  duties.  Each 
member  receives  a  salary  of  $4,000  per  year. 

In  the  Third  Group  belongs  Rhode  Island,  which  has  a  board  of 
control  and  supply  composed  of  five  (5)  persons,  appointed  for  a  term 
of  five  years  (salary  $3,000  per  year  for  the  chairman  and  secretary, 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS. 


375 


$2,000  for  the  other  members)  with  control  over  purchases  and  sup- 
plies. It  makes  all  contracts  for  the  state  charitable  and  penal  msti- 
tutions ;  it  oversees  the  construction  and  equipment  of  buildmgs,  and  is 
charged  with  establishing  a  uniform  system  of  accounting  among  the 
various  institutions  subject  to  its  control.  In  1914  the  Governor  recom- 
mended that  the  entire  administrative  and  financial  management  of  the 
institutions  be  placed  under  the  board.  In  this  group  might  also  be 
placed  the  state  of  Vermont,  which  in  1913  created  the  office  of  pur- 
chasing agent  for  the  various  institutions  (except  for  the  soldiers' 
home). 

In  the  Fourth  Group  are  New  York  and  Massachusetts,  where 
there  is  a  combination  of  the  local  and  central  board  systems.  The 
institutions  of  New  York  are  divided  into  three  classes :  First,  the 
charitable  institutions ;  second,  the  hospitals  for  the  insane ;  and  third, 
the  state  prisons. 

1.  In  New  York  each  of  the  nineteen  charitable  institutions  is  in 
charge  of  a  board  of  local  managers  appointed  by  the  governor,  and 
there  is  a  state  board  of  charities  with  powers  of  visitation  and  super- 
vision over  the  several  charitable  institutions  (now  twenty-four  in  num- 
ber) and  with  power  to  inspect,  supervise  and  license  certain  private 
institutions.  The  board  is  composed  of  twelve  members,  appointed  by 
the  governor,  and  they  receive  a  salary  of  ten  dollars  a  day  for  attend- 
ance at  the  meetings,  provided  that  the  total  allowance  for  each  member 
shall  not  exceed  five  hundred  dollars  ($500.00)  per  year.  The  financial 
and  business  affairs  of  the  charitable  institutions,  including  the  approval 
of  estimates  for  supplies,  are  in  the  hands  of  an  officer  called  the 
Fiscal  Supervisor.  He  is  appointed  by  the  governor  for  a  term  of  five 
years  and  receives  a  salary  of  six  thousand  dollars  a  year. 

2.  Each  of  the  state  hospitals  for  the  insane  (with  fourteen  in 
number,  6,000  employees  and  over  32,000  patients)  is  under  the  control 
of  a  board  of  managers  appointed  by  the  governor,  but  there  is  also 
a  commission  in  lunacy,  which  has  power  to  appoint  and  discharge 
superintendents  subject  to  the  approval  of  the  local  boards  of  managers. 
The  two  hospitals  for  the  criminal  insane  are  under  the  jurisdiction 
of  the  superintendent  of  state  prisons.  The  commission  also  visits  and 
inspects  the  insane  hopital,  formulates  policies  regarding  their  manage- 
ment, and  controls  their  business  and  financial  operations. 

3.  The  state  prisons  and  the  two  state  hospitals  for  insane  crim- 
inals, including  the  state  farm  for  women — eight  institutions  altogether, 
with  a  total  population  of  about  6,000,  are  under  the  control  of  a  state 
superintendent  of  prisons,  who  has  power  to  appoint  and  remove 
wardens  and  has  control  of  the  financial  and  business  operations  of 
the  several  institutions  under  his  jurisdiction.  The  reformatories  are 
under  separate  boards  of  managers. 

There  is  also  a  commission  of  prisons  of  seven  members,  with 
powers  of  inspection  and  advice;  a  board  of  parole  of  three  members, 
two  of  whom  are  appointed  by  the  governor,  and  the  commission  on 
new  prisons,  consisting  of  five  members. 

Finally,  there  is  a  board  of  classification,  consisting  of  the  fiscal 
supervisor  of  state  charities,  the  state  commission  of  prisons,  the  state 


376  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

superintendent  of  prisons,  and  the  lunacy  commission — in  all,  twelve 
members. 

This  New  York  system  has  been  criticized  for  its  cumbersomeness 
and  expensiveness.  The  machinery  of  administration  seems  needlessly 
complicated,  and  those  who  have  studied  its  workings  are  of  the 
opinion  that  it  does  not  work  smoothly  and  expeditiously. 

A  committee  of  inquiry  appointed  by  Governor  Sulzer  in  1913 
recommended  that  all  of  the  boards  and  offices  having  to  do  with  penal 
institutions  be  abolished  except  the  state  superintendent  of  prisons 
and  the  commission  of  prisons,  the  latter,  however,  to  consist  of  three 
members  instead  of  seven  and  to  be  given  all  the  powers  now  exercised 
by  the  bodies  proposed  to  be  abolished.  This  committee  also  urged 
that  the  state  charitable  institutions  ought,  in  some  way,  to  be  con- 
solidated. 

The  Massachusetts  system  is  also  mixed  and  complicated. 

1.  There  is  a  local  board  of  managers  for  each  institution. 

2.  There  is  a  state  board  of  insanity  having  supervisory,  visitorial 
and  directorial  power  over  the  institutions  for  the  insane. 

3.  There  is  a  state  board  of  charities  with  essentially  the  same 
powers  over  the  charitable  institutions. 

4.  There  is  a  board  of  prison  commissioners  with  complete  control 
over  the  four  reformatories  and  state  prisons,  but  not  the  state  farm, 
except  as  to  its  industries,  and  general  supervision  and  inspection  of 
jails  and  houses  of  correction.  The  board  consists  of  five  members, 
two  of  whom  must  be  women.  They  are  appointed  by  the  governor  for 
for  a  term  of  five  years.  The  chairman  receives  a  salary  of  $4,000  per 
year  in  addition  to  traveling  expenses.  The  other  members  receive 
only  their  necessary  expenses.  The  number  of  inmates  of  the  state 
prisons,  reformatories  and  prison  hospitals  is  about  3,000  and  the 
county  jails  and  houses  of  correction  contain  about  the  same  number. 

The  Massachusetts  Economy  and  Efficiency  Commission  in  1914 
recommended  a  radical  reorganization  of  the  machinery  of  control  for 
the  charitable,  penal  and  reformatory  institutions.  It  proposed  two 
alternative  schemes  for  the  consideration  of  the  legislature  and  accom- 
panied its  proposals  with  drafts  of  bills  for  carrying  out  its  recom- 
mendations. The  first  of  the  two  plans  proposed  to  vest  in  a  single 
board  of  five  commissioners,  paid  $1,000  a  year  each,  general  super- 
vision and  direction  of  all  the  state  hospitals,  asylums,  colonies,  sana- 
toria, industrial  schools  for  delinquent  boys  and  girls,  the  school  for 
the  feeble-minded,  the  state  prisons  and  reformatories,  and  the  state 
farm — altogether  twenty-nine  institutions,  with  a  population  of  over 
20,000  inmates.  This  commission  should  be  charged  with  the  f)romo- 
tion  of  general  policies  and  plans  in  regard  to  the  management  of  the 
institutions  and  with  the  general  oversight  of  their  administration. 
The  proposed  plan  contemplates  that  the  active  administration  of  the 
institutions  shall  be  vested  in  a  director  appointed  for  an  indefinite 
term  by  the  commission,  to  whom  he  is  to  be  held  responsible.  He  is  to 
have  authority  to  appoint  executive  secretaries  (one  for  each  of  the 
three  groups  of  institutions),  superintendents  and  other  subordinate 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  377 

officers,  to  see  that  all  inmates  are  properly  cared  for,  to  organize  a 
central  purchasing  agency  for  all  the  Institutions,  to  install  a  uniform 
system  of  accounting,  etc.  Provision  is  •  also  to  be  made  for  the 
appointment  of  a  business  agent,  one  of  whose  duties  is  to  purchase 
supplies  for  the  institution,  and  for  an  unpaid  board  of  three  visitors 
for  each  institution. 

The  second  plan  proposed  by  the  Economy  and  Efficiency  Com- 
mission vests  the  supervision  and  administration  of  the  institutions  in 
a  board  of  five  commissioners,  to  be  chosen  with  particular  reference 
to  the  nature  of  the  several  problems  involved,  the  members  of  the 
board  to  give  all  their  time  to  the  discharge  of  the  duties  of  their  offices. 
The  first  of  the  proposed  plans  is  preferred  by  the  Economy  and 
Efficiency  Commission  as  the  one  which  best  provides  the  means  for 
determining  the  responsibility  necessary  for  the  successful  administra- 
tion of  the  institutions,  although  it  admitted  that  each  plan  has  certain 
advantages  over  the  other.  Of  one  thing  the  commission  was  con- 
vinced, namely,  that  under  the  present  system  of  divided  authority  (the 
total  number  of  trustees  and  commissioners  who  are  concerned  with 
the  administration  of  the  institutions  is  136)  economy  and  efficiency  in 
the  management  of  the  institutions  is  impossible  and  that  the  remedy 
lies  in  the  abolition  of  a  large  number  of  the  existing  separate  boards 
and  commissions  and  the  substitution  of  a  central  authority  having  full 
power  and  responsibility. 

The  commission  found  that  there  appeared  to  be  no  standard  in 
the  various  institutions  for  determ'ining  the  number  of  employees  to 
do  the  work  required,  the  amount  of  the  salaries  paid  and  the  official 
titles  which  they  bore.  In  one  hospital  there  was  one  employee  to  3.38 
patients ;  in  another,  one  to  5.75  patients,  while  in  the  asylums  the  ratio 
ranged  from  1  to  4.20  to  1  to  5.45.  Salaries  of  superintendents  ranged 
from  $2,500  to  $5,000  per  year  among  the  different  institutions,  and  so 
with  the  salaries  of  subordinate  officers  and  employees.  In  regard  to 
financial  methods,  including  the  purchase  of  supplies,  the  commission 
found  the  same  lack  of  uniformity  and  want  of  system;  and  it  ex- 
pressed its  conviction  that  under  the  present  method  it  was  impossible 
to  control  the  affairs  of  the  institutions  from  the  accounting  standpoint 
so  that  an  accurate  record  could  be  presented  of  the  actual  expenditures 
for  any  particular  purpose.  One  of  the  most  important  advantages  to 
be  derived  from  the  proposed  reorganization,  said  the  Commission, 
might  come  through  the  installation  of  uniform  and  proper  accounting 
methods,  so  that  the  state  might  have  an  accurate  record  of  its  per- 
manent investment,  a  better  knowledge  of  its  maintenance  and  cost,  a 
more  efficient  management  of  its  purchases  through  a  central  agent  and 
a  more  business  like  handling  of  finances  by  the  state  treasurer's 
department. 

In  the  fifth  group,  that  is  to  say  the  group  of  states  in  which  all 
the  charitable,  penal  and  reformatory  institutions  are  under  the  control 
and  management  of  a  single  central  board  are  to  be  found  the  states  pf 
Arizona,  Iowa,  Minnesota,  New  Hampshire,  North  Dakota,  Ohio, 
South  Dakota,  Washington,  West  Virginia,  Wisconsin  and  Wyoming. 
If  to  these  we  add  those  states  in  which  the  penal  institutions,  though 
not  under  the  management  of  the  same  authority  as  the  charitable 


378  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

institutions,  yet  are  under  the  control  of  a  single  board  of  superin- 
tendence (California,  Kansas,  Kentucky,  Massachusetts,  New  York, 
Rhode  Island  and  Tennessee),  we  have  eighteen  states  at  the  present 
time  in  which  the  penal  institutions  (where  there  are  more  than  one 
in  a  single  state)  are  under  centralized  control. 

In  Arizona  all  the  charitable,  penal  and  reformatory  institutions 
are  under  the  management  and  control  of  a  board  consisting  of  the 
governor,  the  auditor  and  one  citizen  appointed  by  the  governor  for  a 
term  of  two  years. 

In  Iowa  all  the  state  hospitals,  prisons,  reformatories,  soldiers' 
homes,  schools  for  the  deaf,  industrial  schools  for  boys  and  girls,  etc. 
—fifteen  altogether,  with  a  total  population  of  about  9,000  inmates- 
are  under  the  management,  government  and  control  of  a  bi-partisan 
boa'-d  of  three  persons  appointed  by  the  governor,  with  the  consent  of 
two-thirds  of  the  senate,  for  a  term  of  six  years  (salary  $3,000  a  year). 
This  board  has  also  power  to  investigate  the  state  university,  the 
normal  school  and  the  college  of  agriculture,  and  the  power  to  inspect 
and  regulate  county  and  private  institutions  in  which  the  insane  are 
kept  and  homes  for  friendless  children.  In  general,  it  has  the  same 
powers  over  all  the  charitable,  penal  and  reformatory  institutions  that 
the  Illinois  Board  of  Administration  has  over  the  charit'/ole  institutions. 

Minnesota,  since  1901,  has  had  a  state  board  of  control  consisting 
of  three  persons  appointed  by  the  governor  for  a  term  of  six  years 
(salary  $3,500  each),  charged  with  the  management  of  all  the  char- 
itable, penal  and  reformatory  institutions,  including  training  schools, 
the  industrial  school  for  girls  and  the  tuberculosis  sanitarium — sixteen 
altogether,  with  a  total  population  of  about  6,500  inmates.  It  also  has 
a  certain  authority  over  the  educational  institutions  in  respect  to  the 
erection  of  new  buildings,  the  purchase  of  fuel  and  the  placing  of  insur- 
ance. The  board  has  charge  of  the  financial  and  business  affairs  of 
all  the  charitable  and  penal  institutions,  selects  superintendents,  fixes 
the  salaries  of  employees,  prescribes  the  system  of  accounting  and 
investigates  local  prisons,  jails,  hospitals  and  asylums.  The  members 
of  the  board  are  required  to  give  their  whole  time  to  the  discharge  of 
their  official  duties.  At  the  time  this  central  board  of  control  was 
created  the  state  board  of  charities  was  abolished,  but  the  need  for 
some  inspectional  machinery,  independent  of  the  board  whose  work  is 
to  be  inspected,  led  shortly  afterwards  (1907)  to  the  creation  of  a 
state  board  of  visitors,  which  is  little  more  than  the  old  board  of  char- 
ities under  a  dift"erent  name.  The  board  is  bi-partisan  in  composition 
and  is  composed  of  six  persons  appointed  by  the  governor  for  a  term 
of  six  years.  Its  members  receive  no  compensation  other  than  traveling 
expenses.  It  is  charged  with  the  visitation  and  investigation  of  all 
charitable  and  correctional  institutions. 

In  New  Hampshire  there  is  a  board  of  control  (created  in  1913) 
consisting  of  the  governor,  the  secretary  of  the  state  board  of  charities, 
the  purchasing  agent,  and  two  other  persons  appointed  by  the  governor. 
The  purchasing  agent  is  appointed  by  the  governor  and  receives  a 
salary  of  $3,000  per  annum.    He  has  power  to  make  contracts  and  to 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  379 

purchase  all  supplies  for  the  eleemosynary  institutions  and  for  the 
various  departments  of  the  state  government.  The  board  of  control 
acts  with  him  in  the  matter  of  constructing  and  repairing  buildings. 

In  North  Dakota  there  is  a  board  of  control  of  state  institutions 
(created  in  1911)  with  "full  power  to  manage,  control  and  govern" 
the  state  hospitals  for  the  insane,  the  state  penitentiary,  the  asylums 
for  the  blind,  the  deaf  and  dumb  and  the  feeble-minded,  the  state 
reform  school  and  such  other  charitable  and  penal  institutions  as  may 
be  created  in  the  future.  The  board  is  vested  with  all  powers  formerly 
exercised  by  the  separate  board  of  trustees  which  were  abolished  by 
the  Act  of  1911.  It  is  required  to  inspect  at  least  once  every  six 
months  all  institutions  subject  to  its  jurisdiction  and  to  visit  the  hos- 
pitals for  the  insane  once  each  month;  to  prescribe  a  uniform  system 
of  records  and  accounts  for  the  several  institutions  to  prepare  plans 
and  specifications  for  new  buildings  and  improvements ;  to  appoint 
superintendents,  wardens,  and  other  institution  officials  and  to  fix  their 
salaries ;  to  make  a  biennial  report  to  the  legislature  and  to  recommend 
the  enactment  of  such  legislation  as  in  its  judgment  is  necessary  or 
conducive  to  the  improvement  of  the  institutions.  The  board  consists 
of  three  members,  appointed  by  the  governor  for  a  term  of  two  years, 
not  more  than  two  of  whom  shall  be  taken  from  the  same  political 
party.    Each  member  receives  an  annual  salary  of  $3,000. 

In  Ohio,  all  the  charitable,  penal  and  reformatory  institutions, 
nineteen  (19)  in  number,  with  an  aggregate  number  of  inmates  of 
over  20,000,  are  under  the  management  and  control  of  a  board  com- 
posed of  four  persons,  not  more  than  two  of  whom  shall  belong  to  the 
same  political  party.  They  are  appointed  by  the  governor,  with  the 
consent  of  the  senate,  for  a  term  of  four  years,  and  they  may  be 
removed  by  the  governor  for  cause  after  a  hearing.  They  receive  a 
salary  of  $5,000  per  year  and  necessary  traveling  expenses.  There  is 
also  a  secretary  who  receives  a  salar>'  of  $3,000  per  year,  and  a  fiscal 
supervisor  who  receives  a  salary  of  $4,000  per  year.  The  board  suc- 
ceeded to  all  the  rights  and  powers  of  the  several  boards  by  which  the 
institutions  were  formerly  managed.  It  appoints  the  superintendents 
or  other  chief  officers  of  the  several  institutions,  determines  the  num- 
ber and  salary  of  employees,  prescribes  methods  of  accounting,  pur- 
chases supplies  for  all  the  institutions  (it  is  required  to  purchase  by 
contract  from  the  lowest  bidder),  visits  and  inspects  the  institutions 
and  acts  as  a  board  of  parole  for  the  release  of  prisoners  from  the  peni- 
tentiary and  reformatory,  and  for  the  release  of  boys  and  girls' from  the 
industrial  schools.  The  managing  head  of  each  institution  is  required 
to  present  to  the  board  monthly  estimates  of  needed  supplies.  These 
are  reviewed  by  the  fiscal  supervisor,  who  then  lays  them  before  the 
board  for  its  approval.  The  state  treasurer  is  the  custodian  of.  all 
funds  under  the  jurisdiction  of  the  board,  except  that  each  institution 
is  allowed  to  keep  on  hand  a  small  contingent  fund. 

In  South  Dakota,  the  management  and  control  of  the  peniten- 
tiary, the  insane  hospital,  the  deaf  and  dumb  school  and  the  reform 
composed  of  five  members,  salary  $3.00  per  day,  the  total  not  to  exceed 


380  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

$300.00  per  year.  The  board  is  required  to  visit  the  institutions  subject 
to  its  jurisdiction  and  it  has  charge  of  the  financial  management,  the 
purchase  of  supplies,  etc. 

Wisconsin,  since  1891,  has  had  a  board  of  control  for  the  char- 
itable, penal  and  reformatory  institutions — eleven  (11)  in  number, 
having  a  total  population  of  about  6.600  inmates — with  power  to  "main- 
tain, govern,  supervise  and  direct"  the  same.  It  is  composed  of  five 
persons  appointed  by  the  governor  (salary  $2,000  per  year  and  ex- 
penses) and  they  are  required  to  give  their  entire  time  to  their  official 
duties.  They  appoint  superintendents  and  managers,  purchase  supplies, 
visit  and  inspect  institutions  and  act  as  a  board  of  parole  and  probation. 
In  addition  to  their  control  over  the  regular  state  institutions,  they  are 
auhorized  to  "investigate  and  supervise"  all  charitable  and  correctional 
institutions  aided  in  any  way  by  the  state,  and  all  industrial  schools  and 
all  county  insane  asylums,  poor  houses,  jails,  cit)''  prisons  and  houses 
of  correction.  They  make  annual  visits  to  every  county  jail,  quarterly 
visits  to  the  county  insane  asylums  and  semi-annual  visits  to  the  sol- 
diers' home.  They  grant  licenses  for  the  erection  of  county  asylums 
and  approve  plans  for  the  same,  as  well  as  for  jails,  poor  houses,  and 
houses  of  correction.  They  also  have  the  power  to  audit  the  accounts 
of  county  insane  asylums. 

Washington,  since  1901,  has  had  a  state  board  of  control  of 
the  charitable  and  penal  institutions,  with  full  power  to  manage  and 
govern  the  same.  It  is  required  to  purchase  supplies  for  the  twelve 
institutions — nearly  4,000  inmates — under  its  control,  as  well  as  for  the 
five  (5)  state  quarries  and  the  state  capitol,  and  whenever  practicable 
to  purchase  the  same  by  contract.  The  board  consists  of  three  per- 
sons, appointed  by  the  governor  for  a  term  of  six  years  (salary  $3,000 
per  year  and  expenses).  With  the  warden,  it  acts  as  a  prison  board  for 
twelve  (12)  in  number,  with  about  5,000  inmates,  are  under  the  "man- 
agement, direction,  control  and  government"  of  a  board  of  control 
school  are  in  the  hands  of  the  state  board  of  charities  and  corrections, 
terminating  sentences  and  releasing  prisoners  in  pursuance  of  the  inde- 
terminate sentence  law. 

In  West  Virginia  the  charitable,  penal  and  reformatory  institutions, 
consisting  of  three  persons,  each  of  whom  receives  a  salar}^  of  $5,000 
per  year.  The  board  also  has  control  of  the  financial  and  business 
affairs  of  the  twelve  (12)  higher  educational  institutions  and  the  appro- 
priations made  for  various  boards,  commissions,  schools  and  associa- 
tions are  expended  at  the  discretion  and  upon  the  approval  of  the 
board.  The  purchase  of  supplies  for  all  the  institutions,  including  the 
educational  institutions,  is  made  by  the  board. 

In  Wyoming  the  charitable,  penal  and  reformatory  institutions, 
except  the  poor  farm,  are  under  the  management  of  a  board  consisting 
of  the  governor,  secretary  of  state,  the  state  treasurer,  the  auditor  and 
the  superintendent  of  education.  The  board  appoints  officers,  fixes 
salaries  and  makes  rules  regarding  the  purchase  of  supplies  and  the 
care  of  the  inmates. 

Michigan  is  the  only  state  that,  having  once  tried  the  central  board 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  381 

of  control  system,  abolished  it  and  returned  to  the  separate  board 
system.  In  1891  the  legislature  abolished  the  separate  boards  of  man- 
agers of  the  several  institutions  and  established  two  central  boards, 
one  for  the  management  of  the  prisons  and  the  reformatories,  the  other 
for  the  charitable  institutions.  In  1893  the  legislature  abolished  the 
two  central  boards  and  re-established  the  local  boards. 

Of  these  several  methods,  the  single  board  system  is,  of  course, 
the  simplest  and,  on  the  whole,  seems  to  be  the  one  best  adapted  for 
securing  economical  business  management  and  efficiency  generally.  But 
the  doings  of  a  board  with  such  large  powers  over  so  many  widely 
separated  institutions  should  be  subject  to  the  inspection  and  criticism 
of  an  independent  body  of  experts  or  disinterested  public-spirited 
citizens,  as  is  the  case  in  Illinois  and  Minnesota.  In  the  states  where 
this  system  is  in  force  there  is  general  satisfaction  with  the  results  and 
the  indications  are  that  it  will  be  introduced  into  other  states  in  the 
near  future. 
2.    State  Boards  of  Chanties. 

In  several  of  the  states  whose  institutions  are  under  the  adminis- 
trative control  of  a  central  board,  there  is,  in  addition,  a  state  board 
of  charities,  a  state  board  of  charities  and  corrections,  or  a  state  char- 
ities commission  charged  with  the  duty  of  visiting  and  inspecting  the 
institutions  and  of  making  recommendations  for  their  improvement 
This  is  true  of  Illinois,  Ohio  and  Minnesota;  and  it  is  also  true  of 
Massachusetts   (state  board  of  visitors)  and  New  York,  where  there 
is  a  mixed  system  of  central  and  local  control.    Likewise  in  a  majority 
of  the  other  states  (that  is  to  say,  those  which  do  not  have  a  central 
board  of  administrative  control,  the  charitable  and  sometimes  the  cor- 
rectional institutions  are  subject  to  the  supervision  and  inspection  of 
a  state  board  of  charities  or  similar  body  with  a  dififerent  name.     The 
members  of  these  boards  are  generally  unpaid  and  they  give  only  a 
small  portion  of  their  time  to  the  discharge  of  their  duties.    They  have 
few  or  no  powers  of  administrative  control  over  the  institutions,  their 
functions  being  mainly  visitorial  and  advisory ;  in  short,  they  are  super- 
visory bodies  and  not  boards  of   control.     The   following  states,  in 
addition  to  those  mentioned  in  the  preceding  paragraph,  now  have  such 
boards:     California  (a  paid  board  which  has  supervisory  power_  and 
a  limited  power  of  control),  Colorado,  Connecticut,  Indiana,  Louisiana, 
Maryland,  Michigan,  Missouri,  Montana,  Nebraska,  North  Carolina. 
Pennsylvania,  Rhode  Island,  Tennessee,  and  Virginia.    The  District  of 
Columbia  also  has  a  board  of  charities  with  similar  powers.     In  the 
following  states  there  is  no  state  board  of  charities  or  state  board  of 
control:     Alabama.  Delaware,  Florida,   Georgia,  Idaho.   Maine,  Mis- 
sissippi, Nevada,  New  Mexico,  Oregon,  South  Carolina,  Texas,  Utah 
and  Vermont  (except  for  the  insane).    In  Oklahoma  there  is  a  com- 
missioner of  charities  and  corrections,  and  in  New  Jersey  a  commis- 
sioner of  charities,  who  have  the  power  to  visit  and  inspect  all  state 
charitable  and  penal  institutions,  and  all  other  institutions  thatreceive 
state  aid.     In  addition  to  this  power,  the  Oklahoma  commissioner  is 
authorized  to  inspect  private  hospitals,  homes,  orphanages,  etc.,  and 
also  county  municipal  institutions. 


382  EFFICIENCY    AND    ECONOMY    COMMITTEE, 

3.    Boards  of  Pardon  or  Parole. 

State  boards  of  pardon  are  now  found  in  about  two-thirds  of  the 
states.  From  the  point  of  view  of  their  constitution,  they  may  be 
grouped  into  three  classes : 

1.  Ex  officio  boards,  that  is,  boards  composed  wholly  of  members 
who  are  at  the  same  time  state  offi'  ers. 

2.  Non  ex  officio  boards,  that  is  to  say,  boards  composed  of  mem- 
bers who  do  not  hold  other  state  offi':es. 

3.  Mixed  boards,  or  those  composed  partly  of  ex  officio  members 
and  partly  of  members  appointed  from  priva^.e  life. 

In  the  first  group  are  to  be  found  the  pardon  boards  of  Alabama, 
California,  Georgia,  Massachusetts,  Maine,  Minnesota,  Montana, 
Nevada,  Oklahoma,  Pennsylvania  and  Wyoming.  ^  In  Tennessee  the 
governor  is  authorized  to  refer  to  the  prison  commissioners  for  inves- 
tigation and  report  applications  for  pardon ;  and  in  Vermont  the  gov- 
ernor may  request  not  more  than  three  judges  of  the  supreme  court 
to  sit  with  him  and  to  advise  him  in  the  exercise  of  his  pardoning 
power. 

Pardon  boards  in  this  group  are  usually  composed  of  three  or 
more  state  officers,  among  whom  the  attorney  general  and  secretar}^ 
of  state  are  nearly  always  included.  Occasionally,  however,  the  auditor, 
the  lieutenant  governor,  and  in  one  state  (Oklahoma)  the  superin- 
tendent of  public  instruction  and  the  president  of  the  state  board  of 
agriculture  are  members.  Not  infrequently  the  chief  justice  of  the 
supreme  court  is  a  member,  and  occasionally  all  the  supreme  court 
judges  are  added.  In  Georgia  the  prison  commission  serves  as  a  board 
of  pardons  ;  and  in  California  the  board  of  prison  directors  are  required 
to  report  to  the  governor  the  names  of  all  prisoners  who,  in  their 
judgment,  ought  to  be  pardoned.  In  Wyoming  the  state  board  of  chari- 
ties serves  as  a  board  of  pardons.  In  Maine  and  Massachusetts  the 
executive  council  advises  the  governor  in  respect  to  the  granting  of 
pardons.  In  Missouri  there  is  a  pardon  attorney  who  examines  appli- 
cations for  pardons  and  makes  reports  to  the  governor.  In  the  United 
Slates  government,  applications  for  pardon  are  examined  and  reported 
on  by  a  pardon  attorney  in  the  Department  of  Justice. 

The  states  which  have  "mixed"  boards  are  Colorado,  Connecticut 
and  North  Dakota.  In  Colorado  the  board  is  composed  of  the  governor 
and  three  persons  appointed  by  him ;  in  Connecticut  it  is  composed  of 
the  governor,  one  judge  of  the  supreme  court,  and  four  other  persons 
appointed  by  him ;  in  North  Dakota,  of  the  attorney  general,  the  chief 
justice  and  two  other  persons  appointed  by  the  governor. 

The  states  which  have  pardon  boards  composed  wholly  of  non  ex 
officio  members  are :  Illinois,  Indiana,  Kansas,  Michigan,  Ohio,  South 
Carolina  and  Texas.  The  Illinois  board  is  composed  of  three  mem- 
bers, each  of  whom  receives  a  salary  of  $3,500  a  year.  The  Indiana 
board  is  composed  of  three  members,  each  of  whom  receives  a  salary 
01  $300  per  year  and  in  addition  an  allowance  for  traveling  expenses. 
The  Kansas  board  is  composed  of  three  members  with  salaries  of  $5 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  38c 

per  day  and  their  expenses;  that  of  Michigan,  four  members  at  $5  pei 
day  and  their  expenses;  that  of  Ohio,  four  members  at  $10  per  day 
for  time  actually  employed,  the  total  amount  not  to  exceed  $75  pei 
year;  that  of  South  Carolina,  three  members  at  $4  per  day,  the  total 
nol  to  exceed  $80  per  year;  and  that  of  Texas  two  members  at  $2,000 
per  year.  The  functions  of  the  boards  of  this  class  are  advisory  in 
character ;  that  is  to  say,  their  powers  are  limited  to  the  investigation 
of  applications  for  pardons  and  the  making  of  recommendations  to  the 
governor,  in  whom  the  actual  pardoning  power  belongs.  Some  of  the 
boards  composed  of  ex  officio  members,  however,  especially  when  the 
governor  is  a  member,  have  the  full  power  to  grant  pardons  and  not 
merely  the  power  to  recommend. 

Generally,  where  pardon  boards  exist,  they  have  the  same  powers 
in  respect  to  parole  that  they  have  in  respect  to  pardons,  but  there  are 
a  good  many  exceptions.  In  Illinois  the  board  of  pardons  is  charged 
with  mvestigating  applications  for  release  on  parole  from  the  two 
penitentiaries  and  with  making  recommendations  thereon;  but  the 
power  to  release  on  parole  from  the  reformatory  belongs  to  the  board 
of  managers  thereof.  In  some  states,  like  Kansas,  Kentucky,  Cali- 
fornia and  Georgia,  the  board  of  commissioners  or  managers  of  the 
penitentiary  serves  as  the  board  of  parole.  Several  states  have  sepa- 
rate state  boards  of  parole.  This  is  true  o^  New  York,  Indiana,  Iov\a 
and  Minnesota.  In  Indiana  it  consists  of  the  warden  of  each  peni- 
tentiary, the  board  of  directors  thereof,  the  chaplain  and  the  physician. 
That  of  New  York  consists  of  the  state  superintendent  of  prisons  and 
two  other  persons  appointed  by  the  governor,  who  receive  salaries  of 
$3,600  per  year  and  their  expenses.  That  of  Iowa  is  composed  of 
three  members  appointed  by  the  governor,  each  of  whom  receives  a 
salary  of  $10  per  day  for  the  time  actually  employed,  the  total  amount 
not  to  exceed  $1,000  per  yaer  and  their  expenses.  That  of  Minnesota 
is  composed  of  the  senior  members  of  the  state  board  of  control,  the 
warden  of  the  state  prison  at  Stillwater,  the  superintendent  of  the  state 
reformatory  and  one  non-official  member,  who  receives  a  salary  of 
$10  per  day.  In  several  states  where  there  is  a  central  board  of  control 
of  all  charitable  and  penal  institutions  (as  in  Ohio,  Wisconsin  and 
Washington),  this  board  serves  as  the  board  of  parole.  The  United 
States  parole  board  consists  of  the  superintendent  of  prisons  in  the 
Department  of  Justice,  together  with  the  wardens  and  physicians  of 
the  several  penitentiaries. 


.    4.      OPINIONS    ON    THE    CENTRAL    BOARD    SYSTEM. 

Success  in  Other  States. 

In  the  states  where  the  central  board  system  of  managing  the 
charitable  and  penal  institutions  prevails,  the  system,  so  far  as  can  be 
ascertained,  is  regarded  as  a  great  improvement  over  the  old  system 
under  which  each  institution  was  managed  by  a  separate  board,  and 
there  seems  to  be  no  sentiment  in  favor  of  reverting  to  the  old  system. 


384  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

The  secretary  of  the  Arizona  board  of  control,  in  a  letter  dated 
January  28,  1914,  says: 

There  is  no  desire  in  the  state  to  return  to  the  old  system  of  a  separate 
board  for  each  institution.  The  board  of  control  plan  is  so  old  in  this 
state,  dating  back  to  1895,  that  I  have  no  information  as  to  how  it  works 
as  compared  with  the  arrangem.ent  which  preceded  it.  However,  we  find  a 
great  saving  can  be  made  by  having  a  piurchasing  department  for  all  state 
institutions  and  departments,  and  are  inclined  to  believe  that  increased 
efficiency  results  from  a  central  authority,  and  that  experience  gained  in 
one  institution  can  be  used  to  advantage  in  tlie  management  of  another. 
In  other  words,  it  provides  a  board  of  experts  on  institutional  manage- 
ment and  also  is  an  advantage  in  that  it  is  able  to  adjust  differences,  and 

^arrange  for  cooperation  among  the  institutions. 

The  chairman  of  the  Iowa  board  of  control,  in  a  letter  of  Januar}- 
31,  1914,  says: 

We  are  confident  that  the  managing  of  state  institutions  by  a  central- 
ized body,  such  as  our  board,  is  prefe'rable  and  more  economical  than  under 
the  old  trustee  system.  Under  the  old  plan  there  was  more  or  less  politics 
in  the  selection  of  trustees,  while  the  law  creating  our  board  of  control 
made  it  non-partisan.  The  board  of  control  of  Iowa  is  required  to  come 
in  close  contact  with  the  inmates  of  the  various  institutions  and  with  the 
prisoners  in  the  reformatories  and  the  penitentiaries.  In  this  way  we 
become  students  of  character  and  it  aids  materially  in  knowing  how  to 
manage  and  control  the  wards  of  the  state  and,  I  think,  enables  us  to  take 
our  place  in  the  front  rank  of  the  progress  that  has  been  made  in  handling 
derelicts  and  dependents' on  the  state. 

In  a  letter  to  a  committee  of  the  Illinois  Legislature  in  1908,  the 
same  gentleman  said : 

We  are  in  the  office,  when  not  visiting  state  institutions,  ever}-  morning 
at  8  a.  m.,  remaining  until  5  p.  m.,  and  we  have  practically  abandoned  all 
our  own  private  interests,  with  the  result  that  all  criticism  in  regard  to  the 
board  of  control  has  long  since  ceased,  and  I  doubt  if  there  is  a  single 
person  in  the  State  of  Iowa  who  would  advocate  going  back  to  the  old 
trustee  system. 

Instead  of  purchasing  for  each  institution  as  formerly,  under  the 
trustee  system,  we  make  all  our  purchases  for  the  fifteen  institutions  under 
our  control  at  one  time.  We  have  a  list  of  manufacturers  and  dealers  in 
all  the  supplies  required  by  our  state  institutions,  and  schedules  with  speci- 
fications are  printed  every  quarter  (of  late  semi-annually)  and  samples 
are  submitted.  All  purchases  for  all  of  the  institutions  are  made  by  us  in 
our  office  in  the  capitol  in  Des  Aloines,  and  when  making  awards  no 
bidder  is  allowed  to  be  present.  We  examine  the  samples  and  note  the 
prices,  and  in  all  our  purchases  goods  are  delivered  f.  o.  b.  the  city 
nearest  to  where  the  institution  is  located,  so  that  we  have  nothing  what- 
ever to  do  with  freight  rates  or  claims  for  damages  if  any  article  is  injured 
in  transit,  the  shipper  being  responsible  for  the  safe  delivery  of  the  goods. 

In  purchasing  articles  as  tea,  coffee,  canned  fruit,  etc.,  we  have  samples 
submitted,  and  when  goods  are  delivered  each  institution  sends  us  a  sample 
of  the  article  as  received,  and  it  is  compared  in  our  office  with  the  sample 
on  which  the  award  was  made.  If  the  article  is  not  equal  to  the  sample  on 
which  the  award  was  made,  the  shipper  is  notified  that  the  goods  are 
subject  to  his  order,  as  they  will  not  be  accepted.  We  have  no  friends  in 
the  business,  and  it  is  a  cold-blooded  business  transaction  from  beginning 
to  end,  with  careful  attention  to  the  most  minute  details  and  securing  of 
the  best  that  can  be  had  at  the  least  possible  price. 

When  the  goods  are  received,  the  institution  makes  a  voucher  and  this 
is  forwarded  to  the  shipper  for  execution,  and  after  being  certified  to  by 
the  chief  executive  officer  of  the  institution  that  the  articles  have  been 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  385 

received  in  good  order,  the  voucher  is  forwarded  to  us  and,  when  approved, 
an  abstract  is  made  and  furnished  the  Auditor  of  the  State,  who  makes 
his  warrant  on  the  State  Treasurer,  who  sends  check  direct  to  the  party 
furnishing  the  goods. 

We  handle  no  money  whatever,  and  no  money  is  handled  at  the  insti- 
tution except  that  provided  for  in  the  payroll  and  a  small  amount  for 
contingent,  not  exceeding  $250,  which  is  left  in  the  hands  of  the  superin- 
tendent to  provide  against  any  emergency  whereby  loss  to  the  property 
of  the  state  might  be  sustained.  Due  reports  of  all  expenditures  from 
this  fund  are  made  to  our  office  every  month  and  we  also  require  a  w^eckly 
statement  of  the  disbursements  of  all  articles  at  the  state  institutions, 
whether  it  is  a  paper  of  pins,  a  carload  of  flour,  a  carload  of  sugar,  or  a 
ton  of  coffee,  our  books  being  an  exact  duplicate  of  the  books  of  the  dis- 
bursing officers  at  the  state  institution. 

In  an  address  before  the  National  Conference  of  Charities  and 
Corrections  in  1902,  the  president  of  the  Iowa  board  of  control  stated 
further  that  "When  each  institution  had  a  separate  board,  the  members 
met  once  a  month  or  once  a  quarter  to  look  after  the  affairs  of  the 
institution,  taking  their  own  business  witli  them,  and,  of  course,  hurried 
home  as  soon  as  possible,  the  real  management  devolving  upon  the 
executive  officers  of  the  institution.  Now  there  are  three  men  in 
session  every  w^orking  day  of  the  year  from  8  o'clock  until  5,  and 
again  in  the  evening,  devoting  their  entire  time  to  the  interests  of  those 
entrusted  to  their  care."  Under  this  system,  he  adds,  there  was  a 
saving  of  $175,000  during  the  first  year  and  this  notwithstanding  the 
fact  that  the  inmates  of  the  institution  received  better  care  and  a  higher 
qualiy  of  food  and  clothing. 

A  member  of  the  West  Virginia  board  of  control,  in  a  letter  of 
February  9,  1914,  writes: 

Before  1909  each  public  institution  of  the  state  was  under  the  manage- 
ment and  control  of  a  board  of  directors  or  of  regents.  The  state  board 
of  control  has  full  control  and  management  of  all  the  state  institutions 
except  the  educational  institutions,  and  of  these  it  has  control  of  the 
business  management,  while  the  state  board  of  regents  has  control  of  the 
educational  side.  We  find  the  change  most  beneficial.  There  have  been 
very  large  reductions  made  in  the  cost  of  maintaining  these  institutions, 
while  their  efficiency  has  been  increased.  There  is  no  desire  whatever  to 
return  to  the  old  system  of  separate  boards  for  each  institution. 

A  member  of  the  board  of  control  of  the  state  of  Washington,  in 
a  letter  of  February  2,  1914,  says: 

The  state  board  of  control,  composed  of  three  members,  has  entire 
charge  of  all  reformatory  institutidns  in  the  state,  also  insane  hospitals, 
soldiers'  home,  school  for  the  deaf,  school  for  the  blind,  institution  for  the 
feeble-minded,  and  the  state  penitentiary.  We  feel  that  it  is  a  general 
conclusion  in  this  state  that  one  central  board  is  far  superior  to  having 
individual  boards  for  each  of  the  institutions,  and  that  it  has  been  satis- 
factorily established  that  there  has  been  an  improvement  in  ihe  efficiency 
with  which  the  institutions  are  managed  since  this  change  took  place,  some 
fourteen  years  ago. 

The  Secretary  of  the  Wisconsin  board  of  control  writes  January 
29,  1914: 

The  centralized  board  system  has  been  in  operation  in  this  state  since 
1881,  more  than  thirty  years.  All  of  the  state,  charitable,  reformatory  and 
penal  institutions  are  managed  by  the  centralized  board  system  in  Wiscon- 
sin, and  all  those  institutions  have  been  managed  by  a  central  board  since 


386  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

1881.  1  assume  that  the  reason  why  your  penal  institutions  were  not  put 
under  the  management  of  the  Board  of  Administration  of  Ilhnois  was  that 
it  was  thought  by  the  Legislature  that  there  would  be  too  many  institutions 
for  one  board  to  manage.  .... 

1  am  of  the  opinion  that  your  reformatory  and  penal  institutions 
should  also  be  managed  by  your  State  Board  of  Administration,  but  I  think 
that  the  next  best  thing  to  do  would  be  to  create  one  board  for  the 
management  of  those  institutions.  The  difficulty  is  that  when  institutions 
are  managed  by  different  boards  of  trustees  or  commissioners,  there  is  a 
lack  of  uniformity  in  business  methods  and  in  accounting  methods,  and 
there  is  also  a  lack  of  uniformity  in  the  policies  which  govern  the  institu- 
tions. I  am.  a  great  believer  in  centralized  power  and  centralized  authority. 
If  a  board  is  to  be  created  in  your  State  to  manage  the  reformatory  and 
penal  institutions,  I  believe  that  a  centralized  department  should  be 
created  in  the  capitol  and  that  the  members  of  the  board  should  be  obliged 
.  to  devote  all  their  time  to  the  management  of  the  institutions.  It  may  be 
argued  that  there  will  not  be  sufficient  work  for  the  members  of  the  insti- 
tutions, but  I  believe  that  if  efficiency  is  to  be  produced  and  better  methods 
to  be  employed,  that  it  will  require  the  time  of  a  board  of  at  least  three 
members.  A  centralized  board  ought  not  only  to  take  care  of  the  present 
needs  of  the  institutions,  but  should  also  formulate  policies  for  the  future 
and  things  should  be  planned  ahead. 

It  would  be  difficult  to  show  what  reduction  has  been  made  in  the  cost 
of  maintenance  in  Wisconsin  by  the  state  board  of  control.  You  under- 
stand that  any  comparison  of  cost  in  the  last  five  or  six  years  as  compared 
with  any  previous  period  would  not  mean  anything  because  the  cost  ofthe 
different  supplies  has  so  materially  advanced.  We  know  to  a  certainty 
that  the  institutions  under  the  control  of  this  board  are  much  more 
efficiently  managed  and  that  they  are  producing  better  results  than  when 
they  were  managed  by  the  boards  of  trustees.  There  is  no  sentiment  in 
Wisconsin  to  abolish  the  present  board  and  go  back  to  the  old  system. 
In  fact  I  have  never  heard  that  advocated  by  anybody  since  I  have  been 
in  this  department  and  I  have  been  here  for  more  than  eighteen  years. 

"Under  the  old  system,"  says  another  witness,  "each  institution 
[in  Wisconsin]  was  the  prey  of' local  business  men;  there  was  little 
or  no  competition  in  the  purchase  of  supplies ;  there  was  a  popular  idea 
that  the  institution  existed  for  the  benefit  of  the  locality.  Under  the 
present  system  the  per  capita  cost  of  maintenance  has  been  steadily 
reduced  in  spite  of  the  increased  price  of  supplies  and  the  expense  of 
improvements  made  through  the  use  of  a  surplus  acquired  by  economy." 

Expert  Opinion  in  Favor  of  Centralised  Control  of  Penal  Institutions. 

In  1902  a  committee  of  the  National  Prison  Association,  copsisting 
of  Professor  Charles  R.  Henderson,  Dr.  F.  H.  Wines,  Professor 
Prancis  Wayland  and  Eugene  Smith,  Esq.,  made  an  investigation  of 
the  methods  of  supervision  and  control  of  penal  institutions  in  the 
United  States  and  Europe.  Among  tlie  questions  considered  was 
whether  all  the  penal  and  reformatory  institutions  of  a  state  should  be 
placed  under  a  single  board  of  commissioners  with  powers  of  direction 
and  control.  The  committee  sent  out  a  questionnaire  to  a  number  of 
penologists  and  officials  of  penal  institutions,  and  of  those  who  replied 
twenty-eight  expressed  an  opinion  in  favor  of  a  central  board  of 
control  and  ten  were  opposed.  After  an  elaborate  examination  of  the 
systems  of  penal  administration  in  this  country  and  Europe,  the  com- 
mittee expressed  the  conclusion  that  all  penal  and  correctional  institu- 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS,  387 

tions  should  be  placed  under  the  control  of  a  single  administrative 
agency,  which  might  be  either  a  commissioner  or  a  board  of  commis- 
sioners, or  there  might  be  a  division  of  authority  between  the  two. 
Central  administrative  control,  said  the  committee,  is  the  only  method 
by  which  the  people  of  the  commonwealth  can  be  assured  of  a  unified 
system  of  equitable  execution  of  penalties  and  it  is  the  best  way  of 
securing  a  uniform  system  of  purchases  of  supplies  and  a  uniform  and 
reliable  system  of  records  and  accounts.  As  a  permanent  agency,  it 
would  accumulate  information  within  the  state  and  be  able  to  learn  the 
lesson  of  experience  throughout  the  world.  This  is  the  system  in  the 
most  enlightened  countries  of  Europe,  where  the  administration  of  the 
penal  institutions  has  attained  a  high  degree  of  efficiency. 

This  recommendation  is  in  line  with  present-day  tendencies  and 
it  represents  the  views  of  a  majority  of  penologists  and  administrative 
officials  who  have  had  practical  experiences  in  the  management  of  penal 
institutions.  The  state  superintendent  of  prisons  in  New  York,  in  a 
letter  of  January  29,  1914,  to  the  Illinois  Committee  on  Efficiency  and 
Economy,  says :  "The  four  large  prisons  for  men,  the  state  prison  for 
wom_en  and  the  two  state  hospitals  for  the  criminal  insane  are  under 
the  jurisdiction  of  the  superintendent  of  state  prisons.  They  have 
alwavs  been  under  one  central  authority  and  I  do  not  see  how  they 
could  be  otherwise  operated  without  great  loss  to  the  state." 

Dr.  William  A.  White,  superintendent  of  the  Government  Hospital 
for  the  Insane,  Washington,  D.  C.  writes  in  reply  to  a  request  for  his 
opinion  in  regard  to  the  advisability  of  consolidating  the  management 
of  the  penal  and  reformatory  institutions  .of  Illinois  in  the  hands  of  a 
single  board: 

As  to  the  general  proposition  of  the  advisability  of  placing  the  penal 
and  reformatorv^  institutions  under  the  same  board  of  control  as  head  of 
the  charities  system  of  the  State,  on  general  princinles  it  would  seem  to 
me  a  perfectly  proper  arrangement.  I  am  a  great  believer  in  concentrating 
and  centralizing  both  authority  and  responsibility.  T  can  see  objections, 
however,  to  such  an  arrangement,  as  from  the  present  way  of  looking 
at  things,  these  separate  classes  of  institutions  are  doing  separate  kinds 
of  work.  However,  from  the  broader  humanistic  standpoint  they  are  all 
dealing  with  the  inefficients  in  the  community  who  have  to  be  cared  for, 
and  if  it  is  realized  that  so-called  crime  is  as  much  a  result  of  the  inef- 
ficiency of  the  individual  to  measure  up  to  the  social  standards  as  so- 
called  insanity,  and  that  the  so-called  criminal  should  be  treated  by  the 
State  with  the  object  of  returning  him  to  good  citizenship,  just  as  the 
so-called  insane  person  is  treated  by  the  institution  with  a  similar  end 
in  view,  then  it  would  seem  eminently  proper  and  a  step  forward  to 
group  them  all  together  under  a  single  board  of  control.  If  that  were 
to  be  done,  however,  I  should  want  to  feel  that  the  moving  principle  back 
of  the  whole  arrangement  was  one  of  progress  making  for  higher  ideals 
which  were  essentially  humanistic  and  that  the  control  would  be  in  the 
hands  of  broad-minded,  generously  disposed  men.  If  this  can't  be  done 
it  would  perhaps  be  better  to  have  the  penal  institutions  separately  con- 
ducted from  either  the  charitable  on  the  one  hand  or  the  hospitals  for 
the  insane  on  the  other.  In  any  event  such  a  board  would  of  course  be 
a  representative  one,  the  representatives  of  each  varying  interest  being 
present  to  look  after  their  separate  needs. 

Of  course  I  do  not  know  from  your  letter  what  your  problem  is. 
Apparently  your  committee  has  been  created  to  cure  certain  existing,  or 
presumed  to  exist,  evils  and  no  intelligent  advice  can  be  given  as  to  how 


388  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

to  proceed  with  the  cure,  unless  the  diagnosis  has  first  been  made.  I 
therefore  feel  at  a  loss  to  make  any  suggestions  to  you  because  I  do  not 
know  what  vou  are  tn^ing  to  do.  From  the  standpoint  purely  of  economic 
administration  the  consideration  of  building  and  the  furnishing  of  supplies 
I  should  think  it  would  be  an  eminently  proper  thing  to  group  all  the 
boards  and  have  a  central  purchasing  committee  who  would  look  after 
the  supplying  of  all  of  the  public  institutions  of  the  State  from  a  central 
point.  This  could  be  made  to  have  undoubted  economic  advantages  al- 
though naturally  it  would  have  its  great  dangers  because  the  board  would 
have  in  their  control  large  sums  of  money  with  all  the  consequent  pos- 
sibilities of  trouble  that  might  ensue. 

Warden  James  B.  Smith,  of  the  Southern  Illinois  penitentiary  at 
Chester,  in  a  letter  of  April  4,  1908,  addressed  to  Hon.  ].  W.  Hill, 
chairman  of  a  Legislative  Committee  appointed  to  investigate  condi- 
tions in  the  State  institutions,  advocated  the  placing  of  the  peniten- 
tiaries under  the  control  of  a  single  board.    He  said : 

I  believe  that  the  State  should  have  a  board  of  control  and  then  the  warden 
and  superintendent  should  give  their  whole  time,  or  as  much  as  possible  to  look- 
ing after  and  making  a  study  of  every  man  who  is  confined  in  the  institution 
of  which  they  are  the  head.  In  regard  to  the  board  of  control  I  will  say  that 
I  am  familiar  with  the  systems  used  in  the  various  states  and  am  more  favorably 
impressed  with  that  adopted  by  the  state  of  Ohio  than  any  other. 

Criticism  of  the  System  of  Centralized  Administration. 

A  comprehensive  and  careful  investigation  has  recently  been  made 
by  Mr.  H.  C.  Wright  for  the  state  charities  aid  association  of  New 
York  of  the  fiscal  methods  of  institutional  administration  in  the  states 
of  Iowa,  Indiana  and  New  York.  In  Iowa  all  the  fifteen  charitable, 
penal  and  reformatory  institutions  are  under  the  management  of  a 
central  board,  which  purchases  supplies  and  controls  the  finances  of 
the  institutions.  In  Indiana  each  separate  institution  is  under  the 
control  of  a  board  of  managers,  which  purchases  the  supplies  for  its 
own  institution  and  controls  the  financial  administration  of  the  institu- 
tion without  being  subject  to  the  control  of  any  central  authority. 
The  Indiana  and  Iowa  systems  are,  therefore,  directly  opposite  in 
character.  In  New  York  the  institutions  are  divided  into  three  classes : 
(1)  The  prisons  and  hospitals  for  insane  criminals  are  under  the 
control  of  the  state  superintendent  of  prisons;  (2)  the  other  insane 
hospitals,  which  are  under  the  control  of  a  state  commission  in  lunacy, 
and  (3)  the  charitable  institutions,  whose  fiscal  operations  are  subject 
to  the  control  of  the  state  fiscal  supervisor.  The  managing  officer  of 
each  institution  is  required  to  prepare  estimates  of  the  supplies  needed 
by  his  institution  and  to  transmit  these  to  the  central  officer  or  author- 
ity (the  state  superintendent  of  prisons  in  the  case  of  prisons ;  the  fiscal 
supervisor  in  the  case  of  the  charitable  institutions),  who  has  power 
to  grant  or  refuse  the  supplies  asked  for,  or  to  decrease  or  increase 
the  amount  of  the  estimated  price.  Nothing  can  be  purchased  by  an 
institution  except  upon  approval  of  the  estimate  by  the  supervising 
authority.  In  practice,  the  superintendent  of  prisons  seldom  refuses 
the  estimates  or  alters  the  estimated  prices.  The  fiscal  supervisor,  how- 
ever, frequently  reduces  the  prices  in  the  estimates  of  the  charitable 
institutions. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  389 

Mr.  Wright  calls  attention  to  the  advantages  of  the  estimate  system 
and  the  common  purchase  of  supplies  for  all  the  institutions ;  but  at  the 
same  time  he  points  out  several  disadvantages,  one  of  which  is  to  make 
the  superintending  office  merely  an  administrative  agent  of  the  central 
department.  The  kind  and  quality  of  the  supplies  he  uses  are  deter- 
mined at  Albany.  He  is  told  how  and  where  he  may  purchase  them ; 
and  he  may  be  told,  and  in  some  cases  is,  just  how  he  shall  dress  the 
inmates.  He  is  told  how  many  teachers  he  may  have  in  the  school. 
The  fiscal  supervisor  controls  absolutely  the  finances  of  the  charitable 
institutions  and  practically  dictates  every  feature  of  their  management. 
Even  the  medical  department,  we  are  told,  which  falls  more  directly 
under  the  supervision  of  the  state  board  of  charities,  is  practically 
controlled  by  the  fiscal  supervisor,  since  he  can  dictate  the  number  of 
medical  officers  which  the  institution  may  have.  He  is,  in  short,  the 
sole  arbiter  of  the  management  of  the  charitable  institutions. 

This  dictation  from  Albany,  says  Mr.  Wright,  of  minute  details 
tends  to  destroy  initiative  on  the  part  of  the  superintendents  and  to 
make  them  indifferent  as  to  the  results  that  they  may  attain.  In  the 
various  institutions  visited,  there,  was  an  atmosphere  of  discouragement 
and  a  tendency  to  throw  the  responsibility  of  everything  upon  the  con- 
trolling officials  at  Albany. 

The  requirement  that  no  articles  may  be  purchased  by  the  super- 
intendents or  wardens  except  upon  estimates  approved  by  the  proper 
authority  often  handicaps  the  managing  officials  and  interferes  with  the 
good  administration  of  the  institutions.  On  one  occasion,  for  example, 
the  superintendent  of  one  of  the  institutions  wrote  to  the  fiscal  super- 
visor asking  for  the  privilege  of  purchasing,  in  advance  of  estimating 
therefor,  three  lengths  of  stove  pipe  to  replace  a  rusted-out  one.  The 
fiscal  supervisor  gave  him  permission  to  purchase  the  said  stove  pipe, 
but  cautioned  him  against  oversight  of  this  kind  in  the  future. ^  On 
another  occasion  the  fiscal  supervisor  refused  to  approve  an  estimate 
for  a  bottle  of  ink  desired  by  one  of  the  institutions  on  the  ground  that 
the  estimate  did  not  specify  the  size  of  the  bottle. 

While  in  general  the  estimate  system  tends  to  prevent  extravagance 
in  the  purchase  of  supplies,  it  does  not  permit  superintendents  to  take 
advantage  of  a  low  local  market.  Thus  local  farmers  often  ofifer  pota- 
toes, cabbage,  fruits  and  other  articles  of  this  character  at  rates  con- 
siderably below  the  market  prices  at  which  they  could  be  purchased 
from  wholesale  market  men.  An  example  was  afforded  by  the  follow- 
ing case : 

One  of  the  institutions  desired  to  purchase  a  stack  of  hay  from  a 
neighboring  farmer  but  it  was  necessary  for  the  superintendent  to  get  per- 
mission from  the  fiscal  supervisor  at  Albany.  As  there  was  a  delay_  m 
granting  the  permission,  the  superintendent  took  the  liberty  of  purchasmg 
the  hay,  trusting  that  his  action  would  be  approved.  In  fact,  however,  it 
was  disapproved  and  severely  criticised  and  it  was  only  after  considerable 
correspondence  that  the  fiscal  supervisor  would  permit  payment  for  the 
hay. 

In  regard  to  the  joint  purchase  of  supplies,  Mr.  Wright  declares 
that  under  the  New  York  system  butter  has  cost  more  than  when  pur- 


390  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

chased  by  separate  institutions;  that  ninety  (90)  per  cent  of  the  butter 
was  below  contract  specifications ;  that  the  same  was  true  of  the  beef 
supply  and  other  articles. 

Mr.  Wright  criticizes  the  methods  of  the  fiscal  supervisor,  who, 
he  says,  has  so  administered  his  office  as  to  lessen  the  attention  and 
strength  which  the  superintendents  would  otherwise  be  able  to  give  to 
the  care  of  the  inmates.  The  necessity  of  almost  daily  argument  on 
the  part  of  the  superintendents  with  the  fiscal  supervisor's  office  by 
means  of  correspondence,  telephone  and  telegraph,  to  secure  small  arti- 
cles of  daily  need  has  left  little  time  to  be  devoted  to  the  larger  needs 
of  the  institutions. 

His  policy  seems  to  have  been  to  appear  to  save  by  reducing  the 
prices  permitted  for  any  and  all  articles  wherever  possible,  regardless 
of  the  insignificance  of  the  article  or  the  amount  of  the  reduction. 
The  result  has  been  that  what  in  a  great  many  cases  appears  to  be  a 
saving  was  an  actual  loss,  due  to  the  substitution  of  an  inferior  article 
or  due  to  the  necessity  of  paying  an  amount  of  freight  or  express. 

The  New  York  estimate  system,  he  says,  is  very  expensive, 
amounting  to  about  $30,000  a  year  in  the  fiscal  supervisor's  depart- 
ment and  $19,000  a  year  in  the  lunacy  commission.  In  fact,  the  cost 
of  operating  the  supervising  offices  in  New  York  is  out  of  all  proportion 
to  the  expense  of  maintaining  the  institutions.  Thus  the  cost  of  oper- 
ating the  offices  of  the  superintendent  of  prisons,  the  lunacy  commis- 
sion, the  boards  of  managers,  the  fiscal  supervisor,  the  board  of  char- 
ities and  the  state  architect  amounts  to  $238,488  per  year,  whereas  in 
Indiana  the  cost  of  supervision  amounts  to  only  $30,000  and  in  Iowa 
$37,510. 

Mr.  Wright  defends  the  Indiana  system,  where  each  institution 
is  under  the  management  of  a  separate  board.  He  finds  that  the  insti- 
tutions there  are  economically  administered  and  the  welfare  of  the 
inmates  carefully  looked  after.  Supplies  are  purchased  as  cheaply 
under  the  Indiana  system  as  under  the  New  York  or  Iowa  system. 
But  he  admits  that  conditions  in  Indiana  are  somewhat  exceptional, 
due  to  the  fact  that  the  state  has  had  for  many  years  men  with  very 
unusual  qualifications  upon  its  institutional  boards.  In  conclusion,  he 
makes  the  following  suggestions  : 

(a)  An  institution  with  an  inmate  population  of  400  or  over  can 
ordinarily  secure  as  low  prices  as  can  a  central  body  with  power  to  con- 
tract for  larger  quantities. 

(b)  Superintendents  and  stewards  and  boards  of  managers  exercise 
as  discriminating  and  reliable  judgment  in  the_  selecting  and  contracting 
for  supplies  as  is  now  exercised  by  central  bodies. 

(c)  Institutions,  whether  operating  independently  without  central 
control,  or  up  to  the  present  time  with  central  control,  do  not  meet  as 
efficiently  as  seems  desirable,  some  of  the  larger  problems  of  institutional 
management  which  require  expert  knowledge. 

(d)  In  those  institutions  which  seem  to  do  the  best  work  and  seem 
to  care  for  the  inmates  most  satisfactorily,  the  superintendent  is  given, 
under  the  general  direction  of  the  board  of  managers,  a  large  degree  of 
liberty  with  a  corresponding  responsibility. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS,  391 

B.      IN    FOREIGN    COUNTRIES. 

1.    In  England. 
Poor  Relief. 

In  England  the  management  of  the  charitable  and  penal  insti- 
tutions, as  well  as  the  control  of  the  poor  relief  generally,  is  more 
unified  and  centralized  than  in  the  United  States.  Control  and  super- 
vision of  poor  relief  is  centered  in  the  local  government  board,  whose 
president  is  a  member  of  parliament  and  of  the  cabinet.  The  staff  of 
the  board  includes  a  permanent  secretary,  a  parliamentary  secretary 
and  a  corps  of  inspectors.  Its  powers  include  the  organization  of  poor 
law  authorities,  the  issuing  of  orders  and  regulations,  supervision  of 
the  administration  of  poor  relief  by  the  local  authorities,  the  collection 
of  the  poor  law  information,  the  hearing  of  appeals  from  the  local  poor 
law  authorities  in  respect  to  complaints  against  guardians,  and  the 
determination  of  disputes  between  poor  law  unions. 

The  supervision  of  poor  law  administration  by  the  local  authorities 
is  carried  out  through  a  system  of  rigid  inspection  by  agents  of  the 
local  government  board,  who  make  regular  visits  to  the  work  houses, 
asylums,  homes  and  other  institutions  for  poor  relief,  and  who  attend 
meetings  of  the  local  poor  law  authorities.  A  strict  control  of  the 
financial  operations  of  the  local  poor  law  authorities  is  exercised 
through  the  examinations  of  the  auditors,  of  whom  there  is  one  for 
each  of  the  fifty  districts.  The  local  poor  law  authorities  are  required 
to  keep  their  accounts  according  to  a  uniform  system  prescribed  by  the 
Local  Government  Board. 

The  administration  of  poor  relief  through  private  agencies  is  like- 
wise subject  to  the  supervision  of  the  state.  The  organization  through 
which  this  supervision  is  exercised  i_s  the  charities  commission  created 
by  an  act  of  parliament  in  1853.  It  consists  of  four  members  appointed 
by  the  Crown,  and  its  jurisdiction  embraces  all  privately  endowed 
charities,  with  a  few  exceptions.  It  is  empowered  to  examine  the 
accounts  of  private  institutions  and  to  compel  their  officers  to  make 
reports  to  it;  to  remove  and  appoint  trustees  of  such  institutions;  to 
order  changes  in  the  administration  of  a  particular  charity,  and  to  take 
measures  looking  toward  the  safe  custody  and  investment  of  their 
funds. 

Care  of  the  Insane. 

The  administration  of  the  asylums  for  the  insane  has  been  defi- 
nitely centralized  by  a  recent  Act  of  Parliament  (3  and  4,  Geo.  V.,  ch. 
38,  1913).  Prior  to  the  enactment  of  this  law  the  asylums  were  admin- 
istered by  county  councils  committees,  subject  to  some  supervision  by 
commissioners  in  lunacy,  who  are  ajded  by  local  visiting  committees. 
The  act  of  1913  substitutes  a  central  board  of  control  composed  of 
fifteen  commissioners  appointed  by  the  Crown,  of  whom  not  more  than 
twelve  are  salaried,  and  of  whom  four  must  be  barristers  at  law  and 
four  practitioners  of  medicine.  At  least  one  of  the  paid  commissioners 
must  be  a  woman.  The  staff  of  the  board  includes  a  secretary  and  a 
number  of  inspectors.     In  general,  the  powers  of  the  board  of  control 


392  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

embrace  the  functions  of  supervision,  protection  and  control  over  de- 
fectives; supervision  of  the  administration  of  the  local  authorities  in 
so  far  as  they  are  charged  with  duties  in  relation  to  defectives ;  super- 
vision and  inspection  of  homes  and  institutions  for  the  care  of  defec- 
tives; and  the  establishment  and  maintenance  of  institutions  for  dan- 
gerous and  violent  defectives.  The  commissioners  in  lunacy,  the  Lord 
Chancellor,  the  judges  or  masters  in  lunacy,  and  the  local  authorities 
retain  certain  powers  in  relation  to  defectives  which  were  not  trans- 
ferred to  the  board  of  control  by  the  Act  of  1913. 

Penal  Institutions. 

Prior  to  1898  the  prison  administration  of  England,  although  very 
definitely  centralized,  was  nevertheless  divided  between  two  authorities, 
those  in  charge  of  the  convict  prisons  and  those  in  charge  of  the  ordi- 
nary prisons.  Both  sets  of  authorities,  however,  were  under  the  control 
of  the  Secretary  of  State  for  Home  Affairs,  which  gave  the  system 
a  unified  and  centralized  character.  By  an  Act  of  1898,  both  bodies 
were  consolidated  and  their  powers  vested  in  the  Prison  Commission. 
This  commission  is  composed  of  not  more  than  five  members,  appointed 
by  the  Crown  upon  the  advice  of  the  Secretary  of  State  for  Home 
Affairs.  It  is  vested  with  the  superintendence  of  prisons,  appoints 
subordinate  officers,  m.akes  contracts,  releases  offenders  upon  probation 
from  the  Borstal  institutions,  and  performs  such  other  acts  as  are 
necessary  for  the  maintenance  of  the  inmates  of  prisons  subject  to  their 
control.  The  commission  is  required  to  visit  and  inspect  all  prisons 
within  its  jurisdiction,  not  only  in  respect  to  the  welfare  of  the  pris- 
oners, the  state  of  the  buildings,  etc.,  but  with  reference  to  their  finan- 
cial operations,  earnings  of  prisoners,  expenses  and  other  like  matters. 
In  the  discharge  of  these  duties  the  commission  is  aided  by  a  staff'  of 
inspectors  and  auditors,  who  make  reports  to  the  commission  and  keep 
it  informed  in  regard  to  the  condition  of  the  several  prisons.  The 
financial  supervision  of  the  prisons  is  exercised  by  two  officials  of  the 
commission,  who  bear  the  title  of  store  accountants.  In  addition  to 
the  inspections  made  by  the  prison  commission,  the  law  provides  for 
inspections  by  visiting  committees  of  justices  of  the  peace,  one  annually 
appointed  for  each  prison.  They  are  charged  with  hearing  complaints 
from  prisoners  and  they  make  reports  to  the  Secretary  of  State  con- 
cerning abuses  which  they  find,  and  in  regard  to  other  matters  which, 
in  their  opinion,  need  attention.  Finally,  any  justice  of  the  peace 
having  jurisdiction  in  the  locality  in  which  a  prison  is  situated  or  in  the 
community  where  the  offense  for  which  a  prisoner  is  confined  was 
committed,  may  enter  in  the  visitors'  book  any  observation  which  he 
sees  fit  to  make  in  respect  to  the  condition  of  the  prison  or  any  abuses 
therein,  and  it  is  made  the  duty  of  the  jailor  to  call  the  attention  of  the 
visiting  committee  at  the  tiriie  of  their  next  visit  to  such  entry. 

The  Borstal  institutions — reformatories  in  which  offenders  be- 
tween the  ages  of  16  and  21  years  and  also  incorrigible  adults  not  guilty 
of  any  particular  crime  are  confined — are  subject  to  the  same  adminis- 
tration as  the  other  prisons  and  reformatories.     The  administration  of 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  393 

certain  other  institutions  of  a  reformatory  and  industrial  character, 
for  the  confinement  of  offenders  under  16  years  of  age,  is  less  central- 
ized, although  they  are  under  the  supervision  of  the  Secretary  of  State 
for  Home  Affairs,  who  exercises  his  powers  through  inspectors. 

2.     In  France. 
Charity  Administration. 

In  France  the  administration  of  poor  relief  is  divided  among  the 
communes,  the  departments  and  the  state.  But  whether  the  admmis- 
tration  is  local  or  central,  the  state  exercises  supervision  over  all  msti- 
tutions  of  public  assistance  and  over  their  activities  along  certam  Imes. 
There  are  nine  institutions,  most  of  them  asylums,  which  are  under 
the  direct  and  immediate  control  of  the  state.  They  are  under  the 
control  of  the  minister  of  the  interior,  through  whom  also  the  state 
exercises  supervision  over  local  charitable  institutions  and  activities. 
Two  bureaus  in  the  ministry  are  charged  with  these  duties,  namely, 
the  "direction"  of  assistance  and  public  health,  and  the  service  of 
general  inspection,  to  which  should  be  added  the  superior  council  of 
public  assistance.  The  latter  is  an  advisory  board  composed  of  ex 
officio  members  within  the  ministry  and  of  non-official  members  having 
special  qualifications  wath  regard  to  the  problems  of  poor  relief.  It 
holds  meetings  for  the  purpose  of  discussing  policies,  criticising  pro- 
posed measures  and  for  advising  the  administration. 

Every  department  into  which  France  is  divided  (87  in  number) 
is  required  to  maintain  a  public  asylum  for  the  care  of  the  insane  or 
to  enter  into  arrangements  with  a  private  asylum  for  the  maintenance 
of  its  insane.  Private  asylums  can  be  established  only  by  authority  of 
the  government  and  they  are  subject  to  the  supervision  and  inspection 
of  the  government. 

Although  supported  mainly  by  local  taxation,  the  departmental 
asylums  are  under  the  control  of  the  state.  They  are  managed  by 
directors  appointed  by  the  minister  of  the  interior,  the  other  officers 
being  chosen  by  the  prefect, .who  is  himself  an  appointee  of  the  minister 
of  the  interior  and  an  agent  of  the  central  government. 

Communal  hospitals  and  alms  houses  are  managed  by  an -adminis- 
trative commission  in  each  commune,  a  portion  of  the  members  of 
which  are  appointed  by  the  prefect  of  the  department.  Associations 
for  private  relief  may  now  (since  1904)  be  organized  without  govern- 
mental authorization,  except  where  they  desire  to  receive  gilts  and 
legacies.  They  are  still  required,  however,  to  make  a  "declaration  of 
existence"  to  the  government.  They  are  subject  to  inspection  by  the 
state  authorities  and  their  methods  of  administration  are  subject  to 
alteration  by  the  state. 

In  general,  it  may  be  said  that  poor  relief  in  France,  whether 
administered  by  public  or  private  agency,  is  under  the  control  and 
supervision  of  the  central  government. 


394  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

Prison  Administration. 

Until  very  recently  the  administration  of  all  penal  institutions  was 
in  the  hands  of  the  minister  of  the  interior  of  the  central  government. 
In  1911,  however,  after  long  agitation,  it  was  transferred  to  the  min- 
istry of  justice.  The  prisons  are  divided  into  three  classes,  (1)  the 
departmental,  or  short  sentence  prisons,  including  houses  of  correc- 
tional justice  and  houses  of  detention;  (2)  the  central  houses  of 
detention  and  correctional  justice;  (3)  the  colonies  for  juvenile  delin- 
quents. The  minister  of  justice  stands  at  the  head  of  the  service  for 
the  administration  of  the  prisons.  Within  the  ministry  is  a  department 
or  "direction"  of  penal  administration,  and  it  is  subdivided  into  three 
bureaus : 

(1)  A  bureau  having  charge  of  the  execution  of  sentences; 

(2)  A  bureau  which  has  charge  of  general  matters,  statistics,  etc.; 

and, 

(3)  A  bureau  having  charge  of  establishments  for  juvenile  offend- 

ers, parole,  etc. 

The  inspection  of  prisons,  however,  remains  with  the  authorities 
(in  the  ministry  of  the  interior),  which  have  charge  of  the  inspection 
of  the  charitable  institutions.  Reports  of  the  inspectional  authorities 
are  made  to  the  minister  of  justice.  In  harmony  with  the  well-estab- 
lished principle  of  French  administration  of  associating  a  consultative 
council  with  each  important  administrative  authority,  there  is  a  superior 
council  of  prisons  created  for  the  purpose  of  giving  advice  to  the 
administrative  authorities  and  for  criticising  proposed  policies  and 
measures.  It  is  composed  of  thirty-six  members,  of  whom  twenty-four 
are  ex  officio  members  and  twelve  are  non-official  persons  who  are 
chosen  because  of  their  special  knowledge  of  penological  matters.  It 
holds  two  meetings  a  year  for  the  purpose  of  considering  matters 
relating  to  the  construction  and  repair  of  prisons,  rules  for  the  internal 
administration  of  prisons,  the  distribution  of  subventions,  classifications 
of  penal  institutions,  etc. 

In  addition  to  the  superior  council  of  prisons,  there  are  a  number 
of  committees  and  commissions  created  for  the  purpose  of  consultation 
in  respect  to  various  special  and  more  or  less  technical  matters  relating 
to  the  administration  of  the  prisons. 

Local  prisons,  detentions,  reformatories  and  similar  institutions, 
although  locally  administered,  are  under  a  more  or  less  strict  central 
control  and  supervision.  Private  institutions,  which  are  partly  educa- 
tional, partly  industrial  and  partly  reformatory  in  character,  are  under 
the  general  supervision  of  the  state,  which  also  appoints  the  director 
by  which  they  are  actually  managed.  Both  public  and  private  reforma- 
tories and  penal  colonies  are  under  the  surveillance  and  inspection  of 
a  council  composed  of  various  official  and  non-official  members,  one  of 
whom  is  appointed  by  the  prefect. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS. 


395 


3.     In  Germany. 


Poor  relief  in  Germany  is  regulated  by  imperial  laws  which  apply 
to  all  the  states  of  the  empire  with  the  exception  of  Bavaria.  _  For  the 
purpose  of  local  administration  there  are  two  sets  of  authorities:  the 
local  poor  unions  and  the  general  poor  unions,  the  greatest  part  of  the 
relief  being  administered  by  the  former.  Unlike  the  English  and 
French  systems  the  administrative  control  of  the  state  over  poor  relief 
is  not  very  strict.  Disputes  between  local  poor  unions  are,  however, 
settled  by  the  judicial  authorities  and  disputes  between  unions  of  dif- 
ferent states  are  determined  by  the  "deputation  of  home  affairs,"  with 
the  right  of  appeal  to  the  Imperial  Home  Office. 

Charitable  Institutions. 

The  administration  of  charitable  and  reformatory  institutions  is, 
in  Prussia,  a  part  of  the  administration  of  poor  relief.  They  include 
such  institutions  as  workhouses,  and  asylums  for  the  insane,  for  epilep- 
tics, for  the  blind,  and  for  the  feeble  minded,  all  of  which  are  under 
the  supervision  and  control  of  the  state.  As  a  rule  this  control  is 
actually  exercised  by  the  provincial  and  communal  diets  through  super- 
intendents chosen  by  the  diets.  Regulations  adopted  by  the  local 
assemblies  for  the  government  of  charitable  and  reformatory  institu- 
tions, however,  require  the  approval  of  the  minister  of  the  interior.  It 
is  by  this  means  that  the  state  is  enabled  to  exercise  an  effective  control 
over  the  institutions. 

In  the  other  German  states  all  such  institutions  are  supported 
directly  by  the  state  and  are  therefore  under  the  more  immediate  con- 
trol of  the  state. 

Penal  Institutions. 

In  Prussia  the  penal  institutions  are  divided  into  three  classes : 
(1)  penitentiaries;  (2)  ordinary  prisons;  and  (3)  fortress  prisons. 
Those  of  the  first  two  classes  are  under  the  administration  of  the  civil 
authorities ;  the  fortress  prisons  are  under  the  administration  of  the 
military  authorities.  Of  those  which  are  civilly  administered,  the  peni- 
tentiaries and  certain  of  the  larger  ordinary  prisons,  the  sentences  of 
whose  inmates  exceed  three  months,  are  under  the  ministry  of  the 
interior;  the  others  are  under  the  ministry  of  justice.  The  official  who 
exercises  direct  authority  over  the  prisons  of  each  province  is  the  ober 
president,  an  appointee  of  the  king  and  the  representative  of  the  central 
government  in  the  province.  His  acts  require  the  approval  of  the 
minister,  who  appoints  the  chief  administrative  officials  and  issues 
regulations  for  the  government  of  the  prisons.  The  management  of  the 
prison  is  in  the  hands  of  a  director  or  superintendent  who  is  advised 
by  a  board  though  its  advice  is  not  binding  upon  him. 

Outside  of  Prussia  the  prisons  are  usually  vmder  the  ministry  of 
Justice  and  there  is  a  rigid  system  of  inspection  of  all  prisons. 


III.     SUGGESTIONS  AND  RECOMMENDATIONS. 

A.       THE  CHARITABLE  INSTITUTIONS. 

At  present  the  charitable  and  penal  institutions  of  Illinois  are  ad- 
ministered according  to  two  different  systems,  based  upon  opposite 
principles  of  administrative  organization,  although  fundamentally  the 
two  classes  of  institutions  are  very  similar,  and  no  substantial  reason 
exists  why  they  should  not  be  managed  and  controlled  by  the  same  sort 
of  administrative  machinery.  A  dual  system  of  organization  and  ad- 
ministration for  a  group  of  institutions  which,  for  administrative  pur- 
poses, belong  in  the  same  class  is  anomalous.  If  reason  and  experience 
have  shown,  as  they  seem  to  have,  that  the  charitable  institutions  can  be 
more  efficiently  and  economically  administered  by  a  single  central  board 
than. by  a  series  of  separate  boards,  one  for  each  institution,  it  is  difficult 
to  see  why  a  similar  system  should  not  be  adopted  for  the  management 
and  control  of  the  penal  and  reformatory  institutions.  The  results  of 
five  years  experience  with  the  system  of  centralized  control  of  the  char- 
itable institutions  have  undoubtedly  demonstrated  that  it  is  both  more 
efPcient  and  economical  than  the  old  system  of  control  by  separate  un- 
paid boards  which  gave  only  a  small  portion  of  their  time  to  the  dis- 
charge of  their  official  duties.  Apparently  the  new  system  has  worked 
out  satisfactorily  in  practice  and  there  is  no  desire  to  return  to  the  old 
system  in  force  before  1910.  The  present  system  is  certainly  in 
harmony  with  the  best  tendencies  of  modern  administrative  organiza- 
tion and  it  represents  the  ideal  toward  which  charity  experts  have  been 
striving  for  some  years.  Finally,  the  adoption  of  this  system  of  cen- 
tralized control  by  so  many  states  during  the  last  few  years  indicates 
that  it  is  destined  to  become  in  the  near  future  the  prevailing  system  of 
institutional  administration  in  this  country. 

Under  these  circumstances  it  does  not  appear  that  any  important 
changes  in  the  present  law  for  the  management  and  control  of  the 
charitable  institutions  are  desirable.  The  system  of  administration  by 
a  single  board  for  all  the  charitable  institutions  should  be  retained  sub- 
stantially as  it  is.5  However,  at  least  one  minor  change  in  the  Act  of 
1909  is  advisable,  and  there  is  another  stiggestion  which  perhaps  de- 
serves some  consideration. 

5.  If  the  Board  of  Administration  wore  not  already  established  and  tlie  charitable 
institutions  were  now  under  separate  boards,  as  before  1910,  the  question  should  be 
considered  whether  the  board  form  of  orfranization  is  the  best  method  of  centralized 
control.  Much  mijrht  be  said  in  favor  of  a  sintrle  director  as  the  executive  head  of 
all  the  charitable  and  correctional  instltntions.  with  deputies  or  subordinate  com- 
missioners corresi)ondlnK  to  the  Fiscal  Supervisor  and  the  alienist  member  of  tlie 
Board  of  Administration,  with  similar  ollircrs  for  the  special  problems  of  the  cor- 
rectional and  children's  institutions;  and  all  subject  to  the  inspection  of  the  State 
Charities  Commission.  But  in  view  of  the  recent  establishment  of  the  I.oard  of 
Administration  and  the  decided  improvement  it  makes  on  the  former  system,  it  seems 
advisable  not  to  propose  radical  changes  in  this  field,  when  reorganization  is  so  much 
more  necessary  in  otlier  directions. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS,  397 

First  of  all  it  is  worth  considering  whether  the  inspectional  ma- 
chinery which  the  Act  of  1909  provides  for  the  charitable  institutions 
is  not  more  elaborate  than  considerations  of  efficiency  require.  As  the 
law  now  stands  three  different  authorities  or  sets  of  authorities  are 
required  to  inspect  the  charitable  institutions:  (1)  the  Board  of 
Administration  itself;  (2)  the  Charities  Commission  and  (3)  local 
boards  of  visitors,  one  for  each  institution.  The  provision  of  the  Act 
of  1909  authorizing  the  appointment  of  local  boards  of  visitors  to 
inspect  the  charitable  institutions  should  be  repealed.  In  practice  the 
provision  has  until  now  been  a  dead  letter,  since  with  a  single  exception 
no  local  board  of  visitors  has  been  appointed  for  any  institution.  The 
value  of  the  service  performed  by  such  boards  if  they  were  appointed, 
would  be  very  questionable.  In  all  probability  they  would  be  composed 
of  persons  who  would  have  no'  special  qualifications,  and  unless  they 
were  given  an  opportunity  to  visit  other  institutions  for  the  purpose  of 
comparing  the  conditions  and  standards  prevailing  in  them,  their  judg- 
ment of  the  standards  of  efficiency  in  the  particular  institution  which 
they  are  commissioned  to  visit  would  be  of  doubtful  value.  The  Chari- 
ties Commission  with  its  inspectors,  who  are  or  should  be  experts  in  the 
field  of  charity  administration,  is  the  proper  authority  for  inspecting 
the  charitable  institutions,  for  pointing  out  unsatisfactory  conditions 
and  recommending  legislative  and  administrative  measures  for  their 
improvement. 

A  change  which  the  Board  of  Administration  favors  is  the  with- 
drawal of  the  training  school  for  girls  at  Geneva  and  the  St.  Charles 
school  for  boys  from  the  jurisdiction  of  the  Board  of  Administration 
and  the  placing  of  both  institutions  under  the  department  of  public 
instruction.  The  argument  in  favor  of  the  proposed  change  is  that  both 
institutions  are  largely  educational  in  purpose  and  that  therefore  they 
do  not  properly  fall  within  the  class  of  charitable  institutions.  But 
they  are  primarily  correctional  rather  than  educational  institutions  and 
do  not  properly  constitute  a  part  of  the  educational  system  of  the  State. 
In  the  other  states  where  central  boards  of  control  for  the  state 
institutions  have  been  established  all  such  institutions  as  industrial  and 
training  schools  for  delinquent  boys  and  girls  are  under  the  jurisdiction 
of  such  boards  rather  than  under  the  educational  authorities. 

B.       THE    PENAL   AND   REFORMATORY    INSTITUTIONS. 

Turning  to  the  penal  and  reformatory  institutions,  each  of  which 
is  under  the  management  and  control  of  a  separate  board,  the  system 
would  be  improved  by  either  of  the  following  changes  : 

They  might  be  placed  under  the  existing  Board  of  Administration 
along  with  the  charitable  institutions,  as  is  the  case  in  the  states  of 
Arizona,  Iowa,  Minnesota,  New  Hampshire,  North  Dakota.  Ohio, 
South  Dakota,  Washington,  West  Virginia,  Wisconsin  and  Wyoming. 
The  bill  of  1909  as  originally  introduced  so  provided,  and  in  this  form 
it  was  favorably  reported  by  the  Senate  committee  to  which  it  was 
referred.  The  inclusion  of  the  penitentiaries  and  the  reformatory 
under  the  Board  of  Administration  was  urged  by  the  State  Conference 


398  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

of  Charities  and  Corrections  and  was  advocated  by  many  charity  and 
penological  experts  in  and  out  of  the  State;  but  the  provision  was 
stricken  from  the  bill  on  the  floor  of  the  Senate,  chiefly  on  the  ground 
that  owing  to  the  large  number  of  institutions  in  the  State  the  placing 
of  them  all  under  the  management  of  a  single  board  would  impose 
upon  it  a  task  so  large  that  it  would  be  difficult  if  not  impossible 
for  the  board  to  give  proper  attention  to  all  the  institutions. 

Since  the  board  has  now  effected"  a  permanent  organization,  devel- 
oped the  necessary  administrative  machinery,  and  its  stafif  has  acquired 
more  or  less  familiarity  with  the  problems  connected  with  the  adminis- 
tration of  the  institutions,  the  objection  has  less  force  than  it  had  in 
1909.  Members  of  the  board  have  declared  that  the  addition  of  another 
member  to  the  board  or  a  slight  increase  in  its  clerical  stafif  would  pro- 
vide it  with  the  necessary  machinery  for  managing  the  other  three 
institutions.  « 

Undoubtedly  the  board  could  purchase  supplies  for  twenty-two 
institutions  as  easily  as  it  can  purchase  for  nineteen,  and  there  are 
other  services  which  could  be  performed  with  equal  ease  and  efficiency 
for  both  classes  of  institutions  as  for  the  one  class.  Nevertheless, 
it  is  obvious  that  the  more  the  number  of  institutions  under  the  juris- 
diction of  the  board  is  multiplied  the  less  care  and  attention  will  it 
be  able  to  give  to  each  particular  institution.  The  addition  of  the  two 
penitentiaries  and  the  reformatory  to  the  institutions  under  the  con- 
trol of  the  board  will  bring  under  its  jurisdiction  and  control  more 
than  300  additional  employees  and  more  than  3,000  inmates,  to  say 
nothing  of  the  increased  business  and  financial  operations,  due  to  the 
operation  of  extensive  industries  by  these  institutions.  Other  states, 
it  is  true,  have  consolidated  the  management  of  all  their  charitable 
and  correctional  institutions  in  the  hands  of  a  single  board  and  with 
good  results.  But  no  one  of  these  states  has  so  large  a  number  of 
institutions  as  has  Illinois.  If  we  add  to  the  number  of  institutions 
already  under  the  management  of  the  board,  the  three  institutions  that 
have  been  provided  for  but  which  have  not  yet  been  constructed,  and 
the  penal  and  reformator)'  institutions  we  shall  have  a  total  of  tv/enty- 
five,  with  an  aggregate  population  of  more  than  20,000  inmates. 

In  view  of  these  facts  the  wiser  plan  would  appear  to  be  to  create 
a  separate  commission,  composed  of  three  members,  for  the  manage- 
ment and  control  of  these  three  institutions.  This  was  the  solution 
proposed  in  Senator  Manny's  bill  in  1909  and  it  is  the  plan  that  has 
been  adopted  in  a  number  of  states  where  there  is  more  than  one 
such  institution.  Among  these  states  are  California,  Kansas,  Kentucky, 
Tennessee,  and  Texas. 

Whichever  of  these  two  plans  is  adopted,  whether  the  manage- 
ment of  both  groups  of  institutions  shall  be  centralized  in  a  single 
board  or  whether  each  group  shall  be  under  the  control  of  a  separate 
board,  upon  one  point  there  can  be  little  difference  of  opinion,  namely 
the  desirability  of  abolishing  the  existing  separate  boards  by  which 
each  of  the  penal  and  reformatory  institutions  is  managed  and  the  con- 
solidation of  the  administration  in  a  single  authority. 


CHARITABLE    AND    CORRECTIONAL    INSTITUTIONS.  399 

It  may  be  said  that  the  duties  of  such  a  commission  would  not 
be  sufficiently  numerous  and  important  to  occupy  their  entire  time; 
but  even  if  this  be  admitted,  the  objection  .has  little  weight  since 
the  aggregate  salaries  of  the  three  proposed  commissioners  would 
be  less  than  tlie  amount  now  being  paid  in  the  form  of  salaries  to 
the  existing  commissioners.  There  is  little  doubt  that  such  a  commis- 
sion would  find  its  time  fully  occupied.  In  case  the  separate  boards 
were  abolished  provision  would  have  to  be  made  for  devolving  the 
duties  of  the  board  of  prison  industries  upon  some  other  authority. 
This  authority  would  naturally  be  the  new  board  of  prison  commis- 
sioners. The  duties  of  the  board  of  prison  industries  in  several  other 
states  are  performed  by  the  central  board  which  has  control  of  the 
penal  institutions.  Thus  in  California  they  are  performed  by  the 
state  board  of  prison  directors,  and  in  Minnesota,  Ohio,  and  Wisconsin 
(states  which  hav(i  a  central  board  of  control  for  all  charitable  and 
penal  institutions,  they  are  performed  by  the  board  of  administration. 

Further  the  board  of  pardons  should  be  abolished  and  its  duties 
as  well  as  the  duties  in  respect  to  parole  now  performed  by  the  board 
of  managers  of  the  reformatory  devolved  upon  the  proposed  board 
of  prison  administration.  The  members  of  the  present  board  of  par- 
dons receive  a  salary  of  $3,500  per  year  and  the  total  cost  of  main- 
taining the  board  and  its  clerical  staff  amounts  to  about  $18,000  per 
annum.  The  actual  work  involved  in  the  investigation  of  applica- 
tions for  pardons  and  for  releases  in  parole  does  not  seem  sufficiently 
large  to  justify  the  employment  of  a  salaried  board  on  full  time.  In 
most  states  which  have  boards  of  pardons  such  boards  are  wholly  or 
largely  ex  officio,  that  is,  they  are  composed  of  certain  state  officers 
who  receive  no  extra  compensation  for  their  services.  In  but  six 
states  (Indiana,  Kansas,  ]^>Iichigan,  South  Carolina,  and  Texas)  besides 
Illinois,  do  we  find  salaried  pardon  boards  composed  of  persons  who 
are  not  at  the  same  time  holders  of  other  state  offices ;  and  in  but  few 
of  them  does  the  salary  attached  to  the  office  exceed  several  hundred 
dollars  a  year  (in  Indiana,  $300  a  year;  in  Kansas  and  Michigan,  $5 
a  day ;  Ohio,  not  more  than  $75  per  year ;  South  Carolina,  not  more 
than  $80  per  year;  Texas,  two  members  at  $2,000  per  year). 

In  California,  Georgia  and  Kentucky  the  board  of  prison  commis- 
sioners serves  as  the  board  of  pardons,  while  in  Ohio,  Wisconsin  and 
Washington  the  board  of  control  of  state  institutions  performs  the 
duties  in  relation  to  parole  (but  not  in  respect  to  pardons).  With 
but  three  institutions  under  their  control,  the  proposed  board  of  prison 
commissioners  would  have  ample  time  to  perform  all  the  duties  now 
imposed  by  law  on  the  board  of  pardons,  and  thus  an  economy  of 
$18,000  per  annum  would  be  effected. 

It  is  worth  considering  whether  in  case  a  separate  board  for 
the  management  of  the  penitentiaries  and  the  reformatory  is  created, 
it  would  not  be  desirable  to  extend  the  authority  of  the  fiscal  super- 
visor of  the  charitable  institutions  over  the  penal  institutions,  so  that 
the  twenty-five  charitable  and  penal  institutions  of  the  state,  although 
under  two  separate  boards  for  purposes  of  administration,  would  never- 


400  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

theless  be  subject  to  the  fiscal  supervision  of  a  single  authority.  This 
would  be  a  means  of  securing  uniformity  of  financial  and  business 
operations  in  respect  to  both  classes  of  institutions  which  in  our  judg- 
ment is  very  much  to  be  desired. 

Whether  the  penal  and  reformatory  institutions  are  managed  and 
controlled  by  a  single  board  or  by  separate  boards,  as  they  now  are, 
they  should  be  subjected  to  the  visitorial,  inspectional  and  investigative 
jurisdiction  of  the  State  Charities  Commission.  The  Hay,  Manny  and 
McKenzie  bills,  of  1909,  all  provided  for  the  inspection  of  these  insti- 
tutions by  a  board  of  chanties  and  corrections.  As  has  been  said,  the 
charitable  institutions  are  subject  to  the  inspection  of  three  different 
bodies;  but  the  penal  and  reformatory  institutions  are  subject  to  no 
supervision  or  inspection  other  than  that  of  their  own  local  boards. 
That  is,  each  board  of  managers  and  it  alone,  has  power  to  inspect 
its  own  work.  This  is  an  anomalous  situation.  These  boards  have 
under  their  care  more  than  3,000  prisoners  and  they  control  the 
expenditure  and  disposition  of  more  than  two  million  dollars  annually, 
yet  their  methods  of  dealing  with  prisoners  and  their  financial  oper- 
ations are  not  subject  to  the  inspection  or  supervision  of  any  authority. 
Before  1909  the  reformatory  was  subject  to  inspection  by  the  State 
Board  of  Charities,  but  this  power  was  not  given  to  the  present  chari- 
ties commission. 

Finally,  there  are  two  provisions  in  the  act  creating  the  reform- 
Sitory  that  need  to  be  altered  in  the  interest  of  more  effective  discipline 
and  punishment.  The  first  of  these  provisions  is  section  12  which 
authorizes  the  courts  to  sentence  to  the  reformatory  offenders  between 
16  and  21  years  of  age  who  have  not  been  previously  sentenced  to 
the  penitentiary.  The  supreme  court  has  held,  in  the  case  of  Hender- 
son vs.  the  People,  165  111.,  p.  607,  that  this  section  did  not  apply 
to  a  person  under  21  years  of  age  who  had  been  previously  sentenced 
to  the  reformatory.  A  reformatory,  said  the  court,  must  be  dis- 
tinguished from  a  penitentiary ;  that  a  sentence  to  the  penitentiary 
implies  infamous  punishm.ent  and  involves  consequences  to  a  convict 
of  a  much  more  serious  character.  It  matters  not,  therefore,  how 
many  times  an  offender  under  21  years  of  age  may  have  been  previ- 
ously sentenced  to  the  reformatory  he  cannot  be  resentenced  to  the 
penitentiary.  The  result  of  this  decision  is  to  compel  the  reformatory 
to  receive  criminals  who  may  have  already  served  one  or  more  terms 
in  the  reformatory,  and  whose  presence  therein  is.  dangerous  to  the 
welfare  of  the  institution,  and  who  ought  properly  to  be  confined 
in  the  penitentiary.  The  difficulty  occasioned  by  the  supreme  court 
decision  can  be  removed  by  inserting  the  words  "or  reformiator}^"  after 
the  word  "penitentiary"  in  the  fourth  line  of  said  section  and  by  insert- 
ing the  same  words  after  the  word  "prison"  in  the  eleventh  line.  In 
this  form  the  section  would  be  similar  to  the  corresponding  provision 
in  the  Minnesota  law  in  respect  to  the  reformatory. 

The  other  provision  which  needs  amendment  is  section  15  author- 
izing the  board  of  managers  of  the  reformatory  to  transfer  to  the 
penitentiar}''  incorrigible  prisoners  whose  presence  in  the  reformatory 


CHARITABLE   AND    CORRECTIONAL    INSTITUTIONS.  401 

is  deemed  to  be  detrimental  to  the  best  interests  of  the  institution  and 
of  its  inmates.  The  supreme  court,  in  the  case  of  the  People  vs. 
Mallary,  195  111.,  p.  582,  held  this  provision  to  be  unconstitutional  on 
the  ground  that  it  conferred  judicial  power  on  the  board  of  managers. 
Such  an  act  by  the  board  of  manager^  said  the  court  is  not  merely 
a  determination  of  the  conditions  of  circumstances  under  which  the 
prisoner  may  be  committed  to  the  penitentiary  but  it  is  the  exercise 
of  judicial  power  which  the  Legislature  can  not  confer  upon  such  a 
body.  Nevertheless  the  court  suggested  that  legislation  might  be  so 
framed  as  to  make  the  order  of  transfer  from  the  reformatory  to 
the  penitentiary  a  mere  determination  of  the  conditions  on  which  the 
prisoner  could  lawfully  be  transferred  from  the  one  institution  to  the 
other,  but  section  fifteen  (15)  as  it  now  stands  can  not  be  so  construed. 

The  objection  raised  by  the  court  might  be  removed  by  amending 
section  15  to  read  as  follows: 

Whenever  in  the  judgment  of  the  board  of  managers  or  the  proposed 
board  of  prison  commissioners,  any  inmates  of  the  reformatory  between 
the  ages  of  16  and  21  years  persistently  violates  the  rules  of  the  institution 
in  regard  to  the  discipline  and  good  conduct  of  the  prisoners  or  otherwise 
becomes  incorrigible,  so  that  his  presence  therein  is  detrimental  to  the 
best  interests  of  the  institution  and  its  inmates,  the  board  of  managers 
may  file  a  petition  before  the  circuit  court  in  the  district  in  which  the 
reformatory  is  located  stating  the  causes  upon  which  the  application  is 
based  and  asking  that  an  order  be  issued  for  the  transfer  of  the  said 
offender  to  one  of  the  penitentiaries.  After  notice  has  been  duly  served 
upon  the  said  offender  and  after  a  hearing  at  which  he  shall  have  the 
right  to  be  represented  by  counsel  the  court  may,  if  satisfied  of  the  truth 
of  the  charges  alleged  in  the  petition  issue  an  order  for  the  transfer  of 
such  person  to  the  penitentiary.  Whenever,  in  the  judgment  of  the  board 
of  commissioners  of  the  penitentiary  to  which  he  has  been  transferred  his 
return  to  the  reformatory  would  not  be  detrimental  to  the  best  interests 
of  the  reformatory  the  board  may  in  its  discretion  re-transfer  him  to  the 
reformatory. 

This  in  substance  is  the  procedure  in  New  York  for  transferring 
incorrigibles  from  the  reformatories  to  the  penitentiary.  Or  the 
offender  might  be  sentenced  in  alternative  either  to  the  penitentiary 
or  the  reformatory,  it  being  understood  that  he  would  as  a  matter  of 
course  be  committed  to  the  reformatory,  leaving  the  board  of  managers 
(or  the  board  of  prison  commissioners  in  case  such  a  board  is  created) 
to  transfer  him  to  the  penitentiary  upon  the  happening  of  certain  con- 
ditions specified  in  the  law. 

Comparative  Expense. 

At  present  the  aggregate  salaries  of  the  fourteen  members  of  these 
boards  is  $25,000  per  year,  not  including  expenses  and  salaries 
for  clerical  assistance  which  amounts  to  about  $5,000  per  year,  mak- 
ing a  total  cost  for  salaries  and  clerical  help  for  the  three  boards 
$30,000  per  year.  This  sum  would  provide  a  salary  of  $5,000  for 
each  of  three  proposed  commissioners  and  leave  a  balance  of  $15,000 
a  year  for  clerical  and  other  expenses.     With  this  salary  the  com- 


402  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

missioners  could  be  required  to  give  their  whole  time  to  the  dis- 
charge of  their  official  duties  instead  of  a  small  portion  as  is  now 
done  by  the  members  of  the  existing  boards.  In  addition  to  securing 
uniformity  in  the  administration  of  the  several  institutions  the  efficiency 
of  the  control  exercised  by  suali  a  board  would  undoubtedly  be  vastly 
increased ;  and  the  cost  of  maintaining  the  institutions  should  be  largely 
reduced. 

Below  is  given  a  summary  of  the  salaries  for  administrative 
officers  under  the  present  and  proposed  organization  of  correctional 
institutions : 

Present  Organisation. 

Per  Year 

3  Commissioners  Illinois   State   Penitentiary  @  $1,500 $4,500 

3  Commissioners    Southern   111.   Penitentiary®     1,500 4,500 

5  Managers   Illinois   State  Reformatory....    @     1,200 6,000 

3  Members  State  Board  of  Pardons @    3,500 10,500 

1  Clerk  to   Board  of   Pardons @    2,000 2,000 

Total    $27,500 

Proposed  Organisation. 

3  Members  Board  of  Prison  Administration    @  $5,000 $15,000 

1  Pardon   Clerk    @  '  2,000 2,000 


Total    $17,000 

Reduction  under  proposed  organization $10,500 

There  should  also  be  a  further  direct  saving  in  clerical  and  office 
expenses,  by  concentrating  the  purchase  of  supplies  and  business  man- 
agement of  the  institutions  in  one  office.  But  the  direct  saving  in 
salaries  and  office  expenses  will  be  a  small  part  of  the  total  economy 
of  the  proposed  organization.  The  most  important  results  should 
appear  in  the  reduced  cost  of  maintenance  and  operation  of  the  insti- 
tutions and  the  more  efficient  service.  As  already  noted,  if  the  pen- 
itentiaries and  reformatory  were  maintained  at  the  same  per  capita 
cost  as  in  the  institutions  under  the  State  Board  of  Administration 
there  would  be  a  saving  in  ordinary  expenses  of  more  than  $200,000  a 
year.  An  equal  or  greater  saving  should  also  be  possible  in  the  opera- 
tion of  the  prison  industries. 


A  REPORT 

ON 

EDUCATIONAL  ADMINISTRATION 

BY 

JOHN  M.  MATHEWS 

ASSOCIATE  IN  POLITICAL  SCIENCE 
UNIVERSITY  OF  ILLINOIS 


CONTENTS. 

Page 

I.    EDUCATIONAL  ADMINISTRATION   IN   ILLINOIS 407-432 

A.  Introduction — Historical  Note   407 

B.  Organization  of  School  Agencies 409 

General  Observations  409 

The  Superintendent  of  Public  Instruction 410 

Election,  Qualifications,  Term  and  Salary 410 

Powers  and  Duties  410 

Relations  to  other  Agencies 411 

Staff  and  Agents  and  Employees 411 

Comments  *  and    Suggestions 412 

A  State  Board  of  Education 417 

The  County  Superintendent  418 

Election,  Qualifications,  Term  and  Salary 418 

Powers  and  Duties  418 

Relations  to  other  Authorities 419 

Comments  and  Suggestions  420 

Local  School  Officers  and  Units ,422 

Comments   and    Suggestions 423 

Management  of  Local  School  Funds 424 

C.  Special  Educational  Institutions  427 

University  of  Illinois  427 

The  Normal  Schools  428 

Countv  Normal  Schools 428 

State  Normal  Schools  428 

Comments  and  Suggestions  429 

State  Board  of  Education  431 

D.  Summary  of  Recommendations  431 

n.   EDUCATIONAL  ADMINISTRATION  IN  OTHER  STATES  AND  COUNTRIES 433-455 

A.  Educational  Organization  in  Europe 433 

France  433 

Germany 434 

B.  State  Educational  Administration , 436 

State  Superintendents  436 

State  Board  of  Education 437 

Plan  for  State  Educational  Organization 438 

Managing  Boards  for  State  Universities 439 

C.  Central  Boards  of  Control  for  State  Educational  Institutions   441 

South  Dakota  Regents  of  Education 441 

Minnesota  Financial  Control  442 

Central  and  Local  Boards  in  Georgia 442 

Florida  Board  of  Control 443 

West  Virginia  Dual  Control 443 

Iowa  State  Board  of  Education 444 

Montana  Board  of  Education 445 

Mississippi  Central  Board 447 

Oklahoma  State  Board  of  Education 447 

Kansas  State  Board  of  Administration 447 

Idaho  State  Board  of  Education 448 

Oregon  Board  of  Higher  Curricula 449 

Types  of  Central  Boards 450 


Page 

D.  Central  Normal  School  Boards 450 

New  York  .* 451 

Pennsylvania   451 

Massachusetts  451 

Connecticut  452 

New  Jersey  452 

Maryland  452 

Michigan 452 

Wisconsin 452 

Minnesota 453 

Texas 453 

E.  General  Comments  453 

Reports  of  Educational  Commissions 453 

President  Van  Hise's  Conclusions 454 

Suggestions  as  to  Educational  Reorganization  in  Illinois 455 

III.  STATE  LIBRARY  ADMINISTRATION    456-464 

A.  Library  Administration  in  Illinois 456 

The  State  Library •. 456 

Natural  History  Museum  456 

State  Historical  Library  457 

Law  Libraries   457 

Library  Extension  Commission  458 

Legislative  Reference  Bureau  458 

Staflf,  Salaries  and  Annual  Appropriations 458 

B.  Library  Administration  in  other  States 459 

Summary 460 

C.  Suggestions  for  Reorganization  in  Illinois 463 

State  Library    463 

State  Librarian   464 

Historical  Research  464 

IV.  SCIENTIFIC  SURVEYS   465-477 

Agricultural  Experiment  Station  465 

Engineering  Experiment  Station   466 

State  Laboratorj'  of  Natural  History 467 

State  Entomologist  467 

State  Water  Survey 469 

State  Geological  Survey  470 

Mining  Serv'ices  471 

Geological  Surveys  in  other  States  472 

State  Conservation  Commissions  473 

Proposed    Organization   of   United    States    Educational    and*  Scientific 

Agencies  474 

Comments  and  Suggestions 476 

v.   EXAMINING  BOARDS    478-489 

Board  of  Law  Examiners 478 

Board  of  Examiners  of  Architects 479 

Board  of  Examiners  in  Accountancy 481 

Comments   482 

VI.    SUMMARY  OF  RECOMMENDATIONS    484-485 

Financial  Summary .485 


I.     EDUCATIONAL  ADMINISTRATION  IN  ILLINOIS. 

A.    INTRODUCTION HISTORICAL   NOTE. 

Public  education  in  Illinois  is  carried  qn  by  the  State  and  by  the 
local  units  of  government,  the  county,  municipality,  the  township  and 
the  school  district.  The  instrumentalities  established  for  this  purpose 
include  a  system  of  elementary  schools,  and  higher  grades  of  schools, 
together  with  normal  schools  and  the  State  University.  A  study  of 
public  school  administration  in  Illinois  involves  a  consideration  of  the 
organization  of  the  authorities  and  agencies.  State  and  local,  which  are 
charged  with  carrying  on  such  administration,  together  with  the  rela- 
tions existing  between  them,  of  the  methods  adopted  in  carrying  out 
certain  important  educational  processes,  and  of  the  organization  and 
interrelations  of  special  educational  institutions.  It  is  scarcely  pos- 
sible to  avoid  giving  considerable  attention  to  local  educational  agencies, 
both  on  account  of  the  large  share  of  control  and  management  over 
schools  left  to  the  localities,  and  also  on  account  of  the  importance  of 
the  relations  existing  between  the  local  and  central  educational  authori- 
ties, 

A  brief  historical  note  will  serve  to  indicate  in  main  outline  the 
origin  and  development  of  present  conditions.  No  specific  mention 
of  education  was  made  in  the  Constitution  of  1818;  but  the  constitu- 
tional convention  of  that  year  accepted  the  proposition  of  Congress 
with  respect  to  setting  aside  certain  lands  and  the  proceeds  from  the 
sale  of  certain  public  lands  for  school  purposes. 

The  first  general  school  law  in  the  State  was  enacted  January  15, 
1825.  The  main  feature  of  this  act  was  the  provision  that  there 
should  be  free  schools  in  every  county  in  the  State,  to  be  supported 
partly  by  local  taxes  and  partly  by  State  aid.  The  county  commission- 
ers were  authorized  to  divide  the  counties  into  districts,  containing  not 
less  than  fifteen  (15)  families  each.  Three  district  trustees  were  to  be 
elected  by  the  voters  of  each  district  at  the  annual  meeting,  and  to 
these  trusteesfwere  intrusted  the  important  powers  of  examining  and 
employing  teachers,  holding  and  leasing  school  property,  and  exercis- 
ing general  management  and  control  over  the  schools.  This  was  an 
ambitious  and  somewhat  too  elaborate  system  for  the  needs  of  a  State 
so  undeveloped  and  sparsely  settled  as  Illinois  then  was,  and  very  little 
use  seems  to  have  been  made  of  the  act.  It  is  said  to  have  caused 
clamorous  opposition,  and  by  an  act  of  February  17,  1827,  its  force 
was  greatly  weakened,  if  not  entirely  nullified,  through  the  provision 
making  the  support  of  schools  in  each  district  optional  with  the  voters 
of  the  district,  and  forbidding  the  taxation  of  anyone  for  the  support 
of  schools  without  first  obtaining  his  consent  in  writing. 

The  incorporation  of  townships  and  the  election  of  township 
trustees  of  schools  were  provided  for  by  an  act  of  March  4,  1837. 


408  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

These  trustees  were  to  manage  the  schools  and  to  make  reports  to  the 
county  school  commissioner  as  to  the  state  of  the  township  school 
funds,  and  also  as  to  the  number  of  schools  kept,  the  number  of 
scholars  taught,  and  the  length  of  the  school  term.  For  the  first  time 
a  requirement  was  made  in  the  law  for  the  certification  of  the  qualifica- 
tions of  teachers  by  the  township  trustees  before  they  could  legally  be 
paid  out  of  the  school  funds. 

A  general  revision  of  the  school  law  was  effected  by  an  act  of 
February  26,  1841,  which  repealed  all  former  acts,  but  retained  their 
main  features.  It  embodied  a  system  of  combined  district  and  town- 
ship administration  through  the  provision  for  the  election  of  three 
school  directors  in  each  district  as  well  as  for  the  election  of  trustees 
of  each  school  and  of  township  trustees  of  schools. 

Prior  to  1845  the  only  form  of  supervision  over  the  local  schools 
exercised  by  higher  officials  was  the  rather  loose  and  ill-defined  super- 
visory power  vested  in  the  hands  of  township  and  county  officers.  Fur- 
ther than  the  county,  administrative  supervision  did  not  extend,  and 
little  or  no  State  control  was  exercised  over  the  schools  except  by  gen- 
eral legislation  and  through  the  weak  and  indirect  control  produced  by 
•the  policy  of  State  aid.  By  an  act  of  February  26,  1845,  however,  the 
Secretary  of  State  was  made  ex  officio  State  Superintendent  of  Com- 
mon Schools,  while,  at  the  same  time,  the  county  school  comrnissioners 
were  made  ex  officio  county  superintendents  of  schools.  Nine  years 
later,  by  an  act  of  February  18,  1854,  the  office  of  State  Superintendent 
of  Public  Instruction  was  created. 

The  constitution  of  1848  contained  little  reference  to  education, 
the  only  specific  provisions  being  those  which  authorized  the  exemption 
of  school  property  from  taxation,  and  provided  that  the  corporate 
authorities  of  school  districts  might  be  vested  with  power  to  assess 
and  collect  taxes.  These  provisions,  however,  merely  recognized 
existing  conditions,  and  confirmed  powers  which  were  already  being 
exercised. 

The  school  system  of  Illinois  assumed  its  present  shape  in  mam 
outline  by  the  general  act  of  February  15,  1855,  which  was  enacted 
largely  upon  the  recommendation  of  the  first  State  superintendent, 
Ninian  W.  Edwards.  This  act  retained  the  State  Superintendent,  and 
the  previously  established  township  and  district  school  boards ;  changed 
the  county  school  commissioners  to  county  superintendents ;  forbade 
the  employment  of  teachers  without  legal  certificates  of  Qualification; 
and  provided  for  a  state  tax  of  two  mills  on  the  dollar,  to  be  added 
annually  to  a  six  per  cent  income  from  the  school  funds,  and  for  local 
taxation  to  such  amount  as  would  enable  the  schools  to  be  maintained 
for  a  six  month  term.  The  act  also  authorized  district  directors  to 
issue  bonds  for  the  erection  of  school  buildings.  Thus  in  1855  was 
completed  in  main  outline  the  foundation  of  the  present  school  system 
of  the  state.  Sufficient  financial  support  was  at  last  provided  by  this 
act  so  that  the  school  "rate"  might  be  abolished  and  a  system  of  really 
free  schools  established  throughout  the  State.  Changes  made  since  the 
enactment  of  the  law  of  1855  have  not  gone  to  the  root  of  the  structure. 
In  the  Constitution  of  1870  the  State  for  the  first  time  placed  in 
its  organic  law  a  mandate  for  the  establishment  and  maintenance  of  a 


EDUCATIONAL  ADMINISTRATION,  409 

system  of  free  public  schools.  That  instrument  contained  a  special 
article  dealing  with  education,  providing,  among  other  things,  that 
upon  the  General  Assembly  should  rest  the  duty  of  providing  "a  thor- 
ough and  efficient  system  of  free  schools  whereby  all  the  children  of 
the  State  may  receive  a  good  common  school  education." 

Since  the  Constitution  of  1870,  there  have  been  three  general  re- 
visions of  the  school  law  of  the  State,  in  1872,  1889  and  1909,  the  last 
being  made  as  a  result  of  the  recommendations  of  the  State  Educa- 
tional Commission,  created  in  1907.  The  principal  recommendations 
made  by  that  Commission,  after  extensive  and  thorough  investigations 
in  this  and  other  states,  were  as  follows : 

1.  A  recodification  of  the  existing  school  law. 

2.  The  creation  of  County  Boards  of  Education. 

3.  The  creation  of  a  State  Board  of  Education. 

4.  A  plan  for  the  certification  of  teachers. 

5.  Making  the  township  the  unit  of  school  organization. 

6.  A  plan  for  the  improvement  of  teachers  institutes. 

7.  A  minimum  salary  law  for  teachers. 

8.  Increased  salaries  for  county  superintendents. 

Only  the  first,  fourth  and  eighth  of  these  recommendations  have 
been  carried  into  efliect  by  the  General  Assembly.  Owing  to  the  ob- 
scurity and  ambiguity  into  which  the  general  school  law  had  fallen, 
due  to  numerous  amendments  made  since  1889,  the  most  crying  need 
was  for  a  recodification  of  the  various  provisions  into  a  comprehensive 
and  systematic  statement.  This  was  finally  effected  by  the  general 
revision  of  June  12,  1909,  On  the  same  day  an  act  was  passed  in- 
creasing the  salaries  of  county  superintendents,  and,  on  June  28,  1913, 
was  enacted  a  comprehensive  plan  for  the-  certification  of  teachers. 

B.       ORGANIZATION    OF    SCHOOL    AGENCIES. 

General  Observations. 

A  principle  which  is  now  well  recognized  is  that  free  public  educa- 
tion is  a  matter  of  such  vital  importance  to  the  general  welfare  and 
interests  of  the  State  as  a  whole  that  it  cannot  be  safely  left  to  the 
mere  voluntary  action  of  the  localities,  but  the  State  itself  must  see  to 
it  that  the  children  of  the  State  receive  a  good  common  school  educa- 
tion, either  by  direct  action  or  througli  supervision  by  the  State  of  the 
educational  agencies  and  facilities  supplied  by  the  localities.  In  re- 
gard to  these  two  methods  of  dealing  with  the  subject,  the  State  has 
in  the  main  adopted  the  former  method,  or  direct  action,  for  the  carry- 
ing on  of  higher  and  professional  education,  while  leaving  to  the  locali- 
ties the  direct  management  of  elementary  and  secondary  schools. 
Although  this  separation  seems  necessary  on  account  of  administrative 
and  historical  reasons,  nevertheless  the  well-being  of  higher  education 
cannot  be  disassociated  from  the  management  of  elementary  schools. 
The  connection  between  higher  and  lower  education  is  such  that  any 
wide-spread  inefficiency  in  the  lower  grades  will  affect  adversely  the 
carrying  on  of  higher  education  in  State  institutions,  and  disseminate 
an  injurious  influence  throughout  the  whole  system.  Both,  therefore, 
from  the  standpoint  of  the  interest  which  the  State  has  in  the  carrying 


410  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

on  of  higher  education,  as  well  as  from  that  of  its  direct  interest  in 
the  efficient  management  of  elementary  education,  the  State  cannot 
safely  allow  the  lower  grades  of  education  to  be  managed  by  the  locali- 
ties without  higher  administrative  supervision.  To  effect  this  purpose 
county  supervision  alone  is  not  sufficient,  and  the  State  has  therefore 
established  a  central  administrative  authority  or  agency,  with  super- 
visory power  over  the  State  school  system. 

The  Superintendent  of  Public  Instruction. 

As  has  already  been  pointed  out,  the  Secretary  of  State  was  in 
1845  made  ex  officio  Superintendent  of  Public  Instruction.  He  was 
empowered  to  advise  the  county  superintendents,  to  recommend  text- 
books, maps,  charts  and  apparatus,  to  endeavor  to  systematize  the 
means  of  supporting  the  common  schools,  and  was  required  to  make 
biennial  reports  to  the  Governor.  This  power  of  recommending  text- 
books et  cetera  was  repealed  in  1857.  The  Secretary  of  State,  on 
account  of  his  numerous  duties,  was  unable,  with  the  best  of  intentions, 
to  devote  adequate  attention  to  the  schools,  and  the  separate  office  of 
Superintendent  of  Public  Instruction  was  therefore  created  in  1854, 
with  powers  similar  to  those  previously  vested  in  the  Secretary  of 
State. 

Election,  Qualifications,  Terms  and  Salary. 

The  office  of  Superintendent  of  Public  Instruction  has  from  the 
beginning  been  filled  by  popular  election,  and  at  first  the  term  was  only 
two  years,  but,  by  the  Constitution  of  1870,  this  was  lengthened  to  four 
years,  and  it  was  provided  that  the  election  for  Superintendent  of 
Public  Instruction  should  come  midway  between  the  elections  for  the 
Governor  and  principal  officers  of  the  executive  department.  He  re- 
ceives a  salary  of  $7,500,  but  no  qualifications  are  required  of  him,  ex- 
cept of  a  bond  of  $25,000. 

Powers  and  Duties. 

The  functions  of  the  State  Superintendent  may  be  classified  into 
the  following  groups: 

(a)  Supervisory. — He  is  empowered  to  supervise  all  of  the  com- 
mon and  public  schools,  to  make  rules  and  regulations  for  carrying  into 
effect  the  provisions  of  the  school  law,  to  visit,  examine  and  require 
reports  from  such  charitable  institutions  of  the  State  as  are  educational 
in  character,  to  designate  the  particular  statistics  which  school  officers 
are  required  to  report  to  the  county  superintendent,  to  authorize  county 
superintendents  to  procure  necessary  assistance  to  conduct  teachers' 
institutes,  and  to  require  reports  from  county  superintendents,  town- 
ship trustees  and  authorities  of  townships,  cities  or  districts  maintain- 
ing schools  under  special  charters. 

(b)  Advisory  and  Judicial. — He  may  advise  county  superinten- 
dents as  to  the  manner  of  conducting  schools,  constructing  and  furnish- 
ing school  houses  and  examining  and  procuring  competent  teachers. 
He  is  the  legal  adviser  of  school  officers,  and  it  is  his  duty,  upon  request 
of  any  school  officer,  to  give  his  opinion  in  writing  upon  any  question 
arising  under  the  school  laws  of  the  State,  and  he  is  empowered  to 


EDUCATIONAL  ADMINISTRATION.  411 

hear  and  determine  all  controversies  arising  under  the  school  laws, 
coming  to  him  by  appeal  from  county  superintendents. 

(c)  Administrative  and  Financial. — He  is  empowered  to  exam- 
ine teachers,  grant  and  revoke  certificates  and  recognizes  those  from 
other  states.  He  serves  as  ex  officio  member  of  the  boards  of  trustees 
of  the  State  normal  schools  and  of  the  State  University.  He  may  re- 
quire the  Auditor  of  Public  Accounts  to  withhold  from  the  county 
superintendent  the  amount  due  his  county  from  the  State  school  fund, 
or  the  said  county  superintendent  for  his  compensation  until  the  county 
superintendent  shall  have  presented  to  the  State  superintendent  such 
information  relating  to  the  schools  in  his  county  as  the  State  superin- 
tendent may  require.  He  may  also  require  the  county  superintendent 
and  local  school  officers  to  withhold  from  any  township,  district  or 
officer  any  part  of  the  common  school,  township  or  other  school  fund 
until  such  officer  shall  have  made  all  reports  required  of  him  by  law. 

Relations  to  other  Public  Agencies. 

The  State  superintendent  is  required  to  transmit  biennially  to  the 
Governor  a  report  containing  various  statistics  regarding  the  schools, 
including  the  number  and  condition  of  schools  in  each  county,  the 
number  of  male  and  female  teachers  and  of  pupils  in  attendance,  the 
number  of  persons  under  21  years  of  age  and  the  number  of  illiterates 
in  each  county;  the  conditions  of  the  State  and  township  school  funds, 
the  amounts  raised  by  taxation  and  annually  expended  for  schools ;  the 
number,  kind  and  condition  of  school'houses ;  the  number  of  townships 
and  parts  of  townships  in  each  county;  the  amount  and  cost  of  books 
and  apparatus  purchased  for  the  use  of  schools,  and  the  number  of 
district  libraries.  This  report  is  transmitted  to  the  General  Assembly 
at  each  regular  session.  The  State  Superintendent  has  supervisory 
power  over  the  Auditor  of  Public  Accounts  in  the  distribution  of  school 
funds.  Appeals  may  be  carried  to  the  courts  from  the  decision  of  the 
State  superintendent.  The  relations  of  the  State  superintendent  to 
the  local  school 'authorities  have  been  indicated  in  connection  with  the 
description  of  his  powers  and  duties,  and  are  principally  supervisory 
in  nature,  such  as  the  requirement  of  reports  upon  penalty  of  the  with- 
holding of  State  school  funds. 

Staff  of  Agents  and  Employes. 

In  order  to  carry  out  its  duties,  powers  and  functions,  the  State 
Department  of  Education  is  supplied  with  the  following  staff  of  of- 
ficers and  employes : 

State   Superintendent    $  7,500 

Supervisor  of  High  Schools 4,000 

Three  Assistants  @  $2,800 8,400 

Clerk   2,000 

Two  statistical  clerks  @  $2,000 4,000 

Two  stenographers  @  $1,200 2,400 

One  stenographer 900 

Messenger  and  Clerk 1,100 

Janitor  600 

Total  Salaries   $30,900 


412  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Office  Expenses  6,000 

Work  of  Education  Commission 1,000 

Conducting  Examinations  1,500 

Total  Salaries  and  Expenses,  per  annum $39,400 

Comments  and  Suggestions. 

With  regard  to  the  method  of  selecting  the  Superintendent  of 
Public  Instruction,  inasmuch  as  it  would  require  a  constitutional 
amendment  to  change  the  present  method  of  election  by  popular  vote, 
it  ma}'-  not  be  within  the  province  of  the  Efficiency  and  Economy  Com- 
mittee to  make  recommendations  with  regard  to  the  matter.  Never- 
theless, it  may  be  worth  while  to  mention  the  matter  briefly.  The 
practice  of  other  states  discloses  four  different  methods  adopted  for 
selecting  the  state  superintendent,  namely:  (a)  appointment  by  the 
legislature;  (b)  appointment  by  the  state  board  of  education;  (c) 
appointment  by  the  Governor,  and  (d)  election  by  the  people.  The 
first  method  of  appointment  by  the  legislature  seems  to  have  made 
little  appeal  in  other  states,  as  it  is  found  in  only  one  or  two  of  them. 
Inasmuch  as  there  is  no  real  State  board  of  education  in  Illinois,  the 
second  method  is  not  feasible  under  present  conditions.  We  may 
therefore  consider  the  relative  merits  of  appointment  by  the  Governor 
and  election  by  the  people.  The  large  majority  of  states  still  continue 
the  method  of  election  by  popular  vote,  but  in  those  states  in  which 
appointment  by  the  Governor  has  been  adopted,  it  has  proved  fairly 
satisfactory.  Of  the  two  methods,  political  consideration  would  prob- 
ably enter  into  the  selection  of  this  officer  to  a  less  extent  through  ap- 
pointment by  the  Governor.  The  provision  of  the  Constitution  of  1870 
that  the  State  superintendent  should  be  elected  midway  between  gen- 
eral elections  for  other  State  officers  indicated  a  recognition  on  the  part 
of  the  framers  of  that  instrument  of  the  desirability  of  keeping  him  as 
far  as  possible  out  of  politics,  and  was  an  efifort  on  their  part  to  effect 
that  object.  To  some  extent  it  has  undoubtedly  done  so;  yet,^  under 
present  conditions,  it  is  impossible  for  the  best  man  for  the  position  in 
respect  to  ability,  experience  and  attainments  to  secure  the  position  if 
he  happens  to  belong  to  the  opposite  political  party  to  that  in  power. 
It  is  of  course  true  that  such  a  man  would  not  always  be  secured  even 
by  the  method  of  appointment  by  the  Governor,  but  it  is  probable  that 
he  would  be  more  often  secured  by  this  method. 

Appointment  by  the  Governor  would  also  have  the  advantage  of 
making  it  possible  to  bring  to  the  position  a  man  from  outside  the  State, 
if  a  better  man  could  be  secured  in  this  way.  At  the  time,  for  ex- 
ample, that  the  present  state  superintendent  of  New  Jersey  was  ap- 
pointed to  his  position  by  the  Governor  of  that  state  he  was  holding  a 
similar  position  in  Indiana.  Residence  in  the  state  is  of  course  a  quali- 
fication of  value  which  ought  to  be  considered,  because,  other  things 
being  equal,  a  resident  is  more"  familiar  with  the  conditions  with  which 
he  will  have  to  deal.  But  there  may  be  other  qualifications,  such  as 
executive  ability  and  professional  attainments,  which  are  of  more  im- 
portance and  which  outweigh  the  disadvantage  of  non-residence.  Un- 
der the  system  of  popular  election,  even  though  residence  is  not  pre- 


EDUCATIONAL  ADMINISTRATION.  413* 

scribed  as  a  legal  qualification,  a  non-resident,  no  matter  what  his  at- 
tainments, would  seldom  if  ever  stand  any  chance  of  securing  the  posi- 
tion. Yet,  it  would  certainly  seem  that  there  should  be  no  tariff  wall 
around  the  State  to  prevent  the  importation  of  professional  ability  in 
Ihe  management  of  schools.  Cities  have  frequently  resorted  to  the 
practice  of  securing  men  from  the  outside  to  place  at  the  head  of  their 
school  system,  and,  as  a  result,  some  of  the  best  educators  in  the 
country  are  now  occupying  positions  as  city  superintendents  of  schools 
in  cities  to  which  they  came  from  elsewhere.  It  would  seem  that  simi- 
lar advantages  would  result  from  the  adoption  of  a  similar  practice 
by  the  states. 

Under  the  present  circumstances,  however,  it  is  not  feasible  to 
make  the  State  superintendent  appointive  by  the  Governor  through  a 
single  amendment  to  the  Constitution,  and  such  a  change,  if  it  comes, 
would  have  to  wait  upon  a  general  revision  of  the  Constitution.  In  the 
event  of  such  a  general  revision,  the  question  of  making  the  Super- 
intendent of  Public  Instruction  appointive  by  the  Governor  would 
naturally  be  involved  in  the  broader  question  of  introducing  a  short 
ballot  for  the  State  by  making  all  or  nearly  all  of  the  chief  executive 
officers  or  heads  of  departments  appointive  by  the  Governor. 

At  all  events,  whether  the  State  Superintendent  of  Public  Instruc- 
tion is  made  appointive  by  the  Governor  or  remains  elective  by  popular 
vote  as  at  present,  it  would  seem  both  desirable  and  feasible  to  pre- 
scribe for  him  certain  qualifications  of  a  professional  character.  In 
many  states  which  have  made  no  such  provision,  qualifications  of  a 
professional  character  are  as  a  matter  of  fact  observed  in  practice,  but 
there  seem  to  be  advantages  in  expressly  confirming  this  principle  by 
legislative  enactment,  and  half  a  dozen  or  more  states  have  done  so. 
The  qualifications  so  prescribed  may  be  classified  as  definite  and 
indefinite.  The  latter  class  is  illustrated  by  the  requirement  in  Tennes- 
see that  the  superintendent  must  be  a  "person  of  literary  and  scientific 
attainments."  The  purpose  of  such  a  provision,  on  account  of  its 
indefinite  character,  is  liable  to  be  defeated.  The  better  provisions 
would  seem  to  be  those  of  a  definite  character,  such  as  are  found  in 
Wisconsin  and  Montana.  In  Wisconsin  it  is  declared  that  "no  person 
shall  be  eligible  to  the  office  of  state  superintendent  of  public  instruc- 
tion who  shall  not  have  taught  or  supervised  teaching  in  the  State  of 
Wisconsin,  for  a  period  of  not  less  than  five  years,  and  who  shall  not 
hold  the  highest  grade  of  certificate  which  the  state  superintendent 
is  by  law  empowered  to  issue."  In  Montana  it  is  provided  that  the 
superintendent  of  public  instruction  "shall  have  attained  the  age  of 
30  years  and  shall  have  resided  within  the  state  two  years  next  preced- 
ing his  election,  and  be  the  holder  of  a  state  certificate  of  the  highest 
grade,  issued  in  some  state,  or  a  graduate  of  some  reputable  university, 
college  or  normal  school."  The  principle  of  requiring  professional 
qualifications  is  more  important  than  the  exact  details  of  the  require- 
ments, but,  in  order  to  make  the  matter  more  definite,  it  may  be  recom- 
mended that  the  following  qualifications  should  be  prescribed  for  the 
State  superintendent  of  Illinois,  viz:  that  he  shall  be  a  holder  of  the 


414  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

highest  state  certificate  issued  in  IlHnois  or  of  a  certificate  of  equal 
grade  issued  in  another  state,  and  shall  have  had  at  least  five  years 
experience  in  teaching  or  supervising  teaching. 

There  would  seem  to  be  need  for  an  increase  of  the  powers  of  the 
State  superintendent  and  a  strengthening  of  the  powers  v.'hich  he 
already  possesses.  The  office  is  now  largely  advisory  and  clerical  in 
character.  If  the  efficiency  of  the  school  system  is  to  be  increased, 
one  of  the  most  essential  means  to  that  end  is  an  increase  in  the  power 
of  control  vested  in  the  central  department  of  education.  If  the  desid- 
eratum laid  down  in  the  Constitution  that  the  children  of  the  State 
shall  receive  a  good  common  school  education  is  to  be  realized  and  if 
the  duty  laid  upon  the  General  Assembly  by  the  Constitution  that  there 
shall  be  provided  a  thorough  and  efficient  system  of  free  schools  is  to 
be  performed,  then  the  local  autonomy  and  freedom  from  control  of 
the  local  school  officials  in  managing  schools  must  not  be  allowed  to 
extend 'to  such  a  degree  as  to  defeat  the  will  of  the  State  as  thus 
solemnly  expressed  in  its  organic  law.  At  the  present  time  the  State 
superintendent  has  neither  direct  nor  express  supervisor}^  power  over 
many  important  educational  processes  and  matters  connected  with  the 
operation  of  the  schools,  and  such  matters  are  therefore  left  to  the 
practically  unregulated  control  of  local  school  officials.  Among  such 
matters  may  be  mentioned  the  arrangement  and  sanitation  of  school 
buildings,  the  fixation  of  teachers'  salaries,  the  enforcement  of  the 
attendance  of  school  children,  the  selection  of  text-books  and  determi- 
nation of  the  course  of  study,  and  the  appointment  of  the  conductors 
of  teachers'  institutes.  There  are  other  needed  processes,  such  as  the 
medical  inspection  of  school  children,  which  are  scarcely  done  at  all. 
because  of  the  inertia  of  the  localities  and  the  lack  of  power  of  the 
central  authorities. 

That  some  improvement  can  be  brought  about  in  the  conduct^  of 
such  matters  by  the  localities  by  means  of  recommendations.^  advice, 
publicity  and  the  dissemination  of  information  cannot  be  denied,  and 
much  has  undoubtedly  been  accomplished  in  Illinois  in  this  direction. 
Where  local  officials  are  well  intentioned  but  ignorant,  the  dissemina- 
tion of  information  as  to  improved  methods  has  often  proved  effective 
in  bringing  about  improved  conditions.  It  results,  therefore,  that,  as 
regards  some  of  these  matters,  as,  for  example,  the  imposition  of  a 
State  course  of  study,  the  investment  of  the  State  superintendent  with 
actual  power  of  legal  control  would  merely  have  the  effect  of  enabling 
him  to  confirm  conditions  that  already  exist  over  most  parts  of  the 
State.  As  regards  other  conditions,  however,  which  cry  out  for 
remedy,  the  State  superintendent  is  reduced  to  the  impotence  of  vainly 
issuing  circulars  and  letters  to  local  school  officials,  in  which  he  humbly 
begs  to  call  their  attention  to  the  vital  need  of  safeguarding  the  health 
of  school  children  by  the  improved  sanitation  of  school  buildings  or 
the  installation  of  improved  kinds  of  desks  and  other  furniture.  If 
the  admonitions  of  the  State  superintendent  are  not  observed,  he  can 
do  nothing  further.  The  question  may  w^ell  be  raised  whether  the  tax- 
payers have  not  the  right  to  protest  against  the  spending  by  the  State 
of  large  sums  of  money  on  public  education,  unless  the  State  goes 
further  and  sees  to  it  that  the  proceeds  of  the  taxes  are  expended  in 
the  one  best  adapted  to  conditions,  such  a  measure  seems  too  drastic. 


EDUCATIONAL  ADMINISTRATION.  415 

the  most  efficient  manner  possible  under  the  circumstances,  so  that  the 
educational  facilities  extended  to  each  school  child  shall  be  the  best 
and  most  improved  that  can  be  supplied  under  present  conditions.  It 
would  not,  of  course,  be  feasible  or  desirable,  with  regard  to  most  mat- 
ters, for  direct  management  of  educational  processes  to  be  taken  out 
of  the  hands  of  the  local  officials  and  centralized  in  the  State  depart- 
ment. But  a  greater  amount  of  central  supervision  and  control  over 
many  such  processes  seems  both  feasible  and  desirable.  At  present 
the  State  superintendent  is  empowered  to  enforce  his  control  over  some 
matters  by  withholding  certain  funds  from  recalcitrant  local  officials. 
This  method  of  enforcement  is  open  to  objection,  however,  on  the 
ground  that,  if  exercised,  it  would  have  the  effect,  in  many  cases,  of 
bringing  hardships  upon  those  who  are  in  no  way  to  blame  for  the 
delinquencies  of  the  school  officials,  namely  the  teachers  and  school 
children,  whose  interests  it  should  be  the  primary  aim  to  preserve  and 
promote.  A  less  objectionable  and  more  elTective  means  of  enabling 
the  State  superintendent  to  enforce  his  rules,  regulations  and  decisions 
would  be  to  vest  him  with  the  power  to  suspend  or  even  to  remove  such 
local  officials  as  may  disobey  such  rules  and  decisions  or  be  guilty  of 
flagrant  neglect  of  their  official  duties.  Nevertheless,  however,  desir- 
able theoretically  such  a  method  of  enforcement  may  be,  it  is  doubtful 
whether  centralized  control  to  such  an  extent  would  be  tolerated  in  the 
present  state  of  public  opinion  in  Illinois. 

Until  public  opinion  shall  become  educated  up  to  a  greater  reali- 
zation of  the  desirability  of  central  control,  it  is  probable  that  the 
State  superintendent  will  have  to  continue  to  depend,  for  effecting 
improvement  in  many  matters,  upon  recommendations,  publicity  and 
widespread  dissemination  of  information.  In  may,  however,  not  be 
premature  to  extend  his  legal  authority  in  certain  specific  directions, 
to  be  noted  later. 

Meanwhile,  it  may  be  worth  while  to  point  out  that  improvement 
in  the  management  of  the  local  schools  and  a  greater  degree  of  central 
control  could  probably  be  brought  about  by  a  closer  relation  and  more 
effective  co-operation  between  the  State  superintendent  and  the  county 
superintendents,  and  also  by  greater  contact  and  association  of  the 
county  superintendents  with  each  other.  The  supervision  of  the  county 
superintendent  over  the  schools  in  his  county  will  tend  to  become  more 
efficient  if  he  is  given  or  required  to  take  more  opportunities  of  com- 
ing in  contact  with  and  imbibing  ideas  from  others  occupying  similar 
positions  and  from  the  State  superintendent.  In  North  Carolina  an 
annual  conference  between  the  State  superintendent  and  the  county 
superintendents  is  held,  which  every  county  superintendent  is  required 
by  law  to  attend  unless  providentially  hindered,  his  expenses  being 
paid  out  of  the  county  school  fund.  The  state  is  divided  into  five  dis- 
tricts of  twenty  counties  each,  and  there  is  also  an  annual  conference 
in  each  district  attended  by  the  State  superintendent  and  the  county 
superintendents  of  that  district.  Each  county  superintendent,  then,  has 
the  opportunity  of  attending  a  conference  with  the  State  superintendent 
at  least  twice  a  year.  Some  such  scheme  might  with  advantage  be 
adopted  in  Illinois,  though,  if  it  can  be  brought  about  by  voluntary 
action,  no  special  legislation  need  be  enacted. 


416  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  development  in  the  organization  of  the  central  office  of  the 
State  department  of  education  has  as  yet  proceeded  but  a  short  dis- 
tance. There  are,  it  will  be  noticed,  three  assistant  superintendents, 
but  the  only  official  in  the  central  office  whose  functions  have  become 
definitely  and  expressly  specialized  is  the  supervisor  of  high  schools, 
though,  in  the  case  of  the  assistant  superintendents  and  the  statistical 
clerks,  tendencies  toward  specialization  can  be  seen.  Under  present 
conditions  this  tendency  toward  specialization  has  probably  progressed 
as  far  as  practicable,  but  it  the  amount  of  means  placed  at  the  disposal 
of  the  department  should  be  increased,  new  lines  of  educational  activ- 
ity could  be  entered  upon,  new  avenues  of  control  over  local  school 
matters  could  be  developed,  and  the  exercise  of  existing  functions 
could  be  strengthened. 

As  has  been  indicated,  the  regular  appropriations  for  the 
expenses  of  the  State  department  of  education  amount  to  less 
than  $40,000  annually,  while  those  for  the  office  of  the  Attorney- 
General,  excluding  large  appropriations  for  expenses  in  special  cases, 
amount  to  about  $63,000  annually,  and  those  of  the  Insurance  Super- 
intendent amount  to  about  $73,000  annually.  It  would  seem  that  both 
efficiency  and  economy  would  be  enhanced  by  increasing  the  approp- 
riation for  the  expenses  of  the  office  of  the  Superintendent  of  Public 
Instruction  in  order  to  enable  that  official  to  strengthen  his  forces  and 
expand  his  work.  While  it  may  be  desirable  to  increase  the  present 
State  appropriation  of  $3,000,000  for  schools,  it  is  believed  that  a 
larger  return  in  increased  efficiency  of  school  management  and  super- 
vision would  result  from  a  given  increase  in  the  appropriations  for 
the  central  department  than  from  a  proportional  increase  in  the  ap- 
propriation for  schools.  Such  increased  appropriation  for  the  central 
office,  together  with  security  of  tenure  for  his  appointees,  would  en- 
able the  State  superintendent  to  build  up  an  expert  staff  with  special- 
ized functions.  The  organization  of  the  office  should  bear  a  rather 
close  relation  to  the  number  and  extent  of  the  functions  to  be  per- 
formed. The  work  should  be  divided  according  to  some  logical 
scheme  of  classification,  and  each  division  of  work  placed  in  separate 
bureaus  with  one  assistant  superintendent  assigned  to  each  department 
or  to  a  group  of  related  bureaus  according  as  the  amount  of  work  may 
demand  or  the  number  of  available  officials  may  allow.  Care  should 
be  taken  to  keep  separate,  as  far  as  practicable,  the  work  of  the  office 
which  is  of  a  strictly  educational  nature  from  that  which  is  more  of 
a  business  character.  A  purely  tentative  plan  of  organization  may  be 
suggested  as  follows : 

Bureau  of  Law 

Bureau  of  Statistics 

Bureau  of  Finance 

Bureau  of  Buildings 

Bureau  of  Health 

Bureau  of  School  Attendance 

Bureau  of  Text-books  and  Course  of  Study 

Bureau  of  High  Schools 

Bureau  of  Rural  Schools 


EDUCATIONAL  ADMINISTRATION.  417 

A  State  Board  of  Education. 

Illinois  is  one  of  the  few  states  in  the  Union  which  has  no  State 
board  of  education.  The  body  which  bears  the  name  of  the  State 
board  of  education  is  really  only  a  board  of  trustees  for  one  of  the 
State  normal  schools.  The  State  educational  system,  which  involves 
the  expenditure  of  about  $40,000,000  annually  and  the  employment  of 
over  thirty  thousand  teachers,  is  of  such  magnitude  that  its  proper 
management  demands  the  best  care  of  the  State.  Although  there 
should  be  a  single  executive  officer  at  the  head  of  this  system,  never- 
theless many  problems  come  before  the  single  executive  head  which  he 
could  be  assisted  in  solving  through  the  advice  and  counsel  of  a  State 
board  of  education.  Such  a  board,  if  properly  constituted,  would  add 
dignity  and  strength  to  the  management  of  the  school  affairs  of  the 
State.  The  state  boards  in  such  states  as  Massachusetts,  New  York, 
Indiana,  and  California  have  worked  well,  and  the  tendency  is  to  in- 
crease the  number  of  state  boards  of  education  and  to  enlarge  the 
powers  of  those  already  existing.  Iowa  and  Kansas  have  recently 
established  state  boards  with  control  over  the  educational  institutions 
of  those  states.  Kansas  has  abolished  the  separate  boards  of  trustees 
of  the  state  university,  state  normal  school  and  agricultural  college, 
and  given  the  state  board  direct  supervision  over  these  institutions. 

The  various  state  boards  of  education  may  be  classified  as  follows : 
those  which  have  supervision  only  over  the  common-school  system 
proper,  those  which  have  supervision  only  over  special  or  advanced 
institutions,  such  as  normal  schools  and  agricultural  colleges,  and  those 
which  have  supervision  over  both  the  common-school  system  and  the 
advanced  or  special  institutions.  The  Illinois  Educational  Commis- 
sion proposed,  in  1908,  the  creation  of  a  State  board  of  education,  con- 
sisting of  the  State  superintendent  as  ex  officio  chairman,  and  repre- 
sentatives of  each  of  the  following  school  interests,  to  be  selected  by 
the  Governor,  with  the  approval  of  the  Senate :  The  University  of 
Illinois,  the  State  Normal  Schools,  the  non-State  colleges  and  universi- 
ties, the  city  superintendency,  the  county  superintendency,  the  public 
high  schools,  the  non-State  high  schools,  the  State  elementary  schools, 
the  non-State  elementary  schools,  and  two  eminent  citizens  of  the  State 
not  directly  engaged  in  educational  work.  They  were  to  serve  for  an 
eight-year  term  and  receive  no  compensation  except  for  expenses.  Ac- 
cording to  the  plan  of  the  Commission  this  board  was  to  have  general 
supervisory  power  only  over  the  public  school  system,  and  would 
therefore  be  placed  in  the  first  of  the  classes  above  mentioned.  The 
composition  of  the  proposed  board  has  many  merits,  though  it  might  be 
criticized  on  the  ground  that  a  board  of  eleven  members  in  addition  to 
the  State  superintendent  is  apt  to  be  unwieldy,  and  that  there  is  too 
great  a  preponderance  of  educators  on  the  board.  It  would  probably 
be  better  to  reduce  the  size  of  the  board  by  eliminating  the  repre- 
sentatives of  the  non-State  high  schools  and  elementary  schools,  thus 
increasing  the  relative  weight  of  the  non-educators  on  the  board.  In 
case  such  a  board  should  be  established  in  Illinois,  the  effectiveness  of 
its  cooperation  with  and  support  of  the  State  superintendent  would 
doubtless  be  increased  by  giving  it  the  power  to  appoint  that  officer. 


418  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

This,  however,  as  has  been  pointed  out,  would  necessitate  an  amend- 
ment to  the  Constitution.  The  further  question  remains  as  to  whether 
the  powers  of  the  proposed  board  should  not  be  broadened  so  as  to 
give  it  some  supervision  or  advisory  functions  over  the  special  or 
advanced  institutions  of  the  State,  such  as  the  State  normal  schools 
and  the  educational  work  of  the  charitable  institutions.  This  question 
will  be  again  referred  to  in  connection  with  the  discussion  of  the 
normal  schools. 

The  County  Superintendent. 

The  county  superintendent  of  schools  in  Illinois  was  originally 
merely  a  county  land  officer,  and  only  gradually  were  educational  func- 
tions assumed  by  him,  and  these  pertained  at  first  rather  to  the  busi- 
ness and  financial  side  of  school  management  than  to  the  purely  educa- 
tional side.  By  the  Act  of  1841,  however,  the  office  of  county  school 
commissioner  was  made  elective,  and  by  the  Act  of  1845  the  county 
school  commissioner  was  nAde  ex  officio  county  superintendent  of 
schools,  with  power  to  visit  and  inspect  schools  and  to  examine  and 
certificate  teachers.  He  was  required  to  make  an  annual  report  to  the 
Secretary  of  State.  Later  his  title  was  changed  officially  to  county 
superintendent  of  schools,  and  by  an  Act  of  1865  he  was  required  to 
visit  every  school  in  his  county  at  least  once  a  year.  This  requirement 
was  practically  abolished,  however,  in  1872  by  the  provision  that  it 
should  depend  upon  direction  by  the  county  board,  but  in  1885  was 
restored.  The  Constitution  of  1870  provided  that  "there  may  be  a 
county  superintendent  of  schools,  whose  qualifications,  powers,  duties, 
compensation  and  time  and  manner  of  election  and  term  of  office  shall 
be  prescribed  by  law." 

Election,  qualifications,  term  and  salary. 

In  pursuance  of  this  constitutional  provision  the  General  Assembly 
has  provided  that  the  county  superintendent  shall  be  elected  quad- 
rennially by  the  qualified  voters  of  each  county,  and  before  entering 
upon  his  duties,  shall  execute  a  bond  of  $12,000.  By  Act  of  June  12, 
1909,  the  salaries  of  county  superintendents  are  regulated  by  the  popu- 
lation of  each  county  according  to  the  census  of  1900,  varying  from 
$1,250  to  $2,750  in  counties  of  less  than  100,000  population,  and  $7,500 
in  counties  above  100,000.  The  salary  is  paid  from  the  state  school 
fund,  and  may  be  increased  by  the  county  board  out  of  the  funds  in 
the  county  treasury. 

Powers  and  Duties. 

The  principal  powers  and  duties  of  the  county  superintendent  may 
be  classified  as  follows : 

(a)  Professional  and  Supervisory: — To  remove  school  directors 
for  neglect  of  duty;  to  decide  controversies  arising  under  the  school 
law ;  to  visit  each  public  school  in  his  county  at  least  once  a  year ;  to 
direct  and  advise  school  officers  and  teachers  in  their  work,  and  hold 
,  teacher  institutes ;  to  hold  examinations,  and  issue,  renew  and  revoke 
teachers  certificates;  to  require  reports  from  township  trustees;  and 
employ  assistants,  with  the  approvalof  the  county  board. 


EDUCATIONAL  ADMINISTRATION.  419 

(b)  Administrative  and  Financial: — To  direct  in  what  manner 
township  treasurers  shall  keep  their  books  and  accounts,  and  to  exam- 
ine such  books  and  accounts  at  least  once  a  year ;  to  sell  township  fund 
lands,  issue  certificates  of  purchase  and  report  to  the  county  board 
and  Auditor  of  Public  Accounts;  to  apportion  the  State  school  fund 
to  townships  and  pay  over  the  share  due  to  each  township  treasurer; 
to  bring  suit  against  the  county  collector  for  failure  to  pay  the  amount 
due  upon  the  Auditor's  warrant ;  to  investigate  and  determine  all  mat- 
ters pertaining  to  changes  in  the  boundaries  of  school  districts ;  and  to 
give  notice  of  the  election  of  trustees  and  of  district  elections  in  case 
of  failure  by  the  township  or  district  officials. 

Relations  to  other  Authorities. 

The  county  superintendent  acts  in  general  under  the  advice  of  the 
State  superintendent,  and  reports  to  him  annually  such  information 
relating  to  the  schools  in  his  county  as  the  latter  may  require,  undef 
penalty  of  having  withheld  from  him  the  amount  due  his  county  from 
the  State  school  fund.  He  also  reports  to  the  Auditor  of  Public  Ac- 
counts regarding  the  sale  of  township  fund  lands. 

The  county  superintendent  entertains  important  relations^  with 
the  county  board.  He  is  required  to  report  annually  to  the  board  con- 
cerning his  acts  as  superintendent,  with  lists  of  schools  visited  and 
dates  of  visitation;  also  concerning  the  amount  of  school  funds  dis- 
tributed to  each  township  treasurer,  and  balance  on  hand;  the  condi- 
tion of  the  institute  fund  and  of  any  other  fund  in  his  care;  and  the 
sales  of  common-school  lands.  The  county  board  audits  the  bills  and 
accounts  of  the  county  superintendent,  examines  and  approves  or  re- 
jects his  report,  and  authorizes  him  to  employ  needed  assistants,  and 
fixes  their  compensation,  to  be  paid  out  of  the  county  treasury.  The 
board  also  approves  the  superintendent's  bond,  fills  vacancies  in  the 
superintendency,  and  may  even  remove  the  superintendent  from  office 
in  case  of  his  failure  to  make  the  required  reports,  or  "for  any  palp- 
able violation  of  law 'or  omission  of  duty." 

With  regard  to  the  local  school  officers  within  the  county,  the 
township  trustees  of  schools  are  required  to  prepare  or  have  prepared 
by  the  township  treasurer  or  district  boards  of  directors  and  forward 
to  the  county  superintendent  an  annual  report  exhibiting  the  condition 
of  the  schools  in  the  several  townships,  under  penalty  of  forfeiting 
their  share  of  the  distributive  school  fund  for  the  following  year.  Dis- 
trict boards  of  directors  are  required  to  report  to  the  county  superin- 
tendents promptly  the  names  of  all  teachers  employed.  In  case  of  the 
failure  of  the  township  trustees  to  report  to  the  county  superintendent 
the  information  required,  the  latter  may  gather  such  information 
through  persons  of  his  own  appointrnent.  The  county  superintendent 
examines  and  approves  or  disapproves  the  bonds  of  the  township 
treasurers,  and  may  "remove  any  school  director  from  office  for  wilful 
failure  to  perform  his  official  duties." 


420  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Comments  and  Suggestions. 

It  will  be  observed' that  the  county  superintendent  entertains  im- 
portant relations,  both  with  the  higher  state  officers  and  with  the  local 
school  officers  within  his  county,  and  therefore  occupies  an  influential 
position  in  the  State  school  system.  Some  consideration,  therefore, 
should  be  given  to  the  possibility  of  increasing  the  educational  efficiency 
of  this  officer. 

The  fact  that  the  county  superintendent  was  originally  a  county 
land  agent  may  account  in  part  for  the  absence  of  any  educational 
qualifications  required  of  him.  Although  the  assistants  whom  he  may 
be  authorized  to  appoint  must  be  "versed  in  the  principles  and  methods 
of  education,  familiar  with  public-school  work,  and  competent  to  visit 
schools,"  he  himself  may  have  no  educational  attainments  or  exper- 
ience whatever,  so  far  as  the  law  is  concerned.  And  this  is  true  in 
spite  of  the  fact  that  the  Constitution  expressly  enjoins  upon  the  Gen- 
eral Assembly  the  duty  of  prescribing  the  qualifications  of  the  county 
Superintendent.  In  pursuance  of  this  mandate  that  body  has  done 
nothing  further  than  to  provide  that  he  shall  execute  a  bond.  The 
execution  of  a  bond,  however,  does  not  in  the  least  pertain  to  the 
primary  and  most  important  functions  of  the  office,  which  are  essen- 
tially educational  in  character,  and  it  is  probably  not  this  sort  of  quali- 
fication which  is  contemplated  by  the  constitution.  It  is  possible  under 
the  present  law  for  county  superintendents  to  be  chosen  who  are  in- 
ferior in  scholarship  and  educational  experience  to  many  of  the  teach- 
ers w4iom  it  will  be  their  duty  to  advise  and  supervise  in  educational 
work.  It  would  seem  to  be  clear,  therefore,  that  definite  educational 
qualifications  should  be  prescribed  for  the  county  superintendent,  and 
such  a  requirement  would  not  be  legally  incompatible  with  the  elective 
character  of  the  office.  This  principle  of  requiring  professional  quali- 
fications for  this  officer  has  been  estal?lished  in  many  of  the  most  im- 
portant states,  including  Wisconsin,  Michigan,  Kansas,  Nebraska,  Iowa 
and  Indiana.  It  is  suggested  that  such  qualifications  should  extend  at 
least  as  far  as  the  requirement  that  the  county  superintendent  shall  be 
a  holder  of  a  teachers'  certificate  of  the  highest/grade  which  he  is  com- 
petent to  issue,  and  shall  have  had  at  least  two  years  experience  teach- 
ing^ in  thp  public  schools. 

•  --^  I-tmay-bequestiGrfied-tMlfether  theApieselitvtneth^d  of  selecting  the 
county  superintendent  by  popular  vote  secures  "the  best  results.  It 
has  the  practical  effect  of  making  residence  in  the  county  a  necessary 
qualification  for  the  office,  and  it  may  be  doubted  whether  this  is  wise 
in  all  cases.  Moreover,  popular  election  has  the  efifect  of  injecting 
political  considerations  into  the  choice,  and  disqualifies  all,  no  matter 
what  their  educational  attainments  may  be,  who  do  not  belong  to  the 
dominant  political  party.  The  county  superintendent  should  be  an 
expert  in  educational  matters,  but  popular  election  is  not  a  method 
calculated  to  secure  such  a  person.  While  popular  election  is  the 
method  still  obtaining  in  the  majority  of  states,  a  number  have  adopted 
the  method  of  appointment,  either  by  a  central  state  officer,  or  by  a 
county  board  of  education,  or  a  board  composed  of  local  school  officers. 


EDUCATIONAL  ADMINISTRATION,  421 

In  Pennsylvania,  for  example,  he  is  appointed  by  the  school  directors 
of  each  county,  and,  in  Indiana,  by  the  township  trustees  of  each 
county. 

The  method  of  election  by  a  board  composed  of  the  local  school 
officials  was  recommended  by  some  of  the  early  State  superintendents 
in  Illinois,  but  the  number  of  such  local  school  officials  is  so  large  that 
such  a  board  would  be  cumbersome.  No  county  board  of  education 
exists  in  Illinois;  but  it  is  a  question  worthy  of  consideration  whether 
such  a  board  should  not  be  established,  with  authority  to  appoint  the 
county  superintendent,  and  possibly  other  functions,  such  as  examining 
and  licensing  teachers,  issuing  rules  and  regulations  for  governing  the 
schools  in  the  county,  and  consolidating  schools.  Until  and  unless 
such  a  board  is  created,  however,  the  county  board  of  supervisors  or 
board  of  county  commissioners  might  be  entrusted  with  the  function  of 
appointing  the  county  superintendents.  This  should  not  be  done,  how- 
ever, unless  provision  be  made  so  as  to  insure  the  selection  of  a  com- 
petent person  by  the  county  board.  In  order  to  effect  this  purpose  it 
is  suggested  that  the  county  superintendent  be  appointed  by  the  county 
board  from  among  the  persons  having  the  qualifications  already  pro- 
posed, subject  to  the  subsequent  ratification  of  the  State  Superintend- 
ent of  Public  Instruction,  If  it  is  deemed  best  not  to  make  the  ap- 
pointment of  the  county  superintendent  by  the  county  board  subject  to 
the  ratification  of  the  State  superintendent,  then  the  power  of  remov- 
ing the  county  superintendent  for  cause  should  be  transferred  from 
the  county  board  to  the  State  superintendent. 

The  compensation  of  the  county  superintendent,  as  pointed  out, 
ranges  between  certain  amounts,  depending  upon  the  population  of  the 
county.  Since  the  amount  of  the  salary  is  thus  definitely  fixed,  there 
exists  no  incentive  to  a  more  efficient  management  of  the  schools 
through  the  prospect  of  a  larger  salary  to  be  gained  thereby.  More- 
over, total  population  is  not  a  very  accurate  measure  of  the  amount 
of  work  and  responsibility  which  devolves  upon  the  county  superin- 
tendent. A  better  measure  of  responsibility  would  be  the  number  of 
schools  in  the  county,  provided  city  schools  are  not  counted  at  full 
value,  on  account  of  the  smaller  amount  of  supervision  needed  over 
them  by  the  county  superintendent.  If  the  total  attendance  at  schools 
were  made  the  basis,  it  would  be  an  incentive  to  the  county  superin- 
tendent to  extend  educational  facilities  to  as  large  a  proportion  of  the 
community  as  possible.  The  question  is  therefore  suggested  for  con- 
sideration whether  the  salary  of  the  county  superintendent  should  not 
be  fixed  upon  the  combined  basis  of  number  of  schools  in  the  county 
and  aggregate  school  attendance. 

The  powers  and  duties  of  the  county  superintendent,  as  has  been 
noted,  fall  broadly  into  two  classes,  educational  and  non  or  quasi-edu- 
cational. It  would  seem  desirable  that  he  be  relieved  of  some  of  the 
latter  class  of  functions  in  order  that  he  may  devote  his  time  and  atten- 
tion more  largely  to  his  strictly  educational  duties.  As  long  as  he  is 
weighted  down  with  clerical  duties  and  financial  cares,  the  efficiency 
of  his  supervision  over  the  schools  and  of  his  promotion  of  the  educa- 
tional interests  of  the  county  is  likely  to  be  diminished,  A  question 
which  should  be  considered,  therefore,  is  the  desirability  of  transfer- 


422  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

ring  from  the  county  superintendent  such  functions  as  giving  notice 
of  school  elections  and  apportionment  of  school  funds  to  other  county 
officers,  such  as  the  county  clerk  or  county  treasurer. 

Local  School  Officers  and  Units. 

The  local  units  of  school  administration  in  Illinois  below  the 
county  are  townships,  school  districts  and  cities.  In  each  township 
three  trustees  of  schools  are  elected  by  the  voters  of  the  township,  and 
the  trustees  so  elected  choose  the  township  treasurer.  The  functions 
of  the  trustees  are  mainly  financial  and  those  pertaining  to  the  division 
of  the  township  into  districts.  A  township  containing  less  than  two 
hundred  persons  under  twenty-one  years  of  age  may  be  consolidated 
with  an  adjoining  township.  The  township  trustees  may  divide  a  dis- 
trict into  two  or  more  districts,  when  petitioned  by  a  majority  of  the 
voters  of  the  district,  and  may  consolidate  two  or  more  districts  into 
one  district,  when  petitioned  by  a  majority  of  the  voters  of  each  dis- 
trict. A  township  or  district  containing  a  population  of  2,000  or  more 
may  by  majority  vote  establish  a  high  school,  under  the  control  of  a 
high  school  board. 

The  district  is  the  primary  and  fundamental  unit  of  local  school 
administration.  In  districts  having  a  population  of  less  than  one 
thousand,  a  district  board  of  three  directors  is  elected  by  the  voters  of 
the  district.  The  only  qualifications  required  of  those  officers  is  that 
they  shall  be  of  legal  age,  be  residents  of  the  district,  and  able  to  read 
and  write  the  English  language.  Among  the  more  important  powers 
and  duties  of  the  district  board  are  to  provide  for  the  revenue  neces- 
sary to  maintain  schools  in  their  district  through  the  levy  of  an  annual 
tax  upon  the  taxable  property  of  the  district,  not  to  exceed  one  and 
one-half  per  cent  for  educational  and  one  and  one-half  for  building 
purposes,  to  adopt  and  enforce  all  necessary  rules  and  regulations  for 
the  government  of  the  district  schools,  to  visit  and  inspect  the  schools, 
to  appoint  and  dismiss  teachers  for  cause,  and  fix  the  amount  of  their 
salaries,  to  establish  and  keep  in  operation  at  least  six  months  a  suf- 
ficient number  of  free  schools,  and  to  direct  what  branches  of  study 
shall  be  taught,  what  text  books  and  apparatus  shall  be  used,  and  to 
enforce  uniformity  of  text  books  in  the  schools,  and  not  to  permit 
books  to  be  changed  oftener  than  once  in  four  years. 

In  districts  having  a  population  of  between  one  thousand  and  one 
hundred  thousand,  a  board  of  education  is  elected,  consisting  of  from 
seven  to  fifteen  members.^ 

Such  board  has  the  same  powers  as  the  school  directors  and  also 
certain  additional  powers.  In  cities  of  over  one  hundred  thousand  the 
board  of  education  consists  of  twenty-one  members  appointed  by  the 
mayor  with  the  consent  of  the  common  council,  and  has  large  powers 
of  control  over  the  public  schools  of  the  city. 


iJn  some  cities  by  special  acts  passed  before  1870  city  school  boards  are  appointed 
by  the  mayor. 


EDUCATIONAL  ADMINISTRATION.  423 

Comments  and  Suggestions. 

The  principal  defect  which  has  shown  itself  in  the  local  adminis- 
tration of  schools  is  in  connection  with  the  district  system.  This  sys- 
tem was  established  in  this  state  when  Illinois. was  in  the  infancy  of  its 
growth,  and  is  a  type  of  school  organization  adapted  only  to  primitive 
conditions  and  sparsely  settled  regions.  There  may  be  a  few  parts  of 
the  state  in  which  the  district  system  is  still  that  best  suited  to  condi- 
tions, but  in  much  the  larger  portion  of  the  state,  such  a  primitive  type 
of  organization  has  been  outgrown.  Whatever  advantages  attach  to 
the  district  system,  and  there  are  some,  are  greatly  counterbalanced  by 
its  defects.  It  necessitates  many  elections  and  the  creation  of  a  vast 
army  of  local  school  officials,  estimated  in  Illinois  to  number  about 
45,000.  This  is  an  average  of  several  hundred  to  a  county,  and  it  is 
doubtful  whether  that  many  competent  men  can  be  found  in  the  aver- 
age county.  The  large  powers  of  control  over  the  schools  granted  to 
each  district  board  of  directors  makes  each  district  largely  independent 
of  other  districts  and  also  of  the  higher  control.  The  very  consider- 
able degree  of  local  autonomy  vested  in  school  directors  regarding 
many  matters,  such  as  fixing  the  salaries  of  teachers,  often  operates 
practically  to  defeat  the  will  of  the  state,  as  expressed  in  the  Constitu- 
tion. The  district  system,  moreover,  is  excessively  costly  in  compari- 
son with  the  results  obtained,  because  of  the  large  proportionate  cost 
of  administration  as  compared  with  the  township  system,  and  it  fre- 
quently results  in  inequalities  among  the  different  districts,  both  in  the 
rates  of  taxation  for  school  purposes  and  also  in  the  character  of  the 
educational  facilities  provided  under  it. 

The  Educational  Commission  of  1908  thoroughly  investigated  the 
district  system,  and  recommended  most  emphatically  that  it  be  abol- 
ished, and  that  the  township  system  be  established  in  place  of  it,  on 
the  ground  that  this  would  open  "the  way  to  increased  economy  and 
efficiency  in  the  educational  work  of  the  State."  Among  the  advan- 
tages claimed  for  the  township  system  are  that  it  is  less  expensive,  it 
reduces  the  number  of  school  officials,  it  tends  to  the  discontinuance  of 
schools  that  have  become  too  small  to  be  operated  efficiently,  it  pre- 
vents the  unnecessary  duplication  of  school  facilities,  and  equalizes  the 
burden  of  taxation. 

There  are  several  hundred  schools  in  Illinois  having  an  average 
attendance  of  less  than  ten,  and  there  seems  to  be  no  question  that 
most  if  not  all  of  these  schools  should  either  be  abolished  or  consoli- 
dated with  neighboring  schools.  The  establishment  of  the  township 
system  will  tend  toward  the  consolidation  of  schools  where  such  con- 
solidation is  needed,  but  this  will  not  be  the  necessary  effect  in  all 
cases.  It  "does  not  mean  the  consolidation  of  schools  but  the  unifica- 
tion of  school  management."  The  township  would  become  the  unit 
of  taxation  and  administration  regardless  of  whether  the  schools  are 
consolidated  or  not. 

The  Educational  Commission  favored  the  immediate  abolition  of 
the  district  system  by  statute,  but,  inasmuch  as  the  district  system  has 
been  long  established  and  may  still  be  in  some  few  parts  of  the  state 


424  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

But  the  establishment  of  the  township  system  should  certainly  be  made 
explicitly  permissive  by  local  option.  It  is  suggested  therefore,  that 
each  county  be  authorized,  on  petition  of  a  certain  percentage  of 
the  voters  of  the  county,  to  hold  an  election  at  which  the  people  of  each 
township  may  decide  by  majority  vote  whether  they  wish  to  abolish  the 
school  districts  and  establish  the  township  as  the  unit  of  school  organi- 
zation. 

Management  of  Local  School  Funds. 

The  township  school  funds  are  now  managed  in  large  part  by  the 
township  treasurer,  and,  in  order  to  arrive  at  a  conclusion  regarding 
the  question  of  the  proper  management  of  such  funds  it  is  necessary 
to  bear  in  mind  the  position  and  legal  functions  of  that  officer. 

The  township  treasurer  is  elected  biennially  by  the  township 
board  of  trustees,  and  must  be  a  resident  of  the  township,  but  must 
not  be  a  trustee  or  school  director.  He  serves  ex  officio  as  clerk  of  the 
school  trustees  and  keeps  a  record  of  their  proceedings.  He  receives 
a  compensation  for  his  services,  the  amount  of  which  is  fixed,  prior  to 
his  election,  by  the  board  of  trustees  and  is  paid  out  of  the  distributive 
fund.  He  is  required  to  keep  a  separate  account  for  each  district  in 
the  township,  and  to  make  an  annual  report  to  the  county  superinten- 
dent showing  the  exact  condition  of  the  township  funds. 

The  township  treasurer  is  required  by  law  to  keep  the  principal 
of  the  township  fund  loaned  at  interest.  The  rate  of  interest  on  such 
loans  must  be  not  less  than  four  per  cent  and  not  more  than  seven 
per  cent  per  annum,  and  no  loan  shall  be  made  for  less  than  one  year 
nor  more  than  five  years.  Such  loans  must  be  secured  by  mortgage 
on  unencumbered  real  estate  situated  hi  the  state,  and  worth  at  least 
fifty  per  cent  more  than  the  amount  loaned,  or  else  the  fund  must  be 
invested  in  state,  municipal,  school  or  other  bonds. 

According  to  the  report  of  the  Superintendent  of  Public  Instruction 
for  1910-'12,  the  total  compensation  of  all  the  township  treasurers  in 
the  state  for  the  fiscal  year  ending  June  30,  1912,  amounted  to  $175,- 
096.57,  an  average  of  over  $100  for  each  township  treasurer,  and 
an  average  expense  for  each  county  of  $1,716.  In  Champaign  County, 
where  there ,  are  33  townships,  the  total  compensation  of  town- 
ship treasurers  for  the  year  mentioned  was  $3,610,  or  an  average  of 
$109  per  treasurer.  For  the  year  ending  June  30,  1913,  the  total 
compensation  of  township  treasurers  in  Champaign  County  was  $3,- 
655,  or  an  average  of  more  than  $110  per  treasurer,  the  specific 
amounts  varying  from  $50  to  $300, 

According  to  the  report  for  the  fiscal  year  ending  June  30,  1910, 
the  amount  of  the  township  funds  invested  in  notes,  bonds  and  real 
estate  was  $18,444,370.  There  was  in  addition  to  this  a  sum  of 
$698,098  which  also  belonged  to  the  principal  of  the  township  funds, 
but  which  remained  uninvested  in  the  form  of  cash  on  hand,  although, 
under  the  law,  it  could  be  used  for  no  other  purpose  than  investment 
in  bonds  or  real  estate  mortgages.  On  June  30,  1912,  the  principal  of 
the  township  funds  was  $19,193,685.  More  than  two-thirds  of  the 
township  school  funds  are  in  the  city  of  Chicago.     Outside  of  Cook 


EDUCATIONAL  ADMINISTRATION.  425 

County,  the  aggregate  principal  of  the  township  school  funds  on  June 
30,  1912,  was  $5,594,602— an  average  of  about  $55,000  for  each  county, 
and  less  than  $4,000  for  each  township. 

The  above  facts  with  regard  to  the  compensation  of  the  township 
treasurers  and  the  condition  of  the  township  funds  throw  some  light 
on  the  degree  of  economy  that  might  be  attained  through  the  concen- 
tration of  the  management  of  the  township  funds  in  the  hands  of  the 
county  treasurer.  The  transfer  of  the  management  of  the  school 
funds  to  this  officer  would  not  necessarily  result  in  the  abolition  of  the 
township  treasurers.  But  their  other  duties  as  clerks  to  the  township 
trustees,  and  tlie  duties  of  the  township  trustees  would  be  of  such  slight 
importance  that  these  offices  might  well  be  abolished;  and  the  duty  of 
establishing  or  consolidating  school  districts  placed  on  •  the  county 
superintendent. 

The  result  of  this  arrangement  would  be  that  the  whole  of  the 
money  now  paid  the  township  treasurers  would  be  available  as 
compensation  for  the  county  officer,  to  whom  the  management  of  the 
funds  was  transferred.  But  the  whole  of  this  amount  would  not  be 
needed  for  this  purpose.  For  example,  in  Champaign  County,  where 
the  total  annual  compensation  of  township  treasurers  is  $3,655,  a 
salary  of  $2,000  would  be  ample  to  employ  a  deputy  treasurer  to  give 
his  whole  time  to  these  duties.  This  would  result  in  a  saving  of  over 
$1,600  a  year  in  Champaign  County  alone.  In  smaller  counties  the 
additional  work  could  probably  be  done  by  the  county  treasurer  for  a 
small  additional  compensation. 

There  would,  however,  not  only  be  a  saving  in  money  but  also  a 
gain  in  efficiency  through  such  an  arrangement.  At  present,  the  town- 
ship treasurers  are,  of  course,  mainly  engaged  in  other  business,  and 
regard  the  duties  of  their  office  merely  as  a  side  issue.  Indeed  it 
frequently  happens  that  the  treasurers  do  not  perform  the  duties  at 
all,  but  appoint  deputies  to  perform  the  actual  work.  The  election  of 
a  treasurer  often  involves  a  contest  between  different  banks  to  become 
depositaries  of  school  funds,  and  the  deputy  appointed  by  the  treasurer 
when  elected  is  apt  to  be  a  clerk  in  the  successful  bank.  The  reports 
which  the  township  treasurers,  are,  under  the  law,  required  to  submit 
annually  on  the  30th  of  June  to  the  county  superintendent  are,  in  many 
cases,  not  promptly  submitted;  and  when,  by  dint  of  much  exertion  on 
the  part  of  the  county  superintendent,  they  have  been  submitted,  they 
are  by  no  means  in  all  cases  models  of  neatness,  fullness,  or  accuracy. 
If  the  county  superintendent,  instead  of  having  to  deal  with  as  many 
different  officers  as  there  are  townships  in  the  county,  had  to  deal  only 
with  a  single  responsible  officer,  reports  could  be  made  and  accounts 
kept  in  more  satisfactory  form,  and  the  conditions  described,  if  not 
entirely  remedied,  would  be  greatly  improved. 

It  does  not  appear  that  the  transfer  of  the  management  of  the 
school  funds  to  the  county  treasurer  would  result  in  any  additional 
hardship  to  the  teachers  in  the  county.  They  would  receive  their  war- 
rants by  mail  from  the  county  treasurer  of  school  money,  and  such 
warrants  would  doubtless  continue  to  be  cashed  by  local  banks,  or 
even  by  merchants,  as  at  present. 


426  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  chief  financial  saving  through  the  proposed  arrangement 
would  be  not  through  the  saving  in  the  compensation  of  the  township 
treasurers,  but  through  the  more  efficient  and  economical  handling  of 
the  school  funds.  It  is  well  known  in  private  business  that  a  man  with 
a  large  sum  of  money  to  invest  can  invest  it  to  better  advantage,  with 
better  security,  and  at  a  higher  rate  of  interest  than  can  a  man  with 
only  one-twentieth  as  much  money  to  invest.  The  same  principle  holds 
in  the  investment  of  school  funds.  The  advantage  to  Be  derived  from 
concentrating  in  the  hands  of  the  county  treasurer  the  investment  of 
the  township  funds  of  the  county  would  be  two-fold.  In  the  first 
place,  the  money  could  be  invested  with  better  security  or  at  a  higher 
rate  of  interest.  For  example,  the  amount  of  the  permanent  town- 
ship fund  in  Champaign  County,  either  invested  or  subject  to  invest- 
ment, amounted,  at  the  last  report,  to  about  $196,000  or.  an  average 
of  less  than  $6,000  for  each  township.  One  man  with  the  former 
amount  can  undoubtedly  invest  it  to  better  advantage  than  33  men 
with  $6,000  each.  Moreover,  the  single  officer  with  the  larger  amount 
at  his  disposal  would  also  have  or  acquire  greater  expertness  in  making 
such  investments. 

In  the  second  place,  the  concentration  of  the  township  funds  in 
the  hands  of  the  county  treasurer  would  result  in  leaving  a  smaller 
proportion  of  the  whole  fund  uninvested  at  any  one  time.  As  already 
pointed  out,  of  the  total  township  fund  in  the  state  in  1910  amounting 
to  $19,142,468,  there  was  a  sum  of  $698,098  which  remained  un- 
invested in  the  form  of  cash  on  hand.  The  loss  to  the  state  as  a  whole 
through  non- receipt  of  interest  from  the  amount  thus  remaining  unin- 
vested would,  at  the  lowest  legal  rate,  viz.,  four  per  cent  amount  to 
$28,000  annually.  Not  all  of  this  money  could  be  saved  by  the  pro- 
posed centralization  of  management,  but  much  of  it  doubtless  could. 
An  examination  of  the  reports  of  the  township  treasurers  of  Cham- 
paign County  to  the  county  superintendent  show  numerous  amounts, 
varying  from  one  dollar  up  to  several  hundred  dollars  remaining  unin- 
vested in  the  hands  of  the  separate  township  treasurers.  Inasmuch 
as  the  law  prohibits  the  investment  of  this  money  at  less  than  four  per 
cent  or  in  other  than  certain  forms  of  securities,  it  is  practically 
impossible  to  invest  this  money  at  all.  If,  however,  these  various  small 
sums  were  placed  in  the  hands  of  the  county  treasurer  they  would 
altogether  amount  to  a  sufficiently  large  sum  to  make  it  possible  to 
invest  it  readily  in  accordance  with  the  provisions  of  the  law. 

In  addition  to  the  management  of  the  township  fund  by  the  county 
treasurer,  the  district  school  money  should  also  be  centralized  in  the 
same  office.  In  the  larger  counties  this  would  probably  necessitate 
adding  to  the  county  treasurer's  office  a  deputy  treasurer  who  should 
be  given  special  charge  of  the  school  money,  both  of  the  townships  and 
districts,  and  of  the  accounts  maintained  with  each  district  in  the 
county.  He  should  be  required  to  make  a  detailed  report  annually  to 
the  county  superintendent  as  to  the  condition  of  the  school  money,  and 
to  execute  a  bond  proportioned  to  the  amount  of  money  likely  to  be 
under  his  charge.  In  many  counties,  however,  the  additional  duties 
could  probably  be  performed  by  the  county  treasurer  with  some  addi- 
tional clerical  assistance. 


EDUCATIONAL  ADMINISTRATION,  427 

As  an  illustration  of  the  smaller  expense  of  administration  in 
handling  school  funds  in  large  amounts,  the  expense  in  Cook  County- 
may  be  compared  with  the  rest  of  the  state.  In  Cook  County,  while 
two-thirds  of  the  township  school  funds  and  nearly  half  of  the  total 
expenditures  for  school  purposes  in  the  state  are  in  the  single  school 
district  of  Chicago,  the  salaries  of  school  treasurers  are  only  about 
seven  per  cent  of  the  total  amount  paid  township  school  treasurers  in 
the  state.  The  school  treasurers  salaries  in  Cook  County  are  less  than 
one-tenth  of  one  per  cent  of  the  principal  of  the  township  funds  in  that 
county,  and  a  smaller  proportion  of  the  annual  receipts  and  expenses 
for  school  purposes.  In  the  rest  of  the  state,  the  township  treasurers 
salaries  amount  to  more  than  three  per  cent  of  the  principal  of  the 
township  funds,  and  to  more  than  half  of  one  per  cent  of  the  annual 
receipts  and  expenses  for  school  purposes.  '  In  a  number  of  counties 
the  township  treasurers  salaries  are  more  than  the  income  of  the  town- 
ship school  funds. 

SPECIAL  EDUCATIONAL   INSTITUTIONS, 

University  of  Illinois. 

The  State  University  is  subject  to  the  management  and  control  of 
a  board  of  trustees,  composed  of  the  Governor,  the  President  of  the 
State  Board  of  Agriculture,  and  the  Superintendent  of  Public  Instruc- 
tion ex  officio,  and  nine  other  trustees,  of  whom  three  are  elected 
every  two  years,  to  serve  for  a  six  year  term.  The  elective  trustees 
are  voted  for  by  the  voters  of  the  state  at  the  biennial  general  elections 
upon  the  same  ballots  with  the  state  officers  to  be  chosen  at  such  elec- 
tions. The  board  of  trustees  appoints  an  executive  committee  of  three 
out  of  their  own  number  to  manage  and  control  the  University  and  its 
affairs  while  the  board  is  not  in  session.  The  board  organizes  itself 
into  standing  committees,  each  having  supervision  over  some  phase  of 
the  university  affairs.  The  officers  of  the  board,  other  than  the  presi- 
dent, are  not  necessarily  members  of  the  board.  The  board  is  required 
by  law  to  make  a  biennial  report  to  the  Governor,  and  the  Governor 
may  make  appointments  to  fill  any  vacancies  which  may  occur  on  the 
board. 

Without  in  the  least  suggesting  that  the  selection  of  the  University 
trustees  by  popular  vote  has  not  secured  many  able  men  and  women  on 
the  board,  it  may  still  be  questioned  whether  this  is  the  best  possible 
method  of  selection.  If  the  selection  were  really  made  by  the  people 
as  a  whole,  it  would  undoubtedly  tend  to  increase  the  public  interest 
and  pride  in  the  State  University ;  and,  since  the  trustees  do  not  need 
to  be  experts,  this  method  of  selection  would  serve  tolerably  well.  But 
they  are  in  reality  not  chosen  by  the  whole  people,  but  by  those  who 
select  the  candidates  of  the  party  which  turns  out  to  have  the  plurality 
of  votes  in  the  election.  The  popular  election  of  the  trustees  tends  to 
lengthen  the  state  ballot  where  it  should  be  shortened,  and  contains  a 
possibility,  at  least,  of  injecting  political  considerations  where  they 
should  not  be  allowed  to  enter. 

A  change  in  the  method  of  selecting  the  members  of  the  board  of 
trustees  for  the  State  University  should  be  considered.  Even  if 
continued    as    a    body    chosen    by    popular    election,    the    time    and 


428  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

manner  of  election  should  be  changed.  In  Michigan  the  regents  of 
the  State  University  and  the  trustees  of  the  state  agricultural  college 
are  elected  at  the  biennial  April  election  for  judges  of  the  Supreme 
Court.  The  trustees  of  the  University  of  Illinois  might  be  elected  at 
the  time  of  the  township  and  city  elections  in  April;  and  provision 
made  for  non-partisan  nominations  for  those  positions. 

In  most  of  the  states  the  board  of  trustees  or  managing  board  for 
the  state  university  is  appointed  by  the  Governor,  usually  with  the 
consent  of  the  senate ;  and  the  adoption  of  this  method  should  also  be 
taken  into  consideration. 

The  Normal  Schools. 

In  carrying  out  the  constitutional  mandate  laid  upon  the  General 
Assembly  to  "provide  a  thorough  and  efficient  system  of  free  schools," 
it  is  desirable  that  provision  should  be  made  by  the  state  not  only  for 
establishing  schools  and  employing  teachers,  but  also  for  establishing 
training  schools  where  would-be-teachers  may  become  proficient  in  the 
performance  of  their  professional  duties.  With  this  object  in  view, 
the  legislature  has  from  time  to  time  provided  for  the  establishment  of 
state  normal  schools  by  special  Acts,  and  also,  by  an  Act  of  1869,  has 
authorized  counties  to  exercise  the  option  of  establishing  county  normal 
schools. 

County  Normal  Schools. 

By  an  Act  of  March  15,  1869,  provision  was  made  for  the 
establishment  of  county  normal  schools,  through  the  action  either  of 
the  county  board  of  supervisors  in  counties  under  township  organiza- 
tion, or  by  vote  of  the  people  in  counties  not  under  township  organiza- 
tion. The  Act  was  merely  permissive  in  character  and  little  use  ap- 
pears to  have  been  made  of  it.  Under  it  county  normal  schools  were 
organized  in  Peoria,  Bureau  and  Cook  counties.  The  first  two  did  not 
long  exist ;  and  in  1896  the  Cook  county  school  became  the  Chicago 
Normal  School.  No  tangible  connection  or  inter-relation  appears  to 
have  existed  between  the  county  normal  schools  and  the  State  Normal 
Schools. 

State  Normal  Schools. 

There  are  now  five  State  Normal  Schools,  the  first  of  which  was 
organized  under  an  Act  of  February  18,  1857,  and  is  said  to  be 
the  oldest  normal  school  in  the  Mississippi  valley.  In  the  Act,  this 
school  was  called  a  "normal  university,"  and  the  board  of  trustees 
having  charge  of  it  was  called  "The  Board  of  Education  of  the  State 
of  Illinois,"  both  of  which  appellations  are  somewhat  misleading.  The 
Southern  Illinois  Normal  University  was  organized  under  an  Act  of 
March  9,  1869,  and  subsequently  by  Acts  of  May  22,  1895,  provision 
was  made  for  the  Northern  and  the  Eastern  Illinois  Normal  Schools. 
The  last  of  the  five,  the  Western  Illinois  Normal  was  established  under 
an  Act  of  April  24,  1899. 

Each  of  the  five  normal  schools  is  under  the  control  of  a  separate 
board  of  trustees,  all  of  whom,  with  the  exception  of  the  Superintend- 
ent of  Public  Instruction,  who  serves  ex  officio,  are  appointed  by  the 


EDUCATIONAL  ADMINISTRATION.  429 

Governor,  by  and  with  the  advice  and  consent  of  the  Senate.  Each 
board  consists  of  six  members,  including  the  Superintendent  of  Public 
Instruction,  who  serve  for  a  period  of  four  years,  with  the  exception 
of  that  of  the  Normal  University,  at  Normal,  which  consists  of  four- 
teen members,  serving  for  a  six  year  term.  The  Acts  providing  for 
the  establishment  of  the  schools  laid  down  in  a  general  way  the  section 
of  the  state  in  which  they  were  to  be  located,  but  the  exact  locations 
were  determined  by  considerations  of  the  greatest  amount  of  private 
aid  in  lands  and  money  to  be  secured  through  gifts  of  citizens  in  dif- 
ferent localities. 

Each  board  organizes  by  electing  a  president  and  secretary  from 
its  own  body,  and  by  appointing  a  treasurer,  who  must  not  be  a  mem- 
ber of  the  board.  Each  board  is  required  under  the  law  to  make  to 
the  Governor  biennially  a  report  of  their  actions  and  proceedings  to- 
gether with  a  statement  of  their  accounts,  to  be  by  him  laid  before  the 
General  Assembly.  These  boards  are  separate  corporations,  acting 
independently  of  each  other,  the  only  tangible  connecting  link  between 
them  being  found  in  the  fact  that  the  Superintendent  of  Public  In- 
struction is  ex  officio  a  member  of  each. 

In  general,  the  boards  of  trustees  of  the  state  normal  schools  are 
authorized  to  make  all  regulations  necessary  for  the  management  of 
the  resoective  institutions.  More  specifically  they  are  empowered  to 
appoint  the  instructional  staff  of  their  respective  institutions,  together 
with  such  other  officers  as  may  be  required  and  also  to  fix  their  salaries 
and  prescribe  their  duties.  Such  appointees  may  also  be  removed  by 
the  board,  but  only  for  proper  cause,  after  having  given  ten  days  notice 
of  the  charges,  and  reasonable  opportunity  for  defense.  The  boards 
are  furthermore  authorized  to  prescribe  the  text-books,  apparatus,  and 
furniture  to  be  used  in  the  schools.  To  such  persons  as  have  satis- 
factorily completed  the  course  of  studies,  the  boards  are  empowered 
to  issue  diplomas,  on  the  recommendation  of  the  faculty. 

The  normal  schools  are  for  the  most  part  dependent  upon  legisla- 
tive appropriations  for  funds.  The  two  older  schools,  located  at 
Normal  and  Carbondale,  also  receive  the  interest  derived  from  what 
are  known  as  the  College  and  Seminary  funds.  This  interest,  which 
amounts  to  about  $13,000  annually,  is  divided  equally  between 
them,  and  is  applied  to  defraying  current  expenses.  The  schools 
also  receive  varying  amounts  from  students  fees,  and  the  Southern 
Normal  derives  a  small  income  from  a  farm  which  it_  owns. 
The  principal  items  of  current  expense  are  salaries  of  the  instruc- 
tional force,  the  wages  of  laborers,  and  the  purchase  of  miscellaneous 
supplies.  In  the  purchase  of  supplies  each  institution  acts  as  a  separate 
agency. 
Comments  and  Suggestions. 

In  general  the  State  Normal  Schools  have  not  been  very  well 
articulated  with  the  rest  of  the  educational  system  of  the  State.  This 
has  been  due  in  no  small  measure  to  the  lack  of  recognition  given 
by  the  State  to  the  work  of  graduates  of  these  institutions.  _  Most 
states  grant  to  graduates  of  State  Normal  Schools  teaching  certificates 
without  examination.    For  many  years  Illinois  has  not  done  so,  with 


430  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

the  result  that  graduates  of  the  normal  schools  of  this  State  have 
found  greater  recognition  in  neighboring  states  than  in  Illinois.  Pro- 
tests against  this  anomalous  situation  were  frequently  made  without 
avail  by  presidents  of  the  State  normal  schools,  and,  in  1908  the  Edu- 
cational Commission  recommended  that  "second  grade  county  certifi- 
cates be  issued  without  examination,  with  the  approval  of  the  county 
superintendent,  to  graduates  of  recognized  normal  schools,"  in  order 
that  "at  least  that  much  of  a  premium  should  be  placed  upon  special 
preparation  for  teaching."  These  protests  and  arguments  finally  bore 
fruit  in  1913  when  the  Forty-eighth  General  Assembly  passed  an  Act 
providing  that  county  superintendents  may  grant  second  and  third 
grade  elementary  school  certificates  to  graduates  of  recognized  normal 
schools  without  examination.  For  the  issuance  of  higher  grade  certifi- 
cates, however,  examinations  are  still  required  of  such  graduates. 

It  will  be  noticed  that,  while  the  issuance  of  diplomas  by  the 
boards  is  dependent  upon  the  recommendation  of  the  faculty,  no  such 
condition  rests  upon  the  board  in  the  appointment  of  teachers,  or  in 
prescribing  the  text-books,  apparatus,  etc.,  to  be  used.  It  is  doubt- 
less true  that  this  division  of  authority  between  the  board  and  the 
faculty  as  laid  down  in  the  law  is  modified  in  practice  to  the  extent 
that  the  president  of  the  school  is  consulted  by  the  board  in  the  appoint- 
ment of  teachers  and  in  the  selection  of  text-books,  etc.  These  func- 
tions are  as  much  educational  in  character  as  the  issuance  of  diplomas, 
and  should  therefore  be  subject  to  the  control  of  the  educational 
authorities  of  the  institution.  The  personnel  of  the  Board  of  Trustees 
of  the  normal  schools  has  sometimes  included  professional  educators, 
but  generally  speaking  they  are  not  primarily  engaged  in  education  as 
a  profession,  and  are  therefore  better  qualified  to  exercise  general 
suprvision  over  the  strictly  educational  functions  of  the  institutions, 
rather  than  direct  choice  and  control. 

It  may  be  questioned  whether  the  system  of  having  a  separate  board 
of  trustees  for  each  normal  school  is  the  best  possible  arrangement. 
There  seems  to  be  no  good  reason  for  the  existence  of  five  separate 
boards  when  one  board  would  serve  the  purpose  with  increased  effic- 
iency and  a  less  expenditure  of  effort.  Other  things  being  equal,  a 
single  board  of  control  charged  with  the  responsibility  of  governing 
all  these  schools  would  do  so  in  an  abler  manner,  and  more  econom- 
ically and  efficiently  than  separate  boards.  A  single  board  of  control 
would  not  destroy  the  individuality  of  the  schools ;  nor  extinguish  any 
healthy  rivalry  which  now  exists  among  them,  for  such  individuality 
and  rivalry  are  largely  created  by  the  presidents  and  faculties  of  the 
different  schools,  who  would  still,  for  the  most  part  at  least,  remain 
separate.  A  single  board  would,  indeed,  be  able  to  develop  more  effec- 
tively some  specialization  in  the  work  of  the  different  schools,  and  it 
would  tend  to  unify  and  systematize  those  parts  of  the  management 
and  administration  of  the  schools,  such  as  the  purchase  of  supplies, 
where  uniform  methods  or  single  control  are  effective.  A  single  board 
would  also  make  possible  the  adoption  of  standard  credit  units,  which 
would  facilitate  transfers  of  students  from  one  school  to  another. 

Single  boards  of  control  over  all  the  normal  schools  in  the  State 
have  been  established  in  a  number  of  states,  including  Massachusetts, 


EDUCATIONAL  ADMINISTRATION.  431 

New  Jersey,  Maryland,  Michigan,  Minnesota,  Kansas,  Colorado,  Cali- 
fornia and  others.  In  most  cases  these  boards  also  have  some  jurisdic- 
tion over  other  educational  institutions  and  the  State  system  of  elemen- 
tary and  secondary  schools  as  well.  As  already  indicated,  such  a  unifi- 
cation of  the  educational  system  of  the  State  tends  to  give  dignity  and 
strength  to  the  State's  management  of  its  educational  interests,  and 
this  is  an  advantage  which  such  a  State  as  lUinois,  with  its  large  edu- 
cational interests,  should  not  longer  remain  without. 

It  is  therefore  recommended  that  the  control  and  management 
of  the  five  normal  schools  be  placed  in  the  hands  of  a  single  board. 
Such  a  board  for  the  normal  schools  should  consist  of  not  more  than 
nine  members,  appointed  by  the  Governor  for  overlapping  terms. 

A  State  Board  of  Education. 

As  previously  suggested,  a  State  Board  of  Education  should  be 
provided  to  exercise  general  supervision  over  the  public  school  system 
of  the  State,  and  also  over  the  State  educational  institutions.  Such 
a  board  should  be  composed  partly  of  educators  and  partly  of  persons 
engaged  in  other  occupations ;  and  it  should  be  composed  partly  of  ex 
officio  members  who  have  gained  prominent  positions  in  the  educa- 
tional life  of  the  State  and  partly  of  persons  appointed  by  the  political 
department  of  the  State  government.  The  State  Superintendent  of 
Public  Instruction  should  be  the  executive  officer  of  the  board;  and,  if 
the  State  constitution  can  be  amended,  he  should  be  appointed  by  the 
board. 

A  State  Board  of  Education  such  as  is  here  proposed  should  not 
undertake  the  active  supervision  of  the  public  school  system  or  the 
direct  management  of  the  State  educational  institutions.  It  should 
rather  form  an  advisory  council  for  considering  the  broad  questions  of 
educational  policy,  and  the  interrelations  between  the  different  educa- 
tional agencies  in  the  State. 

D.    SUMMARY  OF  RECOMMENDATIONS. 

1.  That  the  following  qualifications  be  prescribed  for  the  State 
Superintendent  of  Public  Instruction,  viz.,  that  he  shall  be  a  holder  of 
the  highest  State  certificate  issued  in  Ihinois,  or  of  a  certificate  of  equal 
grade  issued  in  another  state,  and  shall  have  had  at  least  five  years 
experience  in  teaching  or  supervising  teaching. 

2.  That  the  appropriations  for  the  expenses  of  the  office  of  the 
Superintendent  of  Public  Instruction  be  increased  so  as  to  make  possi- 
ble a  more  highly  specialized  organization  of  the  office. 

3.  That  no  one  shall  be  eligible  to  hold  the  office  of  county  super- 
intendent unless  he  shall  be  the  holder  of  a  teacher's  certificate  of  the 
highest  grade  which  such  officer  is  competent  to  issue. 

4.  That  the  county  superintendent  of  schools  be  appointed  quad- 
rennially by  the  county  board  from  among  the  persons  having  the 
qualifications  suggested,  subject  to  the  subsequent  ratification  of  the 
State  Superintendent  of  Public  Instruction;  or  if  the  appointment  by 


432  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

the  county  board  is  not  subject  to  the  ratification  of  the  State  Super- 
intendent, the  power  of  removing  the  county  superintendent  for  cause 
shall  be  vested  in  the  State  Superintendent. 

5.  That  each  county  be  authorized,  on  petition  of  a  certain  per- 
centage of  the  voters  of  the  county,  to  hold  an  election  at  which  the 
people  of  each  township  may  decide,  by  majority  vote,  whether  they 
wish  to  abolish  the  school  districts  and  establish  the  township  as  the 
unit  of  school  organization. 

6.  That  the  five  State  normal  schools  be  placed  under  the  control 
of  a  single  unpaid  board. 

7.  The  board  of  trustees  of  the  State  University  should  be 
appointed;  or  if  it  is  continued  as  an  elective  body,  the  time  and  man- 
ner of  election  should  be  changed,  so  as  to  reduce  the  influence  of  party 
politics. 

8.  That  there  be  established  a  State  Board  of  Education,  which 
shall  exercise  general  supervision  over  the  public  school  system  of  the 
State  and  act  as  coordinating  agency  for  all  educational  authorities. 


II.  EDUCATIONAL  ADMINISTRATION  IN  OTHER  STATES 
AND  COUNTRIES.^^ 

A.    EDUCATIONAL  ORGANIZATION  IN  EUROPE. 

In  each  of  the  European  governments  there  is  a  central  depart- 
ment of  Public  Instruction,  with  large  powers  of  supervision  over 
elementary,  secondary  and  higher  education.  Such  departments  are 
under  the  general  direction  of  one  of  the  Ministers;  they  are  sub- 
divided into  bureaus  for  each  of  the  main  branches  of  its  work;  and 
they  act  to  a  large  extent  through  officials  and  boaA-ds  established  for 
geographical  districts.  The  elementary  and  secondary  schools  are  thus 
under  a  much  greater  degree  of  central  control  than  in  the  United 
States.  The  universities  are  also  under  the  general  supervision  of  the 
central  department  of  public  instruction;  but  each  of  these  institutions 
has  a  considerable  measure  of  local  autonomy,  vested  in  bodies  repre- 
senting the  faculties,  such  as  the  Senates  in  Prussia  and  the  Uni- 
versity Councils  in  France. 
France. 

The  head  of  the  educational  system  in  France  is  the  Minister  of 
Public  Instruction,  who  is  assisted  by  three  directors,  one  for  each  of 
the  three  branches  of  education,  primary,  secondary  and  higher. 
There  is  also  a  fourth  director  of  accounts.  Each  director  is  at  the 
head  of  several  bureaus  with  special  functions;  and  there  are  staffs  of 
assistants  and  inspectors. 

For  educational  purposes  France  is  divided  into  seventeen  dis- 
tricts, called  academies.  For  each  of  these  educational  divisions  there 
is  a  chief  educational  official,  the  rector, — except  in  the  Academy  of 

^Prepared  by  John  A.  Fairlie. 

REFERENCES    ON    EDUCATIONAL    ORGANIZATIONS     AND     CENTRAL    BOARDS    OF    CONTROL. 

Paul  Monroe,  editor;  Cyclopedia  of  Education,  Vol.  V. 

Articles  on  State  Boards  of  Education,  State  Educational  Organization,  Superin- 
tendent of  Schools,  and  Universities,  American  State. 

Report  of  the  U.  S.  Commissioner  of  Education,  1912. 

Chap.  3,  on  Higher  Education,  by  Kendrick  C.  Babcock,  chief  of  the  Division  of 
Higher  Education. 

Transactions  and  Proceedings  of  the  National  Association  of  State  Universities. 

C.  R.  Van  Hise:  Central  Boards  of  Control,  Vol.  9,  p.  62  (1911).  Frank  Strong: 
Central  Boards  of  Higher  ISducational  Institutions  with  special  reference  to  Kan- 
sas, Vol.  9  (1911),  p.  105.  A.  A.  Murphree:  Practical  Politics  in  the  Management 
of  State  Universities,  Vol.  10  (1912),  p.  208.  Discussion  on  Central  Boards  of 
Control,  Vol.  10  (1912),  p.  225. 

Arthur  Lefevre:  The  organization  and  administration  of  a  State's  Institutions  by 
Higher   Education.     1912,   1911. 

Report  on  the  University  of  Oklahoma,  by  Dr.  K.  C.  Babcock,  Inspector  of  Higher 
Educational  Institutions  for  the  United  States  Bureau  of  Education,  in  University 
News  Letter.     Feb.  1,  1913. 

Report  of  the  Virginia  Education  Commission,  1912. 

Annual  Reports  of  the  President  and  Treasurer  of  the  Carnegie  Institution  for  the 
Advancement  of  Teaching.    Nos.  3,  4,  6,  7,  8. 


434  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Paris,  where  the  Minister  has  the  title  of  rector,  and  a  vice-rector  is 
provided.  The  power  of  the  rectors  covers  the  three  branches  of  educ- 
ation, but  is  Hmited  so  far  as  primary  education  is  concerned,  which 
is  in  charge  of  the  inspector  of  the  academy.  In  each  academy  there 
is  also  an  academic  counsel  and  a  university  council  for  the  university 
in  sixteen  of  the  seventeen  academies. 

The  university  council  is  composed  of  the  rector,  president,  deans, 
directors  and  two  professors  of  the  faculty  elected  by  their  colleagues. 
This  body  decides  disputes  and  questions  of  discipline,  may  pass  stat- 
utes on  the  coordination  of  courses  (recommended  by  the  separate 
faculties),  on  dispensation  from  fees  and  on  vacations;  it  may  delib- 
erate on  the  establishment  of  courses  and  scientific  degrees ;  and  it  may 
give  advice  on  questions  submitted  by  the  Minister  on  the  budget  of 
the  faculties,  the  creation  of  new  chairs,  on  regulations,  library  and 
buildings.  Professors  in  the  universities  are  appointed  by  the  Min- 
ister of  Public  Instruction.  They  must  hold  the  doctorate  in  their 
respective  faculties. 

In  each  department  there  is  a  departmental  council,  including  the 
prefect,  members  of  the  council  general  of  the  department,  teachers 
and  inspectors.  This  is  one  of  the  most  important  organizations  in  the 
administration  of  French  elementary  education.  It  determines  the 
number,  nature  and  location  of  primary  schools,  the  number  of 
teachers,  and  supervises  the  curriculum.  It  has  some  control  over  the 
discipline  of  teachers,  subject  to  an  appeal  to  the  Superior  Council  of 
Public  Instruction. 

There  is  a  normal  school  for  boys  and  one  for  girls  in  most  of 
the  departments,  each  of  which  has  at  its  head  a  director  assisted  by 
a  bursar  and  an  administrative  council.  Graduates  of  the  normal 
schools  are  appointed  as  temporary  teachers  by  the  inspector  of  the 
academy,  and  after  two  years,  on  passing  an  examination,  they  receive 
permanent  appointments  by  the  prefect  on  the  recommendation  of  the 
mspector  of  the  academy. 

Secondary  education  is  furnished  by  lycees  and  colleges.  Each 
'lycee  has  a  head  master  {proviseur),  assisted  by  a  censeur,  in  charge 
of  discipline,  and  a  bursar, — all  appointed  by  the  Minister.  There 
is  also  an  administrative  council,  consisting  of  men  of  prominence, 
alumni,  local  authorities,  the  rector,  the  prefect,  the  mayor,  and  a  pro- 
fe.■^sor  of  the  lycee. 

Germany. 

The  supreme  direction  of  the  internal  organization  of  public  edu- 
cation in  Germany  is  in  the  hands  of  the  state  authorities.  The  high- 
est authorities  in  Prussia  and  Bavaria  are  Ministers  of  Public  Worship 
and  Education;  in  Baden  the  department  of  justice  is  in  charge  of 
the  same  Minister  as  education;  in  Hesse,  education  falls  under  the 
Minister  of  the  Interior. 

At  the  head  of  the  Prussian  system  is  the  IMinister,  with  an  under- 
secretary. The  ministry  is  divided  into  three  departments:  (1)  ecclesi- 
astical affairs,  (2)  higher  education  and  girls  schools,  and  (3)  elemen- 


EDUCATIONAL  ADMINISTRATION,  435 

tary  schools,  each  with  a  director.  There  are  also  attached  to  the 
office  from  30  to  35  special  concillors  and  from  10  to  15  assistants,  who 
are  jurists  or  administrative  officials. 

In  each  province  there  is  a  Provincial  School  Board,  which  con- 
trols the  inspection  of  higher  schools  (which  is  said  to  be  lax)  and  has 
some  supervision  over  local  school  administration. 

The  intermediate  authority  for  elementary  education  is  a  depart- 
ment of  the  district  gowernment{Regierung)  with  district  inspectors, 
under  whom  are  local  inspectors. 

The  business  administration  of  elementary  schools  is  largely  con- 
trolled by  local  authorities,  but  the  appointment  of  every  teacher  must 
be  confirmed  by  the  state. 

All  of  the  existing  universities  in  Germany  are  state  institutions, 
and  they  are  generally  maintained  by  the  state. 

Universities  in  Prussia  are  subject  to  the  Ministry  of  Public  Wor- 
ship and  Instruction,  which  appoints  a  representative,  curator  or 
chancellor,  for  each  university,  with  charge  of  the  external  affairs. 

The  internal  administration  is  in  the  hands  of  the  universities 
themselves  through  the  Rector  and  Senate.  The  Senate  consists 
either  of  several  regular  professors,  or  of  annually  changing  commit- 
tees of  this  body.  The  rector  who  presides  over  the  Senate  is  elected 
annually  from  the  ranks  of  the  regular  professors,  subject  to  approval 
by  'the  state.  Professors  are  civil  servants  with  certain  privileges. 
They  are  appointed  by  the  government  on  the  responsibility  of  the 
Ministry,  as  a  rule  respecting  the  suggestions  of  the  faculty. 

Each  university  is  organized  in  four  faculties,  which  elect  a  dean, 
and  are  responsible  for  instruction  in  their  field,  suggest  names  for 
vacant  chairs  and  for  distributing  courses  to  instructors,  and  for  pro- 
motions. They  also  arrange  the  schedule  of  lectures,  determine  on  the 
admission  of  private  docents  and  are  responsible  for  the  conferment 
of  academic  degrees. 


436  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

B.    STATE   EDUCATIONAL  ADMINISTRATION.^ 

In  each  state  of  the  American  Union  the  control  of  educational 
matters  is  divided  between  the  state  government  and  local  authorities. 
The  manner  of  this  division  varies  greatly.  At  one  extreme  there  are 
a  few  of  the  older  states  in  which  the  control  is  vested  almost  exclus- 
ively in  the  local  authorities,  the  state  superintendent  being  restricted 
almost  entirely  to  advisory  functions.  At  the  other  extreme  are  sev- 
eral states  in  which  the  local  authorities  are  little  more  than  agents  of 
the  State  department  of  education,  the  State  authorities  examining 
teachers  for  certification,  prescribing  the  curriculum,  and  having 
extensive  powers  of  appointment  and  removal  over  the  local  authori- 
ties themselves. 

Practically  all  of  the  states  have  a  department  of  education  with 
an  executive  head,  known  usually  as  the  state  superintendent  of  pub- 
lic instruction;  and  most  of  the  states  have  also  a  state  board  of  edu- 
cation. The  var}^'ing  powers,  relative  importance  and  relations  to  each 
other  of  these  two  authorities  show  the  absence  of  any  general  policy ; 
but  some  tendencies  towards  a  definite  system  may  be  noted  in  the 
recent  reorganization  in  a  few  states. 

State  Superintendent. 

A  State  Superintendent  of  Public  Instruction,  or  an  officer  of  the 
same  character  under  another  title,  is  found  in  each  of  the  American 
states  except  Delaware,  where  the  State  Auditor  issues  blanks  and  col- 
lects statistics.  In  most  states  this  officer  is  elected  by  popular  vote; 
but  in  seven  states  he  is  appointed  by  the  Governor  and  Senate,  and 
in  four  states  he  is  appointed  by  the  State  Board  of  Education.  The 
term  of  office  varies  from  one  to  six  years, — in  eighteen  states  it  is 
two  years  and  in  twenty-one  states  four  years.  The  salary  is  usually 
about  $3,000  a  year;  but  there  are  instances  of  salaries  of  $5,000, 
$7,500  and  $10,000. 

In  a  few  states  such  as  New  York  and  New  Jersey,  the  com- 
missioner of  education  is  at  the  head  of  a  well  organized  state  school 
department,  with  large  powers.  In  a  few  other  states  as  Massachusetts 
and  Connecticut,  the  Secretar}^  of  the  State  Board  of  Education  has 
little  legal  authority,  but  exercises  much  influence.  In  most  states,  the 
state  superintendent  has  relatively  little  power  and  not  much  influence. 
He  usually  has  nominal  supervision  over  the  public  school  system;  he 
directs  teachers  examinations  and  issues  teachers'  certificates ;  he  has 
charge  of  the  distribution  of  state  school  funds  and  sometimes  can 
withhold  state  grants;  in  many  states  he  has  quasi  judicial  powers  to 
hear  and  decide  appeals  from  local  school  officers.  The  office  is  one 
of  great  potential  power  and  usefulness;  but  the  political  basis  of 
selection  has  usually  prevented  it  from  being  occupied  by  educational 
leaders. 


"Sixth  Annual  Report,  Carnegie  Foundation  (1911),  p.  54;  Cyclopedia  of  Educa- 
tion: Articles  on  State  Board  of  Education,  State  Educational  Organization,  and 
Superintendents  of  Schools. 


EDUCATIONAL  ADMINISTRATION. 

State  Boards  of  Education. 

All  but  eight  states  have  state  boards  of  education,  or  boards  under 
other  names  which  exercise  some  of  the  usual  functions  of  state  boards 
of  education.  The  first  body  of  this  kind  was  the  board  of  regents 
established  in  New  York  state  in  1784.  North  Carolina  created  an 
ex  officio  state  educational  board  in  1825 ;  Missouri  established  a 
state  board  of  education  in  1835;  Massachusetts  in  1837;  Kentucky  in 
1838  and  Connecticut  in  1839. 

The  earlier  type  of  state  board  of  education  was  usually  composed 
of  state  officers,  ex  officio,  created  primarily  to  look  after  school  funds 
and  school  lands.  Such  boards  exist  to  day  in  some  of  the  southern 
and  western  states. 

Most  boards  of  education  have  some  ex  officio  members.  In  about 
half  the  states  the  Governor  is  a  member,  and  several  states  add  other 
elective  state  officers.  In  several  states  the  presidents  of  state  educa- 
tional institutions  or  other  professional  educators  are  members.  In 
most  cases  there  are  also  other  members,  usually  appointed  by  the  Gov- 
ernor and  Senate,  in  some  cases  by  the  state  superintendent,  and  in 
Michigan  elected  by  popular  vote. 

These  boards  have  from  three  to  twelve  members,  boards  of  six 
or  seven  members  being  the  most  common.  Sometimes  each  congress- 
ional district  or  each  county  has  one  member.  The  usual  term  is  three 
to  six  years ;  but  in  New  Jersey  it  is  eight  years  and  in  New  York 
eleven  years. 

In  some  states  where  the  state  board  of  education  is  composed 
entirely  of  state  officials  ex  officio,  its  powers  and  duties  are  very  small. 
In  other  states,  as  in  Massachusetts  and  Connecticut,  the  state  boards 
have  considerable  power,  and  exercise  considerable  influence  by  the 
character  of  their  reports.  In  several  states,  as  New  York,  New  Jer- 
sey, Indiana  and  Louisiana,  the  state  boards  of  education  have  still 
larger  powers.  Frequently  such  boards  have  charge  of  state  school 
funds ;  in  several  states  they  elect  a  secretary  or  commissioner,  who 
acts  as  State  Superinteni,  ent ;  and  in  some  states,  they  annoint  county 
superintendents  and  county  boards  of  education  and  select  text-books. 
In  several  states,  they  control  the  state  normal  schools ;  and  in  some 
states  they  act  as  boards  of  control  for  all  the  state  educational  insti- 
tutions. 

A  number  of  states  have  one  or  more  boards  exercising  functions 
which  in  other  states  are  giv«ii  to  a  single  board  of  education, — e.  g., 
state  text-book  commissions,  examination  boards,  high  school  boards, 
and  school  land  boards. 

The  greatest  concentration  of  authority  in  one  board  is  probably 
in  Oklahoma,  where  the  State' Board  of  Education  has  charge  of  the 
management  of  nineteen  state  educational  Institutions,  and  also  has , 
general  supervision  over  the  public  school  system  of  the  state.  In 
Idaho  the  State  Board  of  Education,  established  In  1913,  has  general 
supervision,  government  and  control  of  all  state  educational  Insti- 
tutions and  of  the  public  schools. 


438  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Plan  of  State  Educational  Organisation. 

The  following  plan  for  state  educational  organization  is  proposed 
by  E.  P.  Cubberley,  head  of  the  Department  of  Education,  Leland 
Stanford  University,  in  a  Cyclopedia  of  Education : — 

(1)  There  should  be  a  state  board  of  education  .appointed  by  the  Gov- 
ernor for  reasonably  long  terms.  A  board  of  seven  or  nine  is  both  small 
and  large  enough,  and  terms  should  be  arranged  that  but  one  appointment 
is  made  each  j^ear.  There  is  perhaps  something  to  gain  if  appointments 
are  submitted  to  the  Senate  for  approval. 

(2)  The  members  of  the  board  should  be  paid  all  necessary  travelling 
expenses  in  attending  meetings,  but  little  or  no  salary. 

(3)  One  of  the  chief  functions  of  this  state  board  should  be  to  select 
the  state  superintendent  or  commissioner  of  education.  There  should  be 
no  residence  or  political  restrictions,  and  the  salar>^  should  be  large  enough 
to  command  the  best  men  available. 

(4)  The  board  should  also  appoint  its  own  secretary  and  business 
manager. 

(5)  On  the  recommendation  of  the  superintendent  or  commissioner 
of  education,  the  board  should  appoint  for  definite  terms  assistant  super- 
intendents or  commissioners  and  special  agents  or  inspectors. 

(6)  The  state  board  of  education  should  be  primarily  a  bod}^  for  the 
appropriation  of  funds  and  for  the  creation  or  approval  of  educational 
policies,  the  execution  of  policies  determined  upon  being  intrusted  to  the 
executive  officers. 

(7)  Through  its  executive  officers,  the  board  should  have  general 
supervision  and  inspection  of  all  forms  of  public  education  in  the  state, 
including  the  educational  departments  of  all  state  charitable  and  reform- 
atory institutions,  and  the  right  of  inspection  of  all  forms  of  extra  state 
educational  effort. 

(8)  Through  its  executive  officers,  the  board  should  provide  for  the 
classification  and  standardization  of  all  schools  and  colleges  in  the  state, 
with  power  to  take  action  to  promote  the  organization  or  efficiency  of  the 
educational  system.  To  this  end  its  powers  and  duties  should  include : 
the  regulation  of  conditions  of  admission  to  the  normal  schools  and  their 
courses  of  study;  the  certification  of  teachers;  the  accrediting  of  normal 
schools  and  colleges  within  and  without  the  state ;  and  the  interstate  recog- 
nition of  diplomas  and  certificates;  the  setting  of  standards,  possibly  in 
cooperation  with  the  state  board  of  health,  for  school  buildings,  sanitarj^ 
appliances  ,and  health  supervision;  the  general  enforcement  of  the  school 
laws  of  the  state;  the  enforcement  of  the  use  of  uniform  blanks  for  all 
records  and  reports  by  both  state  and  non-state  schools ;  the  apportionment 
of  all  school  funds  and  the  making  of  specific  appropriations  for  special 
purposes  within  the  limits  prescribed  by  law ;  and  the  making  of  an  annual 
report  to  the  Governor,  and  to  suggest  needed  legislation. 

(9)  The  state  educational  office  in  any  of  the  more  important  states 
should  include  at  least  the  following  divisions,  with  division  heads  : 

1.  Business  and  financial  affairs.    * 

2.  Administrative  and  statistical  division. 

3.  Secondary  and  higher  education. 

4.  Elementary  education. 

5.  Rural  education. 

6.  Vocational  education. 

7.  Education  and  training  of  teachers. 

8.  Examination  division. 

9.  Legal  division. 

10.  Educational  extension. 

11.  School  and  public  libraries. 

12.  Health  and  development. 

13.  Attendance  and  child  conservation. 


EDUCATIONAL  ADMINISTRATION.  439 

Managing  Boards  of  State  Universities. 

The  management  and  control  of  state  universities  is  usually  vested 
in  a  board  of  regents  or  trustees,  composed  of  persons  appointed  by  the 
Governor  and  Senate,  with  the  addition — in  many  states — of  certain 
ex  officio  members.  This  method  of  selection  is  used  for  thirty-three 
institutions. 

In  ten  states  the  managing  board  for  the  state  university  has  also 
control  of  other  state  educational  institutions, — low^a,  Kansas,  Okla- 
homa, South  Dakota,  Montana,  Idaho,  West  Virginia,  Georgia,  Florida 
and  Mississippi.  In  all  the  other  states,  the  university  is  in  charge  of  a 
board  separate  from  those  controlling  other  institutions. 

In  five  states,  the  university  trustees  or  regents  are  elected  by  pop- 
ular vote, — Michigan,  Illinois,  Nebraska,  Colorado  and  Nevada. 

In  tvv^o  states — North  and  South  Carolina, — the  university  trustees 
are  selected  by  the  legislature ;  and  in  Vermont  nine  of  the  twenty 
trustees  are  selected  in  this  way. 

In  three  institutions,  trustees  are  selected  partly  by  cooptation, — 
Alabama  (subject  to  confirmation  by  the  Senate),  Indiana  (five  of 
eight)  and  Vermont  (nine  of  twenty).  Three  members  of  the  Indi- 
ana State  University  Board  are  elected  by  the  alumni. 

In  seventeen  institutions  there  are  no  ex  officio  members.  In  the 
other  cases,  the  number  of  such  members  range  from  one  to  seven  ; 
and  in  all  cases  they  form  a  small  part  of  the  total  number. 

The  number  of  members  on  such  University  boards  range  from 
five  to  eighty-three.  In  thirty-four  states  the  numbers  range  from  five 
to  twelve ;  in  eleven  states  from  thirteen  to  twenty-seyen ;  and  North 
Carolina  has  the  largest  number,  eight-three.* 

The  terms  range  from  three  years  to  life.  The  shortest  term  is 
three  years,  for  the  Indiana  University  board.  In  eleven  states  the 
term  is  four  years ;  in  twenty  states  it  is  six  years ;  in  eight  states  from 
seven  to  sixteen  years ;  and  in  two  cases  members  are  appointed  for 
life. 

In  most  states  the  members  of  these  boards  receive  no  compen- 
sation, but  are  allowed  expenses.  In  some  states  they  receive  a  per 
diem  allowance,  and  in  a  few  states  where  one  board  has  charge  of  a 
number  of  institutions,  they  receive  salaries  ranging  from  $1,000  a 
year  in  South  Dakota  and  West  Virginia  to  $3,500  in  Kansas. 


*  5  members  in  6  states 

6  members  in  3  states 

7  members  in  6  states 

8  members  in  3  states 

9  members  in  4  states 

11  members  in  4  states 

12  members  in  3  states 


440 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


MANAGING  BOARDS  OF  STATE  UNIVERSITIES. 


Number  of  Members 


State 


Name  of  Board 


How  Chosen 


Iowa    State  Board  of  Education  9 

Kansas    State   Board  of  Admin-  3 

istration   

Oklahoma    State  Board  of  Education  7 

South  Dakota.. Regents  of  Education. ..  5 

Montana   State  Board  of  Education  11 

Idaho  Board  of  Education 5 

Florida  Board     of     Control     of 

State    Educational    In- 
stitutions      5 

Georgia  Board  of  Trustees 25 

Mississippi   ....  Board  of  Trustees 10 

West  Virginia.. State  Board  of  Regents.  5 
State  Board  of  Control. 

Arizona  Board  of  Regents 6 

Arkansas   Board  of  Trustees 7 

California    Board  of  Regents 23 

Kentucky Board  of  Trustees 18 

Louisiana    Board  of  Supervisors.  . .  15 

Maine   Board  of  Trustees 8 

Minnesota   Board  of  Regents 12 

Missouri   Board  of  Curators 9 

New  Mexico... Board  of  Regents 7 

North   Dakota.  Board  of  Trustees 5 

Ohio  St.  Univ..  Board  of  Trustees 7 

Ohio   Univ Board  of  Trustees 21 

Miami    Board  of  Trustees 27 

Oregon Board  of  Regents 14 

Purdue  Board  of  Trustees 9 

Tennessee    Board  of  Trustees 16 

Texas   Board  of  Regents 8 

Utah    Board  of  Regents 13 

Virginia   Rector  and  Visitors,  Etc.  11 

Washington  ..  .Board  of  Regents 7 

Wisconsin    Regents     of     the     Uni- 
versity      15 

Wyoming   Board  of  Tnistees 11 

N.  Carolina. ...  Board  of  Trustees 83 

S.  Carolina.'. . .  Board  of  Trustees 11 


9  6  Governor  and  Senate 

3  4  Governor  and  Senate 

6  6  Governor  and  Senate 

5  6  Governor  and  Senate 

8  4  Governor  and  Senate 

5  6  Governor  and  Senate 


5  4  Governor 

17  8  Governor  and  Senate 

8  6  Governor  and   Senate 

4  4  Governor  and  Senate 


12 


16     16 

15       6 


9 

5 

5 

7 

19  Life 
27       9 

11  12 
9       6 

12  12 
8 

11  4 
9  4 
7      6 


Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 
Governor 


and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Senate 
and  Council 
and  Senate 


13  6  Governor  and  Senate 

9  6  Governor  and  Senate 

80  4  Legislature 

7  6  Legislature 


Illinois    Board  of  Trustees 12  3 

Michigan    Board  of  Regents 8  0 

Nebraska  Board  of  Regents 6  0 

Colorado    Board  of  Regents 7  1 

Nevada    Board  of  Regents 5  0 

Alabama   Board  of  Trustees 12  2 

Indiana    Board  of  Trustees 8  0 

Vermont  Board  of  Trustees. ...  (  ^^  ^ 


Elected 
Elected 
Elected 
Elected 
Elected 


10     12     Co-opted 

8  3     5  by  St.  3  by  Alumni 

9  6     "1  Legislature 
9  Life   J  Co-opted 


EDUCATIONAL  ADMINISTRATION.  441 

C.  CENTRAL  BOARDS  OF  CONTROL  FOR  STATE  EDUCATIONAL  INSTITUTIONS. 

In  establishing  institutions  for  higher  education  many  states  have 
following  the  policy  of  providing  a  number  of  institutions,  distributed 
in  different  parts  of  the  state,  and  each  independent  in  its  organization 
and  management.  Thus,  apart  from  state  normal  schools,  nine  states 
maintain  three  or  more  state  supported  and  state  controlled  educational 
institutions,  and  twelve  states  have  two  such  institutions, — a  state  uni- 
versity and  an  agricultural  and  mechanical  college.  In  seven  states 
appropriations  are  made  to  privately  endowed  institutions.  On  the 
other  hand,  in  seventeen  states,  the  state  university  comprises  all  the 
higher  educational  work,  except  that  done  in  the  normal  schools ;  and 
in  nine  states  there  is  a  state  agricultural  and  mechanical  college  but  no 
state  university. 

It  is  the  general  agreement  of  wise  and  progressive  leaders  of  edu- 
cation in  the  states  at  the  present  time  that  there  is  a  distinct  advan- 
tage in  combining  in  one  institution  the  colleges  of  liberal  arts  and  sci- 
ences and  all  the  professional  schools,  including  colleges  of  engmeer- 
ing  and  agriculture,  thus  forming  a  single  university  for  a  given  state. 
The  distribution  and  subdivision  of  the  work  of  higher  education  has 
led  in  most  cases  to  waste,  unnecessary  duplication,  undesirable  com- 
petition for  students  and  appropriations,  insufficient  financial  support, 
confusion  as  to  the  standards  which  each  institution  should  mamtam, 
the  preponderance  of  local  opinion,  and  consequent  inadequacy  of 
educational  requirements. 

The  waste  due  to  duplication  of  faculty,  equipment  and  buildings, 
is,  however,  sometimes  over-estimated.  There  is  no  loss  of  economy 
or  of  efficiency  in  carrying  on  in  dift'erent  places  the  work  of  the  first 
two  years  of  a  liberal  arts  course  or  of  courses  preliminary  to  tech- 
nological work,  provided  that  the  faculty  and  equipment  are  fully 
utilized.  It  is  when  specialized  and  technological  work  is  begun,  when 
the  services  of  high  salaried  men  and  enormously  expensive  equipment 
are  required  that  the  waste  and  inefficiency  of  plant  inevitably  appears. 

The  need  for  re-adjustment  is  very  real;  and  recent  changes  in 
a  number  of  states  show  the  growing  opinion  that  waste,  overlapping 
and  unwholesome  competition  should  cease.  In  states  where  two  or 
more  institutions  have  been  firmly  established,  the  possibility  of  physi- 
cal consolidation  is  often  too  remote  for  practical  consideration.  But 
in  some  states,  as  in  Michigan  and  Indiana—the  existing  institutions 
have  voluntarily  worked  out  a  basis  of  cooperation  and  division  of 
labor;  in  others  efforts  at  organized  cooperation  are  under  way;  while 
in  several  states  administrative  consolidation  of  several  institutions 
under  a  central  board  of  control  has  been  established. 

Soitth  Dakota  Regents  of  Education. 

The  first  distinct  attempt  at  centralization  in  the  control  of  state 
educational  institutions  of  dift'erent  types  was  in  South  Dakota.  Under 
laws  of  1896  and  1903,  a  board  of  regents  of  education,  consisting  of 
five  members,  appointed  by  the  Governor  and  Senate,  for  terms  of  six 
years,  was  placed  in  control  of  the  state  university,  the  state  college  of 
agriculture  and  mechanic  arts,  the  school  of  mines  and  three  normal 


442  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

schools.  The  members  of  this  board  receive  $1,000  each  per  annum. 
To  exclude  local  influence,  it  is  also  provided  that  none  of  the  counties 
in  which  the  state  institutions  are  located  can  be  represented  upon  leg- 
islative appropriation  committees. 

Little  seems  to  have  been  accomplished  in  the  way  of  readjust- 
ment and  delimitation  of  functions  among  the  six  institutions;  and 
some  difficulties  appear  to  have  developed.^ 

Minnesota  Financial  Control. 

In  Minnesota  the  state  university,  which  includes  the  agricultural 
college,  is  in  charge  of  a  board  of  regents,  consisting  of  four  ex  officio 
members  and  eight  members  appointed  by  the  Governor  and  Senate 
for  terms  of  six  years.  A  separate  board  of  nine  members  has  juris- 
diction over  all  the  normal  schools  of  the  state. 

In  1901  a  state  board  of  control  was  established,  primarily  to 
manage  the  charitable  and  penal  institutions ;  but  the  law  also  gave  this 
board  financial  control  over  the  educational  institutions,  without  abol- 
ishing the  educational  boards,  f'or  two  years  the  board  of  control 
did  not  attempt  to  supervise  tlie  university ;  and  in  1903  an  unsuccess- 
ful attempt  was  made  to  release  it  from  the  dual  control.  After  two 
years  in  which  the  regents  of  the  university  were  subject  to  the  finan- 
cial supervision  of  the  board  of  control,  the  law  was  amended  in  1905, 
so  as  to  restore  the  full  power  of  the  regents  over  the  management 
of  the  university,  except  in  placing  insurance,  the  purchase  of  fuel  and 
the  erection  of  buildings. 

Central  and  Local  Boards  in  Georgia. 

In  Georgia  the  general  control  of  the  higher  educational  insti- 
tutions rests  with  the  trustees  of  the  University  of  Georgia ;  while  the 
immediate  government  of  the  institutions  situated  elsewhere  than  at 
Athens  is  in  charge  of  separate  boards  or  commissions. 

The  university  trustees  consist  of  eight  ex  officio  members 
and  seventeen  members  appointed  by  the  Governor  with  the  con- 
sent of  the  Senate.  One  member  is  appointed  from  each  congressional 
district  and  four  from  the  state  at  large  and  two  at  Athens.  Their 
terms  of  office  are  for  eight  years,  four  trustees  being  appointed  every 
two  years.  The  compensation  is  four  dollars  per  diem  and  ex- 
penses. The  ex  officio  members  are  the  Governor,  George  Foster 
Peabody,  and  the  chairmen  or  presidents  of  the  local  boards  for  the 
school  of  technology,  the  normal  and  industrial  college,  the  industrial 
college  for  colored  youths,  the  North  Georgia  agricultural  college,  the 
state  normal  school  and  the  college  of  agriculture.  The  university 
proper  and  college  of  agriculture  are  at  Athens ;  each  of  the  other  six 
institutions  (which  are  made  branches  of  the  university)  are  located 
in  different  places,  as  are  also  the  agricultural  experiment  station  and 
the  medical  college. 

The  size  of  the  various  separate  boards,  the  terms  of  office  and 
mode  of  appointment  differ.  In  each  there  is  an  executive  committee, 
sometimes  composed  of  local  trustees  and  sometimes  of  non-residnts. 

^Report  of  U.  S.  Commissioner  of  Education  1912,  p.  88;  C.  R.  Van  Hise,  Central 
Boards  of  Control. 


EDUCATIONAL  ADMINISTRATION.  .  443 

The  chancellor  of  the  University  has  stated  that  "the  method  of 
government  involves  many  difficulties,  and  that  the  cooperation  be- 
tween the  different  boards  has  resulted  merely  in  making  the  relations 
between  the  general  board  and  the  separate  boards  more  intimate. 

Florida  Board  of  Control. 

Prior  to  1905  there  were  six  institutions  for  higher  education  in 
Florida,  supported  at  least  in  part  by  the  state.  All  of  these  colleges 
were  of  low  grade.  In  1905  a  board  of  control  was  created,  consistmg 
of  five  members,  appointed  by  the  Governor  for  terms  of  four  years. 
Members  must  be  from  dift'erent  sections  of  the  state,  and  no  appomt- 
-ment  from  any  county  in  which  any  of  the  institutions  are  located. 
The  members  serve  without  compensation  except  expenses. 

This  board  has  control  of  all  the  state  institutions  for  higher  edu- 
cation, comprising — after  reorganization : — 

The  State  University, 

The  Agricultural  and  Mechanical  College  for  Negroes, 

The  Florida  State  College  for  Women, 

The  Normal  Colored  School,  and 

The  Institution  for  the  Blind,  Deaf  and  Dumb. 

Under  the  law  creating  the  board  of  control,  it  is  also  provided 
that  it  "shall  act  in  conjunction  with,  but  at  all  times  under  and  sub- 
ject to  the  control  and  supervision  of  the  State  Board  of  Education." 
The  latter  board  consists  of  the  Governor,  the  Secretary  of  State,  the 
Attorney-General,  the  State  Treasurer,  and  the  State  Superintendent 
of  Public  Instruction;  and  has  jurisdiction  over  the  general  educa- 
tional interests  of  the  state. 

Following  the  establishment  of  this  central  board  of  control, 
several  of  the  weak  and  low  grade  colleges  were  abolished  and  the 
State  University  was  enlarged  and  strengthened.  The  State  Board 
of  Education,  however,  refused  to  confirm  the  re-election  of  the  presi- 
dent of  the  university;  and  on  his  resignation  a  new  president  was 
selected. 

The  Florida  board  has  seemed  to  work  more  effectively  and  har- 
moniously than  the  boards  in  any  other  state  having  such  central 
boards.  The  president  of  the  State  University  reports  that  under 
no  circumstances  would  the  institutions  "go  back  to  independent  boards 
and  their  scrambles  at  each  meeting  of  the  legislature  for  support  for 
their  respective  institutions."  He  states  further  that  the  new  law  has 
"unified  our  higher  educational  scheme.  It  has  resulted  in  more  per- 
fect and  better  understood  relation  between  the  high  schools  and  the 
colleges,  and  our  entire  educational  system  has  been  quickened  and 
stimulated."  He  recognizes,  however,  the  possibility  of  trouble  aris- 
ing from  friction  between  the  two  boards.® 

West  Virginia  Dual  Control. 

In  1909,  WesT.  Virginia  reorganized  the  management  of  its  edu- 
cational, charitable  and  penal  institutions.     A  state  board  of  regents, 
including  the  state  superintendent  of  public  instruction  and  four  mem- 
"^Report  of  U.  S.  Commissioner  of  Education,  1912,  p.  89. 


444  .  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

bers  appointed  by  the  Governor,  for  terms  of  four  years  (not  more 
than  three  from  one  political  party)  has  control  in  educational  matters 
of  the  state  university,  including  the  agricultural  college,  two  branch 
preparatory  schools,  six  normal  schools  and  two  colored  institutes. 
Each  of  the  members  of  this  board  receives  $1,000  a  year  and 
expenses. 

At  the  same  time  a  board  of  control  of  three  members,  appointed 
by  the  Governor  and  Senate,  at  salaries  of  $5,000  a  year  which  has 
full  control  of  the  charitable  and  penal  institutions,  also  has  "control 
of  the  financial  and  business  affairs"  of  the  educational  institutions. 
The  two  boards  meet  together  on  request  of  the  board  of  control. 

This  dual  system  seems  to  have  operated  harmoniously;  and  the 
state  superintendent  has  said  that  "there  has  been  a  great  saving^  to  . 
the  state;  while  the  institutions  are  in  a  more  prosperous  condition 
than  they  ever  were  before."^ 
Iowa  State  Board  of  Education. 

Before  1909,  each  of  the  state  educational  institutions  in  Iowa  was 
managed  by  a  separate  board, — a  board  of  regents  for  the  state  uni- 
versity, a  board  of  trustees  for  the  state  college  of  agriculture  and 
mechanic  arts,  and  a  board  of  trustees  for  the  state  teachers  college. 
Under  this  system,  the  overlapping  and  duplication  of  work  in  the 
higher  educational  institutions  was  perhaps  larger  than  in  any  other 
state.  By  Act  of  1909,  these  separate  boards  were  abolished,  and 
there  was  established  a  State  Board  of  Education  to  have  charge  of 
the  three  institutions  named  and  also  of  the  college  for  the  blind,  which 
had  been  under  the  management  of  the  Board  of  Control  of  charitable 
institutions. 

The  Board  of  Education  is  composed  of  nine  members  appointed 
by  the  Governor,  with  the  consent  of  two-thirds  of  the  Senate  in 
executive  session  after  reference  to  a  committee.  After  the  first 
appointments,  members  will  serve  for  terms  of  six  years ;  and  one- 
third  will  retire  every  second  year.  Any  member  may  be  removed 
(during  a  session  of  the  General  Assembly)  or  suspended  (when  the 
General  Assembly  is  not  in  session)  for  malfeasance  in  office,  or  for 
any  cause  that  renders  him  ineligible  to  appointment,  or  incapable  or 
unfit  to  discharge  the  duties  of  the  office. 

Each  member  of  the  board  is  allowed  seven  dollars  a  day,  not 
exceeding  60  days  in  any  year,  for  each  day  engaged  in  official  duties, 
and  mileage. 

This  board  has  power  to  elect  a  president  from  their  number, 
a  president  and  treasurer  for  each  institution,  and  teachers,  officers 
and  employes;  to  make  rules  and  regulations  for  the  government  of 
said  schools ;  to  manage  and  control  their  property,  and  to  direct  the 
expenditures  of  appropriations  and  other  moneys. 

A  finance  committee  of  three  members  must  be  appointed  by  the 
board  of  education  from  outside  of  its  membership.  Members  of  the 
finance  committee  are  required  to  devote  their  entire  time  to  the  work 
of  the  institutions,  and  each  receives  a  salary  "of  $3,500  a  year  and 
necessary  traveling  expenses. 

^C.  R.  Van  Hise,  Central  Boards  of  Control. 


EDUCATIONAL  ADMINISTI^TION.  445 

In  addition  to  the  finance  committee,  the  board  has  two  standing 
committees, — a  faculty  committee,  and  a  building  and  business  com- 
mittee, each  composed  of  five  members. 

The  board  also  appoints  an  inspector  of  secondary  schools,  who 
has  two  assistants,  to  visit  and  inspect  high  school,  recommending 
those  to  be  placed  on  the  accredited  list,  and  prepares  bulletins  relating 
to  secondary  education. 

The  board  has  no  jurisdiction  or  supervision  over  elementary  edu- 
cation. 

The  Secretary  of  the  Board  of  Education  states  that  it  has  pro- 
moted the  general  welfare  of  the  various  colleges,  erecting  many  new 
buildings  and  strengthening  several  departments,  especially  the  college 
of  medicine  at  Iowa  City.  At  the  same  time,  he  states  that  the  Board 
has  experienced  some  difficulty  in  preventing  unnecessary  duplications 
in  the  work  of  the  several  institutions. 

In  October  1912,  the  Iowa  State  Board  of  Education  announced 
a  plan  for  important  readjustments  in  the  functions  of  the  different 
institutions,  so  as  to  eliminate  duplication.  This  led  to  vigorous  oppo- 
sition, not  only  in  the  institutions  but  also  at  the  session  of  the  General 
Assembly  in  1913.  Some  of  the  changes  proposed  were  in  the  direc- 
tion of  a  better  co-ordination  of  educational  work ;  but  part  of  the  plan 
seems  to  have  been  dictated  by  political  rather  than  educational  con- 
siderations. In  view  of  probable  legislative  action  the  board  of  edu- 
cation rescinded  their  action. 

It  can  hardly  be  said  that  this  experiment  in  Iowa  has  been  wholly 
or  permanently  successful.    Opinion  in  the  state  as  to  the  new  system 
has  been  sharply  divided. 
Montana  Board  of  Education. 

In  1909,  all  the  higher  educational  institutions  in  Montana  were 
placed  under  the  general  control  and  supervision  of  a  state  board  of 
education.  This  board  consists  of  eleven  members,— the  Governor, 
State  Superintendent  and  Attorney-General,  ex  officio,  and  eight  mem- 
bers appointed  by  the  Governor,  with  the  advice  and  consent  of  the 
Senate,  for  terms  of  four  years.  There  is  no  compensation  for  serv- 
ices, but  traveling  expenses  are  allowed.  Regular  meetings  are  to  be 
held  semi-annually. 

This  board  was  given  jurisdiction  over  the  state  uni\ef5ity.  the 
college  of  agriculture,  the  school  of  mines,  the  state  normal  college, 
and  also  over  the  state  orphans'  home,  the  school  for  the  deaf  and 
blind  and  the  state  reform  school,  including  the  ordinary  powers  of 
trustees  with  reference  to  appointments  of  the  instructional  force  and 
the  control  of  educational  policies;  but  limited  by  local  executive 
boards  at  each  institution. 

Each  executive  board  consists  of  the  president  of  the  institution 
and  two  other  members  appointed  bv  the  Governor,  with  the  consent 
of  the  State  Board  of  Education,  for  terms  of  four  years._  At  least 
two  members  must  reside  in  the  county  where  the  institution  is  located; 
and  in  fact  all  these  boards  are  strictly  local. 


446  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  executive  boards  have  subordinate  powers  conferred  and 
defined  by  the  State  Board  of  Education.  The  appointed  members 
receive  $5  per  day,  not  to  exceed  $125  in  one  year,  and  expenses. 

In  financial  matters  both  the  local  executive  boards  and  the  State 
Board  of  Education  have  been  subject  to  the  state  board  of  examiners. 
The  latter  board  consists  of  the  Governor,  Secretary  of  State  and 
Attorney-General,  and  has  general  control  of  state  finances,  letting  all 
contracts,  approving  all  bonds  and  auditing  claims  on  money  granted 
by  the  state ;  but  it  may  confer  upon  the  local  executive  boards  financial 
powers  for  current  expenses,  and  may  not  limit  the  power  of  the  execu- 
tive boards  to  make  contracts  and  expenditures  for  a  single  purpose  not 
to  exceed  $250. 

In  discussing  this  complex  system,  President  Pritchett  of  the  Car- 
negie Institution  for  the  advancement  of  teaching  has  noted  that  the 
Governor  and  Attorney-General  can  in  large  measure  control  the 
affairs  of  all  these  institutions.  These  two  officials  form  a  majority  of 
the  state  board  of  examiners,  and  are  also  members  of  the  State  Board 
of  Education.  On  the  State  Board  of  Education  the  Governor  is 
expected  to  appoint  one  representative  of  each  educational  town. 
When  the  two  elective  officials  sit  with  the  local  representatives  "the 
opportunities,  at  least,  for  political  exchanges  of  favors  are  obvious." 
A  board  of  trustees  chosen  partly  on  political  and  local  grounds  "deal- 
ing with  institutions  of  diverse  types  is  clearly  impossible  from  the 
standpoint  of  effective  institutional  administration." 

In  June  1912,  the  State  Board  of  Education,  after  holding  inquir- 
ies in  the  president's  absence  and  after  an  executive  session  abruptly 
dismissed  the  president  of  the  state  university.  On  this  action.  Presi- 
dent Pritchett  comments :  "Whatever  may  have  been  the  grounds  for 
a  sudden  dismissal  of  the  president,  the  method  by  which  it  was  carried 
out  was  one  calculated  to  discredit  both  the  board  and  the  state. "^ 

By  an  Act  of  1913  the  State  University,  at  Missoula;  the  College 
of  Agriculture  and  Mechanic  Arts,  at  Boymen ;  the  School  of  Miners, 
at  Butte,  and  the  Normal  School,  at  Dillon,  were  constituted  as  the 
University  of  Montana,  under  the  control  and  supervision  of  the  State 
Board  of  Education. 

The  State  Board  appoints  a  Chancellor  of  the  University,  and  a 
president  and  faculty  for  each  institution ;  and  is  to  prevent  unncessary 
duplication  and  to  make  recommendations  to  the  legislature  as  to  the 
needs  of  each  institution.  The  executive  boards  at  each  institution  are 
continued. 

Under  the  authority  to  prevent  duplication  of  courses,  the  State 
Board  has  discontinued  the  engineering  work  at  the  University,  at 
Missoula,  transferring  this  to  the  College  of  Agriculture.  President 
Pritchett  of  the  Carnegie  Foundation  considers  that  this  arrangement 
for  the  concentration  of  engineering  work  is  regrettable,  for  its  effect 
both  on  engineering  and  agricultural  education." 

"Seventh  Annual  Report  of  the  President  and  Treasurer  of  the  Carnegie  Institu- 
tion for  the  advancement  of  teaohlnj?,  pp.  148-149.  • 
•Eighth  Annual  Report,  pp.  68-69. 


EDUCATIONAL  ADMINISTRATION.  447 

Mississippi  Central  Board. 

In  1910  there  was  created  in  Mississippi  a  board  of  trustees,  of 
eight  members  appointed  by  the  Governor,  which  superseded  the 
separate  boards  for  the  agricultural  and  mechanical  college,  the  indus- 
trial institute  and  college,  and  the  Alcorn  agricultural  college.  Two 
trustees  were  to  be  from  each  supreme  court  district,  one  from  the 
state  at  large  for  terms  of  six  years,  and  one  for  the  State  University 
from  DeSoto  County  for  a  term  of  four  years.  One  trustee  should 
be  a  farmer,  one  a  lawyer,  and  one  a  builder,  architect  or  factory  man. 
The  compensation  was  five  dollars  a  day  and  expenses. 

In  1912  this  board  was  abolished,  and  a  new  board  created  in  its 
place. 
Oklahoma  State  Board  of  Education. 

In  1911,  a  State  Board  of  Education  was  established  in  Oklahoma, 
consisting  of  the  Superintendent  of  Public  Instruction  and  six  members 
appointed  by  the  Governor  and  Senate  for  terms  of  six  years.  The 
State  Superintendent,  who  is  president  of  the  board,  has  a  salary  of 
$2,500  a  year ;  the  other  members  receive  six  dollars  a  day  for  actual 
service. 

This  board  has  supervision  over  the  common  school  system,  and 
acts  as  a  text  book  commission;  and  in  addition  has  control  of  the 
State  University,  two  university  preparatory  schools,  the  school  of 
mines,  the  industrial  institute  and  college  for  girls,  six  normal  colleges, 
the  agricultural  and  normal  university  for  negroes,  four  schools  for 
defectives  (blind,  deaf  and  feeble  minded),  the  state  school  for  orphan 
children,  the  colored  orphanage  and  the  reform  school — 19  institutions. 
The  agricultural  and  mechanical  college,  however,  is  not  under  the 
board  of  education ;  but  under  the  constitution  remains  in  charge  of 
the  state  board  of  agriculture. 

Almost  immediately  after  its  organization  the  board  of  education 
made  sweeping  changes  in  the  institutions  under  its  control.  New 
heads  were  appointed  to  six  institutions ;  and  a  large  proportion  of  the 
members  of  their  faculties  were  removed  or  transferred.^"  On  account 
of  a  disagreement  between  the  board  and  the  Governor,  in  regard  to 
text  books  and  appointments,  three  members  were  removed  ;  and,  as  the 
Senate  refused  to  confirm  the  new  appointees,  a  deadlock  lasted  for 
some  months.  It  seems  clear  that  the  board  of  education  was  not  out 
of  politics.  On  the  other  hand,  the  new  president  of  the  state  uni- 
versity accepted  the  position  with  definite  pledges  on  the  part  of  the 
board  not  to  interfere  with  the  management. ^^ 
Kansas  State  Board  of  Administration. 

In  1911  the  legislature  of  Kansas  passed  a  bill  to  establish  a  single 
board  of  control  in  place  of  separate  boards  over  the  state  university, 
the  state  agricultural  college  and  the  state  normal  schools.  This  board 
was  to  consist  of  three  members,  to  be  paid  salaries  of  $2,500  each, 
and  was  to  elect  an  educational  expert  to  act  as  secretary  at  the  same 

salary. 

• 

i"Ueport  of  U.  S.  Commissioner  of  Ediicition,  1912,   pp.  91-92. 

iiReport  of  K.  C.  Babcock,  Inspector  of  Higlier  Education  for  the  U.  S.  Bureau 
of  Education,  in  tlie  University  News  Letter,  Feb.  1,  1913. 


448  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Before  acting  on  this  bill  Governor  Stubbs  asked  the  advice,  by 
telegraph,  of  a  large  number  of  university  administrators;  and  on  their 
advice,  he  disapproved  the  bill.  Before  taking  this  action,  however, 
he  made  arrangements  for  the  voluntary  co-operation  of  the  three 
existing  boards,  which  agreed  to  meet  together  with  the  Governor  and 
the  State  Superintendent  of  Public  Instruction,  as  a  commission  on 
higher  education.  Committees  on  efficiency,  co-ordination  of  work  and 
business  management  were  appointed. 

I'his  experiment  did  nol:  result  in  any  important  improvements; 
and  at  the  legislative  session  of  1913  an  act  was  passed  similar  to  the 
bill  of  two  years  before.  This  has  established  a  State  Board  of  Admin- 
istration of  three  members,  appointed  by  the  Governor  and  Senate  for 
terms, of  four  years,  to  govern  the  state  university,  the  agricultural 
college,  the  state  normal  schools  and  the  schools  for  the  deaf  and  the 
blind.  Not  more  than  one  member  may  be  an  alumnus  of  any  one  of 
the  educational  institutions,  and  not  more  than  one  member  may  be 
from  any  one  congressional  district.  Each  member  receives  a  salary 
of  $3,500  a  year.  The  board  elects  its  own  president,  and  elects  as 
secretary  an  experienced  educator.  The  former  boards  of  regents  for 
each  institution  are  abolished;  and  the  state  board  of  administration 
has  full  power  to  elect  an  executive  head  and  a  treasurer  for  each 
institution  and  to  appoint  the  instructional  force,  officers  and  employes 
and  fix  their  compensation,  to  make  rules  and  regulations  for  the 
administration  of  the  schools,  to  manage  thier  property,  and  to  direct 
expenditures. 

'  President  Pritchett,  of  the  Carnegie  Foundation,  has  said:  "It  is 
too  early  at  this  time  to  attempt  any  intelligent  criticism  of  the  work 
of  this  board."^2 

Idaho  State  Board  of  Education. 

By  Act  of  1913  there  was  created  a  State  Board  of  Education  and 
Board  of  Regents  of  the  University  of  Idaho,  for  the  general  super- 
vision, government  and  control  of  all  state  educational  institutions  and 
also  of  the  public  schools  of  the  state.  This  consists  of  the  State 
Superintendent  and  five  members  appointed  by  the  Governor,  for  five 
year  terms,  one  member  to  be  appointed  each  year.^^  The  Governor 
may  remove  any  member  guilty  of  gross  immorality,  malfeasance  in 
office  or  incompetency;  but  no  removal  for  personal  or  political  reasons 
shall  be  valid  without  the  consent  of  at  least  two-thirds  of  the  mem- 
bers of  the  Senate.  Th-e  members  are  to  receive  necessary  expenses 
and  $100  a  year. 

This  Board  appoints  a  Commissioner  of  Education,  who  shall  be 
chosen  for  merit  and  special  fitness,  and  who  may  be  dismissed  for 
cause  by  a  two-thirds  vote  of  the  State  Board  of  Regents.  It  has 
power  to  make  rules  and  regulations,  shall  determine  policies,  and 
constitutes  a  final  court  of  appeal  in  all  educational  controversies. 

i=Eighth  Annual  Keport,  p.  72. 

i^The  State  Constitution  of  Idaho  formerly  provided  for  a  State  Board  of  Educa- 
tion to  consist  of  the  Superintendent  of  Public  Instruction,  Secretary  of  State  and 
Attorney-General.  I?y  an  amendment  submitted  by  the  legislature  in  1911,  it  was 
provided  that  "the  membership,  powers  and  duties  (of  the  Board)  shall  be  prescribed 
by  law." 


EDUCATIONAL  ADMINISTRATION. 


449 


Acting  through  its  executive  officers,  it  shall : 

Exercise  supervision  and  inspection  over  all  departments  of  public  edu- 
cation supported  in  whole  or  in  part  by  the  state,  enforce  the  school  laws 
study  educational  conditions  and  approve  and  recommend  changes  m  the 
laws.  .         .       ,  .      .      . 

Prepare  a  financial  budget  for  all  state  educational  mstitutions ;  super- 
vise, direct  and  control  expenditures  and  plans  for  improvements  and  build- 

'"^'ciassify,  standarize  and  define  the  limits  of  all  instruction  in  the 
State  Educational  Institutions,  prevent  wasteful  duplication  prescribe  the 
minimum  course  of  study  for  the  public  schools  and  regulate  the  adoption 
of  text  books. 

Supervise,  govern  and  direct  the  work  of  the  state  summer  normal 
schools  and  teachers'  institutes. 

Supervise,  govern  and  control  the  certification  of  teachers  in  accordance 
with  law.  >..     . 

Supervise,  govern  and  direct  the  State  Library  Commission. 
In  co-operation  with-  other  departments  shall  see  that  the  rules  relatmg 
to  schools,  heaUh,  compulsory  education  and  child  labor  are  enforced.      _ 
In  co-operation  with  the  State  Board  of  HeaUh  shall  standardize  sani- 
tary appliances  and   school  buildings,   furniture  and   supplies;   and  provide 
for  an  efficient  system  of  health  supervision  in  all  public  schools. 

Adopt  a  system  of  standardized  reports  for  all  state  institutions  and 
public  schools. 

The  state  institutions  included  in  this  system  are  the  University 
of  Idaho,  two  State  Normal  Schools,  an  Academy,  Industrial  Traimng 
School  and  School  for  the  Deaf. 

President  Pritchett,  of  the  Carnegie  Foundation,  makes  the  fol- 
lowing comment  on  this  law  :^* 

"This  is  a  fairly  close  approximation  to  the  European  Ministry 

of  Education Much  can  be  said  in  favor  of  the  Idaho  plan      .      . 

The  especial  difficulty  which  will  confront  the  new  plains  the  difficulty 
of  personnel.  Present  and  prospective  American  college  presidents 
are  so  little  accustomed  to  think  of  their  office  as  subordinate  to  any 
other  executive,  that  accommodation  to  the  superior  authority  ot  me 
Commissioner  of  Educaion  will  not  be  altogether  easy.  .  .  .  . -Un  tiie 
other  hand  the  Commission  of  Education  will  need  to  be  mindful  that 
his  office  is  concerned  with  large  problems  of  government  and  not  witn 
the  details  of  administration  in  any  institution." 
Oregon  Board  of  Higher  Curricula. 

As  a  means  of  avoiding  and  eliminating  unncessary  duplication  of 
work  in  the  higher  educational  institutions  of  the  state,  the  Oregon 
legislature  provided  in  1909  for  a  "board  of  higher  curricula,  con- 
sisting of  five  members,  appointed  by  the  Governor,  the  term  of  one 
member  expiringeach  year.  The  members  receive  no  salaries,  but  are 
paid  actual  expenses.    Its  powers  are  thus  defined : 

The  exclusive  purpose  and  object  of  the  board  of  higher  curricula  shall 
be  to  determine  what  courses  of  study  or  departments,  if  a"/-  ^i'^'^.^^ 
duplicated  in  the  higher  institutions  of  Oregon;  to  determine  and  define  the 
courses  of  study  in  departments  to  be  offered  and  conducted  m  each  insti 
tution. 


i*Eighth  Annual  Report,  p. 


450  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

In  April,  1910,  the  board  issued  certain  orders  limiting  certain 
departments  of  instruction  to  the  state  university  and  others  to  the  agri- 
cultural college,  while  allowing  some  departments  to  continue  in  both 
institutions.^^ 

Types  of  Central  Boards. 

The  central  boards  of  control  of  educational  institutions  estab- 
lished in  this  country  exhibit  the  usual  variety  in  American  political 
institutions, — no  two  states  having  precisely  the  same  organization. 
Nevertheless  the  several  central  boards  may  be  roughly  grouped  in 
three  classes,  as  follows : 

1.  States  with  a  single  board  for  all  classes  of  state  educational  insti- 
tutions, controlling  both  educational  and  financial  administration, — South 
Dakota,  Iowa,  Alississippi,  Oklahoma,  Kansas  and  Idaho.  In  South  Dakota 
and  Kansas  the  members  of  these  boards  receive  moderate  salaries;  in  the 
other  states  ,they  receive  a  per  diem  allowance  while  in  Iowa  there  is  also  a 
finance  committee,  whose  members  receive  a  salary. 

2.  States  with  a  central  educational  board,  subject,  however  to  the 
supervision  and  control  of  another  state  board,  usually  in  financial  matters. 
This  system  is  established  in  Florida,  West  Virginia  and  Montana  (where 
there  also  are  local  executive  boards  for  each  institution),  and  also  existed 
for  a  short  time  in  Minnesota. 

3.  States  with  a  central  board  of  control,  and  also  local  boards  for 
each  institution.  Georgia  has  this  arrangement,  and  Montana  unites  this 
with  the  financial  control  of  the  state  board  of  examiners. 

The  dual  or  triple  system  management  seems  likely  to  lead  to 
serious  friction  between  the  different  boards.  Yet  it  is  in  states  with 
the  dual  system — Florida  and  West  Virginia — that  the  most  favorable 
reports  are  received.  At  the  same  time  many  difficulties  are  reportea 
from  Georgia;  the  system  in  Minnesota  was  abandoned  after  a  few 
years;  and  the  situation  in  Montana— with  three  sets  of  authorities — 
seems  to  be  worst  of  all. 

Of  the  five  states,  with  a  single  central  board,  for  educational  insti- 
tutions of  different  grades  and  types  that  of  Iowa  has  been  most  active 
in  attempting  to  re-organize  the  work  of  the  state  institutions ;  but  has 
met  with  serious  opposition.  None  of  the  other  central  boards  in  this 
group  seem  to  have  made  any  marked  improvement  in  educational  con- 
ditions, while  in  Mississippi  and  Oklahoma  political  factors  seem  to 
have  been  at  work. 

In  several  of  these  states  the  state  institutions  for  higher  education 
have  been  united  with  institutions  for  the  defective  class.  President 
Pritchett,  of  the  Carnegie  Foundation,  considers  this  plan  of  doubtful 
wisdom.^® 

D.    CENTRAL  NORMAL  SCHOOL  BOARDS. 

In  most  of  the  more  important  states  where  a  number  of  state 
normal  schools  have  been  established,  steps  have  been  taken  to  place 
the  several  schools  under  a  common  management.  In  Massachusetts, 
Connecticut,  New  Jersey,  Maryland  and  Texas,  the  state  normal 
schools  are  under  the  direct  control  of  the  State  Board  of  Education; 


i^Report  of  U.  S.  Commissioner  of  Education,  1912,  p. 
I'Eighth  Annual  Report,  p.  73. 


EDUCATIONAL  ADMINISTRATION.  451 

in  Michigan  an  elected  State  Board  of  Education  is  primarily  a  board 
of  trustees  for  the  state  normal  schools;  in  Wisconsin  and  Minnesota 
all  of  the  normal  schools  are  under  the  control  of  a  single  board  of 
regents  or  directors.  In  states  where  all  the  state  educational  insti- 
tutions have  been  placed  under  one  board,  this  board  has  control  over 
the  normal  schools, — as  in  South  Dakota,  Montana,  Iowa,  Kansas, 
Oklahoma,  West  Virginia,  and  Florida.  In  New  York,  while  local 
boards  are  continued  for  each  normal  school,  these  are  appointed  by 
and  are  under  the  supervision  of  the  Commissioner  of  Education;  and 
in  Pennsylvania  the  State  Superintendent  of  Public  Instruction  ap- 
points trustees  on  the  part  of  the  state  as  mernbers  of  the  local  normal 
school  boards.  Separate  local  boards  for  each  school  without  central 
supervision  are  still  found  in  Illinois,  Missouri  and  California. 

New  York. 

Each  of  the  twelve  state  normal  schools  in  New  York  is  under  the 
control  of  a  local  board  of  managers  appointed  by  the  State  Commis- 
sioner of  Education.  These  local  boards  have  immediate  supervision 
and  management  of  the  schools  subject  to  the  general  supervision  of  the 
Commissioner  of  Education.  More  specifically  they  have  charge  of  the 
buildings  and  property,  and  with  the  approval  of  the  commissioner 
have  power  to  prescribe  the  course  of  instruction  and  make  all  neces- 
.^c.ry  rules  for  the  management  of  the  school. 

The  Commissioner  of  Education  determines  the  number  of 
teachers  for  each  school  and  'their  wages,  and  the  employment  of 
teachers  is  subject  to  his  approval.  If  any  local  board  neglects  its 
duties,  the  Commissioner  of  Education  is  authorized  to  act  in  its  place. 

The  state  normal  college  at  Albany  is  under  the  supervision,  man- 
agement and  government  of  the  Commissioner  of  Education  and  the 
regents  of  the  university. 

Pennsylvania. 

The  thirteen  normal  schools  in  Pennsylvania  were  originally  estab- 
lished as  private  institutions ;  and  each  has  been  managed  by  a  local 
board  of  eighteen  trustees,  nine  appointed  by  the  contributors  or  stock- 
holders, and  nine  by  the  State  Superintendent  of  Public  Instruction. 
The  state  superintendent  is  also  a  member  of  the  state  board  of  normal 
school  examiners,  and  may  prepare  questions  for  the  examinations. 

Under  the  revised  school  law  of  1911,  the  newly  established  State 
Board  of  Education  is  authorized  to  purchase  any  of  the  normal 
schools;  and  any  schools  so  acquired  for  the  state  are  to  be  managed 
by  a  board  of  nine  trustees,  appointed  and  removable  by  the  State  Board 
of  Education;  and  the  latter  board  is  authorized  to  prescribe  rules  and 
regulations  for  the  management  and  control  of  any  such  normal  school. 

Massachusetts. 

The  general  management  of  the  ten  state  normal  schools  is  vested 
in  the  Board  of  Education,  and  all  money  appropriated  for  their  main- 
tenance is  expended  under  its  direction.    The  Board  of  Education  con- 


452  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

sists  of  the  Governor  and  Lieutenant  Governor  and  eight  other  per- 
sons, one  appointed  each  year  by  the  Governor  and  council  for  a  term 
of  eight  years. 

Connecticut. 

The  State  Board  of  Education  has  charge  of  the  state  normal 
schools,  expending  the  funds  for  their  support,  appointing  and  remov- 
ing teachers  and  making  rules  for  their  management. 

New  Jersey. 

The  State  Board  of  Education  has  the  control  and  care  of  the 
buildings  and  grounds  owned  and  used  by  the  State  normal  schools 
and  of  the  funds  for  their  support;  appoints  and  removes  principals, 
teachers  and  other  employes  and  fixes  their  salaries ;  purchases  and 
furnishes  text  books,  apparatus  and  supplies ;  prescribes  courses  of 
study ;  makes  rules  for  their  management  and  grants  diplomas.  This 
board  consists  of  two  members  from  each  congressional  district, 
appointed  by  the  Governor,  for  terms  of  five  years. 

Maryland. 

The  State  Board  of  Education  has  control  of  the  State  Normal 
School.  This  board  consists  of  four  members  appointed  by  the  Gov- 
ernor with  the  consent  of  the  Senate,  for  terms  of  two  years,  and  the 
principal  of  the  State  Normal  School,  who  acts  as  Secretary  of  the 
Board.  The  members  of  the  Board  receive  no  salary,  but  are  paid  their 
expenses  and  have  an  appropriation  for  clerks. 

Michigan. 

In  Michigan,  the  State  Normal  College  and  three  State  normal 
schools  are  under  the  control  of  the  State  Board  of  Education.  This 
board  is  provided  for  in  the  State  Constitution,  and  consists  of  three 
members,  one  elected  in  April  of  every  second  year  for  a  term  of  six 
years ;  and  of  the  Superintendent  of  Public  Instruction,  who  is  Secre- 
tary of  the  Board.  A  president  and  treasurer  are  elected  by  the  board 
from  its  own  members.  * 

The  State  Board  of  Education  is  a  body  corporate;  and  has  con- 
trol of  all  property  belonging  to  the  State  normal  schools,  and  power 
to  receive  and  expend  all  moneys  appropriated  for  such  institutions ; 
to  select  principals  and  instructors  and  fix  their  salaries ;  to  provide  and 
regulate  courses  of  studies,  and  to  grant  diplomas  and  teachers'  cer- 
tificates. 

In  a  few  matters,  this  board  has  some  powers  in  regard  to  the 
general  educational  system. 

The  board  makes  a  biennial  report  to  the  legislature  on  the  work 
and  needs  of  the  normal  schools  and  such  other  matters  as  may  be  of 
interest. 
Wisconsin. 

The  eight  State  normal  schools  of  Wisconsin  are  under  the  con- 
trol of  an  unpaid  board  of  regents  of  eleven  members, — the   State 


EDUCATIONAL  ADMINISTRATION.  453 

Superintendent  of  Public  Instruction  ex  officio  and  ten  others 
appointed  by  the  Governor  for  terms  of  five  years.  The  board  elects 
a  president  and  vice-president  from  its  own  number,  and  appoints  a 
secretary  and  a  treasurer. 

Provision  is  also  made  for  boards  of  visitors  of  three  members  to 
be  appointed  by  the  State  Superintendent  to  examine  each  of  the  State 
normal  schools. 
Minnesota. 

The  management  of  the  five  State  normal  schools  of  Minnesota 
is  vested  in  an  unpaid  board  of  eight  directors,  appointed  by  the  Gov- 
ernor with  the  consent  of  the  Senate,  for  terms  of  four  years,  with 
the  State  Superintendent. 

One  director  shall  be  resident  in  each  county  in  which  a  normal 
school  is  located  and  no  two  shall  be  residents  of  the  same  county. 
This  board  has  the  management  and  control  of  the  State  normal 
schools,  and  of  all  their  property;  appoints  a  president  of  each  school, 
professor,  and  teachers  and  fixes  their  salaries ;  and  prescribes  and 
regulates  the  conditions  of  admission  and  courses  of  instruction,  con- 
fers diplomas  and  adopts  rules  and  regulations. 

Under  the  Act  of  1901,  the  State  Board  of  Control  had  the  finan- 
cial management  of  the  State  normal  schools ;  but  by  Act  of  1905 
the  full  power  of  the  State  Normal  School  Board  was  restored,  except 
as  to  the  erection  of  new  buildings,  the  purchase  of  fuel  and  the  plac- 
ing of  insurance  on  buildings,  which  remain  under  the  authority  of  the 
board  of  control.  The  Act  of  1905  provides  that  the  State  Normal 
School  Board  shall  elect  from  its  own  members  a  purchasing  agent, 
to  superintend  the  making  of  a^  purchases  for  said  schools. 
Texas. 

The  State  Board  of  Education  has  the  direct  managemiCnt  and 
control  of  three  state  normal  schools,  and  has  general  direction  over  a 
fourth  school,  for  which  it  appoints  a  local  board  to  perform  such 
services  as  the  state  board  may  prescribe.  Another  normal  school  for 
colored  teachers  is  under  the  control  of  the  board  of  directors  of  the 
agricultural  and  mechanical  college. 

E.    GENERAL  COMMENTS. 

Reports  of  Educational  Commissions. 

Investigations  relating  especially  to  the  problem  of  better  economy, 
supervision  and  correlation  of  state-supported  educational  institutions 
have  recently  been  made  or  are  now  in  progress  in  several  states, 
through  official  commissions  or  by  voluntary  action.  Some  of  the 
recommendations  resulting  from  these  investigations  relate  to  plans  for 
consolidation  and  co-ordination  of  institutions. 

An  Education  Commission  established  in  Virginia  in  1910,  made 
a  detailed  survey  of  the  situation  in  that  state,  and  also  secured  reports 
based  on  personal  investigations  by  a  representative  of  the  Carnegie 
Foundation  for  the  Advancement  of  Teaching  and  by  the  specialist  in 
higher  education  in  the  United  States  Bureau  of  Education.  The  final 
report  of  this  commission  in  1912  included  a  large  number  of  recom- 
mendations, of  which  the  following  should  be  noted : 


454  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

That  all  institutions  for  education  chartered  by  the  state  shall  be  under 
the  Supervision  of  the  State  Board  of  Education,  which  board  shall  see 
that  their  operations  are  conformed  to  their  charters  and  that  they  properly 
carry  out  the  purposes  of  said  charters.  Said  institutions  shall  report 
annually  to  said  board  and  shall  be  reported  by  it  in  the  list  of  educational 
institutions  of  the  State. 

Economy  anjd  efficiency  of  administration  and  consideration  for  practi- 
cal business  methods  in  State  educational  practice,  clearly  point  to  the  wis- 
dom of  placing  the  management  of  the  normal  schools — a  set  of  homoge- 
neous institutions — in  the  hands  of  one  common  board,  to  be  designated 
"The  Normal  School  Board,"  which  shall  have  authority  to  direct  the 
affairs  of  them  all,  to  prescribe  their  functions,  fix  and  enforce  clearly 
defined  standards  of  admission  as  well  as  of  work,  unify  their  efforts, 
apportion  their  funds,  and  in  short  perform  lor  the  whole  system  of  normal 
schools  the  duties  that  each  separate  board  now  performs  for  the  particular 
school  to  which  it  is  attached. 

The  presidents  of  the  normal  schools  should  be  required  to  meet  with 
the  board  in  an  advisory  capacity,  but  should  not  be  members.  They_  should, 
however,  form  a  normal  executive  council  and  constitute  a  committee  on 
courses  of  study. 

That  a  permanent  education  <:ommission  be  created  by  the  legislature 
with  power  to  co-operate  with  the  presidents  and  boards  of  visitors,  of  the 
several  state  institutions  of  learning  in  the  State  and  with  others  in  author- 
ity, in  carrying  out  whatever  recommendations  this  General  Assembly  may 
adopt  or  any  other  matters  which  may  be  referred  to  it  by  the  legislature. 

This  commission  should  also  continue  the  study  of  the  educational 
system  of  the  state  for  the  purpose  of  making  further  recommendations 
to  the  next  General  Assembly  looking  toward  a  more  complete  co-operation 
and  co-ordination  of  work. 

The  permanent  commission  should  be  appointed  by  the  Governor,  and 
its  membership  should  be  made  up  of  the  president  of  the  State  University, 
who  should  be  ex  officio  chairman,  the  State  Superintendent  of  Public 
Instruction,  a  member  of  the  State  Board  of  Education,  nominated  by  the 
board,  a  member  of  the  House  of  Delegates,  a  member  of  the  State_  Senate 
and  two  other  members  who  should  be  men  of  recognized  ability  and 
leadership  in  educational  work  in  the  state. ^^ 

A  temporary  education  commission  was  created  by  the  legislature 
of  North  Dakota  in  1911  to  study  the  educational  system  and  to  pre- 
sent a  report  which  might — 

form  the  basis  for  the  unifying  and  systematizing  of  the  educational  sys- 
tem of  the  state  and  thereby  provide  for  the  removal  of  unnecessary  dupli- 
cation of  courses  in  the  institutions  of  this  state,  as  well  as  to  suggest  such 
legislation  as  will  tend  to  prevent  any  unseemly  competition  among  the 
institutions  for  appropriations. 

The  report  of  this  commission,  presented  in  December  1912,  fav- 
ored one  board  for  the  normal  schools,  but  separate  boards  for  the 
university  and  agricultural  college,  the  co-ordination  of  secondary  and 
special  schools  under  a  common  board  and  the  development  of  the 
principle  of  the  mill  tax.^^ 

President  Van  Hise's  Conclusions. 

In  concluding  an  extended  discussion  of  central  boards  of  control, 
before  the  National  Association  of  State  Universities  in  1911,  Presi- 
dent C.  R.  Van  Hise,  of  the  University  of  Wisconsin,  said:^^ 

I'Report  of  the  Virpinia  Education  Commission,  1912,  pp.  7-10. 
i^Report  of  tlie  U.  H.   Commissioner  of  Kducation,   1912,   p.  95.  ... 

lOTransaction  and  Proceedings  of  the  National  Association  of  State  Universities. 
1911,  pp.  103-104. 


EDUCATIONAL  ADMINISTRATION.  455 

1.  In  those  states  where  there  are  two  or  more  higher  educational  insti- 
tutions aside  from  the  normal  schools,  these  should  be  consolidated,  if  this 
be  practicable. 

2.  Where  consolidation  is  not  practicable,  each  of  the  important  edu- 
cational institutions  or  groups  of  institutions  of  the  same  kind  should 
have  its  own  governing  board.  In  this  matter,  the  experience  of  hun- 
dreds of  years  of  all  the  educational  institutions  of  the  first  rank  should 
not  be  disregarded. 

3.  Where  the  higher  institutions  of  a  state  overlap,  in  order  to  retain 
independent  governing  boards  it  will  be  necessary  to  have  a  sharp  delimi- 
tation of  scopes,  which  reduces  overlapping  to  a  minimum,  and  cooperation 
in  financial  requests  to  the  legislature.  These  may  be  accomplished  through 
a  commission  composed  of  representatives  of  each  of  the  institutional 
boards  and  having  full  authority  in  the  respects  mentioned,  but  leaving 
the  government  of  each  institution  to  its  independent  board. 

4.  In  the  case  of  overlapping  institutions,  if  cooperation  be  not  suc- 
cessful, central  boards  are  inevitable.  Of  the  types  of  existing  central 
boards  that  of  Iowa  is  probably  the  best,  in  that  it  holds  to  the  established 
principle  of  a  non-paid  board  of  moderate  size  for  the  government  of  edu- 
cational institutions  and  thus  in  a  measure  at  least  retains  the  advantages  of 
independent  governing  boards. 

Suggestions  as  to  Educational  Reorganization  in  Illinois. 

From  this  study  of  central  boards  and  other  educational  authori- 
ties in  the  United  States,  the  following  observations  may  be  made  on 
present  conditions  in  Illinois: 

1.  The  University  of  Illinois,  including  the  colleges  pf  liberal  arts 
and  sciences,  agriculture,  engineering,  law  and  medicine,  is  now  a  more 
completely  consolidated  institution  under  a  single  management  than  in 
any  of  the  states  where  central  boards  of  control  for  all  State  educa- 
tional institutions  have  been  introduced. 

2.  On  the  Qther  hand,  with  separate  boards  of  trustees  for  each 
of  the  five  normal  schools,  the  management  of  these  institutions  is  rnuch 
less  consolidated  than  in  other  states,  such  as  Massachusetts,  Michi- 
gan, Wisconsin  and  Minnesota,  where  all  the  normal  schools  are  under 
the  control  of  a  single  board. 

3.  Illinois  is  one  of  a  few  states  which  has  no  state  board  of  edu- 
cation, with  powers  of  supervision  and  advice  over  the  local  school 
authorities  or  other  educational  agencies. 

Under  these  conditions,  the  following  recommendations  are  sub- 
mitted : 

1.  That  there  be  established  an  unpaid  State  Board  of  Education, 
with  powers  of  supervision  and  advice  as  to  all  educational  agencies 
in  the  state,  but  with  no  powers  of  management  or  control  of  insti- 
tutions. Such  a  board  would  stand  in  a  similar  relation  to  education 
as  does  the  Charities  Commission  in  relation  to  public  charities  in  this 
state, 

2.  That  the  state  normal  schools  be  placed  under  the  management 
of  a  single  unpaid  board,  to  be  appointed  by  the  Governor  and  Senate. 

3.  That  the  advisability  of  proposing  changes  in  the  organization 
of  the  board  of  trustees  of  the  University  of  Illinois  be  considered. 


III.  STATE  LIBRARY  ADMINISTRATION. 

A.    LIBRARY  ADMINISTRATION   IN    ILLINOIS. 

The  library  facilities  maintained  by  the  State  of  Illinois  at  the 
present  time  are  chiefly  as  follows :  No.  of 

Location  volumes 

State  Library    Springfield 57,000 

State  Historical  Library Springfield 35,000 

State  Law  Librarv^ Springfield 15,000 

State   Museum   Library Springfield .  . .- 4,000 

Librarj^  Extension  Division Springfield 2,000 

Total   in   Springfield 1 13.000 

State   University   Library Urbana 240,000 

There  should  also  be  mentioned  the  small  library  connected 
directly  with  the  Legislative  Reference  Bureau  at  Springfield ;  the  state 
archives,  now  kept  in  separate  offices ;  and  the  special  libraries  attached 
to  state  departments  and  commissions,  such  as  the  library  in  the  office 
of  the  Superintendent  of  Public  Instruction,  and  the  library  of  the 
former  Railroad  and  Warehouse  Commission,  the  catalogue  of  which 
fills  a  volume  of  188  pages.  In  addition,  there  are  small  libraries 
maintained  in  connection  with  the  state  normal  schools,  with  various 
state  penal  and  charitable  institutions,  and  with  the  appellate  courts. 

State  Library. 

By  an  act  of  1839  an  appropriation  of  $5,000  was  made  for  a  law 
and  miscellaneous  library  for  the  use  of  the  Legislature  and  Supreme 
Court.  The  Governor  and  judges  of  the  Supreme  Court  were  placed 
in  charge.  By  act  of  1843  the  law  books  were  separated  from  the 
miscellaneous  collection.  The  latter  was  placed  under  the  control  of 
the  Secretary  of  State;  while  the  law  books  remained  in  the  custody 
of  the  clerk  of  the  Supreme  Court. 

An  Act  of  1867  placed  the  State  library  under  the  control  of  a 
board  of  commissioners,  consisting  of  the  Governor,  Secretary  of 
State  and  Superintendent  of  Public  Instruction  ex  officio.  This  library 
is  now  managed  under  an  Act  of  1872  continuing  the  ex  officio  board 
of  commissioners. 

The  Secretary  of  State  is,  under  the  law,  made  librarian  of  the 
State  library  and  given  the  custody  of  the  books,  maps,  charts,  papers 
and  other  things  deposited  in  the  library. 
Natural  History  Museum. 

By  an  Act  of  May  25,  1877,  was  established  the  "Illinois  State 
Historical  Library  and  Natural  History  Museum."  This  institution 
was  also  placed  under  the  control  of  a  board  of  trustees,  consisting  of 


EDUCATIONAL  ADMINISTRATION.  457 

the  same  officials  as  the  board  of  library  commissioners— the  Governor, 
Secretary  of  State  and  Superintendent  of  Public  Instruction,  with 
power  to  make  rules  and  regulations  for  its  management  and  to  appoint 
a  curator.  This  officer  was  to  hll  the  dual  position  of  curator  of  the 
Natural  History  Museum  and  librarian  of  the  State  Historical  Library. 
But  his  functions  as  curator  were  evidently  considered  primary  and 
more  important,  because  the  only  qualifications  required  of  him  were 
that  he  should  be  a  person  ot  competent  scientific  attainments,  and 
should  possess  a  practical  knowledge  of  the  science  of  geology.  All 
the  books  and  documents  in  the  State  library  relating  to  the  history  of 
the  State  were  to  be  placed  in  separate  rooms  in  the  State  house  under 
the  charge  of  the  curator. 

State  Historical  Library. 

Apparently  the  union  of  the  Natural  History  Museum  and  the 
State  Historical  Library  under  one  management  was  not  considered 
satisfactory,  for,  by  an  Act  of  May  25,  1889,  the  State  Historical 
Library  was  placed  under  the  control  and  management  of  a  board  of 
three  trustees  appointed  by  the  Governor  with  the  consent  of  the  Sen- 
ate for  a  term  of  two  years.  These  trustees  were  required  to  be  per- 
sons "well  versed  in  the  history  of  the  State,  and  qualified  by  habit 
and  disposition  to  discharge  the  duties  of  their  office."  To  this  board 
of  trustees  was  given  the  power  to  purchase  books  and  documents 
relating  to  the  history  of  the  State,  to  appoint  a  librarian  having  the 
requisite  qualifications,  and  to  make  rules  and  regulations  for  the  man- 
agement of  the  library. 

The  Act  of  1889  is  in  effect  an  amendment  of  the  Act  of  1877, 
but  contains  no  specific  reference  to  the  earlier  act.  The  question  of 
the  constitutionality  of  the  later  act  might  therefore  be  raised. 

By  a  further  Act  of  May  16,  1903,  the  State  Historical  Society 
was  made  a  department  of  the  State  Historical  Library,  and  the  trus- 
tees of  the  library  were  authorized  to  pay  out  of  the  library  appropri- 
ation the  expenses  of  the  society  in  examining  records,  and  collecting 
data  relating  to  the  history  of  the  State. 

One  of  the  most  important  functions  of  the  State  Historical 
Library  is  the  collection  of  manuscripts  and  documents  relating  to  the 
history  of  the  State  and  the  Northwest  Territory,  and  the  editing  and 
publication  of  such  documents.  This  work  is  rather  that  of  a  historical 
commission  than  of  a  library,  in  the  usual  sense.  In  practice,  thiswork 
is  carried  on  in  close  connection  with  the  department  of  history  in  the 
State  University. 

Law  Libraries. 

Beginning  in  1849  appropriations  were  made  for  the  purchase  of 
books  for  law  libraries  for  the  Supreme  Court  in  each  of  the  three 
grand  divisions  in  which  the  court  held  sessions.  When  these  divis- 
ions were  consolidated  in  1903,  the  judges  of  the  Supreme  Court  were 
authorized  to  appoint  a  librarian  for  the  Supreme  Court  Library,  to 
prescribe  his  duties  and  to  fix  his  compensation.  This  library  is  now 
housed  in  the  Supreme  Court  building. 


458  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Small  appropriations  have  also  been  made  for  law  libraries  in  the 
first,  second  and  fourth  appellate  court  districts. 

Library  Extension  Commission. 

By  an  Act  of  June  14,  1909,  the  Commissioners  of  the  State  Li- 
brary, i.  e.,  the  Governor,  Secretary  of  State,  and  Superintendent  of 
Public  Instruction,  are  authorized  to  appoint  two  persons,  who,  together 
with  the  State  Librarian  (Secretary  of  State)  shall  constitute  a  board 
to  be  known  as  the  Library  Extension  Commission,  of  which  the  State 
Librarian  is  ex  officio  chairman.  The  appointive  members  of  the  com- 
mission serve  for  two  year  terms,  which  expire  in  rotation.  The  com- 
missioners of  the  State  Library  are  empowered  to  give  advice  and 
counsel  to  the  Library  Extension  Commission  and  to  exercise  a  gen- 
eral control  over  it.  The  function  of  the  Library  Extension  Commis- 
sion is  to  give  advice  and  information  to  the  librarian  or  trustees  of  any 
existing  public  library,  or  to  any  person  or  community  interested  in 
starting  a  new  public  library,  concerning  the  organization  and  adminis- 
tration of  such  library.  To  this  end  the  commission  is  authorized  to 
appoint  an  organizer,  whose  business  it  is  to  visit  and  advise  the 
various  public  libraries  of  the  State,  and  to  assist  in  promoting  and 
starting  new  libraries.  The  Library  Extension  Commission  is  also 
authorized  to  operate  traveling  libraries,  by  loaning  them  to  any  library 
in  the  State  or  to  any  organization  or  community,  not  having  an  estab- 
lished library,  under  proper  conditions  and  regulations. 

Legislative  Reference  Bureau. 

By  Act  of  June  26,  1913,  the  Legislative  Reference  Bureau  was 
created,  under  the  control  of  a  board  consisting  of  the  Governor  and 
the  Chairman  of  the  House  and  Senate  Committees  on  appropriations 
and  judiciary.  The  Governor  is  ex  officio  chairman  of  the  board.  The 
executive  officer  of  the  bureau  is  a  secretary,  who  together  with  other 
necessary  officers  and  employees,  is  appointed  by  the  board,  which  also 
fixes  their  compensation.  It  is  the  business  of  the  bureau  to  collect 
books,  documents  and  other  material  which  may  aid  the  members  of 
the  General  Assembly  in  the  performance  of  their  official  duties,  and 
to  prepare  indices  of  bills  introduced  in  the  General  Assembly.  The 
bureau  is  also  authorized  to  assist  members  in  the  drafting  of  bills,  and 
to  prepare  a  detailed  budget  of  proposed  appropriations  for  the  use  of 
members  of  the  General  Assembly.  Inasmuch  as  the  bureau  may  need 
a  larger  body  of  books,  documents,  etc.,  than  it  has  on  its  own  shelves, 
the  board  of  commissioners  of  the  State  Library  are  empowered  to 
co-operate  with  the  bureau  through  the  loan  of  books,  documents  or 
other  printed  matter. 


EDUCATIONAL  ADMINISTRATION. 


459 


6,400 
900 


1,500 


1,450 


7,000 


9,500 


8,300 


4,420 


25,100 


;,600 


12,500 


STAFF,    SALARIES    AND    ANNUAL    APPROPRIATIONS    FOR    STATE    LIBRARIES. 

Appr.       Appr.  for 
Salaries     for  Books  Other  Exp.     Total 

StateLibrary   $ $2,000        $     900        $10,200 

3  Commissioners 

6  Assistant  Librarians — 

$900  to  $1,300  each 

1  janitor    

Natural   History   Museum 1.000 

1  Curator    3,000  

1  Assistant 1.200  

1  Janitor  and  other  help 1,600  

Library  Extension  Commission 

3  Commissioners   

1  Orsjanizer   1.200  

1  Assistant   Librarian    900  

1  Stenographer  and  other  help 870  

State    Historical    Library 13,000 

3  Trustees   

1  Librarian 2,000  

1   Assistant   Librarian 1,300  

1    Stenographer    900  

1   Janitor    900  

Supreme  Court  Library 5,000 

1  Librarian    2,400  

1    Assistant  Librarian 1,200  

Legislative   Reference   Bureau 

1  Secretary   3,000  

Totals,   Libraries   in    Springfield.  ..  .$27,770  $21,000        $20,350        $69,120 
9  Commissioners  and  Trustees 
15  Librarians,  Curator,  and  Assistants 

2  Stenographers 

3  Janitors 

Library  State  Charities  Commission $     500          

Libran^  R.  R.  and  Whse.  Commission 

State  Normal  University,  1  Lbr.,  2  Asst.$  2,760 

Northern  111.  Normal  School 

Southern  Normal  University 

1  Librarian •■ 900 

Eastern  Normal   School 

Western  111.  Normal  School 

Librarian  and  Assistant 2,460 

Illinois  School  for  the  Blind 

1   Library  Assistant 400  

Illinois  School   for  the  Deaf 

1  Library  Assistant 900  

Kankakee  State  Hospital 

1   Librarian    480  

Illinois  Soldiers'  and  Sailors'  Home 

1  Librarian    240  

Illinois   State   Reformatory 

1   Librarian    780  

Appellate  Courts  

1  Librarian,  First  Division 800  1,500 

1  Librarian,  Second  Division 600  600 

1  Librarian,  Fourth  Division 600  800 


500 

V,666 


1,000 
1,000 


1,600 


Totals,  Libraries  not  in  Springfield. $10,920 
14  Librarians  and  Assistants 


$  8,500 


$19,420 


460  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

From  the  above  statement  it  appears  that  the  total  amount  annually 
appropriated  for  State  libraries  in  Springfield  is  about  $70,000;  and 
the  total  amount  for  all  State  libraries  other  than  that  of  the  university 
is  about  $90,000.  Some  saving  could  perhaps  be  effected  in  salaries 
and  in  the  purchase  of  books  through  a  consolidation  of  the  various 
library  boards  and  a  more  centralized  administration.  But  the  prin- 
cipal advantage  of  such  a  reorganization  would  lie  in  the  greater 
efficiency  in  the  management  of  the  several  libraries.  To  furnish  an 
adequate  State  library  and  an  efficient  staff  would  require  larger  appro- 
priations than  have  been  made  in  the  past. 

B.    LIBRARY    ADMINISTRATION    IN    OTHER    STATES. 

Some  light  may  be  thrown  upon  the  problem  of  library  organiza- 
tion in  Illinois  by  noting  some  of  the  characteristic  features  in  the 
organization  of  library  facilities  in  other  states.  But  most  of  the  states 
have  given  relatively  little  attention  to  the  development  or  organi- 
zation of  the  state  library ;  and  it  should  also  be  remembered  that  con- 
ditions in  the  several  states  vary  so  widely  that  a  system  of  adminis- 
tration which  secures  economy  and  efficiency  in  one  state  will  not  always 
secure  the  same  results  in  another  state.  Nevertheless,  the  methods 
provided  in  a  number  of  states  with  state  libraries  of  some  importance 
will  be  pertinent  to  this  report. 

The  New  York  State  Library  has  been  the  largest  and  most  impor- 
tant state  library  in  the  United  States ;  and  the  system  of  administra- 
tion also  illustrates  the  greatest  degree  of  centralization.  It  is  organized 
as  a  division  of  the  Department  of  Education,  under  the  general  control 
of  the  board  of  regents.  This  board  has  charge  of  all  books,  pamphlets, 
records,  archives,  and  other  property  appropriate  to  a  general  library. 
It  appoints  a  Library  Director,  who  has  direct  charge  of  the  state 
library  and  superintends  the  State's  library  activities,  including  the 
legislative  reference  bureau,  library  extension  work,  and  a  library 
school.  The  law  libraries  are,  however,  separately  administered  under 
the  control  of  the  courts.  The  State  Museum  is  also  under  the  depart- 
ment of  education,  but  is  in  charge  of  a  separate  director.  The  State 
Historian  is  an  independent  ofiicial,  appointed  by  the  Governor. 

In  Indiana,  the  state  board  of  education  is  the  state  library  board, 
and  selects  the  state  librarian,  who  serves  until  his  successor  is  elected. 
The  legislative  reference  bureau  was  for  a  time  a  division  of  the  state 
library ;  but  is  now  separately  administered. 

In  Massachusetts,  Ohio  and  California,  the  state  libraries  are 
under  tb'*,  control  of  library  boards  appointed  by  the  Governor,  with 
the  advi.fi  and  consent  of  the  Council  in  Massachusetts  and  of  the 
Senate  in  Ohio.  The  Massachusetts  and  Ohio  boards  consist  of  three 
members;  that  of  California  has  five  members,  appointed  for  four  year 
terms. 

In  Massachusetts  the  State  Librarian  is  appointed  by  the  Governor 
and  Council,  and  holds  office  during  their  pleasure.  In  Ohio,  the  board 
of  library  commissioners  appoints  and  removes  the  state  librarian,  with 
the  consent  of  the  Governor. 

The  California  board  of  library  trustees  appoints  a  librarian  for 
a  term  of  four  years,  unless  sooner  removed  by  a  unanimous  vot^  of 


EDUCATIONAL  ADMINISTRATION. 


461 


the  board.  He  receives  a  salary  of  $3,600  a  year.  The  librarian  is 
vested  with  power  to  appoint  the  assistant  librarian  and  other  em- 
ployees in  the  library.  He  acts  as  secretary  of  the  library  board,  pur- 
chases books  for  the  library,  indexes  the  statutes  of  each  session  of 
the  legislature  and  also  the  journals  and  resolutions  of  the  House  and 
Senate,  and  compiles  pamphlet  laws  of  the  State  on  special  topics. 
The  legislative  reference  library  is  a  branch  of  the  state  library.  The 
annuaf  appropriation  for  the  support  of  the  State  Library  is  $95,000, 
which  is  not  itemized.  There  is  also  a  separate  Supreme  Court 
Library,  under  the  control  of  justices  of  the  Supreme  Court,  who 
appoint  a  librarian  and  superintend  its  management.  .  ,     ,   • 

Texas  has  a  Library  and  Historical  Commission,  established  m 
1909.  This  consists  of  five  members,  three  appointed  by  the  Governor 
and  Senate  for  terms  of  two  years,  with  the  superintendent  and  head 
of  the  school  of  history  of  the  state  university.  This  commission  was 
created  to  control  and  administer  the  state  library,  to  collect  material 
relating  to  the  history  of  Texas  and  adjoining  states,  to  preserve  and 
publish  archives  and  to  encourage  historical  research.  It  also  gives 
advice  to  proposed  public  libraries  and  conducts  library  institutes. 
The  State  Librarian  is  elected  by  the  commission  to  serve  at  its  will. 
He  is  secretary  of  the  commission;  and  has  charge  of  the  state  library, 
documents,  archives,  and  other  materials.  An  assistant  librarian  has 
charge  of  the  legislative  reference  section. 

In  Mississippi,  the  state  library  is  under  the  control  of  the  Gov- 
ernor, judges  of  the  Supreme  Court  and  attorney-general.  The  state 
librarian  is  chosen  by  the  legislature  for  a  term  of  four  years.  There 
is  also  a  department  of  archives  and  history,  with  a  board  of  nine 
trustees,  who  serve  for  terms  of  nine  years,  vacancies  being  filled  by 
the  board,  subject  to  confirmation  by  the  Senate,  while  if  any  selection 
bv  the  board  is  rejected,  the  senate  has  fhe  power  of  election.  The 
Director  is  elected  "by  the  board  of  trustees.  Besides  appropriations  to 
the  state  library  and  the  department  of  archives  and  history  a  small 
appropriation  is  made  to  the  Mississippi  Historical  Society. 

Many  state  libraries  are  under  the  control  of  ex  officio  boards. 
In  Pennsylvania  the  board  consists  of  the  Governor.  Secretary  of  the 
Commonwealth,  and  Attorney-General;  while  the  Governor  appoints 
the  Librarian,  who  is  required  to  be  "a  person  of  known  literary  and 
bibliographical  attainments."  The  library  and  museum  now  occupy 
the  former  state  house  near  the  new  capitol ;  and  includes  a  legislative 
reference  bureau.  The  New  Jersey  board  of  library  commissioners 
consists  of  the  Governor,  Chancellor.  Chief  Justice,  Secretary  of 
State,  Treasurer,  Comptroller,  and  Attorney-General.  This  board 
appoints  the  librarian  for  a  term  of  five  years.  The  library  has  charge 
of  traveling  libraries. 

The  Wisconsin  State  Library  is  in  charge  of  an  ex  officio  board 
of  trustees  composed  of  the  justices  of  the  Supreme  Court  and  the 
Attorney-General,  who  appoint  the  librarian.  The  State  Library, 
however,  is  in  reality  merely  the  State  Law  Library.  The  Free 
Library  Commission  is  composed  of  the  President  of  the  University, 
the  State  Superintendent  of  Public  Instruction,  and  the  Secretary  of 
the   State  Historical   Society,  ex  officio,   together  with  two  persons 


462  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

appointed  by  the  Governor  for  five  year  terms.  The  commission  oper- 
ates a  department  of  traveling  Hbraries  and  gives  advice  to  all  free 
libraries  and  to  communities  desiring  to  establish  them.  The  com- 
mission also  maintains  at  the  state  capitol  a  legislative  reference  room 
and  a  small  working  library  for  the  use  of  the  legislature  and  the 
several  state  departments,  and,  during  sessions  of  the  legislature,  co- 
operates with  the  Secretary  of  the  State  Historical  Society  with  a 
view  to  a  joint  arrangement  for  meeting  the  needs  of  the  legislature 
in  the  matter  of  general  books  of  reference.  The  State  Historical 
Society  is  authorized  to  collect  books  and  other  material  illustrative 
of  the  history  of  the  State,  and  maintains  the. most  important  and 
extensive  historical  library  in  the  Middle  West,  which  is  housed  with 
the  state  university  library  in  a  special  building  built  by  the  State  on  the 
university  grounds. 

In  Iowa,  the  state  library  and  a  separate  historical  department 
were  consolidated  in  1900,  under  a  board  consisting  of  the  Governor, 
Judges  of  the  Supreme  Court,  Secretary  of  State,  and  Superintendent 
of  Public  Instruction.  There  is  also  a  state  library  commission,  which 
consists  of  the  State  Librarian,  Superintendent  of  Public  Instruction, 
the  President  of  the  State  University,  and  four  other  members 
appointed  by  the  Governor.  Appropriations  are  also  made  to  the  State 
Historical  Society. 

The  Minnesota  and  Missouri  State  Libraries  are  under  the  super- 
vision of  the  judges  of  the  Supreme  Court.  These  appoint  the  state 
librarian  in  Missouri ;  but  this  officer  is  appointed  by  the  Governor  in 
Minnesota,  for  a  term  of  two  years.  In  these  states  there  are  also 
state  library  commissions,  consisting  of  ex  officio  and  appointed  mem- 
bers in  charge  of  library  extension  work.  In  Minnesota,  tlie  mem- 
bers are  the  president  of  the  state  university,  superintendent  of  public 
instruction,  secretary  of  the  state  historical  society,  and  two  others 
appointed  by  the  Governor.  In  Missouri,  the  members  are  the  State 
Superintendent  of  Schools,  the  president  of  the  state  university  and 
three  others  appointed  by  the  Governor. 

In  Kansas,  the  judges  of  the  Supreme  Court  are  directors  of  the 
State  Library  and  appoint  the  state  librarian,  the  staff  of  the  legis- 
lative reference  bureau,  and  members  of  the  traveling  libraries  com- 
mission (consisting  of  the  State  Librarian,  the  President  of  the  State 
Social  Federation  of  Clubs  and  three  others). 

In  Nebraska,  the  Supreme  Court  appoints  a  librarian  of  the  law 
and  miscellaneous  library.  The  Public  Library  Commission  which 
promotes  the  formation  of  libraries  consists  of  the  State  Librarian, 
the  Superintendent  of  Public  Instruction,  the  Chancellor  and  Librar- 
ian of  the  State  University  and  one  person  appointed  by  the  Governor 
for  a  term  of  five  years.  The  legislative  reference  bureau  is  affiliated 
with  the  state  university,  and  the  director  is  appointed  by  the  board 
of  regents. 

Summary. 

The  foregoing  statements  illustrate  the  variety  in  methods  of 
library  organization  and  administration  in  states  located  in  different 
sections  of  the  country.    New  York  and  Indiana  have  organized  their 


EDUCATIONAL  ADMINISTRATION.  463 

State  libraries  as  a  branch  of  the  educational  system.  Massachusetts, 
Ohio,  Texas,  and  California  have  provided  appointive  library  boards. 
In  these  states  the  state  library  includes  all  or  the  most  important 
library  services;  but  in  New  York  and  California  the  law  libraries, 
and  in  Indiana  the  legislative  reference  work  are  under  separate  man- 
agement. 

Most  of  the  other  states  place  the  state  library  under  the  con- 
trol of  ex  officio  boards ;  but  in  many  cases  there  are  separate  author- 
ities for  different  phases  of  library  work,  such  as,  law  libraries,  library 
extension,  legislative  reference  bureaus,  and  archives. 

C.    SUGGESTIONS   FOR   REORGANIZATION    IN    ILLINOIS. 

The  public  libraries  of  Illinois  naturally  group  themselves  around 
two  nuclei,  first,  the  State  University  Library,  at  Urbana ;  and  second, 
the  State  libraries  located  at  Springfield.  The  first,  on  account  of  its 
size,  importance,  special  character,  and  location,  stands  in  a  class 
by  itself.  The  question  of  reorganization,  therefore,  applies  primarily 
to  the  libraries  at  Springfield.  These  libraries  have  grown  up  in 
piecemeal  fashion,  without  a  general  plan.  Being  subject  to  diverse 
control,  they  do  not  always  act  in  the  greatest  harmony  or  co-operation 
with  each  other  and  friction  is  sometimes  likely  to  develop  between 
the  officers  in  charge  of  the  separate  libraries,  and  the  service  afforded 
to  those  who  make  use  of  the  libraries  is  apt  to  be  less  comprehensive 
and  efficient.  Where  there  are  several  libraries  under  separate  control, 
it  results  that  books  must  in  many  cases  be  duplicated,  or  else  there 
must  be  constant  borrowing  back  and  forth  between  distinct  institu- 
tions, with  the  attendant  difficulties  and  liklihood  of  friction. 

State  Library. 

The  requisite  measure  of  co-operation  between  the  various  library 
interests  can  be  secured  only  by  greater  coordination  and  unification 
of  control.  To  this  end  the  separate  boards  and  commissions  over 
the  State  libraries  at  Springfield  should  be  abolished,  and  so  far  as 
practicable  these  libraries  should  be  united  into  a  single  State  Library, 
of  which  the  present  separate  libraries  should  be  divisions. 

Such  a  consolidated  State  Library  should  also  have  charge  of  the 
archives  of  the  State.  The  Legislative  Committee  of  the  State  Library 
Association  has  suggested  the  creation  of  a  State  Library  Commission, 
to  be  composed  of  the  Secretary  of  State  and  the  Superintendent  of 
Public  Instruction  ex  officio,  and  five  members  appointed  by  the  Gov- 
ernor, for  five  year  terms,  arranged  so  that  the  term  of  one  appointive 
member  would  expire  yearly. 

If  the  State  Law  Library  should  be  included  under  the  control 
of  such  a  commission,  one  of  the  justices  of  the  Supreme  Court  or  the 
Clerk  of  the  Supreme  Court  should  be  made  an  ex  officio  member 
of  the  proposed  board  in  place  of  one  of  the  appointive  members.  The 
example  of  other  states,  the  special  character  of  the  State  Law  Library 
and  its  close  relation  to  the  work  of  the  Supreme  Court  seem  to  point 
in  the  direction  of  keeping  this  library  separate  from  the  control  of 
the  general  library  board.  If  this  were  done,  it  would  not  necessarily 
be  objectionable  from  the  standpoint  of  efficient  management. 


464  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Some  question  may  also  be  raised  as  to  whether  the  Legislative 
Reference  Bureau  should  be  placed  under  the  control  of  the  sug- 
gested commission.  Its  functions  of  bill  drafting  and  drawing  up 
a  budget  might  be  separated  from  its  purely  legislative  reference 
work.  If  this  is  done  the  latter  work  would  properly  fall  under  the 
control  of  the  general  State  library.  The  extensive  library  facilities 
at  the  State  University,  and  the  frequent  need  of  such  facilities 
by  the  Legislative  Reference  Bureau  would  seem  to  point  to  the  need 
of  3  closer  connection  between  the  University  and  the  Bureau.  There 
would  also  seem  to  be  some  advantages  in  a  closer  official  correlation 
between  the  State  Ihiiversity  and  the  work  of  the  State  Historical 
Libraiy  and  Society. 
State  Librarian. 

The  creation  of  a  single  State  Library  will  be  a  distinct  step  in 
advance  in  the  solution  of  some  now  unsettled  questions  of  library 
administration.  But,  perhaps,  an  even  more  important  matter  is  the 
question  of  the  selection  of  a  competent  State  librarian.  It  seems 
clear  that  the  State  librarian  should  not  be  an  ex  officio  elective 
ofhcer,  who  is  chosen  primarily  for  the  performance  of  other  duties, 
and  who  is  only  incidentally  State  librarian.  Such  an  elective  official 
is  not  likely  to  be  a  person  versed  in  library  matters,  and  abreast  of 
the  most  modern  methods  of  library  administration.  The  State  librar- 
ian should  be  appointed,  and  should  not  have  a  definite  term  of  office, 
unless  it  is  understood  that  he  will  ordinarily  be  reappointed  upon 
tlie  expiration  of  such  term.  He  should  receive  a  salary  sufficiently 
large  to  make  it  possible  to  secure  the  services  of  a  well  trained  and 
experienced  librarian.  He  should  have  power  to  appoint  other  librar- 
ians and  employees  engaged  in  library  work.  He  should  be  empowered 
to  purchase  books,  superintend  the  library  extension  work,  and  oper- 
ation of  traveling  libraries,  and  to  give  advice  and  information  with 
regard  to  the  proper  administration  of  the  libraries  located  in  various 
State  charitable  and  correctional  institutions. 

A  single  executive  head  over  the  library  facilities  of  the  State 
means  economy  of  administration,  unity  of  policy,  and  more  efficient 
and  comprehensive  services.  Such  an  arrangement  tends  to  prevent 
danger  of  confusion  resulting  from  overlapping  of  work,  and  con- 
duces to  the  co-ordinate  development  of  the  various  branches  of  library 
work.  Indeed,  it  may  be  suggested  that  apart  from  the  selection  of 
a  qualified  State  Librarian  there  is  comparatively  little  need  for  a 
Library  Commission ;  and  this  commission  may  be  dispensed  with  by 
authorizing  the  State  Board  of  Education,  proposed  in  another  section 
of  this  report,  to  select  the  State  Librarian. 
Historical  Research. 

Provision  should  also  be  made  for  continuing  the  research  and 
publication  work  of  the  present  State  Historical  Library ;  and  for  this 
purpose  the  trustees  of  the  Historical  Library  should  be  continued  as 
a  Historical  Commission. 


IV.  SCIENTIFIC  SURVEYS.=^° 

A  number  of  State  scientific  bureaus  are  maintained  in  connection 
with  the  University  of  Illinois,  which  should  be  noted  in  this  survey 
of  State  administration.  These  include  the  Agricultural  Experiment 
Station,  the  Engineering  Experiment  Station,  the  State  Laboratory  of 
Natural  History,  the  State  Entomologist,  the  State  Water  Survey,  the 
State  Geological  Survey  and  the  co-operative  investigation  of  Illinois 
Coal  Problems  and  Mine  Rescue  Station.  The  relations  of  these  sev- 
eral bureaus  to  the  University  on  the  one  hand  and  to  the  State  gov- 
ernment on  the  other  differ  to  a  large  extent;  and  no  definite  policy 
seems  to  have  been  developed  to  determine  the  status  of  such  services. 

The  Agricultural  and  Engineering  Experiment  Stations  have  been 
established  by  the  Board  of  Trustees  of  the  State  University  as  a 
development  of  the  research  work  of  the  institution;  and  are  supported 
out  of  the  regular  University  funds.  The  other  bureaus  have  been 
specifically  authorized  by  Acts  of  the  General  Assembly  under  different 
laws,  which  provide  different  methods  for  their  management  and 
support. 

Agricultural  Experiment  Station. 

By  Act  of  1887,  the*  Congress  of  the  United  States  appropriated 
$15,000  to  each  state  to  establish,  in  connection  with  the  agricultural 
colleges  founded  under  the  Act  of  1862,  agricultural  experiment  sta- 
tions "to  aid  in  acquiring  and  dift"using  among  the  people  of  the  United 
States  useful  and  practical  information  on  subjects  connected  with 
agriculture,  and  to  promote  scientific  investigation  and  experiment 
respecting  the  principles  and  applications  of  agricultural  science." 
Under  this  provision  the  Agricultural  Experiment  Station  for  Illinois 
was  founded  in  1888,  and  placed  under  the  control  of  the  Trustees 
of  the  University.  The  Dean  of  the  College  of  Agriculture  is  Director 
of  the  Station;  and  his  staff  is  composed  partly  of  members  of  the 
University  Faculty,  organized  in  departments  of  agronomy,  animal 
husbandry,  dairy  husbandry,  horticulture  and  botany. 

The  United  States  grants  have  been  increased  to  $30,000  a  year ; 
and  to  these  have  been  added  larger  State  appropriations.  Up  to  1913 
the  State  appropriations  were  made  for  specific  investigations  in  six 
sections ;  and  for  each  section  the  station  has  been  assisted  by  an  advis- 
ory committee  appointed  by  the  agricultural  association  specially  inter- 
ested in  the  particular  work.  Special  mention  should  be  made  of  the 
physical  and  chemical  survey  of  Illinois  soils,  which  has  been  under 
way  since  1910. 

=''Prepared  by  John  A.  Falrlle. 


466 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


The  following  financial  statement,  compiled  from  the  Report  of 
the  Comptroller  of  the  University  for  the  biennium  1911-1913,  shows 
the  sources  of  income  and  expenditures  on  account  of  the  Agricultural 
Experiment  Station  for  these  years : 

Disbursements, 


Appropriation 
1911-1912 

Current  Appropriations 

Agric.   Exp.    Station $33,664 

Stale  Appropriations 

Crop  Experiments   17,605 

Dairy  Investigation   15,000 

Floriculture   8,000 

Horticulture    15,000 

Soil    Investigation    65,000 

Soil  Maps  25,000 

Soil  Examination  877 

Stock  Investigation  25,000 


Amount       Capital 


Maintenance 

and 

Operation 


Total       Balance 


$3,313        $16,227        $19,541 


405 

30 

1,108 

1,089 

4,852 

142 

438 

5,615 


13,403 
14,970 

6,891 
13,910 
52,829 

8,634 

439 

19,384 


13,809 
15,000 
8,000 
15,000 
57,681 

877 
25,000 


Total    30,620 

Grand   Total    


1,701 


?,561 


30,263 


1912-1913 

Current  Appropriations 

Agric.    Exp.    Station 45,243 

State  Appropriations 

Crop  Experiments  18,796 

Dairy  Investigation   15,000 

Floriculture   8,000 

Horticulture   15,000 

Soil  Investigation 72,318 

Soil  Maps  41,222 

Stock  Investigation 25,000 


6,741 

2,014 
514 
217 

1,462 

9,719 
89 

6,933 


30,089 

14,263 
14,485 
7,782 
13,537 
62,599 
11,399 
18,066 


36,830 

16,278 
15,000 
8,000 
15,000 
72,318 
11,488 
25,000 


Total 


U.  S.  Appropriations 

Adams  Fund   16,140 

Hatch  Fund   


Total 


Grand    Total    $271,940 


$14,123 
3,796 


7,318 
16,222 


Total    171,482        13,681        130,463        144,144        27,337 


U.  S.  Appropriations 

Adams  Fund   15,301  262  14,724  14,987  314 

Hatch  Fund  15,318  1,439  13,837  15,276  42 


356 


$235,767   $18,696   $175,253   $193,949   $41,817 


8,412 
2,517 

29,734 


.  195,337 

20,951 

142,134 

163,085 

32,252 

.  16,140 
.  15,218 

557 
422 

14,442 
14,796 

15,000 
15,218 

1,140 

.  31,359 

979 

29,238 

30,218 

1.140 

.$271,940 

$28,672 

$201,462 

$230,134 

$41,805 

Totals  include  cents,  which  are  omitted  in  this  table. 

Engineering  Experiment  Station. 

The  Engineering  Experiment  Station  was  established  in  1903,  by 
the  Board  of  Trustees  of  the  University  of  Illinois.  The  Director  of 
the  Station  is  the  Dean  of  the  College  of  Engineering  in  the  Uni- 


EDUCATIONAL  ADMINISTRATION.  467 

versity;  and  he  with  the  staff  consisting  of  the  heads  of  departments 
in  the  College  of  Engineering  determine  the  character  of  investigations, 
which  are  carried  on  by  a  group  of  special  investigators  and  research 
fello-.vs. 

The  purposes  of  the  station  are  the  stimulation  and  elevation  of 
engineering  education,  and  the  study  of  problems  of  special  impor- 
tance to  professional  engineers  and  to  the  manufacturing,  railway, 
mining  and  industrial  interests  of  the  State  and  the  country.  To  aid  in 
determining  on  investigations  of  a  practical  nature  and  their  adaptation 
to  present  needs,  conferences  are  held  with  committees  representing 
the  States  industrial  activities. 

Up  to  1913,  sixty  bulletins  have  been  published.  The  expendi- 
tures of  the  station  are  paid  from  University  funds,  and  for  the 
year  1911-12  v/ere  as  follows: 

Salaries  $22,039.83 

Expenses 13,566.47 

Operation  and  Maintenance $35,606.30 

Equipment    4,248.75 

Library 107.40 

Total  $39,962.45 


State  Laboratory  of  Natural  History  and  State  Entomologist. 

The  State  Laboratory  of  Natural  History  originated  in  the 
museum  of  the  State  Natural  History  Society,  established  in  1862  at 
the  State  Normal  University,  at  Normal.  In  1871,  this  museum  was 
transferred  to  the  State  Board  of  Education  (the  governing  body  of 
the  State  Normal  University),  for  the  use  and  benefit  of  the  State; 
and  m  1S77  the  title  was  changed  by  law  to  the  State  Laboratory  of 
J'Natural  History. 

In  1867  the  office  of  State  Entomologist  was  established,  the 
Governor  being  authorised  to  appoint,  by  and  with  the  consent  of  the 
Senate,  some  competent  scientific  person  as  State  Entomologist,  for  a 
term  of  two  years,  and  until  his  successor  should  be  appointed.  No 
appropriations  seem  to  have  been  made  for  equipment  or  expenses  of 
the  office,  other  than  the  salary  of  the  officer. 

S.  A.  Forbes,  who  had  been  made  curator  of  the  Natural  History 
Museum  in  1872,  and  director  of  the  State  laboratory  in  1877,  was 
appointed  State  Entomologist  in  1882,  with  the  purpose  of  merging  the 
two  services,  and  with  the  result  of  providing  the  State  Entomologist 
with  some  funds  and  facilities  for  his  work. 

By  Act  of  1885,  the  Laboratory  of  Natural  History  was  trans- 
ferred to  the  Illinois  Industrial  University  (now  the  University  of 
Illinois)  ;  the  trustees  of  the  University  being  placed  in  charge,  and 
authorized  to  appoint  a  director,  who  might  also  be  State  Entomolo- 
gist. This  change  was  made  at  the  time  Mr.  Forbes  accepted  an 
appointment  as  Professor  of  Zoology  and  Entomology  at  the  Uni- 
versity; and  enabled  the  university  work  in  natural  history  and  ento- 
mology to  be  combined  with  the  State  laboratory  and  State  entomolo- 
gist's office.     This  arrangement  was  advantageous  both  to  the  univer- 


468  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

sity  and  to  the  State  bureaus,  and  also  reduced  the  cost  of  supervision ; 
and  has  continued  to  the  present  time.  But  it  should  be  noted  that 
there  are  no  provisions  in  the  law^  to  require  or  ensure  a  continuance 
of  this  arrangement. 

It  is  the  duty  of  the  director  of  the  State  laboratory  of  natural 
history  to  conduct  a  natural  history  survey  of  the  State,  giving  prefer- 
ence o  subjects  of  educational  and  economic  importance;  and  to  pre- 
sent a  series  of  systematic  reports  covering  the  entire  field  of  the 
zoology  and  cryptogamic  botany  of  Illinois.  The  laboratory  is  especially 
charged  with  the  supply  of  natural  history  specimens  to  the  State  mu- 
seum, State  educational  institutions  and  the  public  schools. 

Material  of  all  classes  has  been  collected  in  all  parts  of  the  State ; 
lield  observations  and  experiments  have  been  conducted,  extending 
over  many  years;  and  tw^elve  volumes  of  bulletins  and  final  reports 
have  been  published.  ■> 

The  principal  problem  upon  which  the  work  of  the  survey  has 
been  concentrated,  in  recent  years,  is  that  of  the  effect  of  the  pollution 
of  the  natural  waters  of  the  State  upon  aquatic  biology. 

Under  the  Act  of  1867,  the  State  Entomologist  is  required  "to 
investigate  the  entomology  of  Illinois,  and  particularly  to  study  the  his- 
tory of  the  insects  injurious  to  the  products  of  the  horticulturists  and 
agriculturists  of  the  State."  Annual  reports  were  at  first  required; 
but  since  1875  the  reports  are  directed  to  be  made  biennially. 

By  Act  of  1899,  it  is  made  the  duty  of  the  State  Entomologist 
annually  to  inspect  all  nurseries  in  Illinois  and  from  time  to  time  to 
inspect  any  nursery,  orchard,  fruit  plantation  or  other  property  in 
the  State  and  any  nursery  stock  shipped  into  the  State  supposed  to 
be  infected  by  dangerous  insects  or  infected  by  contagious  plant  dis- 
eases. Certificates  are  issued  to  owners  of  nurseries  found  free  from 
dangerous  insects  or  plant  diseases ;  and  a  copy  of  such  certificate 
must  be  placed  on  each  package  of  nursery  stock  shipped  within  the 
State.  A  similar  certificate  of  inspection  from  a  State  or  government 
officer  is  required  for  all  trees,  vines  or  plants  shipped  into  the  State ; 
and  transportation  companies  are  required  to  report  to  the  State 
Entomologist  any  shipments  without  such  certificate.  When  any 
nursery,  orchard  or  other  property  is  found  to  be  infested  or  infected, 
the  State  Entomologist  must  notify  the  owner  or  person  in  charge  to 
take  measures  to  prevent  the  spread  of  the  dangerous  insects  or  plant 
disease ;  and  in  case  of  failure  or  neglect  to  do  so,  it  is  the  duty  of  the 
State  Entomologist  to  cause  such  premises  to  be  treated  and  to  charge 
half  of  the  cost  to  the  owner. 

Under  an  Act  of  1907,  the  scope  of  the  investigations  by  the  State 
Entomologist  have  been  extended.  By  this  Act,  it  is  his  duty  to  investi- 
gate all  insects  injurious  to  agriculture  and  horticulture,  to  truck 
farms,  vegetable  gardens,  shade  trees  ,the  products  of  mills,  the  con- 
tents of  warehouses  and  all  other  valuable  property.  He  is  also 
required  to  investigate  all  insects  in  the  State  dangerous  to  public 
health  and  to  conduct  experiments  for  the  arrest  and  control  of  insects 
injurious  to  persons  and  property.     The  results  of  investigations  are 


EDUCATIONAL  ADMINISTRATION.  469 

published  primarily  as  bulletins  of  the  Agricultural  Experiment  Sta- 
tion and  also  in  the  biennial  report,  and  by  lectures  and  demonstra- 
t'Ons. 

The  duties  of  the  State  Entomologist  include  on  the  one  hand 
scientific  and  economic  investigations  and  on  the  other  hand  inspection 
and  police  powers  for  the  suppression  of  dangerous  insects  and  plant 
diseases.  The  investigation  and  publication  work  is  essentially  that 
of  an  experiment  station,  and  is  so  provided  for  in  most  states,  while 
in  Illinois  it  is  a  differentiated  and  specialized  part  of  the  natural  his- 
tory survey  of  the  State.  The  association  of  the  two  is  helpful  in 
many  ways  to  both;  and  it  would  be  difficult  to  disentangle  and  sep- 
ar?*e  their  lines  of  operation,  which  have  been  interwoven  for  thirty 
years.  On  the  other  hand  the  inspection  and  police  services  of  the 
Entomologist's  office  are  essentially  different'  form  any  other  part  of 
its  duty ;  they  are  not  normal  to  an  experiment  station  or  a  university ; 
and  to  some  extent  hamper  and  limit  the  full  effectiveness  of  the  scien- 
tific studies.  It  may  also  be  questioned  if  the  work  of  scientific  investi- 
gation and  law  enforcement  can  best  be  managed  by  one  person. 

Appropriations  in  1913  for  the  State  Entomologist  and  the 
Natural  History  Survey  were  as  follows: 

Per  annum       Two  years 

Salary  of  State  Entomologist $  2,000        $  4,000 

General  Expenses   16,000  32,000 

Treatment  of  San  Jose  Scale 5,000  10,000 

Destruction  of  Cinch  Bugs 5,000  5,000 

Expenses  Natural  History  Survey 8,000  16,000 

Publishing  Bulletins  and  Report 2,000  4,000 

Total ••$71,000 

State  Water  Survey. 

By  Act  of  1897,  the  board  of  trustees  of  the  University  of  Illinois 
were  authorized  and  directed  to  establish  a  chemical  and  biological 
survey  of  the  waters  of  the  State.  In  1911  additional  authority  was 
granted  to  the  Water  Survey  to  exnploy  field  agents  to  inspect  water 
supplies,  water  sheds,  etc.,  and  t6  make,  free  of  charge,  sanitary  exam- 
inations of  water  for  citizens  of  the  State. 

The  purpose  of  the  Survey  is  to  collect  facts  end  data  concerning 
the  water  supplies  of  the  State,  to  make  such  chemical  and  biological 
examination  and  analyses  as  shall  serve  to  demonstrate  their  sanitary 
condition,  to  determine  standards  of  purity  of  drinking  waters,  to 
inspect  water  sheds  and  to  make  any  investigations  that  will  show  best 
how  to  obtain  and  conserve  an  adequate  supply  of  pure  water  for 
domestic  and  manufacturing  purposes  in  every  part  of  the  State. 

The  Survey  is  organized  as  a  division  of  the  department  of  chem- 
istry in  the  University,  with  special  laboratories  in  the  chemistry_  build- 
ing, and  the  engineering  section  in  Engineering  Hall.  The  Director 
of  the  Survey  is  also  Professor  of  Chemistry  in  the  University,  giv- 
ing courses  in  water  chemistry  and  water  supplies.  Several  other 
members  of  the  university  faculties  are  connected  with  the  survey  as 
consulting  experts  in  chemistry,  engineering  and  bacteriology.  In 
addition  the  survey  has  a  staff  of  engineers,  inspectors,  and  assistant 
chemists  and  bacteriologists. 


470  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

In  1911  the  general  assembly  appropriated  $30,000  for  the  water 
survey.  Additional  amounts  were  appropriated  by  the  university  from 
the  university  funds.  The  following  statement  shows  the  amounts  of 
appropriations  and  disbursements  for  the  two  years  ending  Tune  30, 
1913: 

Disbursements 
Amount 
of  Appropri-  Maintenance  and 

1911-12  ation  Capital      Operation       Total  Balance 

Water  Survey  $7,908.96    $721.57    $6,091.24    $6,812.81    $1,096.14 

Water  Station  6,451.80      6,451.80       6,451.80       

Water  Investigation   15,000.00         665.75       10,554.88      11,209.63      3,790.37 

Totals   $29,360.76    $7,837.12    $16,645.12    $24,474.24    $4,886.51 

1912-13 

Water  Survey  $8,596.14  $       3.75  $5,674.01  $5,677.76  $2,918.38 

Water  Station  2,000.00  1,243.36  756.64  2,000.00       

Water  Investigation 15,000.00  664.75  10,554.88  11,209.63  3,790.37 

Totals    $29,386.51    $2,554.54    $22,969.83    $23,524.37    $3,862.14 

The  staff  and  appropriations  provided  by  the  general  assembly  in 
1913  were  as  follows: 

Director $  2,000 

Engineer 3,500 

Assistant  Engineer 1,500 

Chemist   and   Bacteriologist 1,500 

Other  Assistants  3.000 

Clerks,  Stenographers  and  other  employes 1,500 


Total  Salaries   $13,000 

Traveling  Expenses    4,000 

Office   Expenses    4,500 


Total,  per  annum $21,500 

•      In  addition  to  the  above  $7,500  a  year  is  allowed  from  the  uni- 
versity funds. 

State  Geological  Survey.  • 

An  Act  of  1851  provided  for  the  appointment  of  a  geologist  and 
for  making  a  geological  and  mineralogical  survey  of  the  State.  This 
survey  was  carried  on  until  1872,  and  the  results  were  published  in 
eight  general  reports  and  three  volumes  on  the  economic  geology  of 
the  State. 

By  Act  of  1905,  the  present  geological  survey  was  established  at 
the  University  of  Illinois,  under  the  direction  of  a  State  Geological 
Commission,  composed  of  the  Governor  (who  is  ex  officio  chairman), 
the  President  of  the  University  and  one  other  competent  person 
appointed  by  the  Governor  for  a  term  of  four  years.  This  commission 
appoints  a  director,  who  with  the  approval  of  the  commission  appoints 
assistants  and  employes. 

The  primary  purpose  of  the  survey  is  the  study  and  exploration 
of  the  mineral  resources  of  the  State.  It  is  charged  with  making  a 
complete  topographical  and  geological  survey;  and  with  making  sur- 
veys and  studies  of  lands  subject  to  overflow  with  a  view  to  their 


EDUCATIONAL  ADMINISTRATION.  471 

reclamation.  The  topographical  surveys  are  carried  on  in  cooperation 
with  the  United  States  Geological  Survey ;  the  reclamation  surveys  are 
conducted  in  co-operation  with  the  Rivers  and  Lakes  Commission,  the 
United  States  Geological  Survey  and  the  United  States  Department  of 
Agriculture;  and  the  State  Geological  Survey  also  cooperates  with 
the  United  States  Bureau  of  Mines  and  the  University  College  of 
Engineering  in  the  mine  rescue  station  and  the  investigation  of  coal 
problems.  Laboratory  work  is  done  in  connection  with  the  depart- 
mental laboratories  of  the  University. 

Besides  the  regular  corps,  temporary  assistants  are  employed  dur- 
ing the  summer;  and  field  parties  are  organized  for  the  investigation 
of  oil,  clay,  coal,  stone,  artesian  water,  cement  materials  and  road 
materials,  and  for  general  scientific  studies. 

The  regular  staff  of  the  survey  includes  the  director,  consulting 
chemists,  geologists  and  ceramist,  an  assistant  State  geologist,  two 
geologists,  three  assistant  geologists,  a  chemist  and  a  geographer  in 
charge  of  topographical  surveys. 

The  director  of  the  geological  survey  and  the  regular  staff  give 
their  whole  time  to  the  work  of  the  survey.  But  some  of  the  con- 
sulting experts  and  temporary  assistants  are  in  the  service  of  the  State 
University  or  other  institutions  during  the  academic  year. 

Twenty-five  bulletins  and  a  large  number  of  maps  have  been 
published.  These  include  topographic  maps,  detailed  geological  maps, 
preliminary  reports  on  mineral  resources  (coal,  petroleum  and  gas, 
clay  and  shale,  underground  water,  cement  materials,  building  stone, 
road  materials,  lead,  zinc,  silica,  flourspar,  etc.),  educational  bulletins, 
maps  of  overflowed  lands  and  reports  on  co-operative  coal  mining 
investigation. 

Appropriations  for  the  survey  in  1913  were  as  follows: 

Per  annum      Two  years 

For  Expenses  and  Employes $25  000  $50,000 

For  Maps  and  Reports 5,000  10,000 

For  Study  of  Coal  Mining  Industry 4,500  9,000 

For  Survey  of  Overflowed  Land /^sw 

Total : WOO 

Mining  Services. 

A  co-operative  investigation  of  coal  mining  problems  has  been 
established  by  agreement  between  the  State  Geological  Survey,  the 
University  department  of  mining  engineering  and  the  United  States 
Bureau  of  Mines.  This  investigation  includes  the  study  of  existing 
conditions  and  constructive  plans  to,  enable  coal  to  be  produced  more 
safely,  more  cheaply  and  with  less  waste. 

A  Mine  Rescue  Station  is  maintained  at  the  University  by  the 
United  States  Bureau  of  Mines  in  co-operation  with  the  State  Geologi- 
cal Survey  and  the  University  department  of  mining  engineering.  The 
station  gives  demonstrations  and  trains  men  in  the  use  of  apparatus 
for  rescue  work  in  mines,  as  an  aid  in  fighting  mine  fires  and  in  open- 
ing mines  which  have  been  sealed  on  account  of  fires. 


472  EFFICIENCY  AND  ECONOMY  COMMITTEE.      ' 

By  Act  of  1911,  provision  was  made  for  the  establishment  of 
Miners'  and  Mechanics'  Institutes,  the  administration  of  which  is 
vested  in  the  trustees  of  the  University  of  Illinois.  The  purpose  of 
these  institutes  is  declared  to  be  to  prevent  accidents  in  mines  and 
industrial  plants  and  to  promote  the  technical  efficiency  of  workers. 
The  work  may  be  carried  on  by  means  of  bulletins,  lectures,  classes 
for  systematic  instruction  or  in  other  ways.  In  1913,  an  appropriation 
of  $15,000  a  year  was  made  for  these  institutes. 

Geological  Surveys  in  Other  States.-^ 

Of  the  scientific  bureaus  not  conducted  directly  by  the  State  Uni- 
versity in  Illinois,  geological  surveys  are  the  most  common  and  most 
important  in  other  states ;  and  an  examination  of  the  methods  of 
organizing  such  surveys  will  serve  to  illustrate  the  different  plans  of 
organizing  such  scientific  services  as  a  whole. 

Three  main  forms  of  organization  for  State  geological  surveys 
may  be  noted:  Two-thirds  of  the  active  surveys  (22  of  33)  are  under 
the  general  direction  of  a  board  or  commission;  in  four  states  the  State 
Geologist  is  appointed  by  the  Governor  and  in  one  state  is  elected ;  in 
five  states,  the  geological  survey  is  organized  under  the  direct  control 
of  the  state  university;  while  in  one  state  the  geological  survey  con- 
stitutes the  science  division  of  the  department  of  education. 

In  practical  operation  these  forms  shade  into  each  other  to  some 
extent.  In  more  than  half  of  the  states  with  separate  boards,  the  presi- 
dent of  the  state  university  and  often  the  heads  of  other  educational 
institutions  are  ex  officio  members  of  the  board ;  and  in  more  than  half 
of  these  states  the  headquarters  of  the  geological  survey  is  located  at 
the  state  university,  under  the  direction  of  the  professor  of  geology. 
And  in  Ohio,  where  the  State  Geologist  is  appointed  by  the  governor, 
the  present  incumbent  is  also  professor  of  geolog}-  at  the  state 
university. 

On  the  other  hand  in  three  states,  where  there  is  a  geological  com- 
mission, the  Governor  appoints  the  State  Geologist  or  Mineralogist. 

Thus  in  about  one-half  of  the  states  vxith  active  surveys,  the  geo- 
logical survey  is  actually  conducted  in  close  connection  with  the  state 
university  department  of  geology. 

In  nearly  all  the  states,  where  the  most  active  and  important  work 
is  being  done,  the  geological  survey  is  under  the  general  direction  of 
a  commission  and  is  not  merged  m  the  university.  In  some  of  these 
cases,  as  in  Illinois,  the  President  of  the  state  university  is  a  member 
of  the  commission,  and  the  headquarters  of  the  survey  is  at  the  uni- 
versity; but  the  survey  is  distinctly  separated  from  the  university 
department.  In  states  where  the  geological  surveys  are  under  the 
direct  control  of  the  university  or  are  most  closely  identified  with  it; 
and  also  in  states  where  the  State  Geologist  is  appointed  by  the  Gov- 
ernor, without  a  supervising  board,  the  activity  of  the  survey  and  the 
value  of  their  work  is  distinctly  less. 

=iThe  state  Geological  Surveys  of  the  United  States,  U.  S.  Geological  Survey, 
Bulletin  465  (1911) ;  Work  of  the  State  Geological  Surveys,  in  Mining  and  Scientific 
Press,  Jan.  3,  1914. 


EDUCATIONAL  ADMINISTRATION.  473 

In  most  States  with  a  geological  commission,  the  governor  is  ex 
officio  a  member  and  usually  chairman ;  and  there  are  also  other  ex 
officio  members,  such  as  the  presidents  of  state  universities  and  other 
educational  institutions,  and  in  some  cases  the  State  Superintendent  of 
Public  Instruction  and  other  elective  state  officers.  In  several  states — 
California,  Maine,  Missouri,  New  Jersey,  and  Pennsylvania — most  or 
all  of  the  members  are  appointed  by  the  Governor. 

The  Geological  Survey  in  New  York  is  organized  as  the  Science 
Division  of  the  Department  of  Education.  The  executive  officer  is  the 
State  Geologist  and  Paleontologist,  who  is  appointed  by  the  Commis- 
sioner of  Education  and  board  of  regents.  The  permanent  force 
includes  seven  geologic  assistants  and  six  clerical  assistants.  From 
five  to  twelve  temporary  geologic  assistants  are  appointed  from  time 
to  time,  usually  college  professors  and  occasionaly  advanced  students. 

State  Conservation  Commissions. 

Within  a  few  years  a  number  of  states  have  established  commis- 
sions or  boards  for  the  investigation,  conservation  and  development 
of  their  natural  resources.  The  work  of  these  commissions  resembles 
to  some  degree  that  of  the  scientific  bureaus  noted  in  this  report;  and 
they  serve  as  illustrations  of  attempts  to  organize  such  work  on 
broader  and  more  comprehensive  lines. 

Michigan  in  1909  established  a  Public  Domain  Commission,  con- 
sisting of  the  Auditor  General,  the  Commissioner  of  the  Land  Office, 
the  Secretary  of  State,  and  three  other  members  appointed  by  the  Gov- 
ernor, one  each  nominated  by  and  from  the  Regents  of  the  State  Uni- 
versity, the  state  board  of  agriculture  (the  board  for  the  state  agri- 
cultural college)  and  the  board  of  control  of  the  state  college  of  mines. 
The  commission  appoints  a  secretary  and  a  commissioner  of  immigra- 
tion. It  is  charged  with  problems  relating  to  reforestation  and  the 
disposition  of  cut  over  lands. 

Minnesota  has  a  State  Forestry  Board,  consisting  of  the  Director 
of  the  Forestry  School  and  the  Dean  of  the  College  of  Agriculture  of 
the  state  university  and  seven  other  members  appointed  by  the  gov- 
ernor for  terms  of  four  years, — two  of  the  seven  on  the  recommen- 
dation of  the  university  and  one  each  on  the  recommendation  of  the 
state  agricultural  society,  the  state  horticultural  society  and  the  fish 
and  game  commission.    This  board  appoints  the  State  Forester, 

In  Rhode  Island  a  survey  of  the  national  resources  of  the  state 
was  organized  in  1909  and  the  following  year  was  placed  under 
the  general  supervision  of  a  State  Conservation  Commission.  This 
commission,  consists  of  five  members — the  Commissioner  of  Industrial 
Statistics,  the  Director  of  the  State  Agricultural  Experiment  Station, 
the  Secretary  of  the  State  Board  of  Agriculture,  the  Commissioner  of 
Forestry  and  the  Secretary  of  the  Metropolitan  Park  Commission. 
This  survey  of  natural  resources,  embraces  an  examination  of  the  geo- 
logical formation  of  the  state,  a  soil  survey  with  an  examination  of 
waste  lands  and  water  supplies,  and  a  report  on  the  fishing  industry. 
The  Superintendent  of  the  Survey  is  head  of  the  department  of  geol- 
ogy of  Brown  University. 


474  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Conservation  Commissions  were  established  in  1911  in  Wisconsin, 
Kansas  and  California,  and  in  1913  in  Nebraska.  The  Wisconsin 
Commission  consists  of  seven  members,  appointed  by  the  governor  for 
overlapping  terms  of  six  years,  to  serve  without  compensation.  Its 
duties  are  to  consider  the  natural  resources  of  the  state  with  reference 
to  their  conservation,  and  to  report  recommendations  as  to  measures 
for  this  purpose. 

The  Kansas  commission  consists  of  not  more  than  three  mem- 
bers from  each  Congressional  district,  appointed  in  the  first  place  by 
the  Governor  and  removable  for  cause — vacancies  to  be  filled  by  the 
commission.  Its  duty  is  to  exploit  the  resources  of  Kansas,  to  collect 
information,  to  hold  meetings,  and  to  distribute  papers  and  reports. 
No  expense  from  the  State  Treasury  is  authorized  except  for  printing 
papers  and  reports. 

The  California  commission  is  appointed  by  the  Governor  to  serve 
without  salary.  The  number  of  members  is  not  named  in  the  Act. 
It  is  to  investigate  and  gather  data  as  to  forestr}'',  water,  water  power, 
electricity  and  other  power,  mines  and  mining,  reclamation  and  irri- 
gation, and  for  revising  the  laws  on  these  subjects.  It  is  authorized 
to  employ  expert  assistance,  and  received  an  appropriation  of  $100,000 
in  1911. 

The  Nebraska  Conservation  and  Public  Welfare  Commission  con- 
sists of  the  Governor,  Chancellor  of  the  State  University,  Director 
of  the  Conservation  and  Soil  Survey,  Secretary  of  the  State  Board 
of  Agriculture,  and  Director  of  the  Legislative  Reference  Bureau.  It 
has  advisory  powers  in  relation  to  state  surveys,  and  economic  and 
social  statistics ;  and  has  supervision  of  a  survey  of  natural  resources, 
water  power,  road  building,  and  an  information  bureau  on  state 
resources,  industries,  and  development. 

Proposed  Organization  of  United  States  Educational  and  Scientific 
Agencies. 

In  an  article  published  in  "Science"  for  February  13,  1914,  Elmer 

E.  Brown,  former  United  States  Commissioner  of  Education,  and  now 
Chancellor  of  New  York  University,  presented  a  plan  for  the  reor- 
ganization of  the  educational  and  scientific  agencies  of  the  United 
States  Government.  This  plan  attempts  to  deal  with  a  problem  some- 
what similar  to  that  for  the  organization  of  scientific  agencies  in  Illi- 
nois and  their  relation  to  educational  institutions.  The  main  features 
of  this  plan  are  presented  below  -."^^ 

There  is  one  side  of  our  whole  national  life  and  national  government  which 
is  neither  economic  nor  political  but  scientific,  and  must  be  scientifically  dis- 
cerned. The  problem  of  a  national  university  is  the  problem  of  the  organization 
of  this  scientific  side.  In  some  few  of  the  states  it  has  been  measurably  recog- 
nized and  organized  in  state  universities.  In  our  federal  system  it  has  been 
recognized  fragmentarily,  and  as  a  result  various  special  commissions  and  scien- 
tific bureaus  have  come  into  existence.  What  is  lacking  is  a  unitary  organiza- 
tion. And  that  unitary  organization  is  requisite  in  order  that  ever>-  piece  of 
scientific  work  done  for  the  government  may  have  back  of  it  the  whole  force 


=Science.  Vol.  35,  pp.  244-246  (Feb.  13,  1914.) 


EDUCATIONAL  ADMINISTRATION.  475 

of  established  scientific  methods,  standards,  and  processes,  of  scientific  atmos- 
phere and  the  ethics  of  science,  which  is  realized  only  where  many  scientific 
departments  work  together  long  and  continuously. 

A  special  tariff  commission  or  any  other  sudden  and  temporary  scientific 
commission  is  a  makeshift  at  the  best.  It  will  be  found  at  length  that  what  is 
needed,  in  place  of  these,  is  a  continuous  and  many-sided  study  of  wages,  indus- 
trial conditions,  and  cost  of  production  the  world  over,  carried  on  under  con- 
ditions favorable  to  scientific  progress,  and  in  close  connection  with  countless 
other  inquiries  with  which  these  are  interwoven. 

We  shall  find  indeed,  that  a  scientific  branch  of  government,  complete  in 
itself,  with  its  own  traditions  and  its  own  methods,  is  as  essential  to  the  health 
of  a  modern  nation  as  is  a  judicial  branch,  complete  and  sufficient  in  itself,  and 
with  its  own  judicial  forms  and  procedure.  It  is  necessary  that  this  scientific 
side  of  our  federal  life  be  made  a  national  entity,  and  given  a  fair  opportunity 
of  acquiring  impressiveness  and  influence  suited  to  its  nature ;  and  that  is  an 
opportunity  of  becoming  a  really  commanding  force  in  our  national  affairs  in 
proportion  to  the  service  it  is  capable  of  rendering. 

In  concrete  terms,  this  would  involve  a  separation  of  those  existing  offices 
of  the  government  which  are  chiefly  investigational  in  their  character  from 
those  which  are  chiefly  administrative;  the  grouping  together  of  those  of  the 
former  class,  under  some  convenient  working  system;  and  the  organization  of 
new  divisions,  somewhat  similar  in  character  to  the  scientific  bureaus  already  in 
existence,  in  order  to  deal  with  new  needs  as  these  shall  become  apparent  and 
urgent.  The  process  may  very  likely  be  a  slow  one;  but  it  is  a  building  for 
the  centuries,  and  the  movement  toward  a  comprehensible  end  is  the  principal 
thing  at  the  present  time. 

Among  the  offices  and  institutions  to  be  brought  together  in  this  unique 
university  would  naturally  be  the  Library  of  Congress  the  permanent  organiza- 
tion of  the  Census  Office,  the  Geological  Survey,  the  Bureau  of  Standards,  the 
Naval  Observatorj^  and  possibly  the  more  strictly  scientific  offices  of  the  Depart- 
ment of  Agriculture.  The  Bureau  of  Education  should  be  included,  so  far  as 
its  typical  activities  are  concerned,  provision  being  made  elsewhere  for  the  dis- 
charge of  its  administrative  functions.  It  does  not  appear  that  the  special 
form  of  organization  of  the  Smithsonian  Institution  would  prevent  it  from 
being  made  a  member  of  this  central  group,  in  which  its  membership,  with  that 
of  the  National  Museum,  would  be  of  the  utmost  importance.  If  not  incor- 
porated in  the  new  organization,  it  should  at  least  be  related  to  it  through  some 
close  affiliation. 

A  very  fair  beginning  might  be  made  with  such  a  group.  It  should  be 
reasonably  clear  that  a  university  so  constituted  at  the  outset  would  be  different 
from  any  that  the  world  has  hitherto  seen.  It  would  indeed  be  an  institution 
of  national  dimensions,  as  well  as  of  national  functions. 

It  is  not  to  be  supposed  that  the  mere  putting  together  on  paper  of  these 
great  government  offices  would  make  such  a  national  university  as  is  here  pro- 
posed The  federal  legislation  which  should  bring  them  into  one  interlocking 
group  would  be  but  the  bare  beginning.  The  adjustment  of  their  mutual  rela- 
tionships, the  rounding  out  of  the  organization  by  the  addition  of  needed  depart- 
ments and  activities,  the  settlement  of  the  relations  of  the  university  to  other 
branches  of  the  federal  government  and  to  educational  systems  and  institutions 
throughout  the  countr>-— all  of  these  things  will  call  for  imagination  and  fore- 
sight and  administrative  ability  of  the  highest  order.  Under  the  authority  and 
with  the  support  of  the  Congress  of  the  United  States  the  offices  and  governing 
boards  of  the  new  institution  will  have  the  responsibility  of  shaping  a  real. organ 
of  enlightenment,  which  shall  not  only  be  for  all  of  the  sciences  and  tor  all  ot 
the  people,  but  shall  be  an  effective  working  instrument  as  a  whole  and  in  its 
several  divisions 

The  i;ivestigation  of  a  network  of  problems  of  labor,  the  costs  of  produc- 
tion, customs  duties,  commercial  relations  and  the  regulation  of  corporations, 
will  be  one  of  the  earliest  undertakings  which  a  national  university  may  be 
expected  to  place  upon  a  scientific  basis.  Its  studies  in  this  field  will  of  necessity 
extend  over  decades  and  even  generations.  But  within  a  fexy  years  there  should 
be  assembled  and  made  available  for  use  a  greater  body  of  digested  information 


476  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

on  these  subjects  than  any  Congress  or  administration  in  this  country  or  any 
parliament  or  ministry  abroad  has  ever  had,  on  which  to  base  its  industrial 
legislation. 

To  amass  information,  however,  is  not  of  itself  scientific.  What  is  to  be  chiefly, 
hoped  is  that  from  such  researches,  in  which  closely  related  sciences  shall  be 
cultivated  together  and  upon  the  largest  scale,  there  shall  emerge  new  and 
enlightening  theories,  embodied  in  new  and  well  grounded  principles  of  social 
development. 

Comments  and  Suggestions. 

The  connections  between  the  scientific  surveys  and  the  state  uni- 
versity appear  to  have  developed  because  of  the  mutual  cooperation 
thus  made  possible ;  and  the  advantages  of  such  co-operation  is  con- 
firmed by  the  practice  of  other  states,  and  should  not  be  disturbed  in 
any  plan  of  reorganization.  At  the  same  time  the  diversity  in  the 
organization  of  the  scientific  bureaus  and  their  official  relations  to  the 
university  shows  the  absence  of  any  clearly  defined  policy;  and  a 
better  coordination  should  make  possible  more  active  cooperation  and 
mojre  effective  results. 

Under  the  present  arrangements,  the  experiment  stations  are 
organized  within  the  university,  in  direct  relations  with  the  agricultural 
and  engineering  colleges ;  the  water  survey  and  laboratory  of  natural 
history  are  under  the  generql  charge  of  the  board  of  trustees  of  the 
univ'ersity,  but  receive  separate  appropriations  outside  of  the  university 
bill ;  the  geological  survey  is  under  a  board  on  which  the  president  of 
the  university  is  a  member,  but  receives  separate  appropriations  and  is 
not  officially  related  to  the  regular  university  organization ;  while  the 
State  Entomologist  is  subject  to  appointment  and  removal  by  the  gov- 
ernor, and  receives  separate  appropriations,  but  has  no  official  relations 
to  the  university,  though  the  personal  and  practical  relations  are  close 
and  harmonious. 

Professor  S.  A.  Forbes,  State  Entomologist  and  Director  of  the 
Natural  History  laboratory,  proposes  a  readjustment  by 

the  establishment  of  a  state  survey  either  under  the  University  Trustees 
or  under  a  special  survey  board,  and  a  state  inspection  and  law  enforcement 
service,  which  should  be  under  another  board,  certainly  not  the  University 
Trustees.  Under  the  first  should  be  placed  the  Geological  Sur\^ey,  the 
Natural  History  Survey  (including  the  State  Entomologist's  office),  the 
Water  Survey,  the  Game  and  Fish  Conservation  Service,  and  possibly  some 
others.  Under  the  second,  should  be  placed  the  inspection  and  police  func- 
tions of  the  Entomologist's  office,  those  of  the  Game  and  Fish  Conservation 
Commission,  of  the  State  Veterinarian,  and  possibly  of  the  Live  Stock 
Commission,  etc. — thus  separating  this  kind  of  service  wholly  from  that  of 
investigation  and  general  instruction. 

The  survey  departments  should  be  brought  together  at  the  University 
in  a  separate  state  survey  building,  and  the  police  departments  should  be 
established  at  the  State  Capitol,  in  close  relation  to  the  office  of  the 
Attorney-General  of  the  State. 

There  should  be  a  director  of  the  Geological  Survey  of  the  Natural 
History  Survey,  of  the  Water  Survey,  etc..  as  now,  since  no  one  man  could 
be  expected,  as  a  rule,  to  be  a  competent  expert  manager  of  more  than  one 
of  these  interests;  and  in  immediate  responsible  relation  to  each  of  these, 
there  should  be  a  special  committee  of  the  board  of  commissioners  or  of  the 
University  Trustees,  as  might  be  finally  decided. 


EDUCATIONAL  ADMINISTRATION.  477 

The  report  of  the  Committee  on  Scope  and  Method  of  the  Minne- 
sota Committee  on  Administrative  reorganization,  appointed  by  the 
Governor  in  1913,  contains  the  following  general  recommendation: 

Each  sub-committee  to  have  in  mind  a  possible  line  of  cleavage  in  any 
sub-head  of  its  group  between  the  scientific,  investigational  or  research 
functions  and  the  strictly  police  or  governmental  functions ;  and  where  any 
such  line  can  be  distinctly  drawn,  to  consider  carefully,  the  turning  over  of 
the  scientific,  investigational  and  research  work  to  the  university. 

There  seems  to  be  room  for  improvement  in  the  administrative 
organization  of  the  State  scientific  services,  by  placing  them  under  the 
same  general  supervision.  This  may  be  done  either  by  placing  them 
under  the  University  board  of  trustees,  as  is  nou^  the  case  with  the 
Water  Survey  and  the  Natural  History  Laboratory,  or  by  establishing 
a  commission  on  natural  resources  in  place  of  and  similar  to  the  pres- 
ent State  Geological  Commission.  If  placed  directly  under  the  author- 
ity of  the  university  board,  the  work  of  the  surveys  may  be  sub- 
ordinated to  the  teaching  work  of  the  university;  while  if  a  separate 
commission  entirely  independent  of  the  university  is  provided,  the 
advantages  of  close  relations  with  the  university  may  not  be  fully 
secured. 

It  is  therefore  recommended  that  there  be  created  a  State  Com- 
mission on  Natural  Resources  to  replace  the  present  geological  com- 
mission and  to  have  supervision  over  the  Geological  Survey,  the  Water 
Survey,  the  Natural  History  Laboratory,  and  the  Natural  History 
Museum,  at  Springfield,  and  such  other  scientific  surveys  as  may  here- 
after be  organized.  This  commission  might  be  composed  of  the  Gov- 
ernor, the  president  of  the  university,  and  three  other  unpaid  members, 
to  be  appointed  by  the  Governor,  with  the  advice  and  consent  of  the 
Senate. 

The  Commission  on  Natural  Resources  should  appoint  the  curator 
of  the  Natural  History  Museum,  and  directors  of  the  geological  sur- 
vey, water  survey  and  natural  history  survey,  the  last  named  to  carry 
on  the  scientific  functions  of  the  State  Entomologist,  which  office 
should  be  abolished.  The  police  functions  of  the  State  Entomologist 
should  be  transferred  to  the  proposed  Inspector  of  Apiaries  and 
Nurseries  in  the  department  of  agriculture. 


V.  EXAMINING  BOARDS." 

A  considerable  number  of  examining  and  licensing  boards  have 
been  established  for  various  professions  and  trades.  These  are  com- 
posed of  from  three  to  seven  members  each,  paid  on  a  per  diem  basis. 
They  prepare  and  conduct  examinations  of  applicants  for  licenses  and 
issue  licenses  to  the  successful  candidates;  and  they  usually  have 
power  to  revoke  licenses  for  certain  causes,  and  sometimes  have  other 
powers  of  supervision  over  those  engaged  in  the  respective  professions 
or  trades. 

Such  boards  have  a  two  fold  function:  On  the  one  hand  they 
administer  laws  establishing  educational  and  other  standards  for 
entrance  on  the  several  professions  and  trades;  and  as  such  may  be 
considered  as  educational  authorities.  On  the  other  hand,  their  author- 
ity to  revoke  licenses  and  to  supervise  those  in  active  practice  is  in  the 
nature  of  police  control,  such  as  is  not  usually  exercised  by  educational 
agencies.  These  two  functions  are  differently  emphasized  in  the  sev- 
eral boards. 

One  group  of  these  boards  have  to  do  with  physicians,  the  related 
professions  of  pharmacy,  dentistry,  and  nursing,  and  with  business 
affecting  the  public  health,  such  as  barbers  and  embalmers.  In  these 
the  police  power  is  of  more  importance  than  in  the  other  examining 
boards  for  lawyers,  accountants  and  architects,  which  are  more  dis- 
tinctly educational  authorities. 

Following  this  distinction,  the  boards  in  the  first  group  are  con- 
sidered in  the  report  on  Health  Agencies;  and  in  this  report  are  con- 
sidered the  Board  of  Law  Examiners,  the  Board  of  Examiners  of 
Architects,  and  the  Board  of  Examiners  in  Accountancy. 

Board  of  Law  Examiners. 

Admission  to  the  practice  of  law  in  Illinois  is  regulated  by  Rule 
39,  adopted  by  the  Supreme  Court  at  the  October  Term,  1897.  A 
board  of  examiners  is  provided,  consisting  of  five  members,  which 
holds  examinations  annually  at  Chicago,  Ottawa,  Springfield  and  Mt. 
Vernon.  Candidates  at  these  examinations  are  required  to  have  a 
preliminary  general  education,  equal  to  a  high  school  graduate,  and 
a  three  years'  course  of  legal  study.  For  admission  in  Ilhnois  upon 
licenses  issued  by  other  states,  the  requirements  for  admission  in 
the  state  where  the  license  has  been  issued  should  be  equal  to  those 
in  Illinois,  or  the  holder  must  have  practiced  under  such  license  in 
courts  of  record  for  a  period  of  five  years. 


^Prepared  by  John  A.  Falrlie. 


EDUCATIONAL  ADMINISTRATION.  479 

Board  of  Examiners  of  Architects. 

The  Board  of  Examiners  of  Architects  was  created  by  act  of 
the  legislature,  June  3,  1897.  It  consists  of  five  members,  appointed 
by  the  Governor  with  the  consent  of  the  Senate,  who  serve  for  four 
years,  with  overlapping  terms.  One  of  the  members  of  the  Board 
must  be  a  member  of  the  faculty  of  the  University  of  Illinois.  The 
others  must  be  residents  of  the  state  and  must  have  engaged  in  the 
practice  of  the  architectural  profession  for  a  period  of  at  least  ten 
years.  The  Board  is  authorized  to  elect  one  of  its  own  members  as 
president,  and  another  as  secretary  and  treasurer.  The  secretary  is 
entitled  to  a  salary  fixed  by  the  Board,  but  the  other  members  are 
compensated  at  the  rate  of  $10  per  day  and  expenses  for  time  actually 
spent  in  the  performance  of  their  official  duties. 

The  powers  and  duties'  of  the  Board  of  Examiners  relate  to: 

1.  Adoption  of  rules  and  regulations. 

2.  Conducting  examinations  and  issuing  licenses. 

3.  Revocation  of  licenses. 

4.  Annual  reports  to  auditor. 

The  Board  adopts  its  own  rules  and  regulations  governing  its  own 
proceedings.  It  is  also  authorized  to  adopt  rules  and  regulations  set- 
ting forth  the  conditions  under  which  examinations  for  licenses  to 
practice  the  profession  of  architecture  may  be  held.  When  such  regu- 
lations are  made  or  altered  in  any  way,  a  copy  must  be  filed  with  the 
Secretary  of  State  and  two  or  more  publications  made  in  at  least  one 
architectural  journal  and  one  daily  newspaper  in  the  State. 

The  Board  issued  licenses  to  architects  in  practice  at  the  time  the 
law  went  into  effect;  and  it  conducts  examinations  and  issues  licenses 
as  architects  to  successful  applicants.  Examinations  must  be  held  at 
least  twice  a  year,  at  which  anyone  may  appear  provided  he  is  21  years 
of  age  and  pays  a  fee  of  $15  to  the  Secretary  of  the  Board.  They 
may  be  conducted  directly  by  the  Board  or  by  a  committee  of  two 
members  thereof.  The  examinations  must  bear  particularly  on  such 
subjects  as  the  construction  of  buildings,  strength  of  materials  and  the 
practical  application  of  such  knowledge ;  they  should  also  be  designed 
to  show  knowledge  of  the  laws  of  sanitation  as  applied  to  buildings 
and  building  construction.  If  the  examination  is  passed  satisfactorily 
the  Secretary  of  the  Board  issues  on  payment  of  a  fee  of  $25,  a  license 
to  practice  architecture  in  the  State. 

Renewal  of  licenses  must  be  made  annually,  the  fee  for  renewal 
being  $5,  which  is  increased  to  $10  if  renewal  is  not  made  during  the 
time  prescribed  by  law. 

The  law  defines  an  architect  as  "any  person  engaged  in  the  plan- 
ning or  supervision  of  the  erection,  enlargement  or  alteration  of  build- 
ings for  others  and  to  be  constructed  by  other  persons  than  himself." 

According  to  the  seventh  biennial  report  of  the  Board,  published 
in  1911,  regular  meetings  are  held  once  a  month.  Two  class  examina- 
tions are  held  each  year,  in  April  and  October,  at  the  University  of 
Illinois;  and  candidates  claiming  to  have  been  practicing  architects 
are  examined  at  the  board  meetings.  The  results  of  these  examina- 
tions  for  two  biennial  periods  were  as   follows : 


480  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

1907-08  1909-10 

Examined  in  classes Ill,  passed  66       157,  passed  77 

Examined  before  Board 20,  passed  12        27,  passed  17 

Totals    131,  passed  78       184,  passed  94 

Up  to  December,  1910,  a  total  of  1,131  licenses  had  been  issued, 
706  in  class  A,  and  425  in  class  B.  Of  these  377  had  been  revoked, 
leaving  754  in  force. 

Licenses  may  be  revoked  by  the  Board  for  gross  incompetence  or 
negligence  in  the  construction  of  buildings  or  dishonest  practices. 
Persons  so  charged  are  entitled  to  twenty  days  notice  and  a  hearing. 
The  revocation  of  a  license  can  be  accomplished  only  by  the  unanimous 
vote  of  the  Board.  On  cancellation  of  the  license,  the  clerk  of  the 
Board  must  give  notice  to  the  clerk  of  each  county  in  which  the  license 
was  recorded. 

A  new  license  may  be  obtained  after  six  months  upon  payment  of 
a  fee  of  five  dollars  and  upon  the  submission  of  evidence  showing 
proper  reasons  for  reinstatement. 

During  1909  and  1910  four  licensed  architects  were  tried  before 
the  Board  and  in  two  instances  licenses  were  revoked.  According  to 
the  rules  of  the  Board  if  a  license  is  revoked  because  of  incompetency, 
reinstatement  may  be  had  only  after  the  individual  has  passed  an 
examination  in  the  subject  in  which  he  was  found  incompetent.  If 
revocation  is  due  to  recklessness  in  construction,  the  next  regular  class 
examination  must  be  passed  and  acceptable  evidence  presented  to  show 
that  proper  care  will  be  taken  in  the  future.  If  dishonest  practices  are 
the  cause  of  revocation,  evidences,  recommendations  and  guarantees  as 
to  future  reputable  conduct  must  be  presented  that  are  satisfactory  to 
the  Board. 

The  law  does  not  provide  for  judicial  review  of  the  actions  of  the 
Board. 

The  Board  is  required  each  year  to  submit  to  the  auditor  of  the 
State,  a  report  containing  a  statement  of  the  proceedings  during  the 
preceding  year  and  a  financial  resume  of  receipts  and  expenditures  for 
the  same  period. 

Under  the  original  act,  the  expenses  of  the  Board  were  paid  from 
the  income  received  from  examinations,  license  and  renewal  fees ;  and 
it  was  provided  that  no  salary  or  other  expenses  should  be  paid  from 
the  State  treasury.  Since  July  1,  1911,  the  fees  collected  have  been 
paid  into  the  State  treasury,  and  the  expenses  of  the  board  are  paid  out 
of  State  appropriations. 

Receipts  into  the  State  treasury  for  the  period  ending  September 
30,  1912  were  $17,899.55 ;  and  payments  for  the  same  period  were 
$9,166.61.    Appropriations  in  1913  were  as  follows: 

Per  Annum 

For  per  diem  and  expenses  of  members $2,000 

For  salary  of  Secretary  and  Treasurer 1,800 

For  salary  of  Stenographer 90p 

Total  salaries   $  4,700 

For  office  rent  1.100 

For  other  expenses 900 


EDUCATIONAL  ADMINISTRATION.  481 

Per  Annum 

Total  for  one  year $  6.700 

.  Total  for  two  years 13,400 

Deficiency  1912-13   500 

Grand  total  $13,900 

Receipts  into  the  State  treasury  for  the  two  years  ending  Septem- 
ber 30,  1914,  were  $19,876;  and  disbursements  for  the  same  period 
were  $15,412.34. 

Board  of  Examiners  in  Accountancy. 

By  Act  of  1903,  the  University  of  lUinois  is  charged  with  the 
examination  of  applicants  and  the  issue  of  certificates  as  certified  pub- 
He  accountants.  The  University  appoints  a  board  of  three  examiners, 
two  of  whom  must  be  accountants  in  active  practice  in  the  State,  and 
the  third  may  be  an  attorney  skilled  in  commercial  law.  Their  terms 
are  three  years,  and  they  receive  $10  a  day  for  time  spent  and  their 
traveHng  expenses.  A  university  committee  of  three  members  is  also 
appointed,  which  serves  without  compensation  and  has  charge  of  pre- 
liminary arrangements  connected  with  the  examinations. 

The  board  of  examiners  passes  upon  applications  for  accounting 
certificates  under  the  waiver  clause  of  the  law,  whereby  certificates 
can  be  conferred  upon  accountants  with  five  years  experience  prior  to 
the  passage  of  the  Act.  The  board  also  prepares  examination  ques- 
tions (which  include  theory  of  accounts,  commercial  law,  auditing  and 
practical  accounting),  conducts  the  examinations,  examines  the  papers 
and  certifies  the  results  to  the  university  committee.  On  receipt  of 
this  certification,  the  successful  candidates  are  recommended  to  the 
president  of  the  university  who  issues  their  certificates.  The  uni- 
versity may  revoke  any  certificate  for  unprofessional  misconduct  or 
other  sufficient  cause,  on  notice  and  after  a  hearing. 

A  fee  of  $25.00  is  collected  from  each  applicant,  and  from  the 
fees  received  the  university  pays  all  expenses  incident  to  the  exami- 
nation. No  report  is  required  by  law ;  but  reports  are  made  to  the 
university,  and  the  following  statement  shows  the  financial  operations 
for  the  two  years  ending  June  30,  1913.^* 

Two  Years 
Disbursements.  1911-12         1912-13         1911-13 

Printing,  Postage  and  Office  Expenses $187.70        $486.25        $    673.95 

Conducting  Examinations  412.54  326.16  738.70 

General  Supplies   49.55  49.55 

Equipment    36.75  36.75 

Incidentals 56.70  56.70 

Totals    $656.94        $898.71        $1,555.65 

Receipts   $553.96        $714.12        $1,268.08 

It  may  be  noticed  that  the  disbursements  for  these  two  years  have 
been  larger  than  the  receipts. 

^'^Prom  the  report  of  the  Comptroller  of  the  University  of  Illinois. 


482  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Regulation  of  public  accountants  began  in  Scotland,  by  the  incor- 
poration in  1854  of  the  Society  of  Accountants  in  Edinburgh.  There 
are  now  two  other  incorporated  associations  of  accountants  in  Scot- 
land, and  only  members  of  these  three  societies,  who  are  admitted  on 
examinations  following  apprenticeship,  may  announce  himself  as  a 
chartered  accountant,-^ 

In  England  accountants  are  also  regulated  by  several  chartered 
societies,  the  first  of  which  was  incorporated  in  1880.  The  same 
method  is  followed  in  some  of  the  Canadian  Provinces  (Ontario  and 
Saskatchewan)  and  in  other  British  colonies, — Newfoundland  and 
South  Africa.  In  New  Zealand  there  is  a  board  of  accountancy  exam- 
iners, established  in  1908. 

Accountant  societies  are  also  chartered  in  France,  as  in  Scotland 
and  England,  with  strict  admission  examinations.  In  Germany 
accountants  are  sworn  before  a  court  of  coinpetent  jurisdiction  or 
other  competent  authority. 

In  the  United  States,  New  York  first  regulated  the  practice  of 
accountancy  in  1896;  and  about  one-half  of  the  states  now  provide 
examinations  for  certified  public  accountants.  In  most  of  the  states 
with  a  system  of  regulation,  there  is  a  board  of  three  members 
appointed  by  the  Governor.  In  Maryland  and  Washington,  appoint- 
ments are  made  from  a  list  of  names  submitted  by  the  state  association 
of  public  accountants.  In  Nebraska,  the  Auditor  of  Public  Accounts 
is  a  member  of  the  board.  In  Illinois  and  Montana,  the  accountancy 
examiners  are  appointed  by  the  Trustees  of  the  State  University,  who 
issue  and  revoke  licenses.  In  New  York,  the  accountancy  board  is 
appointed  by  the  board  of  regents,  and  forms  a  branch  of  the  depart- 
ment of  education.  In  Massachusetts,  accountancy  examinations  are 
under  the  supervision  of  the  bank  commissioner. 

The  arrangements  for  the  examination  and  certification  of  public 
accountants  in  Illinois  form  a  distinct  exception  to  the  methods  fol- 
lowed for  other  professions.  Placing  this  function  in  the  hands  of 
the  university  makes  the  certificate  more  in  the  nature  of  a  degree ; 
and  something  may  be  said  for  applying  this  principle  to  all  the  pro- 
fessional examinations  and  licenses  issued  by  the  State.  On  the  other 
hand  the  provision  for  revoking  certificates  is  a  police  power  not 
normal  to  the  university  functions ;  and  it  is  not  advisable  as  a  general 
rule  to  place  powers  of  this  class  on  educational  authorities. 

Comments. 

The  creation  of  separate  and  independent  examining  and  licensing 
boards  for  a  considerable  number  of  professions  and  trades  is  an  illus- 
tration of  the  general  tendency  towards  the  useless  multiplication  of 
public  authorities  subject  to  no  effective  supervision.  Such  boards  are 
apt  to  consider  themselves  as  autonomous  bodies,  representing  the  pro- 
fession or  trade,  but  without  definite  responsibility  to  the  State  govern- 
ment from  which  their  powers  are  derived.  There  is  a  steady  pressure 
on  the  General  Assembly  to  establish  additional  boards  of  this  kind ; 
and  definite  action  should  be  taken  to  place  all  of  such  boards  under 

^f^Laura    Scott:     Certified    Public   Accountants,    Wisconsin    Legislative    Reference 
Department,  Comparative  Legislation   Bulletin,    No.   22    (1910). 


EDUCATIONAL  ADMINISTRATION.  483 

the  control  of  some  responsible  State  authority.  This  may  be  done  by 
organizing  such  examining  and  licensing  boards  as  a  division  in  the 
proposed  Department  of  Education,  as  is  now  done  in  the  State  of 
New  York.  Or,  each  of  such  boards  may  be  placed  in  a  State  depart- 
ment dealing  with  matters  related  to  the  profession  or  trade.  In 
another  report,  it  is  suggested  that  the  examination  and  licensing  of 
physicians,  nurses,  pharmacists  and  dentists  be  placed  under  the  super- 
vision of  the  proposed  Health  Depatment.  Following  this  plan,  the 
board  of  law  examiners  may  remain  under  the  supervision  of  the 
Supreme  Court.  There  is,  however,  no  State  authority  especially 
appropriate  to  have  supervision  over  the  examiners  of  architects  and 
accountants;  and,  it  is,  therefore,  suggested  that  these  be  organized 
as  primarily  educational  agencies  under  the  supervision  of  the  Uni- 
versity of  Illinois  or  the  proposed  State  Board  of  Education. 


VI.  SUMMARY  OF  RECOMMENDATIONS. 

Several  factors  make  it  inadvisable,  at  least  under  present  con- 
ditions, to  urge  the  consolidation  of  all  the  educational  agencies  in 
Illinois  into  a  single  highly  centralized  department.  The  management 
of  a  number  of  State  institutions  of  different  types  and  the  supervision 
of  local  schools  cannot  well  be  cared  for  by  one  authority.  At  best 
this  result  can  best  be  reached  by  a  gradual  development  than  by  a 
radical  change.  Moreover  under  the  constitutional  provisions  requir- 
ing the  election  of  the  State  Superintendent  of  Public  Instruction,  no 
satisfactory^  provision  can  be  made  to  ensure  the  selection  of  the  best 
qualified  official  for  the  head  of  a  such  a  department. 

At  the  same  time  it  is  possible  to  introduce  some_  measure  of 
simplification  by  providing  for  the  consolidation  of  educational  author- 
ities whose  functions  are  most  closely  related,  and  for  a  more  effective 
correllation  and  coordination  between  the  different  authorities.  For 
these  purposes  the  following  summary  of  recommendations  is  pre- 
sented : 

1.  The  creation  of  an  unpaid  State  board  of  education,  to 
consist  of  the  State  Superintendent  of  Public  Instruction,  the  Presi- 
dent of  the  University  of  Illinois,  a  respresentative  of  the  Normal 
Schools  and  two  others  to  be  appointed  by  the  Governor  with  the 
advice  and  consent  of  the  Senate.  This  board  should  have  advisory 
powers  over  the  local  school  systems,  and  all  other  educational  agen- 
cies in  the  State. 

2.  The  consolidation  of  the  five  boards  of  trustees  of  the  State 
normal  schools  into  a  single  board  of  control  to  consist  of  the  State 
Superintendent  of  Public  Instruction  and  of  eight  otter  members  to 
be  appointed  by  the  Governor  and  Senate,  for  terms  of  eight  years,  the 
term  of  two  members  to  expire  every  second  year. 

3.  The  union  of  the  State  library,  the  library  extension  com- 
mission, and  the  State  historical  library  into  a  State  library,  in  charge 
of  a  State  librarian — the  trustees  of  the  State  historical  library  to  con- 
tinue as  a  historical  commission. 

4.  The  union  of  the  natural  history  museum.  State  geological  sur- 
vey, the  State  water  survey,  the  State  laboratory  of  natural  history  and 
the  State  Entomologist's  office  under  a  Commission  on  Natural  Re- 
sources, to  consist  of  the  Governor,  the  President  of  the  State  Uni- 
versity, and  three  other  members  to  be  appointed  by  the  Governor  and 
Senate. 

5.  The  reorganization  of  the  board  of  trustees  of  the  University 
of  Illinois— to  consist  of  the  State  Superintendent  of  Public  Instruction 
and  eight  members  appointed  by  the  Governor  and  Senate  for  terms 
of  eight  years,  two  members  to  be  appointed  every  second  year. 


EDUCATIONAL  ADMINISTRATION.  485 

6.  Changes  in  local  school  administration: 

(a)  by  permitting  townships  to  adopt  the  township  unit. 

(b)  by  consolidating  the  several  township  school  authorities. 

(c)  by  transferring  the  management  of  local  school  funds  to  the 
county  treasurers  under  the  supervision  of  the  county  superintendents, 
except  in  Chicago. 

(d)  by  providing  educational  qualifications  for  county  superin- 
tendents, and  authorizing  counties  to  establish  county  boards  of  edu- 
cation. 

FINANCIAL  SUMMARY. 

WARRANTS    DRAWN    ON    THE    STATE    TREASURY    FROM    OCTOBER    1,    1912    TO    SEPTEMBER 

30,  1914. 

Superintendent  of  Public  Instruction $        15,000.00 

Office  of  Supt.  of  Public  Instruction 56,391.48    $       71,391.48 

State  School  Fund   $  4,608,537.50 

Interest  on  State  School  Fund 113,874.62 

Salary  of  County  Superintendents 388,855.83 

Kaskaskia  Commons'  School  Funds 79,492.67        5,190,760.62 

State  Normal  University   $  388,850.18 

Southern  Illinois  Normal  Univ 254,257.95 

Eastern  Illinois  State  Normal  School 251,076.53 

Northern  Illinois  State  Normal  School 198,435.83 

Western  Illinois  State  Normal  School 219,296.51         1,301,917.00 

University  of  Illinois  4,084,088.69 

State  Library  $       79,492.67 

Library  Extension  Commission  5,392.95 

Illinois  Historical  Library  46,179.53 

Legislative  Reference  Bureau  11,176.46  142,241.61 

State  Entomologist  $  69,926.62 

State  Geological  Survey  66,656.03 

State  Water  Survey  24,565.54 

Museum  of  Natural  History 15,700.00  176,848.19 

Board  of  Examiners  of  Architects 15,412.34 

Educational  Building  Commission  930.35 

Total  $10,983,590.28 


A  REPORT 

ON  THE 

ADMINISTRATION 

OF 

LABOR  and  MINING  LEGISLATION 

BY 
W.  F.  DODD 

ASSOCIATE  PROFESSOR  OF  POLITICAL  SCIENCE 
UNIVERSITY  OF  ILLINOIS 


CONTENTS 

Page 

I.  Introduction    491-492 

II.  Department  of  Factory  Inspection  493-516 

Historical  Note    .• 493 

Powers  of  the  Department 493 

Organization   494 

List  of  Principal  Laws 495 

Powers  and  Duties  Under  Particular  Statutes 496 

Act  to  Regulate  the  Manufacture  of  Clothing,  1893 496 

Act  to 'Compel  Use  of  Blowers  on  A'letal  Polishing  Machines,  1897.  .  ..497 

Child  Labor  Law 498 

Butterine  and  Ice  Cream  Inspection  Act 505 

Act  for  the  Protection  of  Employees  Engaged  in  Structural  Work     ..506 

Health,  Safety  and  Comfort  of  Employees 507 

Hours  of  Labor  of  Women 508 

Protection  from  Occupational  Diseases .* 509 

Other  Acts  Enforcible  by  the  Factory  Inspector's  Office 511 

Relation    of    Department    of    State    Factory    Inspection    to    Other    State 

Offices    511 

Relation  of  the  Department  of  Factory  Inspection  to  Local  Authorities   .512 
General  Survey  of  Organization  and  Work 513 

III.  Commissioners  of  Labor  and  Bureau  of  Labor  Statistics 517-521 

Historical  Note   517 

Accident  Reports   518 

Mines  and  Mining 518 

Private  Employment  Agencies 519 

Free  Employment  Offices 519 

Workmen's  Compensation  Act 519 

Reports  of  the  Bureau  of  Labor  Statistics 519 

Present  Position  of  Bureau 520 

IV.  Private  Employment  Agencies 522-528 

Organization  of  the  Enforcing  Authority 522 

Duties  of  the  Enforcing  Authority 522 

Finances    526 

Reports  526 

V.  Free  Employment  Offices  529-533 

VI.  Industrial  Board  534-536 

VII.  State  Board  of  Arbitration 537-540 

Arbitration     537 

Conciliation  and  Investigation    538 

Activities  of  the  State  Board  of  Arbitration 539 

VIII.  Mining  Authorities  541-553 

State  Mining  Board  and  Mine  Inspectors 541 

Miners'  Examining  Board 546 

Mine  Fire  Fighting  and  Rescue  Stations 547 

Miners'  and  Mechanics'  Institutes 548 

Mining  Investigation  Commission 549 

Suggestions  Regarding  the  Administration  of  Mining  Legislation 550 


IX.  Accident  Reporting  554-562 

Industrial   Board   554 

Public  Utilities  Commission 556 

State  Mine  Inspectors 556 

Department  of  Factory  Inspection 557 

Bureau  of  Labor  Statistics 558 

Character  of  Reports '•  -558 

Purposes  of  Accident  Reporting 559 

The  Employer  Under  the  Present  Situation 561 

Suggestions   • 561 

X.  General  Summary  and  Recommendations 563-573 

Recent  Development  in  Other  States 563 

Present  Situation  in  Illinois 567 

Recommendations    569 

Legislative    Methods    of    Carrying    the    Above    Recommendations    into 
Effect    . .  .♦. 571 

XI.  Summary  of  Recent  Legislation  in  Other  States 574-590 

Wisconsin  Industrial  Commission 574 

Industrial  Commission  of  Ohio 577 

New  York  Department  of  Labor 578 

Pennsylvania  Department  of  Labor 581 

Massachusetts   582 

California   584 

Oregon  Welfare  Commission 588 

Kansas  Department  of  Labor  and  Industry 589 


A  REPORT  ON 
LABOR  AND   MINING  ADMINISTRATION. 

BY  W.  F.  DoDD,  University  of  Illinois. 


I.     INTRODUCTION. 

The  field  of  labor  legislation  is  one  in  which  primary  emphasis 
must  be  placed  upon  efficiency  rather  than  upon  economy.  With  the 
expenditure  of  funds  now  appropriated  to  the  various  labor  bureaus 
in  Illinois  a  much  more  effective  administration  can  be  had,  but  in 
order  to  enforce  the  present  body  of  labor  legislation  in  an  effective 
manner  it  is  probable  that  more  money  will  have  to  be  spent  than 
at  present.  One  of  the  essential  difficulties  in  the  present  situation 
is  that  there  are  not  enough  inspectors  to  enforce  adequately  the 
various  safety  regulations,  even  if  the  inspection  service  were  effi- 
ciently organized.  However,  a  centralized  organization,  with  the  do- 
ing away  of  present  conflicting  and  overlapping  jurisdictions,  should 
accomplish  a  great  deal,  even  without  an  increase  of  appropriations. 

There  are  now  a  number  of  official  bodies  vested  with  power  to 
administer  the  labor  laws  of  Illinois,  and  the  powers  of  tRese  bodies 
are  often  overlapping.  The  first  labor  body  created  was  the  Bureau 
of  Labor  Statistics,  established  in  1879,  under  the  supervision  of  a 
Board  of  Commissioners  of  Labor.  This  Bureau  had  primarily  the 
functions  of  collecting  and  publishing  information,  but  from  1883 
to  1907,  it  also  had  supervision  over  the  mine  inspection  service. 

As  new  needs  have  been  felt  new  bodies  have  been  constituted  to 
meet  them.  In  1893  the  Factory  Inspector's  Office  was  created;  in 
1895  a  State  Board  of  Arbitration  was  constituted.  Beginning  in 
1899  control  was  established  over  private  employment  agencies,  and 
from  1903  to  1909  this  control  was  exercised  directly  by  the  Com- 
missioners of  Labor.  Since  1909  the  direct  supervision  is  exercised 
by  a  chief  inspector  of  private  employment  agencies,  but  a  power 
to  grant  and  revoke  licenses  is  vested  in  the  Commissioners  of  Labor. 
Beginning  in  1899,  free  employment  offices  have  been  established  in 
a  number  of  cities;  these  offices  are  substantially  independent,  but 
report  to  the  Commissioners  of  Labor. 

The  administration  of  the  first  workmen's  compensation  law  (1911) 
was  vested  in  the  Bureau  of  Labor  Statistics,  but  for  the  administra- 
tion of  the  act  of  1913,  a  new  body,  the  Industrial  Board,  was  created. 

With  respect  to  mining  there  has  been  a  similar  multiplication  of 
administrative  bodies,  and  we  now  have  not  only  the  State  Mining 
Board,  but  also  a  Miners'  Examining  Board,  a  Mine  Rescue  Com- 
mission and  a  temporary  Mining  Investigation  Commission. 


492  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

Each  field  of  labor  legislation  and  the  organization  for  its  adminis- 
tration, must  now  be  taken  up  somewhat  in  detail,  and  the  subjects 
are  discussed  in  the  following  order:  (1)  Department  of  Factory 
Inspection;  (2)  Commissioners  of  Labor  and  Bureau  of  Labor  Sta- 
tistics (together  with  free  and  private  employment  agencies)  ;  (3) 
Industrial  Board;  (4)  State  Board  of  Arbitration;  (5)  Mining  au- 
thorities. To  the  important  subject  of  accident  reporting  it  has  been 
thought  desirable  to  devote  a  separate  section  of  the  report.  After  a 
general  review  of  the  present  administrative  organization  for  the  en- 
forcement of  labor  legislation,  there  is  presented  a  general  summary 
together  with  a  recommended  plan  of  reorganization. 

Before  this  report  was  completed,  an  independent  investigation  of 
the  administration  of  labor  laws  in  Illinois  was  made  by  Mr.  E.  H. 
Downey  and  Mr.  Carl  Hookstadt,  for  the  United  States  Commission 
on  Industrial  Relations.  Assistance  has  been  received  from  the  re- 
sults of  this  investigation.  In  connection  with  child  labor,  assistance 
has  been  received  from  the  Children's  Bureau  of  the  United  States. 

Acknowledgement  is  made  to  Professor  F.  S.  Deibler,  of  North- 
western University,  for  assistance  in  connection  with  Section  XI  of 
this  report;  this  part  of  the  report  was  prepared  by  Mr.  J.  E.  Miller, 
of  the  University  of  Illinois. 


II.     DEPARTMENT  OF  FACTORY  INSPECTION. 

Historical  Note. 

The  offices  of  State  Factory  Inspector,  Assistant  State  Factory 
Inspector  and  deputy  State  factory  inspector  were  first  created  by 
the  act  to  regulate  the  manufacture  of  clothing,  wearing  apparel,  etc. 
and  to  provide  for  inspection  thereof,  approved  June  17,  1893  and  in 
force  July  1,  1893.  The  department,  as  first  authorized,  was  to 
be  composed  of  a  factory  inspector  at  a  salary  of  $1,500,  an  assistant 
at  $1,000,  and  ten  deputy  inspectors,  five  of  whom  were  to  be  women, 
at  a  salary  of  $750  per  annum.  All  offices  thus  created  were  to  be 
filled  by  appointment  of  the  Governor,  the  chief  inspector  to  hold 
office  for  a  term  of  four  years  and  the  assistant  and  deputy  inspectors 
to  hold  office  during  good  behavior.  Under  the  act  of  1893,  as 
amended  in  1903,  inspectors  were  empowered  to  visit  and  inspect  at 
all  reasonable  hours  and  as  often  as  practicable,  the  workshops,  fac- 
tories and  manufacturing  establishments  in  this  state,  where  the  manu- 
facture of  goods  was  carried  on  and  to  perform  such  other  duties 
as  should  thereafter  be  prescribed  by  law.  A  duty  was  imposed  upon 
the  chief  inspector  to  report  in  writing  to  the  Governor,  on  the  15th 
day  of  December  annually,  the  result  of  inspections  and  investigations, 
together  with  such  other  information  and  recommendations  as  might 
be  deemed  proper.  It  was  also  the  duty  of  the  department  to  make 
special  investigations  into  alleged  abuses  in  any  workshop  whenever 
the  Governor  should  direct,  and  to  report  the  results  of  such  investi- 
gation to  the  Governor.  The  general  duty  to  enforce  the  provisions 
of  the  act  and  to  prosecute  all  violations  of  the  same  was  also  imposed 
upon  the  department.  The  inspector  was  required  by  the  amendment 
of  1903  to  divide  the  State  into  fifteen  inspection  districts  and  to 
assign  a  deputy  inspector  to  each  district,  such  deputy  to  have  charge 
of  actual  inspection  therein.  Reassignments  could  be  made  and  depu- 
ties changed  from  one  district  to  another  when  the  chief  inspector,  in 
his  discretion,  was  of  the  opinion  that  the  good  of  the  service  required 
it,  and  he  might  also  re-divide  the  State  when  he  deemed  such  a  re- 
division  advisable. 

Powers  of  the  Department. 

.Under  the  acts  of  1893  and  1903  the  powers  of  the  state  factory 
inspector  were  to  "inspect workshops,  factories,  an(^  manufac- 
turing establishments  in  this  state  where  the  manufacture  of  goods  is 
carried  on,"  to  prosecute  all  violations,  and  to  make  report  of  inspec- 
tions and  of  the  general  work  of  the  office  to  the  Governor.  Under 
an  act  of  1907,  as  amended  in  1911,  it  is  made  the  duty  of  the  chief 
state  factory  inspector   (1)   to  exercise  general  supervision  over  the 


494  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

department  of  factory  inspection;  (2)  to  secure  the  enforcement  of 
all  laws  now  in  force  or  hereafter  enacted,  relating  to  the  inspection 
of  factories,  mercantile  establishments,  mills,  workshops,  and  com- 
mercial institutions  in  the  state;  (3)  to  perform  such  other  duties  as 
arc  now  or  may  hereafter  be  prescribed  by  law  to  be  performed  by 
the  ^ctory  inspector;  (4)  to  visit  and  inspect,  or  to  have  his  deputies 
visit  and  inspect  at  all  reasonable  hours  as  often  as  practicable,  the 
factories,  mercantile  establishments,  mills,  workshops,  and  commercial 
institutions  in  this  State,  where  goods,  wares  and  merchandise  are 
manufactured,  stored,  purchased,  or  sold  at  wholesale  or  retail;  (5) 
to  report  to  the  Governor  on  the  thirtieth  day  of  June  of  each  year 
the  result  of  his  inspections  and  investigations  with  such  other  infor- 
mation and  recommendations  as  he  may  deem  proper;  (6)  to  make 
special  investigations  into  conditions  of  labor  or  into  any  alleged  abuses 
in  connection  therewith,  when  called  upon  by  the  Governor  to  do  so ; 
(7)  to  prosecute  all  violations  of  law  relating  to  inspection  of  fac- 
tories, etc. ;  (8)  by  written  order  filed  with  the  Governor,  to  divide 
the  state  into  inspection  districts  and  to  assign  to  each  district  a 
deputy  inspector,  due  regard  being  had  to  the  number  of  establish- 
ments and  the  amount  of  work  required  to  be  performed  in  each 
district.  By  a  like  order  filed  wdth  the  Governor  he  may  re-divide 
the  state  into  inspection  districts  when  conditions  are  changed  or  in 
his  discretion  the  good  of  the  service  requires.  He  may  change  a 
deputy  from  one  district  to  another. 
Organixaiion. 

Under  the  act  of  1907  the  composition  of  the  Department  of  Factory 
Inspection  was  as  follows : 

Name  Salary 

Chief   State  Factory  Inspector ; $3,000 

Assistant   Chief   Factory-   Inspector 1,500 

25  Deputy  State  Factory  Inspectors 1,200 

Attorney  for  the  Department 1,500 

The  department  as  constituted  in  1913  under  the  act  of  1907  as 
amended  in  1911  and  under  the  appropriation  act  of  1913  was  as 
follows : 

Name  Salary 

Chief   State   Factory-  Inspector $3,000 

Assistant  Chief  Factor}^  Inspector 2,250 

30  Deputy  State  Factory  Inspectors,  each .- 1,200 

One    Physician    ' 1,500 

One  Chemist    1,500 

One   Chief   Clerk 1,200 

One   Stenographer    1,200 

Two   Stenographers  .each 1,000 

One   Stenographer    ". 900 

Two  Female   Investigators,   each 1,000 

Two  Clerks,  each 900 

One  Messenger  900 

Telephone    Operator    600 

Attorney 1,500 

An  editor  is  employed  out  of  the  general  appropriation  for  the 
State  department  of  factory  inspection. 

Under  the  act  of  1911  (approved  June  5)  it  was  provided  that  the 
Governor  should  appoint  the  chief  State  factory  inspector,  the  assist- 


LABOR   AND    MINING.  495 

ant  chief  State  factory  inspector,  thirty  deputy  factory  inspectors,  a 
physician,  and  an  attorney.  The  State  civil  service  amendment  act 
(approved  June  10,  1911)  exempted  from  its  terms  officers  appointed 
by  the  Governor,  subject  to  confirmation  by  the  Senate,  and  the 
State  civil  service  commission  assumed  that  the  factory  inspection 
officers  came  under  civil  service,  in  view  of  the  fact  that  confirmation 
by  the  Senate  was  not  specified.  The  present  attorney  general  has, 
however,  ruled  that  these  positions  are  exempt  because  confirmation 
by  the  Senate  is  implied  and  only  the  clerical  force  of  the  department 
of  factory  inspection  is  now  under  the  civil  service  law. 

List  of  Principal  Laws. 

The  following  laws  came  within  the  jurisdiction  of  this  department 
during  the  period  from  1893  to  1907: 

1.  The  act  to  regulate  the  manufacture  of  clothing,  wearing  ap- 
parel, etc. ;  and  to  provide  for  inspection  thereof,  1893. 

2.  The  act  to  regulate  the  employment  of  children,  approved  June 
9,  1897,  in  force  July  1,  1897. 

3.  The  act  to  compel  the  use  of  blowers  on  metal  polishing  ma- 
chines, approved  June  11,  1897,  in  force  July  I,  1897. 

4.  The  more  complete  child  labor  law  of  1903,  approved  May  15, 
in  force  July  1st. 

From  1897  to  1899  the  fire  escape  act  (of  1897)  was  under  the 
jurisdiction  of  the  factory  inspector's  office.  Before  1907  the  reports 
of  the  state  factory  inspector  (in  addition  to  the  general  show- 
ing of  statistical  information  and  results  obtained  in  the  enforcement 
of  the  above  laws)  contain  numerous  recommendations  for  the  en- 
largement of  the  office  and  for  the  extension  of  its  powers  and  duties. 
In  many  cases  actual  drafts  of  proposed  measures  were  inserted  in  the 
reports,  thus  calling  the  specific  attention  of  the  legislature  to  the 
needs  of  the  department.  In  1902,  a  draft  of  a  more  complete  child 
labor  law  was  submitted  in  the  annual  report,  it  teing  practically  the 
act  as  finally  enacted  by  the  legislature  in  1903.  In  1903-04  were  pro- 
posed (1)  a  bill  to  provide  for  the  health,  safety,  and  comfort  of 
employees  in  manufacturing  establishments,  mercantile  industries,  mills, 
factories,  and  workshops,  (2)  a  bill  to  provide  for  the  sanitation  of 
all  food  producing  establishments,  and  (3)  a  bill  further  to  regulate 
the  manufacture  of  clothing.  In  1906  the  same  three  proposals  were 
again  the  subject  of  comment  and  along  therewith  were  submitted 
more  complete  drafts  of  the  measures  suggested.  In  1906,  the  enact- 
ment of  the  following  laws  was  urged  by  the  factory  inspector:  (1) 
An  act  to  provide  for  the  health,  safety,  and  comfort  of  employees. 
(2)  An  act  to  provide  for  the  sanitation  of  food-producing  establish- 
ments. (3)  An  act  to  protect  persons  engaged  in  construction,  repair- 
ing, alteration,  removal  of  buildings,  bridges,  and  viaducts.  (4)  A 
new  sweat-shop  law.  (5)  An  act  to  regulate  the  manufacture,  hand- 
ling and  storage  of  high  explosives.  (6)  An  act  to  provide  for  low 
water  alarms  on  steam  boilers.  (7) An  act  to  empower  the  factory 
inspector  to  secure  information  from  various  businesses.  (8)  An  act 
to  provide  for  better  fire  inspection.     (9)  An  act  to  protect  the  public 


496  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

from  fires  in  theaters.  (10)  An  act  prescribing  the  manner  of  con- 
struction of  theaters,  etc.  (11)  An  act  to  regulate  the  construction 
and  maintenances  of  tenements,  lodging  and  boarding  houses.  (12) 
An  act  to  provide  for  the  complete  reorganization  of  the  department 
of  factory  inspection.  (13)  An  act  calling  for  the  appointment  of  a 
commission  to  investigate  occupational  diseases. 

Acting  upon  the  recommendations  of  the  State  factory  inspector, 
the  Legislature  in  1907  passed  an  act  which  effected  a  reorganization, 
of  the  department,  enlarged  its  powers  and  increased  the  general 
scope  of  its  activity.  At  the  same  session  of  the  legislature  the  com- 
mission for  the  study  of  occupational  diseases  and  the  commission  to 
investigate  the  needs  for  further  providing  for  the  health,  comfort 
and  safety  of  employes  were  created.  The  acts  providing  for  the  pro- 
tection of  employees  engaged  in  structural  work,  and  relating  to  butter- 
ine  and  ice  cream  factories  were  passed,  and  their  enforcement  vested 
in  the  department  of  factory  inspection. 

In  his  report  for  1908,  the  chief  inspector  calls  attention  to  his 
proposed  building  inspection  law,  comments  upon  the  work  of  the 
commission  on  occupational  diseases  and  upon  the  work  done  by  his 
department  in  securing  the  appointment  of  the  industrial  commission. 

In  a  very  general  way  the  above  summary  shows  the  work  of  the 
department  of  state  factory  inspection  along  the  line  of  recommenda- 
tion, both  as  regards  an  extension  of  the  powers  of  the  State  to 
authorize  inspections  and  to  enforce  regulations  for  the  general  pro- 
tection of  the  laboring  classes  and  of  the  public,  and  as  regards  the 
general  equipment  and  maintenance  of  the  administrative  machinery 
necessary  for  the  proper  enforcement  of  labor  laws.  Under  the  sec- 
tions dealing  in  detail  with  each  of  the  laws  enforcible  by  the  factory 
inspection  department  will  be  found  short  statements  dealing  with  the 
further  contents  of  the  reports. 

Following  is  a  list  of  the  principal  laws,  the  enforcement  of  which 
is  committed  to  the  department  of  factory  inspection: 

Act  to  regulate  manufacture  of  clothing 1893 

Act  to  provide  for  use  of  blowers  on  metal  polishing  machines.  .  .  .  1897 

Child  labor  law 1897 

Child  labor  law 1903 

Act  providing  for  inspection  of  butterine  and  ice  cream  factories.  1907 
Act  providing   for  protection   of  laborers  engaged   in   structural 

work 1907 

Act  to  provide  for  health,  safety,  and  comfort  of  employees 1909 

Act  limiting  the  hours  of  labor  for  women 1909 

and  amendment  thereto  of 191 1 

Act  providing  for  protection  from  occupational  diseases 1911 

Act  providing  for  wash  rooms  in  certain  employments 1913 

POWERS    AND    DUTIES    UNDER    PARTICULAR    STATUTES. 

Act  to  regulate  the  manufacture  of  clothing,  i8pS-  This  act  pro- 
vides that  if  the  State  factory  inspector  or  city  boards  of  health  find 
evidence  of  infectious  or  contagious  diseases  present  in  any  workshop 
or  in  goods  manufactured  here  or  transported  to  this  State,  or  if  the 


LABOR   AND    MINING.  497 

inspector  or  boards  shall  find  said  shops  in  an  unhealthful  condition, 
etc.,  the  inspector  or  boards  shall  issue  such  order  or  orders  as  the 
public  health  shall  require. 

Any  person  occupying  or  controlling  a  workshop  is  required  to 
notify  the  city  board  of  health  within  fifteen  days  after  work  begins 
in  such  shop,  of  its  location,  the  nature  of  work,  and  the  number  of 
persons  employed  therein.  City  boards  of  health  are  empowered  to 
condemn  and  destroy  good=  made  under  unhealthful  conditions,  or 
unfit  for  use,  when  such  conditions  are  found  by  the  board  of  health 
itself  or  reported  to  it  by  the  factory  inspector.  The  first  report  of 
the  State  factory  inspector  in  1893  gives  an  account  of  inspections 
made  under  this  act  as  does  likewise  the  report  of  1895.  The  report 
for  1912-13  (in  manuscript)  contains  a  chapter  devoted  to  this  act. 

The  division  of  power  between  the  factory  inspector's  office  and 
local  boards  of  health  makes  difficulty  in  the  enforcement  of  this  act. 
Upon  inspection,  goods  are  found  which  may  be  condemned  under 
the  law,  but  such  goods  are  usually  removed  by  their  owners  before 
action  is  taken  by  the  local  boards  of  health,  and  no  penalty  is  im- 
posed for  such  removal. 

The  garment  workers'  law  is  also  defective  in  that  it  enumerates 
twelve  types  of  shops  (or  of  work)  subject  -to  its  terms,  but  does 
not  cover  the  whole  subject  of  work  done  under  sweat-shop  or  other 
undesirable  conditions.  For  example,  the  factory  inspector's  office 
calls  attention  to  the  fact  that  it  does  not  cover  work  on  neckwear, 
gloves,  caps,  mittens,  garters,  and  gaiters.  For  this  reason  it  has  been 
necessary,  in  order  to  make  inspections  of  home  work,  to  construe 
home  work  as  being  done  in  workshops  coming  under  the  health,  safety, 
and  comfort  act  of  1909,  and  inspect  under  the  authority  granted  by 
that  act. 

Act  to  compel  use  of  blozvers  on  metal  polishing  machines,  i8py. 
In  general  this  act  lays  down  specific  requirements  concerning  the 
use  of  emery  wheels,  but  from  its  provisions  are  exempted  grinding 
machines  upon  which  water  is  used  at  the  point  of  grinding  contact, 
and  small  shops  employing  not  more  than  one  man.  It  contains  pro- 
visions as  to  the  manner  in  which  each  wheel  is  to  be  fitted  into  hoods, 
provision  concerning  blowers  and  suction  pipes,  their  construction,  at- 
tachment, etc.  Concurrently  with  the  sheriff,  constables,  and  prose- 
cuting attorneys,  the  state  factory  inspector  is  charged  with  the  duty 
(upon  his  receiving  notice  in  writing  signed  by  any  person  having 
knowledge  of  such  facts,  accompanied  by  the  sum  of  one  dollar,  that 
any  factory  or  workshop  is  not  provided  with  such  appliances  as  re- 
quired by  the  act)  to  visit  and  inspect  such  place,  and  if  violations 
of  the  law  are  found  it  is  his  duty  to  prosecute  therefor.  The  reports 
of  the  department  dealing  with  the  administration  of  the  above  act 
show  the  name  of  the  firm,  its  location,  number  of  men  employed, 
number  of  wheels  used,  number  of  wheels  unprotected,  number  of 
wheels  exempt,  date  of  inspection,  actual  orders  issued  with  the  time 
given  and  date  expired,  name  of  the  inspector  and  brief  remarks  con- 
cerning the  general  condition  of  the  establishment  inspected.  In  1909, 
172  inspections  were  made  in  Chicago  and  227  in  establishments  out- 
side of  Chicago.     For  the  year  1911-12,  235  inspections  were  made 


498  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

in  Chicago,  and  25  outside  of  Chicago.  For  the  year  1912-13,  71 
inspections  were  made  in  Chicago  and  39  outside.  With  reference 
to  the  success  of  the  department  in  the  enforcement  of  this  act,  the 
state  factory  inspector,  in  his  report  for  1909,  said:  "It  is  seldom 
now  that  our  inspectors  find  a  shop  where  metal  polishing  is  done 
on  an  extensive  scale  that  there  is  not  a  strict  compliance  with  the 
letter  and  spirit  of  the  law."  It  will  be  noticed  that  the  act  confers 
concurrent  powers  upon  state's  attorneys,  sheriffs  and  constables  to 
enforce  the  act.  No  statement  is  made  in  the  reports  concerning  the 
relation  with  local  authorities  nor  do  the  tables  of  statistics  showing 
the  general  results  of  inspections,  contain  any  information  submitted 
by  these  local  authorities.  The  report  for  1909  shows  that  227  in- 
spections of  metal  polishing  trades  were  made  outside  the  city  of 
Chicago  in  that  year.  The  number  of  cities  is  not  shown.  Among 
the  cities  for  which  the  report  contains  no  reference  to  inspections 
arc  East  St.  Louis,  Peoria,  Aurora,  Cairo  and  Bloomington. 

The  chief  State  factory  inspector  says  that  no  use  has  been  made 
of  the  provision  of  law  with  reference  to  complaints  in  writing  ac- 
companied by  the  sum  of  one  dollar.  Inspections  are  made  just  as 
if  an  initial  duty  to  make  them  were  imposed  by  the  terms  of  the 
law. 

Child  Labor  Law.  There  are  three  separate  statutes  dealing  with 
the  subject  of  child  labor.  In  1893,  in  the  act  to  regulate  the  manu- 
facture of  clothing  and  wearing  apparel  is  contained  a  section  which 
provides  that  no  child  under  fourteen  (14)  years  of  age  shall  be  em- 
ployed in  any  manufacturing  establishment,  factory  or  workshop  with- 
in the  state ;  that  a  register  be  kept  by  any  person  who  employs  chil- 
dren between  the  ages  of  fourteen  (14)  and  sixteen  (16)  in  which 
is  to  be  recorded  the  name,  birthplace,  and  place  of  residence^  of 
every  such  child;  that  an  affidavit  as  to  age,  date  and  place  of  birth 
made  by  parent  or  guardian  of  every  child  between  fourteen  and 
sixteen  (or  by  the  child  if  there  is  no  parent  or  guardian)  shall  be 
required  before  it  shall  be  lawful  for  such  child  to  work.  The  register 
and  certificates  were  open  to  inspection,  upon  demand,  by  the  in- 
spector or  his  assistants.  The  section  further  provides  that  the  factory- 
inspector  may  demand  a  certificate  of  physical  fitness  from  a  regular 
physician  in  the  case  of  children  who  appear  to  him  physically  unable 
to  perform  the  labor  at  which  they  may  be  engaged,  and  may  pro- 
hibit the  employment  of  any  minor  unable  to  furnish  such  a  certi- 
ficate. This  act  also  provides  that  in  every  room  where  children  under 
sixteen  (16)  are  employed  shall  be  kept  a  list  of  their  names,  ages 
and  places  of  residence.  This  act  applied  only  to  children  employed 
in  manufacturing  establishments,  factories,  and  workshops. 

In  1897  in  the  "act  to  regulate  the  employment  of  children"  it  is 
provided  that  no  child  under  fourteen  (14)  shall  be  allowed  to  work 
for  wages  in  gainful  occupation  in  any  mercantile  institution,  store, 
office,  laundry,  manufacturing  establishment,  factory,  or  workshop. 
Registers  and  affidavits  of  parents  or  guardians  (or  of  child  without 
parent  or  guardian)  are  required  as  in  the  previous  act;  the  list  of 
persons  under  sixteen   (16)  is  likewise  required  to  be  posted.     It  is 


LABOR   AND    MINING. 


499 


further  provided,  and  this  section  is  entirely  new,  that  sixty  (60) 
hours  per  week  and  ten  (10)  hours  per  day  shall  be  the  maximum 
number  of  hours  during  which  such  persons  may  be  legally  employed. 
A  prohibition  is  also  placed  upon  the  employment  of  a  child  under 
sixteen  (16)  years  of  age  in  any  extra-hazardous  employment  whereby 
its  life  or  limb,  or  its  health  is  likely  to  be  injured,  or  its  morals 
may  be  depraved. 

An  amendment  of  1901  further  provided  that  all  establishments 
subject  to  factory  inspection  where  girls  and  women  are  employed 
shall  be  provided  with  suitable  seats  for  the  use  of  the  girls  and 
women,  and  that  they  shall  be  permitted  to  use  such  seats  when  not 
necessarily  engaged  in  their  active  duties. 

The  state  factory  inspector,  in  each  of  the  above  acts,  is  charged 
with  the  enforcement  of  its  provisions,  and  an  amendment  of  1901 
imposed  penalties  for  any  obstruction  of  factory  inspectors  in  the 
performance  of  their  duties  under  the  act  of  1897.  With  these  stat- 
utes in  force,  the  legislature  in  1903,  went  into  the  subject  of  child 
labor  again  and  enacted  a  law  much  more  complete  in  its  provisions, 
for  the  most  part  covering  the  same  ground  as  did  the  previous  acts. 
This  act  expressly  repeals  the  defective  child  labor  act  of  1891,  but 
repeals  only  such  parts  of  other  acts  as  are  in  conflict  with  the  en-, 
actment  of  1903.  The  duties  of  the  department  of  factory  inspection 
thereunder  are  as  follows : 

1.  Duty  to  visit  all  mercantile  institutions,  offices,  laundries,  manu- 
facturing establishments,  bowling  alleys,  theaters,  concert  halls  and 
places  of  amusement,  factories,  or  workshops,  and  all  other  places 
where  minors  are  or  may  be  employed  in  this  State  ^  and  ascertain 
whether  any  minors  are  employed  contrary  to  the  provisions  of  the  act. 

2.  The  inspectors  may  require  that  age  and  school  certificates,  and 
all  lists  of  minors  employed  in  such  factories,  workshops,  mercantile 
institutions,  and  other  places  where  minors  are  employed,  as  provided 
for  in  this  act,  shall  be  produced  for  their  inspection  on  demand. 

3.  It  is  made  the  special  duty  of  the  State  Factory  Inspector  to  en- 
force the  provisions  of  this  act  and  to  prosecute  all  violations  of  the 
law,  and  it  is  made  his  duty,  and  that  of  his  assistants  and  deputies  to 
visit  and  inspect  at  all  reasonable  times  and  as  often  as  possible  all 
places  covered  by  the  act. 

By  the  last  section  referred  to  it  is  made  the  special  duty  of  the 
inspector  to  enforce  the  provisions  of  this  act.  In  general  these  pro- 
visions are  as  follows: 

1.  Section  one  provides  that  no  child  under  fourteen  (14)  shall  be 
permitted  to  work  at  any  gainful  occupation  in  any  theater,  concert 
hall  or  place  of  amusement  where  intoxicating  liquors  are  sold,  or  in 
any  mercantile  institution,  store,  office,  hotel,  laundry,  manufacturing 
establishment,  bowling  alley,  passenger  or  freight  elevator,  factory  or 
workshop,  or  as  a  messenger  or  driver  therefor  in  this  state. 

2.  That  no  child  under  fourteen  (14)  shall  be  employed  at  any 
work  for  wages  during  any  portion  of  any  month  when  the  public 
any  one  day.  This  last  provision  repeals  the  similar  one  in  the  act  of 
and  no  child  shall  be  allowed  to  work  more  than  eight  (8)  hours  in 
schools  are  in  session,  nor  employed  before  7  A.  M.  or  after  6  P.  M. 


500  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

1897  which  specifies  that  the  (10)  hours  shall  be  the  maximum  per 
day.  This  provision  with  respect  to  children  under  fourteen  (14)  is 
supplemented  by  Section  10  of  the  act  which  forbids  labor  by  children 
under  sixteen  (16)  more  than  forty-eight  hours  in  one  week  or  eight 
(8)  hours  a  day,  or  before  seven  in  the  morning  or  after  seven  in  the 
evening.  Notices  of  such  hours  are  to  be  furnished  by  the  State  Fac- 
tory Inspector  and  kept  posted  in  every  room  where  minors  are  em- 
ployed. 

3.  Section  two  provides  that  every  person  who  employs  minors 
between  the  ages  of  fourteen  (14)  and  sixteen  (16)  in  the  enutnerated 
establishments  in  Section  one  (with  the  exception  that  no  particular 
designation  is  made  of  places  where  intoxicating  liquor  is  sold)  shall 
keep  a  register  in  which  shall  be  recorded  the  name,  age,  and  place  of 
residence  of  every  such  child  employed,  and  shall  require  of  the  child 
the  production  of  an  age  and  school  certificate,  stating  his  age,  grade 
in  school,  that  he  can  read  and  write  legibly  simple  sentences ;  such 
age  and  school  certificates  to  be  placed  on  file  and  to  be  accessible  to 
the  inspector. 

Section  three  provides  that  "wall  lists"  shall  be  kept  posted  in  every 
room  where  minors  between  the  ages  of  fourteen  (14)  and  sixteen 
(16)  are  working,  showing  name,  age,  and  place  of  residence. 

Other  sections  deal  with  the  requirements  of  age  and  school  certi- 
ficates, disposition  of  the  certificate  at  end  of  employment,  and  with 
requirements  as  to  schooling. 

The  applicant  for  an  age  and  school  certificate  must  present  a 
school  attendance  certificate  signed  by  the  teacher,  certifying  to  the 
grade,  literacy  or  illiteracy,  and  age  (upon  the  school  record)  of  the 
child.  Upon  the  presentation  of  this  school  attendance  certificate, 
an  age  and  school  certificate  (entitling  the  child  to  work)  is  ordinarily 
issued  as  a  matter  of  course. 

Age  and  school  certificates  are  to  be  approved  only  by  the  superin- 
tendent of  schools  or  by  a  person  authorized  by  him  in  writing,  or 
where  there  is  no  superintendent,  by  a  person  authorized  by  the  school 
board ;  but  superintendents  or  principals  of  parochial  schools  have 
the  same  power  as  superintendents  of  schools.  No  person  has  au- 
thority to  approve  certificates  for  a  child  who  is  to  enter  his  own  em- 
ploy or  the  employ  of  a  concern  with  which  he  is  connected.  Those 
authorized  to  issue  age  and  school  certificates  are  also  authorized  to 
administer  oaths.  It  is  the  duty  of  the  school  authorities  to  make 
provision  for  the  issuance  of  such  certificates. 

Proof  of  age  for  the  age  and  school  certificate  is  furnished  by  the 
last  school  census,  certificate  of  birth  or  baptism,  register  of  birth 
with  town  or  city  clerk,  or  by  records  of  public  or  parochial  schools. 
The  oath  of  the  parent  is  taken  in  absence  of  above  proof,  the  oath 
to  be  made  before  the  juvenile  or  county  court,  and  the  court  may 
issue  an  age  certificate. 

A  duplicate  of  the  age  and  school  certificate  is  required  to  be  filled 
out  and  sent  to  the  State  Factory  Inspector's  office.  The  employment 
certificate  is  issued  in  the  name  of,  and  belongs  to,  the  child.  The 
certificate  is  produced  to  and  kept  on  file  by  the  employer,  and  is  sur- 


LABOR   AND    MINING. 


501 


rendered  to  the  child  when  he  leaves  the  employment.  If  not  claimed 
by  the  child  within  thirty  days  it  is  to  be  returned  to  the  issuing  school 
authority. 

In  case  a  child  cannot  read  and  write  legibly,  the  employer  is  re- 
quired to  keep  a  list  of  such  children  under  sixteen  (16)  who  are  not 
attending  night  school,  for  production,  on  demand  by  the  inspector. 
In  case  of  children  between  fourteen  (14)  and  sixteen  (16)  who  can- 
not read  and  write  simple  sentences,  there  must  be  a  certificate  that  he 
or  she  is  regularly  attending  a  public  or  parochial  evening  school,  and 
the  age  and  school  certificate  continues  in  force  just  so  long  as  the 
regular  attendance  of  such  child  is  certified  weekly  by  the  teacher  or 
principal  of  an  evening  school.  The  age  and  school  certificate  must 
itself  contain  a  statement  of  school  attendance  where  the  child  is 
illiterate,  but  contains  no  provision  which  makes  it  necessary  that  the 
issuing  authority  pass  in  each  case  upon  the  question  of  _  literacy. 
Perhaps  in  most  cases  the  question  is  not  raised  when  application  is 
made  for  a  certificate.  The  school  certificate  is  prima  facie  evidence 
of  the  literacy  or  illiteracy  of  the  child. 

Where  there  is  no  evening  school  or  when  no  evening  schools  are 
in  session,  no  age  and  school  certificate  may  be  approved  for  a  child 
under  sixteen  (16)  who  cannot  read  at  sight  and  write  legibly  simple 
sentences.  The  child  labor  act,  therefore,  expressly  forbids  the  issu- 
ance of  age  and  school  certificates  to  illiterate  children  under  sixteen 
where  and  when  there  are  no  evening  schools  and  unless  the  children 
are  in  attendance  upon  such  schools,  but  this  prohibition  is  later  quali- 
fied by  a  proviso  that  there  shall  be  no  employment  of  such  children 
between  the  ages  of  fourteen  and  sixteen  "while  a  public  evening 
school  is  maintained  in  the  town  or  city  in  which  such  minor  resides, 
unless  such  minor  is  a  regular  attendant  at  such  evening  school." 

The  act  (section  11)  forbids  the  employment  of  children  under 
sixteen  (16)  (1)  in  certain  designated  occupations  (those  regarded 
as  hazardous),  and  closes  with  a  general  prohibition  of  their  employ- 
ment in  any  other  place  considered  dangerous  to  their  life  or  limb, 
or  where  their  health  may  be  injured  or  morals  depraved,  thus  leaving 
to  the  state  factory  inspector  some  authority  to  determine,  in  the  first 
instance,  at  anv  rate,  what  places  come  within  the  terms  of  the  pro- 
hibition;  (2)  o'f  children  under  sixteen  (16)  in  theaters,  concert  halls, 
or  places  of  amusement,  where  intoxicating  liquors  are  sold,  and  the 
employment  of  females  under  sixteen  (16)  in  any  capacity  where  such 
employment  compels  them  to  remain  standing  constantly. 

The  act  of  1903  provides  that  upon  written  complaint  to  the  school 
board  or  local  school  authorities  that  a  minor  (whose  name  shall  be 
given  in  the  complaint),  is  employed  contrary  to  the  provisions  of 
this  act,  it  shall  be  the  duty  of  school  authorities  to  report  the  same 
to  the  State  Factory  Inspector. 

The  foregoing  are  the  principal  provisions  of  the  child  labor  law. 
with  the  enforcement  of  which  the  department  of  state  factory  m- 
spection  is  charged.  The  act  of  1897  is,  therefore,  practically  dis- 
placed by  the  act  of  1903.  Likewise  the  sections  of  the  act  of  1893, 
dealing  with  child  labor,  are  also  superseded  by  the  last  act,  except 


502  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

the  provision  in  the  act  of  1893  conferring  authority  upon  the  state 
factory  inspector  to  require  a  certificate  of  physical  fitness  from  a 
physician  in  case  of  children  who  may  appear  to  him  physically  un- 
able to  perform  the  labor  at  which  they  may  be  engaged.  The  factory 
inspector's  office,  however,  did  not  even  know  of  this  provision,  and 
has  proceeded  on  the  assumption  that  the  act  of  1903  replaces  all 
previous  legislation. 

Section  28  of  the  coal  mining  act  of  1911  forbids  labor  in  mines 
by  any  boy  under  the  age  of  sixteen  years,  or  by  any  woman  or  girl 
whatever.  A  certificate  of  age  is  required,  but  there  is  no  provision 
that  this  certificate  shall  be  open  to  inspection  by  the  state  mine  in- 
spectors, to  whom  the  enforcement  of  the  mining  act  is  committed. 

Of  great  importance  in  connection  with  the  enforcement  of  the 
child  labor  laws  are  the  provisions  of  the  school  law  with  respect 
to  compulsory  education.  These  provisions  may  be  found  in  sections 
274  and  275  of  the  revised  school  act  of  1909.  Every  person  having 
control  of  any  child  between  the  ages  of  seven  and  sixteen  is  required 
to  cause  such  child  to  attend  some  public  or  private  school  for  the  entire 
time  during  which  the  school  attended  is  in  session,  whidi  shall  not  be 
less  than  six  months  of  actual  teaching;  several  exceptions  are  made, 
of  which  the  most  important  is  that  as  to  children  between  14  and 
16  who  are  necessarily  and  lawfully  employed  during  the  hours  when 
school  is  in  session.  Truant  officers  are  required  to  be  appointed  for 
the  enforcement  of  compulsory  school  attendance. 

It  may  be  noted  that  the  public  school  law  makes  an  exception 
in  favor  of  children  "necessarily  and  lawfully  employed."  The  word 
"necessarily"  may  perhaps  be  interpreted  to  excuse  from  school  at- 
tendance only  those  children  between  fourteen  and  sixteen  whose 
earnings  are  necessary  to  the  support  of  themselves  and  their  families. 
Such  an  interpretation  is,  however,  not  at  all  clear,  and  the  issuance 
of  age  and  school  certificates  can  hardly  be  refused  on  this  ground. 
If  it  is  intended  to  confer  a  discretion  as  to  this  matter  upon  those 
administering  the  child  labor  laws,  the  intention  should  be  made  clear 
by  the  language  of  the  statute.  As  a  matter  of  policy  it  would  be 
desirable  to  limit  child  labor  to  cases  of  economic  necessity.  On  the 
other  hand  an  official  discretion  in  this  matter  is  very  likely  not  to  be 
used,  and  if  used,  may  be  employed  arbitrarily.  On  the  whole  it  is 
better  to  raise  the  limitations  for  all  children  rather  than  to  forbid 
labor  of  certain  children  because  of  pecuniary  considerations. 

It  may  be  well  to  mention  in  this  connection,  the  provisions  of  an 
act  of  1877,  now  printed  in  the  Criminal  Code,  sees.  42a  to  42e.  deal- 
ing with  the  subject  of  child  labor.  Section  42a  makes  it  unlawful 
for  any  person  having  the  care,  custody,  or  control  of  any  child  under 
the  age  of  fourteen  (14)  to  exhibit,  use  or  employ  him  in  any  manner 
in  any  exhibition  or  vocation  injurious  to  the  health  or  dangerous  to 
the  life  or  limb  of  such  child.  Section  42b  makes  it  unlawful  for  any 
person  to  employ  or  exhibit  or  have  in  custody  any  child  for  the  pur- 
poses prohibited  in  Section  42a.  Section  42d  makes  it  unlawful  for 
any  person  having  the  care  or  custody  of  any  such  child  wilfully 
to  cause  or  permit  the  life  of  such  child  to  be  endangered,  or  will- 


LABOR   AND    MINING.  503 

fully  to  cause  or  permit  such  child  to  be  placed  in  such  a  situation 
that  its  life  or  health  may  be  injured.  General  penalties  are  provided 
for  violations  of  the  act.  This  legislation  vv^as  amended  in  1895 
(Criminal  Code,  Sees.  492-497)  so  as  to  forbid  .certain  other  specific 
exhibitions  of  children  under  fourteen  (14).  Prohibitions  in  general 
terms  of  practices  injurious  to  health  or  dangerous  to  life  or  limb 
are  also  included  in  the  act  of  1895.  These  acts  are  not  enforcible 
by  the  state  factory  inspector's  office. 

The  reports  of  the  chief  state  factory  inspector  show  that  much 
attention  has  been  given  to  the  enforcement  of  the  child  labor  acts, 
but  the  reports  to  1909  do  not  give  a  clear  notion  of  just  what  has 
been  done,  confining  themselves  mainly  to  elaborate  lists  of  firms 
whose  establishments  were  inspected.  With  the  increased  duties 
placed  upon  the  factory  inspector  to  inspect  under  other  laws,  the 
amount  of  attention  devoted  to  the  child  labor  laws  has  apparently  de- 
creased. For  many  of  the  smaller  comimunities  the  number  of  in- 
spections reported  under  the  child  labor  law  seems  to  be  much  greater 
than  the  number  of  establishments  in  which  child  labor  may  have  been 
employed.  This  statement  holds  for  statistics  published  in  the  report 
of  the  department  for  December  16,  1910-June  30,  1912,  and  is  further 
borne  out  by  the  statistics  in  the  report  (in  manuscript)  for  1912-13. 
This  suggests  a  possible  doubt  as  to  the  value  of  statements  indicating 
a  large  total  of  inspections. 

In  Chicago  the  issuance  of  age  and  school  certificates  is  handled 
by  the  public  school  authorities  in  co-operation  with  the  factory  in- 
spector, and  two  clerks  from  the  factory  inspector's  office  devote  their 
time  to  work  connected  with  the  issuance  of  such  certificates.  With 
some  of  the  more  important  religious  denominations  in  Chicago,  co- 
operative relations  have  also  been  established  in  the  issuance  of  such 
certificates.  But  outside  of  Chicago  not  a  great  deal  of  attention  seems 
to  have  been  paid  to  relations  with  the  schools. 

Several  defects  in  present  legislation  may  be  pointed  out : 

(1)  It  is  easy  for  a  child  to  obtain  an  age  and  school  certificate 
by  transferring  from  a  public  school  to  a  parochial  school,  or  vice 
versa,  and  stating  his  age  as  over  14  to  the  school  to  which  he  trans- 
fers.    It  is  difficult  to  discover  the  deceit  in  such  a  case. 

(2)  Children  between  14  and  16  unable  to  read  and  write  simple 
sentences  must  attend  night  school  while  holding  certificates  enabling 
them  to  work.  This  provision  should  relate  to  all  children  unable  to 
read  and  write  simple  sentences  in  English,  but  even  the  present  pro- 
vision is  largely  unenforced.  It  would  also  be  desirable  to  have  some 
test  in  arithmetic.  Perhaps  a  definite  standard  of  education  may  be 
obtained  by  requiring  completion  of  the  fifth  grade  or  its  equivalent. 
Each  employer  should  be  required  to  keep  on  file  a  separate  list  of  all 
illiterate  children  in  his  employ.  A  system  of  vocational  education  is 
essential  to  supplement  the  child  labor  laws. 

(3)  The  relations  between  the  schools  and  the  factory  inspector 
should  be  much  closer,  especially  in  view  of  the  fact  that  visits  of 
inspectors  are  infrequent  outside  of  Chicago.    Instead  of  being  limited 


504  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

expressly  as  to  the  manner  of  reporting  violations  of  the  child  labor 
law  to  the  factory  inspector,  the  school  authorities  should  be  them- 
selves empowered  and  required  to  prosecute  in  case  of  violations  com- 
ing to  their  attention.  .Some  power  of  inspection  should  also  be  vested 
in  the  school  authorities. 

(4)  The  factory  inspection  department  has  suggested  that  all 
school  certificates  should  be  issued  through  its  office  and  that  certi- 
ficates when  surrendered  should  be  returned  thereto.  For  Chicago 
this  may  be  desirable,  but  if  duplicates  of  the  age  and  school  certi- 
ficates for  the  entire  state  were  sent  to  the  Factory  Inspector's  office 
(as  is  now  required  by  law)  the  time  required  to  handle  them  would 
probably  be  too  great,  although,  if  the  state  were  divided  into  several 
large  inspection  districts,  it  might  be  feasable  to  handle  these  duplicates 
at  the  offices  of  such  inspection  districts.  But  the  factory  inspection 
department  has  not  now,  and  is  not  likely  to  have  in  the  near  future, 
a  sufficient  number  of  inspectors  to  issue  age  and  school  certificates 
throughout  the  whole  state.  In  each  city  or  community  a  record  of 
age  and  school  certificates  issued  should,  however,  be  kept  in  some 
one  place,  and  to  this  place  should  be  sent  a  report  of  all  certificates, 
whether  issued  by  public  or  parochial  schools.  Uniform  records  of 
these  matters  should  also  be  required  of  all  schools. 

It  should  also  be  possible  for  both  the  school  and  factory  inspection 
authorities  to  know  just  where  each  child  is  employed.  This  may  be 
accomplished  by  requiring  certificates  to  be  issued  for  work  with  a 
particular  employer.  When  the  child  leaves  employment,  the  employer 
may  be  required  to  return  the  certificate  to  the  issuing  authority.  The 
child  in  taking  a  new  position  could  then  be  required  to  obtain  a  new 
certificate,  which  might  be  issued  as  a  matter  of  course,  on  the  basis 
of  records  already  on  file  in  the  issuing  office. 

An  effective  enforcement  of  a  child  labor  law  also  makes  it  neces- 
sary that  a  record  be  kept  of  all  cases  in  which  age  and  school  certi- 
ficates were  refused. 

(5)  A  desirable  change  in  the  law,  recommended  by  the  factory 
inspector's  office,  is  that  the  age  limit  for  work  by  girls  be  in  all  cases 
raised  to  sixteen  years. 

(6)  The  statutory  provision  regarding  physical  fitness  of  children 
should  be  enforced,  and  should  be  supplemented  by  legislation  requir- 
ing a  medical  certificate  of  physical  fitness  in  every  case  as  a  condi- 
tion precedent  to  a  child's  employment.  .For  legislation  of  this  char- 
acter see  Second  Report  New  York  Factory  Investigation  Commission 
(1913)  Vol.  I,  pp.  359-361.  Requirements  regarding  physical  fitness 
should  be  enforced  by  medical  inspections  of  the  department  of  fac- 
tory inspection,  either  upon  complaint  or  upon  the  initiative  of  the 
department.  It  will  be  necessary  to  have  the  school  authorities  pro- 
vide for  a  physical  examination  of  children  at  the  time  when  age  and 
school  certificates  are  issued. 

(7)  It  has  been  urged  that  the  law  should  be  so  amended  that 
the  affidavit  of  parents  and  the  school  record  should  not  be  accepted 
as  proof  of  age,  in  the  absence  of  more  satisfactory  evidence.  This 
can  hardly  be   done,   especially   in   view   of   the   absence   of   official 


LABOR   AND    MINING.  505 

records  of  birth,  etc.,  in  this  country.  If  the  law  is  altogether  to  forbid 
labor  by  children  between  fourteen  and  sixteen  in  a  large  number  of 
cases  it  should  do  so  directly,  not  indirectly.  It  is,  of  course,  desirable, 
and  in  time  it  may  be  possible  to  forbid  labor  before  the  age  of  six- 
teen. To  refuse  to  accept  oaths  of  parents  and  school  records  in  the 
absence  of  other  records,  would  forbid  labor  between  fourteen  and 
sixteen  for  large  elements  in  the  state.  Statements  of  parents  and 
school  records  should  not  be  accepted  without  verification.  Children 
under  fourteen  can  to  a  great  extent  be  prevented  from  working  (even 
with  the  present  methods  of  proof  of  age)  if  a  physical  examination 
is  in  each  case  required  for  a  certificate,  with  the  enforcement  of  a 
standard  in  such  examination  such  as  can  only  be  met  by  a  normal 
child  of  fourteen.  This  test  might  well  be  supplemented  by  a  stricter 
educational  test. 

(8)  The  Illinois  Act  of  1903  (sec.  1)  forbids  employment  of 
children  under  fourteen  at  gainful  occupations  in  certain  enumerated 
establishments.  The  enumeration  seems  rather  complete  but  may  not 
include  everything.  The  act  continues  by  prohibiting  employment  of 
children  under  fourteen  for  wages  or  other  compensation  during  any 
portion  of  any  month  when  the  public  schools  are  in  session,  and  by 
regulating  the  hours  of  labor  of  children  under  fourteen.  The  act 
itself,  therefore,  expressly  recognizes  the  legality  of  some  gainful 
labor  by  children  under  fourteen  when  the  public  schools  are  not  in 
session.  Yet  the  law  does  not  require  age  and  school  certificates,  reg- 
isters, etc.,  for  children  under  fourteen  employed  during  vacation. 
This  may  make  some  difficulty  in  the  enforcement  of  the  child  labor 
act  when  the  schools  are  not  in  session. 

Butterine  and  ice  cream  inspection  act.  The  object  of  the  butterine 
and  ice  cream  inspection  law  enacted  in  1907  is  to  make  it  compulsory 
upon  all  manufacturers  of  butterine  and  ice  cream  to  maintain  their 
establishments  in  a  thoroughly  healthful  and  sanitary  condition.  To 
this  end  the  act  lays  down  specific  regulations  as  to  drainage,  plumb- 
ing, ventilation,  foundations  and  construction.  Penalties  are  provided 
in  the  act  for  any  violation  of  its  provisions  and  it  is  expressly  made 
the  duty  of  state  factory  inspectors  to  cause  an  inspection  of  all  such 
manufacturies ;  to  order  alterations  to  be  made,  and  to  order  a  general 
compliance  with  the  specific  rules  of  the  act,  that  the  building  may 
be  put  in  a  condition  conducive  to  proper  and  healthful  sanitation. 
The  factory  inspector  may  require  the  whitewashing  of  walls  at  regu- 
lar intervals,  and  may  also  require  that  the  woodwork  be  painted. 
It  is  made  the  duty  of  the  factory  inspector  to  issue  a  certificate  to 
such  manufacturies  as  are  found  to  have  complied  with  all  the  pro- 
visions of  the  act. 

The  report  of  the  factory  inspection  department  for  1911-12  in- 
dicated 46  inspections  under  this  law,  none  of  which  were  in  Chicago. 
There  were  no  inspections  in  Springfield,  Aurora,  Champaign  and 
numerous  other  cities.  Such  inspections  as  were  made  were  probably 
incidental  and  more  or  less  haphazard.  The  function  here  undertaken 
is  largely  one  belonging  to  local  boards  of  health.  The  powers  con- 
ferred by  this  act  should  be  transferred  as  soon  as  possible  to  the 


506  EFFICIENCY    AXD    ECONOMY    COMMITTEE. 

state  food  commissioner,  who  now  has  autliority  to  inspect  and  actually 
inspects  establishments  of  the  same  character.  The  factory  inspection 
office  has  enough  to  do  within  its  own  proper  field,  and  at  present 
there  is  a  duplication  of  function.  The  chief  state  factory  inspector 
agrees  that  the  duties  under  this  law  should  be  transferred. 

Act  for  the  protection  of  employees  engaged  in  structural  work. 
This  act,  passed  in  1907,  provides  in  general  for  the  protection  and 
safety  of  persons  engaged  in  the  construction,  alteration,  repairing,  or 
removal  of  buildings,  bridges,  viaducts  and  other  structures.  As  in 
the  case  with  other  acts  the  enforcement  of  which  is  committed  to 
the  department  of  factory  inspection,  the  act  lays  down  specific  re- 
quirements in  detail  and  directly  imposes  the  primary  obligation  upon 
the  manufacturer  or  other  person  covered  by  the  act.  It  is  the  duty 
of  the  state  factory  inspector  to  make  inspections  and  to  say  whether 
or  not  the  specific  requirements  of  the  act  have  been  complied  with. 
The  act  for  protection  in  structural  work  contains  provisions  relating ' 
to  the  construction  of  scafirolds,  hoists,  cranes,  safety  rails,  etc. ;  how 
joists  are  to  be  supported,  the  weight  to  be  borne,  floors  to  be  con- 
structed and  machines  elevated,  etc. 

It  is  the  duty  of  all  contractors  and  owners  when  constructing  build- 
ings or  bridges  to  know  the  provisions  of  this  act  and  to  comply 
therewith.  From  the  wording  of  this  statute,  it  is  not  made  the  ex- 
press duty  of  the  state  factory  inspector  to  make  inspections  of  all 
buildings,  bridges,  etc.,  but  the  act  provides  that  whenever  it  shall  come 
to  the  notice  of  the  state  factory  inspector  that  any  buildings,  etc., 
in  process  of  construction,  are  unsafe  or  liable  to  prove  dangerous  to 
the  life  or  limb  of  any  person,  it  shall  become  his  duty  immediately 
to  cause  an  inspection  to  be  made.  If,  after  examination,  it  is  found 
that  the  provisions  of  the  act  have  not  been  complied  with,  it  is  the 
duty  of  the  inspector  to  notify  the  person  responsible  and  to  require 
him  to  alter  or  reconstruct  such  parts  of  the  building  as  may  be 
necessary  to  avoid  danger.  If  a  building  under  construction  is  more 
than  five  stories  high,  no  material  used  is  to  be  hoisted  over  the  street 
unless  the  street  is  barricaded. 

The  chief  officer  of  the  city,  town  or  village  and  the  state  factory 
inspector  are  charged  with  the  enforcement  of  the  act.  In  all  cities 
of  the  state  where  a  local  building  commissioner  is  provided  for  by 
law,  he  is  charged  with  enforcement  of  the  provisions  of  this  act, 
"and  in  case  of  his  failure,  neglect  or  refusal  so  to  do,  the  state  factory 
inpector  shall,  pursuant  to  the  terms  of  this  act,  enforce  the  provisions 
thereof."  The  reports  of  the  state  factory  inspector  dealing  with  this 
act  do  not  show  that  the  local  authorities  thus  designated  have  actually 
participated  in  the  enforcement  of  the  act.  If  they  have,  and  their 
reports  have  been  sent  to  the  state  inspector,  no  tables  are  shown 
which  would  separate  the  work  done  by  them  and  the  work  done  by 
the  state  department.  Nor  is  any  statement  made  in  the  reports  tend- 
ing to  show  any  relation  between  the  factory  inspection  department 
and  local  authorities  in  the  enforcement  of  this  act.  At  present  there 
are  no  relations  in  the  enforcement  of  this  act  between  the  factory 


LABOR   AND    MINING. 


507 


inspector's  office  and  the  local  authorities.  Any  person  injured  has  a 
right  of  action  for  damages  occasioned  by  a  wilful  failure  or  refusal 
to  comply  with  the  provisions  of  this  act. 

Tables  of  the  factory  inspector's  report  for  1909  show  the  number 
of  inspections  made,  the  location  of  each  structure,  the  name  of  the 
owner  and  contracting  architect,  and  the  nature  of  the  work  gomg  on. 
One  table  shows  the  kind  of  materials  used  in  each  building  inspected, 
the  orders  issued,  and  states  whether  or  not  violations  were  found. 
In  still  another  table  the  names  of  the  same  structures  are  again  re- 
peated, with  the  following  data:  Size  of  the  building  or  bridge,  num- 
not  the  condition  of  the  structure  was  approved  by  the  inspector,  and 
remarks.  Under  the  head  of  remarks  the  table  shows  whether  or 
not  the  condition  of  the  structure  was  approved  by  the  inspector,  and 
if  not  the  table  shows  the  specific  defects  in  the  manner  of  construc- 
tion noted  by  the  inspector,  and  the  time  when  he  made  the  inspection. 
The  number  of  prosecutions  and  violations  are  also  shown.  It  may 
be  noted  that  practically  all  of  the  reports  dealing  with  the  adminis- 
tration of  this  measure  had  to  do  with  inspections  made  in  Chicago 
and  Cook  County.  In  the  report  of  1909,  only  three  inspections  are 
noted  as  having  been  made  outside  of  the  city  of  Chicago;  orie  at 
Chicago  Heights,  one  in  Argo  and  one  at  Milwaukee  and  Addison 
Avenues.  The  report  covering  the  period  from  December  16,  1910 
to  June  30,  1912  shows  twelve  inspections  outside  of  Cook  County, 
of  which  one  was  at  Springfield  and  two  at  Decatur;  the  other  nine 
inspections  noted  as  outside  of  Cook  County  were  not  so.  The  report 
of  1912-1913  (in  manuscript)  shows  that  no  inspections  under  this 
law  were  made  outside  of  Chicago.  As  administered  this  law  is  very 
little  more  than  a  supplement  to  the  building  ordinances  of  Chicago, 
and  would  lead  in  that  city  to  duplicate  inspections  for  practically  the 
same  purposes.  The  law  should  be  more  generally  enforced  or  the 
duties  under  it  transferred  from  the  department  of  factory  inspec- 


tion. 


Health,  Safety  and  Comfort  of  Employees.  This  act,  adopted  m 
1909,  but  in  effect  Jan.  1,  1910,  provides  in  general  for  the  health, 
safety  and  comfort  of  employes  in  all  factories,  mercantile  establish- 
ments, mills  and  workshops  in  this  state.  It  goes  Into  great  detail  in 
providing  for  the  maintenance  of  safe  conditions  in  these  establish- 
ments. Provisions  are  found  on  the  following  subjects:  All  power 
driven  machinery  and  numerous  other  dangerous  appliances,  to  be 
located  so  as  not  to  be  dangerous  to  employes,  and  to  be  properly 
enclosed,  fenced  or  otherwise  protected;  all  dangerous  places  in  or 
about  mercantile  establishments,  factories,  mills  or  workshops  to  be 
properly  enclosed,  fenced  or  otherwise  guarded ;  no  machine  may  be 
used  where  it  is  known  to  be  dangerously  defective  and  no  repairs 
are  to  be  made  when  the  machine  is  in  motion.  The  act  provides 
when  safeguards  may  be  removed;  that  certain  means  be  provided 
for  disconnecting  power ;  for  disengaging  devices ;  power  controlling 
devices;  devices  where  machines  are  arranged  in  groups;  additional 
safeguards  and  safety  devices  on  hoisting  ways;  and  has  provisions 
dealing  with  tampering  with  machines,  and  with  traversing  carriages. 


508  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

To  secure  proper  healthful  conditions  in  such  places  the  act  pro- 
vides that  employes  are  not  to  take  food  into  certain  factories.  (This 
matter  is  now  more  fully  covered  by  section  7  of  the  occupational 
diseases  act  of  1911.)  Seats  for  female  employees  must  \>t  provided 
to  be  used  when  such  employes  are  not  necessarily  engaged  in  their 
active  duties.  There  are  provisions  requiring  the  temperature  to  be 
equable;  provisions  relating  to  ventilation  and  the  amount  of  air 
space  necessar}"^,  provisions  requiring  that  noxious  fumes  and  gases 
be  removed  (now  more  fully  covered  by  section  8  of  occupational 
diseases  act),  that  all  refuse  be  properly  disposed  of,  that  adequate 
means  of  escape  in  case  of  fire-  be  made,  provisions  dealing  with  the 
proper  construction  of  doors,  stairways,  floors,  passageways,  water 
closets,  washing  facilities,  dressing  rooms  and  lights.  It  is  specifically 
provided  that  the  requirements  of  this  act  shall  not  repeal  the  act  of 
1897  relating  to  plumbing  or  any  local  ordinances  requiring  standards 
equal  or-  superior  to  those  of  this  act. 

It  is  the  dut}^  in  the  first  instance  of  every  person  or  corporation 
to  which  the  act  applies  to  carry  out  all  its  provisions,  and  to  make 
all  the  changes  and  additions  necessary  therefor.  To  insure  the  en- 
forcement of  the  act  it  is  expressly  made  the  duty  of  the  state  factory 
inspection  department  to  enforce  all  its  provisions  and  to  prosecute 
all  violations  of  the  same.  It  is  the  duty  of  the  state  factor)'  inspector 
or  his  assistants  to  visit  and  inspect  at  all  reasonable  times  all  factories, 
mercantile  establishments,  mills  and  workshops  to  which  the  act  applies. 
Obstructing  an  inspector  is  punishable  by  fine.  It  is  also  the  duty  of 
inspectors  to  give  proper  notice  to  the  person  owning  or  managing 
such  establishment  of  any  violation  of  the  act.  Power  is  conferred 
upon  the  department  to  order  unsafe  conditions  in  factories  to  be 
remedied ;  and  when  such  order  is  not  carried  out,  it  is  then  the  duty 
of  the  state  factory  inspector  to  prosecute.  When  changes  comply- 
ing with  the  laws  have  been  made  the  same  shall  not  be  disturbed  for 
twelve  months  as  to  location  of  machines  or  as  to  ventilation. 

With  the  idea  of  providing  for  the  dissemination  of  general  knowl- 
edge of  this  act,  it  is  made  the  duty  of  the  chief  inspector  to  keep  on 
hand  copies  of  its  provisions  and  to  supply  requests  for  the  same  inso- 
far as  it  is  necessary  to  carry  out  this  purpose.  In  order  that  the 
workmen  may  be  informed  of  the  provisions  of  the  act,  it  is  also 
made  the  duty  of  the  state  factory  inspector  to  prepare  a  notice  cover- 
ing the  salient  features  thereof  and  to  have  the  sarrie  posted  in  a 
conspicuous  place  in  every  office  and  work  room  of  every  establish- 
ment covered  by  its  provisions.  While  charged  primarily  with  the 
enforcement  of  the  act,  the  state  factory  inspector  is  under  certain 
conditions  authorized  to  accept  a  report  of  inspections  conducted  by 
city  authorities  who  act  under  city  ordinances,  in  lieu  of  inspections 
required  by  this  act.  To  this  extent  is  the  department  of  state  factory 
inspection  related  to  the  local  authorities.  No  close  relations  have 
been  established  between  the  factory  inspection  department  and  local 
authorities  and  no  reports  of  inspections  have  been  made  by  the  local 
authorities. 

Hours  of  Labor  of  Women.  An  act  of  1893  limiting  the  hours  of 
labor  of  females  in  any  factor}'  or  workshop  to  eight  hours  a  day  was 


LABOR    AND    MINING. 


509 


declared  unconstitutional  in  Ritchie  v.  People,  155  111.,  98.  The  statute 
enacted  in  1909  forbade  the  employment  of  females  more  than  ten 
hours  per  day  in  mechanical  establishments,  factories  or  laundries,  but 
as  amended  in  1911  it  applies  to  the  following  establishments:  Me- 
chanical or  mercantile  establishments,  factories,  laundries,  hotels, 
restaurants,  telegraph  and  telephone  offices,  places  of  amusement,  ex- 
press, transportation  or  public  utility  companies,  common  carriers, 
public  institutions,  incorporated  or  unincorporated. 

The  act,  as  amended  in  1911,  also  provides  that  all  employers  shall 
keep  a  time  book  showing  for  each  day  the  hours  during  which  each 
and  every  female  is  employed.  The  department  of  factory  inspection 
is  expressly  charged  with  the  enforcement  of  the  act.  The  state  fac- 
tory inspector  is  not  expressly  charged  with  the  duty  of  making  in- 
spections, but  practically  all  of  the  establishments  covered  by  this  act 
are  included  in  other  acts  by  authority  of  which  the  factory  inspector 
is  required  to  make  inspections.  However,  the  absence  of  express 
authority  to  inspect  and  of  penalties  for  obstructing  inspection  has 
made  some  trouble.  The  chief  factory  inspector  also  calls  attention 
to  the  fact  that  the  only  penalty  imposed  for  the  violation  of  the  act 
is  that  of  a  fine,  without  an  alternative  of  imprisonment.  It  would 
also  be  desirable  to  make  clearer  the  criminal  liability  for  a  false 
time  record,  and  to  provide  a  penalty  for  such  falsification  equal  to 
that  imposed  for  violating  the  provision  with  respect  to  hours  of 
labor. 

Protection  from  Occupational  Diseases.  The  broad  requirement  of 
this  act,  adopted  in  1911,  is  to  compel  all  employers  of  labor  to  adopt 
and  provide  reasonable  and  approved  devices,  means  and  methods  for 
the  prevention  of  industrial  diseases.  In  addition  to  this  general  re- 
quirement, the  act  designates  certain  processes  which  are  deemed 
essentially  dangerous.  With  reference  to  these  specifically  designated 
industries  the  act  goes  farther  and  lays  down  certain  prohibitions  and 
more  detailed  requirements.  For  example,  it  is  provided  that  clothing 
shall  be  provided  for  employees  while  at  work,  that  suitable  provision 
shall  be  made  for  employes  to  take  their  meals,  for  dressing  rooms 
and  lavatories,  for  certain  devices  necessary  for  carrying  off  poisonous 
fumes,  for  cleaning  of  flues  and  scrubbing  of  floors.  All  receptacles 
are  to  be  covered,  refuse  removed,  etc.  Such  is  the  nature  of  the 
substantive  provisions  of  the  act. 

The  act  is  directed  to  the  individual  employers  themselves.  They 
are  required,  under  penalty,  to  conform  to  the  specific  rules  laid  down 
in  the  statute.  To  secure  the  enforcement  of  the  act,  however,  it 
is  provided,  with  reference  to  those  industries  expressly  designated, 
that  every  such  employer  therein,  shall  himself  cause  all  employees  in 
his  establishment  who  come  in  contact  with  poisonous  agencies  or 
injurious  processes  to  be  examined  by  a  competent  physician  once  each 
month  for  the  purpose  of  ascertaining  whether  any  employe  is  afflicted 
with  any  industrial  disease  due  to  the  character  of  the  work  in  which 
he  may  be  engaged.  After  such  examination  the  physician  is  required 
to  make  a  report  of  each  examination  made,  in  which  he  must  show 
the  name,  address,  sex  and  age  of  each  employee,  the  name  of  his  em- 
ployer, the  nature  of  the  disease  found,  if  any,  the  probable  extent 


510  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

and  duration  thereof  and  the  last  place  of  employment.  This  report 
is  then  to  be  sent  to  the  state  board  of  health,  and  the  board  of  health 
is  required  to  transmit  a  copy  to  the  department  of  factory  inspec- 
tion. 

The  act  imposes  upon  the  department  of  factory  inspection  the  duty 
of  inspecting  all  places  covered  by  its  provisions.  It  is  the  duty  of  the 
state  factory  inspector  to  determine  whether  there  is  any  violation, 
and  if  so,  then  to  order  the  employer  to  install  any  approved  device, 
means  or  method  which  in  his  judgment  is  reasonably  necessary  to 
protect  the  health  of  the  employees  therein.  Furthermore,  and  more 
generally,  if  the  factory  inspector  hnds  any  industrial  disease  or  if 
such  disease  is  called  to  his  attention  by  the  state  board  of  health  then 
if,  in  the  opinion  of  the  inspector,  such  disease  is  caused  by  a  failure 
on  the  part  of  the  employer  to  adopt  reasonable  appliances,  means  and 
methods  which  are  known  to  be  reasonably  adequate  and  sufficient  to 
prevent  the  contraction  or  continuance  of  any  such  disease  or  illness, 
it  is  his  duty  to  order  the  employer  to  install  adequate  and  approved 
appliances,  means  and  methods. 

The  information  regarding  unhealthful  conditions  is  therefore  de- 
rived through  two  separate  channels:  (1)  from  the  copies  of  physi- 
cians' reports  made  to  the  state  board  of  health  and  furnished  by  this 
body  to  the  department  of  factory  inspection;  (2)  from  personal 
inspection  of  the  factory  inspector.  It  rests  with  the  factory  inspector 
to  determine,  in  each  case,  whether  or  not  the  existence  of  the  disease 
is  due  to  failure  on  the  part  of  the  employer  to  provide  appliances, 
means  and  methods  which  are. supposed  to  prevent  such  disease.  It 
is  then  his  duty  to  order  the  changes  which  in  his  judgment  are  reason- 
ably necessary  to  protect  the  health  of  employees. 

Additional  requirements  are  made  of  the  factory  inspector  such  as 
the  duty  of  preparing  notices  of  the  salient  features,  of  the  act  and 
of  furnishing  such  to  employers,  and  the  duty  to  see  that  such  notices 
are  kept  posted  by  employers.  The  act  penalizes  obstruction  of  in- 
spectors and  also  provides  for  prosecution  of  violations  by  the  state 
department  of  factory  inspection.  There  is  provision  also  for  a  right 
of  action  by  the  employee  for  injury  or  death  in  case  of  "wilful  viola- 
tion of  the  act"  or  "wilful  failure  to  comply  with  any  of  its  provisions." 

The  acting  secretary  of  the  state  board  of  health  and  the  chief  state 
factory  inspector  both  agree  that  no  advantage  is  derived  from  having 
reports  under  the  occupational  diseases  act  go  first  to  the  hoard  of 
health.  This  arrangement  occasions  delay  and  should  be  changed  so 
that  physicians'  reports  may  go  directly  to  the  factory  inspector's  office. 

The  state  factory  inspector's  office  is  of  the  opinion  that  no  penalty 
is  provided  by  the  occupational  diseases  act  for  false  reports  by  phy- 
sicians, but  this  is  apparently  not  the  case.  The  difficulty  is  that  a 
physician  is  required  to  report  disease  if  found  and  a  penalty  for  false 
reporting,  no  matter  how  specific,  could  not  effectively  require  con- 
scientious reporting.  The  difficulty  discovered  in  the  enforcement  of 
the  act  is  that  of  perfunctory  reporting.  Physicians  under  contract 
make  examinations  of  workmen  which  are  of  too  casual  a  nature  to 
disclose  the  presence  of  an  occupational  disease,  and  report  that  no 
such  disease  was  found.    There  may  have  been  no  false  reporting,  the 


LABOR   AND    MINIISG.  511 

specific  terms  of  the  act  have  probably  been  complied  with,  yet  the 
purpose  of  the  act  is  defeated.  Something  may  be  accomplished  by 
inspections  and  examinations,  upon  complaint  or  otherwise,  by  the 
medical  officers  of  the  factory  inspection  department. 

Other  Acts  enforcible  by  the  Factory  Inspector  s  Office.  The  wash 
room  act  of  1913  (Laws,  1913,  p.  359)  is  committed  for  enforcement 
to  mine  inspectors,  factory  inspectors  and  other  inspectors. 

The  factory  inspector's  duties  are  purely  statutory,  and  he,  there- 
fore has  no  authority  to  enforce  legislation  not  expressly  committed  to 
his  office.^  The  duty  of  enforcing  certain  legislation  is  not  committed 
to  the  department  of  factory  inspection,  e.  g.,  the  act  of  1913  regard- 
ing semi-monthly  payments  of  wages  by  corporations  (Laws,  1913, 
p.  358)  ;  the  act  of  1913  for  the  protection  of  chauffeurs  of  automo- 
biles or  auto-trucks  (Laws,  1913,  p.  334)  ;  the  act  of  1913  regarding 
mason's  examining  boards  in  cities  of  over  15,000  (Laws,  1913,  p. 
356)  ;  the  child  labor  provisions  of  the  criminal  code;  the  specific  pro- 
visions in  the  mining  law  regarding  labor  by  women  and  children. 
The  provisions  of  the  mining  act  are  enforcible  by  mine  inspectors, 
but  the  other  laws  here  enumerated  are  enforcible  only  by  criminal 
penalties. 

Relation  of  Department  of  Factory  Inspection  to  other  State  Offices. 
The  department  of'factoiy  inspection  is  directly  responsible  only  to 
the  chief  executive.  The  chief  inspector,  his  assistant  and  deputies 
are  appointed  by  the  Governor.  The  annual  report  of  the  chief  in- 
pector  is  made  to  the  Governor.  The  Governor  may  require 
special  investigations  into  the  conditions  of  labor  in  the  state 
to  be  made  by  the  department.  The  chief  inspector's  duties  are  ex- 
pressly provided  for  and  it  is  his  duty  to  see  to  it  that  all  the  pro- 
visions of  the  acts  discussed  above  have  been  complied  with.  If  the 
provisions  of  these  acts  are  not  observed,  then  the  resultant  duty  is 
imposed  upon  him  of  prosecuting  all  violations  and  issuing  all  orders 
necessary  to  compel  an  observance  of  the  law.  But  in  the  performance 
of  all  these  duties  he  owes  no  duty  to  the  other  state  departments. 

There  is  some  connection,  however,  between  the  department  of 
factory  inspection  and  the  state  board  of  health,  in  the  enforcement 
of  the  act  dealing  with  occupational  diseases.  Primarily  the  enforce- 
ment of  this  act  is  committed  to  the  state  factory  inspector.  Inspec- 
tions must  be  made  by  him,  the  necessary  orders  issued,  and  violations 
prosecuted.  But  monthly  medical  examinations  are  required  as  to  em- 
ployees in  certain  enumerated  industries,  and  the  reports  of  such  ex- 
aminations are  first  transmitted  to  the  state  board  of  health.  The 
act  then  provides  that  a  copy  of  such  report  is  to  be  sent  to  the  de- 
partment of  factory  inspection.  Section  twelve  makes  it  the  duty  of 
the  state  factory  inspector,  when  notified  of  the  existence  of  any  in- 
dustrial disease  by  the  state  board  of  health,  to  order  a  compliance 
with  this  act.  With  this  exception,  the  functions  of  this  department 
are  performed  independently  of  other  authorities  having  to  do  with 
the  enforcement  of  labor  legislation. 


(1)     Report  of  Attorney  General,  1912,  p.  1087. 


512  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

Relation  of  the  Department  of  Factory  Inspection  to  Local  Authorities. 
For  the  most  part  also  the  department  of  factory  inspection  con- 
ducts its  work  independently  of,  and  without  reliance  upon  assist- 
ance from  local  authorities.  Its  functions  fall  naturally  under  three 
general  heads,  (l)that  of  making  inspections,  (2)  issuing  orders  to 
compel  the  observance  of  the  requirements  specihcally  set  out  in  the 
separate  statutes,  and  (3)  prosecutions  for  violation.  Upon  the  thirty 
deputy  inspectors,  in  the  first  instance,  falls  the  duty  of  performing 
these  three  functions,  under  the  guidance  and  supervision,  of  course,  of 
the  chief  state  factory  inspector  and  his  assistant.  In  several  cases, 
however,  powers  with  respect  to  labor  legislation  are  exercised  by  local 
authorities.  Under  the  child  labor  law  the  superintendents  of  schools, 
and  in  the  absence  of  a  superintendent,  then  the  school  board,  are  re- 
quired to  approve  age  and  school  certificates  of  children  between  the 
ages  of  14  and  16.  Under  the  act  to  regulate  the  manufacture  of  cloth- 
ing the  powers  granted  to  the  state  factory  inspector  are  also  granted  to 
city  boards  of  health.  In  the  enforcement  of  the  act  they  exercise 
concurrent  power,  with  the  single  exception  that  city  boards  of  health 
are  authorized,  in  certain  instances,  summarily  to  destroy  clothing 
found  by  them  to  be  infected  with  contagious  diseases. 

In  like  manner,  under  the  act  requiring  the  use  of  blowers  on  metal 
polishing  wheels,  all  sheriffs,  constables  and  states'  attorneys  may  ex- 
ercise the  same  power  as  does  the  state  factory  inspector.  Under  the 
act  providing  for  the  protection  of  employees  engaged  in  structural 
work  local  authorities  in  cities,  towns  and  villages,  charged  with  the  en- 
forcement of  the  building  laws,  are  granted  the  same  power  as  is  con- 
ferred upon  the  state  factory  inspector.  In  the  last  two  cases,  very 
little  direct  relation  between  the  two  authorities  exists. 

Under  the  act  providing  for  the  health,  safety  and  comfort  of  em- 
ployees, the  relation  under  the  law  between  the  department  and  local 
authorities  is  more  direct.    The  provision  is  as  follows : 

Whenever   any    inspection is    required    to    be    made    by    the 

ordinances  of  an}-  city,  town  or  village  of  a  standard  equal  to  that  of  this 
act  and  the  inspection  required  by  such  ordinances  has  been  made,  then 
and  in  every  such  case  such  inspection  shall  be  accepted  by  the  chief  state 

factor}"  inspector as  a  compliance  in  that  respect  with  the  provisions 

of  this  act ;  and  it  shall  be  the  duty  of  the  person  for  whom  such  inspec- 
tion has  been  made  to  furnish  the  chief  state  factor}'  inspector with 

a  copy  of  the  report  of  the  inspection  made  under  such  ordinances. 
The  effect  of  this  provision  seems  to  be,  therefore,  to  relieve  the 
state  factory  inspector  from  his  obligation  to  make  inspections  of 
establishments  which  have  already  been  inspected  by  local  authorities. 
Nothing  is  said  as  to  the  general  character  or  nature  of  the  report 
which  is  to  be  sent  to  the  factory  inspection  department,  nor  as  to  who 
shall  determine  whether  or  not  the  inspection  conducted  by  the  local 
authority  is  equal  to  that  required  by  the  statute.  As  a  matter  of  fact 
this  provision  for  the  accep^^'^nce  of  local  inspections  is  entirely  dis- 
regarded in  practice,  although  with  respect  to  workshops  there  has 
in  the  past  been  some  acceptance  of  sanitary  inspections  made  by  the 
Chicago  department  of  health. 

Much  more  effective  service  might  be  rendered  and  some  duplica- 
tion of  work  avoided  by  a  close  co-operation  of  the  factory  inspection 


LABOR   AND    MINING.  513 

department  with  the  city  governments  in  the  larger  cities.  This  is 
especially  true  with  reference  to  Chicago.  Under  the  bureau  of  sani- 
tation of  the  Chicago  department  of  health  there  is  an  inspection  of 
workshops  which  duplicates  to  a  large  extent  that  required  of  the  state 
department  of  factory  inspection  under  the  garment  workers'  act 
(1893)  and  the  health,  safety  and  comfort  act  (1909).  Under  the 
Chicago  department  of  buildings  there  is  an  inspection  which  dupli- 
cates that  required  by  the  structural  workers'  act  (1907).  Under  the 
fire  prevention  bureau  of  the  Chicago  fire  department  there  is  an  in- 
spection of  buildings  which  in  part  duplicates  that  required  for  the 
enforcement  of  the  health,  safety  and  comfort  act  (Sees.  14,  15). 
The  enforcement  of  the  fire  escape  act  of  1899  is  expressly  vested  in 
local  authorities.  It  may  be  of  value  to  provide,  as  is  done  in  New 
York,  that  municipal  ordinances  in  the  field  of  labor  may  also  be 
enforced  by  the  state  labor  H^partment.  The  further  step  may  also 
well  be  taken  of  permitting  local  authorities,  under  authorization  from 
the  state  labor  department,  to  exercise  the  powers  of  state  inspectors. 
General  survey  of  organization  and  work. 

Reference  has  been  made  to  the  fact  that,  under  the  law,  the  factory 
inspector  is  required  to  divide  the  state  into  inspection  districts,  and 
to  assign  inspectors  to  such  districts.  According  to  the  present  chief 
factory  inspector  there  never  has  been  any  such  districting,  although 
for  Chicago  there  is  an  informal  districting  by  wards  in  the  absence  of 
special  assignments  to  inspectors.  Ordinarily  no  inspector  is  assigned 
to  inspect  territory  in  his  own  senatorial  district. 

The  State  factory  inpector  says  that  on  an  average,  ten  inspectors 
are  at  work  in  the  territory  outside  of  the  metropolitan  district  of 
Chicago,  although  in  February,  1914,  there  were  only  seven.  During 
about  four  months  of  each  year,  when  the  large  Chicago  establish- 
ments are  being  inspected,  all  inspectors  are  called  to  the  Chicago 
office. 

The  inspection  force  is  organized  on  the  line  of  specialized  function 
rather  than  by  geographical  divisions.  There  are  inspectors  who  have 
specialized  on  machinery,  child  labor,  structural  work,  ventilation,  etc. 
Three  types  of  inspection  work  are  committed  to  the  department,  (1) 
one  highly  technical,  requiring  a  good  knowledge  of  machinery,  (2) 
another  requiring  medical  or  chemical  knowledge,  and  (3)  a  third 
requiring  not  so  much  technical  knowledge  as  general  ability,  to  this 
class  belonging  inspection  under  the  child  labor  and  women's 
labor  acts.  Some  degree  of  specialization  of  function  is  necessary 
therefore,  in  order  to  accomplish  the  best  results,  but  all  types  of  in- 
spection are  perhaps  in  most  cases  made  by  the  same  inspector,  es- 
pecially for  the  smaller  establishments. 

The  reports  of  the  factory  inspection  department  have  occasionally 
printed  a  specimen  of  a  report  of  an  inspection.  Such  specimens,  cov- 
ering in  detail  every  point  which  may  possibly  give  rise  to  danger 
or  violation  of  the  law,  are  misleading.  With  the  present  force  of 
inspectors  it  is  out  of  the  question  to  inspect  frequently  all  of  the  es- 
tablishments of  the  State,  and  many  are  probably  not  inspected  at  all. 
Inspections  when  made  must  necessarily  be  more  or  less  casual,  ex- 
ept  as  respects  the  more  dangerous  machinery  and  the  more  dangerous 


514  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

processes.  Where  improper  conditions  are  found  a  reinspection  is 
made  in  order  to  discover  whether  the  orders  of  the  department  have 
beeij  carried  out. 

Perhaps  it  may  be  worth  while  here  to  call  attention  to  the  fact  that 
legislation  since  1907  has  at  least  trebled  the  work  placed  upon  the 
department  of  factory  inspection,  while  during  the  same  period  the 
number  of  deputy  inspectors  has  been  increased  from  25  to  30.  It  has 
been  impossible  to  enforce  effectively  all  labor  legislation  for  the 
whole  state,  and  "the  tendency  to  some  extent  at  least  has  been  to 
devote  attention  primarily  to  Chicago.  Under  the  structural  worker's 
law,  for  example,  no  inspections  were  made  outside  of  Chicago  in 
1912-13.     This  is  an  exceptional  case. 

Most  of  the  legislation  enforced  by  the  department  of  factory  in- 
spection places  a  positive  duty  upon  the  employer,  and  makes  him 
liable  in  damages  to  a  workman  injured  through  non-compliance  with 
the  law,  but  this  burden  is  not  sufficient  to  compel  compliance.  (Per- 
haps if  all  legislation  permited  recovery  of  treble  damages  in  such 
cases,  this  would  be  a  deterrent,  but  such  a  plan  is  objectionable. 
The  workmen's  compensation  law  imposes  no  greater  burden  upon 
employers  under  it  where  a  workman  is  injured  because  of  the  em- 
ployer's non-compliance  with  statutory  safety  requirements.)  In  many, 
if  not  most  cases,  the  employer  will  wait  until  action  is  taken  by  the 
inspector.  This  is  especially  apt  to  be  true  where,  as  under  the  oc- 
cupational diseases  act,  a  general  duty  is  imposed  upon  industries 
other  than  those  enumerated  as  especially  dangerous  to  health,  with 
a  duty  upon  the  inspector  in  certain  cases  to  require  devices  "which 
are  known  to  be  reasonably  adequate  and  sufficient."  (Sec.  12  of 
act.) 

In  a  recent  number  of  the  American  Labor  Legislation  Review- 
it  was  said  that  "An  army  of  the  most  skilled  factory  inspectors  would 
be  totally  unable  to  enforce  every  provision  of  the  factory  laws.  More- 
over, few  inspectors,  even  with  previous  technical  training,  would  be 
able  intelligently  to  pass  upon  proper  provisions  for  safety,  comfort 
and  health  in  a  succession  of  establishments  including  processes  and 
danger  points  so  varied  as  those  to  be  found  in  the  manufacture  of 
steel  and  silk,  carpets  and  chemicals,  shirt  waists  and  shovels,  or  in 
the  construction  of  skyscrapers  and  subways." 

In  terms  the  laws  of  Illinois  may  be  satis  factor}^,  but  the  terms  of 
the  law  alone  amount  to  little.  In  order  effectively  to  enforce  safe- 
guards in  industry  it  is  necessary : 

(1)  To  have  an  effective  reporting  of  accidents  and  occupational 
diseases,  so  that  the  danger  points  of  industry  may  be  easily  detected. 

(2)  To  penalize  in  some  way  the  occurrence  of  preventible  acci- 
dents. This  may  be  done  by  imposing  a  heavy  liability  upon  the  em- 
ployer in  favor  of  the  injured  party,  or  (in  states  which  have  adopted 
an  industrial  insurance  plan  of  workmen's  compensation)  by  varying 
the  rates  of  insurance  in  accordance  with  the  number  of  accidents  in 
any  particular  establishment. 

(3)  To  make  a  greater  use,  if  possible,  of  inspections  upon  com- 
plaint.    Some  inspections  are  now  made  upon  complaints   (which  are 

(27    December,  1913,  p.  44. 


LABOR   AND    MINING.  515 

usually  anonymous)    coming  to   the   office,   but  the   number  of   such 
inspections  is  relatively  small. 

(4)  To  have  a  closer  co-operation  of  the  factoiy  inspection  depart- 
ment with  local  authorities,  and  with  other  state  inspection  services. 
For  example,  the  enforcement  of  the  wash  room  act  of  1913  is  com- 
mitted to  mine  inspectors  and  to  factory  inspectors;  and  one  of  the 
1913  amendments  to  the  coal  mining  act  provides  that  mine  inspectors 
"shall  hold  a  certificate  from  any  national  or  state  commission  or 
bureau  or  other  recognized  agency."  With  respect  to  local  co-opera- 
tion much  may  be  done  in  Chicago  with  respect  to  workshop  and 
building  inspection,  where  there  is  at  present  a  good  deal  of  duplica- 
tion. 

(5)  To  have  a  scheme  of  safety  rules  for  each  employment  worked 
out  by  co-operation  between  employers  and  employees.  Statutory  rules 
are  difficult  of  quick  adjustment  to  the  shifting  needs  of  industry,  and 
cannot  be  carefully  adapted  to  the  conditions  of  each  field  of  employ- 
ment. Moreover,  the  education  of  employers  and  employees  is  the  most 
essential  step  in  the  enforcement  of  safety  requirements,  and  this  edu- 
cation can  best  be  accomplished  by  a  co-operative  working  out  of 
safety  rules  by  those  actually  engaged  in  the  industry  itself. 

However,  a  larger  force  of  inspectors  is  also  necessary  if  the  factory 
laws  are  to  be  effectively  enforced,  and  there  must  be  some  assur- 
ance that  the  inspectors  are  competent  and  receive  adequate  salaries. 
A  salary  of  $1,200  is  inadequate,  and  appointment  by  the  Governor 
is  not  a  satisfactory  means  of  obtaining  competent  inspectors.  If 
higher  salaries  for  inspectors  are  provided,  there  should  be  some  grad- 
ing of  salaries  so  that  promotion  in  the  service  may  come  as  a  result 
of  efficient  work. 

The  reports  of  the  department  should  indicate  the  actual  work  done 
during  each  year.  The  report  for  1909  is  a  bulky  volume  made  up 
of  tables  of  inspections,  which  are  almost,  if  not  wholly,  valueless. 
Steps  have  already  been  taken  by  the  Chief  of  the  Department  of 
Factory  Inspection  and  the  Printer  Expert  to  remedy  this  condition,  and 
the  report  for  1912-13  (in  manuscript)'  represents  a  distinct  advance. 
The  1912-13  report  does  not  show,  however,  for  many  of  the  laws, 
how  widely  inspections  were  distributed.  A  statement  of  the  number 
of  inspections  made  in  Chicago  and  Cook  County  and  of  the  number 
made  outside  of  Cook  County  does  not  indicate  much  as  to  the  en- 
forcement of  .factory  laws  throughout  the  state  at  large.  (Under  some 
of  the  laws  the  distribution  of  inspections  throughout  the  state  is 
given.)  The  report  for  December  16,  1910-June  30,  1912,  is  a  distinct 
improvement  over  that  for  1909,  but  the  value  of  a  report  is,  to  a 
large  extent  diminished  by  the  delay  in  issuing  it.  Until  the  spring 
of  1914  the  latest  report  of  the  department  of  factory  inspection  in 
print  was  that  of  1909.  A  periodical  bulletin  has  recently  been  started 
by  the  department,  and  through  it  information  regarding  factory  in- 
spection work  should  be  kept  fairly  well  up  to  date. 

In  order  to  enforce  the  various  labor  laws  committed  to  it  the  de- 
partment of  factory  inspection  should  have  a  complete  list  of  all 
establishments  subject  to  its  inspection,  but  it  has  no  such  list.  Nor, 
apparently,  has  any  careful  survey  of  the  state  ever  been  made  so  as 


516  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

to  determine  the  distribution  of  various  industries  subject  to  inspec- 
tion. Under  the  occupational  diseases  act  this  is  especially  necessary 
if  all  industries  (both  those  specifically  enumerated  in  the  law  itself 
and  those  generally  covered)  are  in  fact  brought  under  the  regulations 
of  the  act.  The  garment  workers'  act  of  1893  required  persons  oc- 
cupying or  controlling  a  workshop  to  notify  the  local  boards  of  health. 
This  statutory  provision  is  still  in  force  but  has  probably  never  been 
complied  with.  The  Chicago  ordinances  (Chicago  Code,  1911,  p.  506) 
require  an  annual  license  of  workshops,  and  this  requirement,  if  fully 
enforced,  should  result  in  the  obtaining  of-  a  complete  record  of  such 
establishments  in  Chicago.  In  New  York  recent  legislation  requires 
the  registration  of  factories,  and  such  legislation  should  be  enacted 
in  Illinois. 

Prosecutions  for  the  violation  of  factor)'^  laws  are  handled  for  Chi- 
cago by  the  attorney  of  the  factory  inspector's  office,  and  outside 
Chicago  prosecutions  are  managed  by  the  inspectors  alone  or  by  the 
inspectors  with  the  assistance  of  the  state's  attorney.  The  act  of 
1907,  as  amended  in  1911  (R.  S.  1913,  Ch.  48,  Sec.  77)  provides  that 
"it  shall  be  the  duty  of  the  state's  attorney  of  the  proper  county,  upon 
the  request  of  the  chief  factory  inspector  or  his  deputies,  to  prosecute 
any  violation  of  the  law  which  it  is  made  the  duty  of  the  factory 
inspector  to  enforce.  And  it  shall  be  the  duty  of  the  attorney  for  such 
department  to  prosecute,  when  requested  by  the  chief  state  factory 
inspector,  any  infractions  or  violations  of  law  which  are  now  or  may 
be  hereafter  made  the  duty  of  the  factory  inspector  to  enforce."  The 
salary  of  the  attorney  of  the  department  is  not  high  enough  to  obtain 
the  full  time  of  a  competent  man. 

Most  violations  of  the  labor  statutes  are  handled  by  the  department 
without  prosecution,  and  as  to  several  of  the  laws  such  a  proceeding  is 
expressly  provided  for.  If,  upon  inspection,  a  violation  of  the  law  is 
found,  instructions  are  given  and  compliance  therewith  required  to  be 
had  within  a  given  time.  Reinspection  is  later  had  (although  often- 
times not  very  promptly)  to  see  if  the  instructions  have  been  complied 
with.  As  to  such  matters  as  safeguarding  machinery  the  number  of 
prosecutions  is  relatively  small. 

So  long  as  the  department  of  factory  inspection  has  its  office  in 
Chicago,  where  there  is  sufficient  work  to  take  the  time  of  all  inspect- 
ors, the  rest  of  the  state  will  necessarily  be  somewhat  neglected.  This 
results  in  part  from  the  fact  that  there  is  more  work  than  the  present 
force  can  do,  but  in  part  also  because  the  chief  inspector  has  disre- 
garded the  statutory  order  to  divide  the  state  into  inspection  districts. 
Some  degree  of  specialization  of  function  among  the  various  deputy 
inspectors  is  necessary,  but  the  division  of  the  state  outside  of  Chi- 
cago into  several  large  inspection  districts  would  probably  lead  to 
a  better  distribution  of  attention  as  between  Chicago  and  other  parts 
of  the  state. 

For  the  work  under  tlie  occupational  diseases  act  and  for  child  labor 

inspections    (if  the  physical  fitness  provision  is  to  be  enforced)    the 

medical  side  of  the  factory  inspection  service  should  be  very  much 

strengthened. 

(3)  See  Preliminary  Report,  New  York  Factory  Investigating  Commission,  I 
(1912)  827. 


III.     COMMISSIONERS     OF     LABOR     AND     BUREAU     OF 

LABOR  STATISTICS. 
Historical  Note. 

The  bureau  of  labor  statistics  was  created  by  an  act  of  1879.  The 
board  of  commissioners  of  labor,  five  in  number,  were  appointed  by 
the*  Governor  by  and  with  the  advice  and  consent  of  the  Senate,  for 
a  term  of  two  years.  Of  this  number  three  were  required  to  be 
manual  laborers,  the  remaining  members  to  be  manufacturers  or  em- 
ployers of  labor  in  some  productive  industry.  They  were  to  meet  an- 
nually at  the  State  Capitol  on  the  first  Monday  in  September,  when 
they  were  to  organize  themselves  by  electing  a  president  from  them- 
selves and  appointing  a  secretary,  who  was  to  hold  office  for  a  term 
of  two  years  or  until  his  successor  was  appointed,  the  secretary  to  have 
no  voice  in  the  deliberations  of  the  board  nor  to  be  selected  from 
the  Commission.  No  change  has  been  made  in  the  organization  of 
the  body  since  1879. 

The  compensation  of  the  commissioners  as  fixed  by  the  act  of  1879 
was  $5.00  per  day  for  thirty  days  of  each  annual  session.  The  secre- 
tary received  $1,200  per  year.  In  1903  an  amendment  was  passed 
which  increased  the  salary  of  the  secretary  to  $2,500  per  annum.  The 
board  of  commissioners  of  labor  was  established  to  control  the  work 
of  a  bureau  of  labor  statistics,  and  subsequent  statutes  oftentimes 
use  the  terms  "commissioners  of  labor"  and  "bureau  of  labor  statistics" 
interchangeably.  The  permanent  work  of  the  bureau  of  labor  sta- 
tistics is  done  by  the  secretary  of  the  board  of  commissioners  of  labor. 

•  As  expressed  by  the  act  of  1879,  the  duties  of  the  board  were  "to 
collect,  assort,  systematize,  and  present  in  biennial  report  to  the  Gen- 
eral Assembly,  statistical  details  relating  to  all  departments  of  labor 
in  the  state,  especially  in  its  relation  to  the  commercial,  industrial, 
social,  educational,  and  sanitary  conditions  of  the  laboring  classes,  and 
to  the  permanent  prosperity  of  the  mechanical,  manufacturing,  and 
productive  industries  of  the  state." 

In  1908  the  following  amendment  was  added:  "It  shall  be  the  duty 
of  every  employer  of  labor  in  this  state  to  afiford  to  the  state  com- 
missioners of  labor  or  their  representative  every  facility  for  procuring 
statistics  of  wages  and  conditions  of  their  employees  for  the  purpose 
of  compiling  and  publishing  statistics  of  labor  and  of  social  and  in- 
dustrial conditions  within  the  State  as  required  by  law.  Any  person 
who  shall  hinder  or  obstruct  the  investigation  of  the  agents  of  the 
commissioners  or  shall  neglect  or  refuse  for  a  period  of  ten  days  to 


518  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

furnish  the  information  called  for  by  the  schedules  of  the  commis- 
sioners as  provided  above,  shall  be  adjudged  guilty  of  a  misdemeanor 
and  be  subjected  to  a  fine  of  $100." 

In  1909  a  new  act  was  passed  repealing  the  act  of  1879  and  its 
amendments  of  1903  and  1908,  but  this  act  in  effect  only  added  one 
clause  which  imposed  new  duties  upon  the  board  of  labor  commis- 
sioners. Before  the  act  of  1909  the  duty  of  the  board  was  "to  collect, 
assort,  systematize statistical  details  in  relation  to  all  depart- 
ments of  labor  in  the  state,  especially  in  its  relation  to  the  commercial, 
industrial,  social,  educational,  and  sanitary  conditions  of  the  laboring 
classes,  and  to  the  permanent  prosperity"  of  the  State.  That  is,  the 
board  was  concerned  primarily  with  labor  conditions.  The  act  ot 
1909  extended  the  duties  of  the  board  to  include  commercial  and 
manufacturing  conditions  as  well.  'The  provision  added  in  1909 
(though  in  form  the  entire  statute  was  re-enacted)  imposed  the  duty 
upon  the  board  to  collect,  assort,  systematize,  and  present  in  biennial 
report  to  the  General  Assembly  statistical  details  of  the  manufacturing 
and  productive  industries  of  the  state,  "setting  forth  such  details  as 
the  local  character  of  the  industr}^  capital,  total  output,  number  of 
people  employed  and  such  other  details  as  will  give  a  total  presenta- 
tion of  the  industrial  and  commercial  condition  and  progress  of  the 
state ;  provided,  that  in  no  case  shall  statistics  thus  published  be  so 
arranged  as  to  reveal  the  affairs  of  any  single  industrial  or  commercial 
concern." 

In  addition  to  the  duties  thus  imposed  upon  the  board  by  the  general 
act,  it  has  also  been  concerned  with  the  enforcement  of  some  other  acts 
on  the  subject  of  labor. 
Accident  Reports. 

An  act  of  1907  requires  every  employer  of  laborers  to  report  to  the 
state  bureau  of  labor  statistics  every  serious  injury  entailing  a  loss  of 
30  or  more  days'  time.  It  is  the  duty  of  the  State  bureau  of  labor 
statistics  under  this  act  to  cause  such  reports  to  be  made  and  to  pub- 
lish, at  least  once  each  year  on  or  before  January  1st,  the  general  re- 
sults. The  subject  of  accident  reports  is  fully  discussed  elsewhere  in 
this  report. 

Mines  and  Mining. 

An  amendment  of  1883  to  the  coal  mining  act  provided  for  the 
appointment  of  mine  inspectors  upon  the  report  of  a  board  of  ex- 
aminers selected  by  the  bureau  of  labor  statistics,  and  also  provided 
for  the  removal  of  such  inspectors  under  certain  conditions  by  the 
bureau.  Annual  reports  to  the  bureau  were  required  from  inspectors, 
and  tl;e  duty  of  making  reports  was  extended  by  later  amendments. 
In  1899  the  coal  mining  act  was  revised  and  a  state  mining  board 
created  to  be  appointed  by  the  commissioners  of  labor.  Mine  inspec- 
tion districts  were  created,  whose  boundaries  might  be,  changed  by 
the  commissioners  of  labor,  and  under  certain  conditions  mine  in- 
spectors were  removable  by  the  commissioners  of  labor.  Each  inspect- 
or was  required  to  submit  an  annual  report  to  the  bureau  of  labor 
statistics,  and  this  bureau  was  required  to  compile,  summarize  and 
publish  such  reports  under  the  title  of  the  "Annual   Coal  Report." 


LABOR   AND    MINING. 


519 


(This  series  was  begun  under  the  bureau,  in  1883.)  SuppUes  were 
furnished  to  the  inspectors  by  the  Secretary  of  State  upon  requisi- 
tion  of  the  secretary  of  the  bureau  of  labor  statistics.  A  specific  duty 
was  further  imposed  upon  every  coal  operator  to  afford  facilities  to 
the  commissioners  of  labor  for  procuring  statistics  of  the  wages  and 
conditions  of  their  employes,  and  penalties  were  imposed  for  failing 
to  report  to.  or  obstructing  investigations  by  the  commissioners. 

By  an  amendment  of  1907  the  appointment  of  the  State  mining 
board  was  vested  in  the  Governor,  with  the  advice  and  consent  of  the 
Senate.  A  complete  revision  of  the  mining  law  was  made  in  1911,  and 
all  the  powers  and  duties  before  this  time  vested  in  the  bureau  of  labor 
statistics  or  commissioners  of  labor  under  the  mining  laws  were  trans- 
ferred to  the  state  mining  board.  The  reports  to  the  bureau  of  labor 
statistics  required  before  1911  from  inspectors  and  from  coal  operat- 
ors now  go  to  the  State  mining  board,  and  the  Annual  Coal  Report  is 
published  by  that  body. 
Private  Employment  Agencies. 

The  enforcement  of  the  act  relating  to  private  employment  agencies 
is  committed  to  the  State  board  of  commissioners  of  labor  and  a  special 
officer  known  as  the  chief  inspector  of  private  employment  agencies. 
Their  duties  in  respect  thereto  are  fully  discussed  elsewhere  in  this 
report. 

Free  Employment  Offices. 

The  bureau  of  labor  statistics  is  also  interested  in  the  enforcement 
of  the  act  relative  to  free  employment  offices.  A  superintendent,  assis- 
tant superintendent,  and  one  clerk  for  each  of  the  individual  offices 
are  recommended  by  the  commissioners  of  labor  to  the  Governor  who 
appoints  with  the  consent  of  the  Senate.  Weekly  reports,  and  the 
annual  report  of  the  superintendents,  must  be  sent  to  the  bureau  of 
labor  statistics.  The  duties  of  the  superintendents  of  free  employ- 
ment offices  are  specified  in  the  act,  but  the  act  also  provides  that  the 
secretary  of  the  bureau  of  labor  statistics  may  require  each  superin- 
tendent to  perform  other  duties  in  the  collection  of  additional  statis- 
tical and  sociological  data. 

Workmen's  Compensation  Act. 

Under  the  act  now  in  force,  passed  in  1913,  an  independent  body 
known  as  the  industrial  board  is  created,  which  has  complete  charge 
of  the  administrative  features  of  the  act.  But,  under  the  act  of  1911, 
relating  to  compensation  for  accidental  injuries,  these  functions  in 
general  were  performed  by  the  bureau  of  labor  statistics.  Reports  of 
accidents,  notices  of  election  not  to  accept  the  provisions  of  the  act, 
and  reports  of  all  arbitration  boards  were  to  be  sent  to  the  bureau. 
Under  the  present  act,  however,  the  bureau  of  labor  statistics  has  no 
duties  to  perform. 

Reports  of  the  Bureau  of  Labor  Statistics. 

The  act  creating  the  bureau  requires  a  biennial  report  to  be  made 
to  the  General  Assembly,  consisting  of  statistical  details  relative  to  all 
departments  of  labor  in  the  State,  and  by  the  amendment  of  1909,  said 


520  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

report  is  to  include  statistical  details  of  manufacturing  industries  of 
the  State.  Under  the  accident  reporting  statute  of  1907  an  annual 
report  of  accidents  is  required  to  be  published. 

The  biennial  reports  of  the  bureau  deal  with  a  great  variety  of  sub- 
jects all  of  which  are  related  in  some  way  to  the  general  condition  of 
the  laboring  classes.  No  particular  method  is  specified  in  the  act 
whereby  the  bureau  is  to  acquire  the  information  upon  which  its  re- 
ports are  to  be  based,  nor  are  there  any  restrictions  as  to  contents  of 
the  report,  other  than  the  general  one,  that  they  shall  deal  with  all  the 
departments  of  labor  in  the  State.  The  bureau  within  these  limits  is 
left  to  act  upon  its  own  discretion  and  in  its  own  way.  At  first  no 
authority  was  vested  in  the  bureau  to  require  employers  of  labor  and 
others  to  divulge  information  which  was  sought.  In  their 
report  for  1882,  the  board  of  labor  commissioners  called  attention  to 
this  lack  of  authority  to  require  the  submission  of  facts  relating  to 
labor,  but  not  until  1908  was  an  amendment  added  which  makes  it  the 
duty  of  employers  of  labor  to  afiford  to  the  commissioners  every  facil- 
ity for  procuring  statistics  and  makes  it  a  misdemeanor  punishable  by 
fine  of  $100  to  hinder  or  obstruct  the  obtaining  of  information  or  to 
refuse  or  neglect  to  furnish  the  information  called  for  by  the  schedule 
sent  out  by  the  commissioners. 

Nevertheless,  during  the  period  from  1879  to  1908  the  reports  of  the 
bureau  were  based  upon  information  gained  from  primary  sources. 
In  1879  letters  were  sent  out  to  all  the  members  of  the  General  As- 
sembly and  to  all  county  and  city  clerks  requesting  them  to  send  in  to 
the  bureau  the  names  and  addresses  of  a  few  residents  of.  their  re- 
spective townships  who  were  working  for  wages  and  also  the  names 
of  a  few  employers  of  labor.  Twelve  thousand  names  of  workmen 
were  sent  in  and  to  each  individual  workman  so  named  the  bureau 
sent  a  circular  containing  a  variety  of  questions  relating  to  wages,  hours 
of  work,  family  conditions,  cost  of  living,  manner  of  living,  and  gen- 
eral changes  desired  by  the  workmen.  Four  thousand  replies  were 
sent  in  and  based  upon  these  and  upon  the  replies  received  from  manu- 
facturing concerns,  the  first  report  was  issued. 

The  biennial  reports  of  the  bureau  of  labor  statistics  as  a  series  have 
been  of  distinct  value,  although  the  earlier  work  of  the  bureau  was 
perhaps  of  more  value  than  that  done  recently.  The  bureau  regarded 
itself  as  a  general  statistical  bureau.  Its  reports  of  1894  and  1896 
dealt  with  taxation,  the  report  of  1908  with  public  and  private  owner- 
ship of  municipal  utilities,  and  that  of  1900  in  part  with  kindergartens 
and  manual  training.  These  reports,  while  not  always  prepared  with 
sufficient  care,  represented  investigations  which  should  properly  have 
been  undertaken  by  some  State  officer,  and  were  of  value. 
Present  Position  of  Bureau. 

From  1879  to  1893  the  bureau  of  labor  "statistics  (with  the  board  of 
commissioners  of  labor)  was  the  central  labor  office  for  Illinois.  But 
its  relative  importance  has  gradually  declined.  Factory  inspection 
began  in  1893,  and  an  independent  office  was  created  to  perform  this 
function.  In  1895  an  independent  board  of  arbitration  was  established. 
When    free    employment    offices    were    established    1899    they    were 


LABOR    AND    MINING. 


521 


each  made  almost  completely  independent  of  the  bureau.  Private  em- 
ployment agencies  were  from  1903  to  1909  under  the  control  of  the 
bureau,  but  in  1909  a  chief  inspector  of  private  employment  agencies 
was  provided  to  administer  in  detail  the  legislation  relating  to  such 
agencies,  although  the  control  of  the  commissioners  of  labor  remained. 
The  mining  legislation,  which  had  been  under  the  control  of  the  com- 
missioners of  labor  since  1879,  was  withdrawn  by  acts  of  1907  and 
1911.  The  administration  of  the  workmen's  compensation  act  of  1911 
was  committed  to  the  bureau,  but  this  authority  was  withdrawn  in 
1913. 

With  each  new  departure  in  labor  legislation  the  tendency  has  been 
to  create  a  new  and  independent  administrative  organ.  The  bureau  of 
labor  statistics  has  at  present  substantially  the  following  functions: 
(1)  Supervision  over  private  employment  agencies,  although  the  de- 
tailed work  is  performed  by  another  office.  (2)  A  slight  control  over 
the  free  employment  offices,  and  the  duty  of  publishing  the  reports  of 
these  offices.  (3)  The  duties  of  preparing  and  publishing  a  biennial 
report,  and  of  publishing  an  annual  report  of  accidents.  Its  duties 
are,  therefore,  at  present  primarily  informational  and  with  respect  to 
the  most  important  matter,  that  of  accident  reports,  its  usefulness  is 
badly  crippled  by  the  present  confusion  of  legislation  as  to  accident 
reporting.  The  biennial  report  of  1908  was  united  with  a  report  on 
industrial  accidents.  The  1910  biennial  report  appeared  in  1913,  and 
the  first  part  of  it  is  devoted  to  statistics  of  manufactures  in  Illinois, 
giving  in  somewhat  different  order  material  published  by  the  United 
States  Census  Bureau.  The  secretary  of  the  bureau  of  labor  statistics 
in  a  letter  of  January  8,  1914,  says:  "There  has  been  no  information 
collected  for  a  1912  biennial  report  for  this  bureau,  and  when  I  took 
charge  of  this  department  last  August  and  found  this  circumstance  I 
decided  that  at  this  late  date  a  1912  biennial  report  would  be  of  no 
value  by  the  time  information  was  collected  and  a  report  printed,  so 
the  next  biennial  report  of  this  office  will  be  for  1914,  information  for 
which  will  soon  be  collected."  The  last  report  on  industrial  accidents, 
that  for  the  year  ending  December  31,  1912,  is  about  as  prompt  as  any 
of  the  state  reports.  The  annual  report  of  free  employment  offices 
for  1913  is  in  print.  The  bureau  has  also  recently  prepared  a  bulletin 
containing  the  labor  legislation  enacted  by  the  General  Assembly  in 
1913,  and  has  issued  a  compilation  of  labor  legislation  in  force  in 
Illinois. 


IV.     PRIVATE  EMPLOYMENT  AGENCIES. 

The  act  of  1899,  creating  free  employment  offices  in  certain  cities, 
also  provided  for  the  licensing  of  private  employment  agencies  by  the 
Secretary  of  State.  The  machinery  provided  for  the  enforcement  of 
this  provision  was  unsatisfactory  and  a  uniform  license  fee  of  $200 
per  annum  imposed  upon  all  such  agencies  was  excessive ;  moreover 
no  regulations  were  prescribed  as  to  the  conduct  of  business  by  such 
agencies.  The  act  of  1903,  dealing  primarily  with  free  employment 
offices,  has  several  sections  applicable  to  private  employment  agencies, 
and  transferred  the  licensing  authority  to  the  commissioners  of  labor. 
Somewhat  detailed  regulations  were  provided  for  the  conduct  of  such 
agencies,  and  the  enforcement  of  these  regulations  was  committed  to 
the  state  board  of  labor  commissioners  and  their  secretary.  The  pro- 
visions of  1903  were  superseded  by  an  act  of  1909  which  is  devoted 
entirely  to  private  employment  agencies.  This  act  regulates  such 
agencies  in  great  detail,  and  commits  the  enforcement  of  its  terms  to 
the  commissioners  of  labor,  and  to  a  new  officer  designated  as  chief 
inspector  of  private  employment  agencies. 

Section  7  of  the  act  of  1909  defines  a  private  employment  agency  as 
being  "any  person,  firm  or  corporation,  who  for  hire,  or  with  a  view  to 
profit,  shall  undertake  to  secure  employment  or  help,  or  through  the 
medium  of  card,  circular,  pamphlet,  or  any  medium  whatsoever,  as 
through  the  display  of  a  sign  or  bulletin,  offer  to  secure  employment 
or  help,  or  give  information  as  to  where  employment  or  help  may  be 
secured."    Charitable  institutions  are  expressly  exempted  from  control. 

The  act  forbids  the  opening,  keeping  or  carrying  pn  of  any  employ- 
ment agency  in  the  State  of  Illinois  unless  a  license  therefor  shall  be 
procured  from  the  state  board  of  labor  commissioners.  A  violation  of 
this  provision  is  rnade  a  misdemeanor  punishable  by  a  fine  of  not  less 
than  $50  and  not  more  than  $200,  or  on  failure  to  pay  such  fine,  by 
imprisonment  for  a  period  not  exceeding  six  months,  or  both,  at  the 
discretion  of  the  court.  The  act  provides  that  licenses  shall  be  issued 
by  the  board  of  labor  commissioners  and  fixes  an  annual  fee  therefor 
of  $50  in  cities  of  50,000  population  and  over,  and  of  $25  in  all  cities 
containing  less  than  50,000  population. 

A  person  desiring  a  license  must  file  with  the  board  of  labor  commis- 
sioners an  application  therefor.  Such  application  must  be  accom- 
panied by  the  affidavits  of  two  persons  who  have  known  the  applicant, 
or  the  chief  officer  thereof,  if  a  corporation,  for  two  years,  stating 
that  the  applicant  is  a  person  of  good  moral  character.  The  board  of 
labor  commissioners  is  to  post  each  such  application,  on  the  date  of 
filing,  in  its  office  or  in  the  office  of  the  chief  inspector  of  private  em- 


LABOR   AND    MINING.  523 

ployment  agencies,  where  it  must  be  kept  until  it  is  acted  upon.  The 
board  of  labor  commissioners  cannot  act  on  the  application  until  after 
the  expiration  of  one  week  from  the  date  of  filing  the  application,  but 
they  must  act  upon  it  within  thirty  days  from  the  time  of  application. 
But  before  the  board  mav  grant  any  license  notice  of  such  application 
shall  be  published  on  three  distinct  days  by  them  in  some  daily  news- 
paper of  general  circulation  throughout  the  county  withm  which  the 
applicant  desires  to  locate  such  agency.  The  applicant  is  required  to 
file  with  his  application  a  bond  for  the  penal  sum  of  $500,  with  one  or 
more  sureties,  to  be  approved  by  the  commissioners  of  labor,  on  condi- 
tion that  the  obliger  will  conform  to  and  not  violate  any  of  the  terms 
of  the  act.  Any  person  injured  by  the  misconduct  of  the  licensed 
person  is  given  the  right  to  sue  on  the  bond,  and  claims  of  this  char- 
acter are  made  assignable. 

If  these  conditions  are  complied  with  the  license  is  issued.  Each 
license  must  contain:  (1)  Name  of  person  licensed.  (2)  City,  street 
and  number  of  the  house  in  which  the  licensed  person  is  authorized  to 
carry  on  business.      (3)  Number  and  date  of  the  license. 

In  the  matter  of  location  of  the  office  the  licensed  person  is  under 
the  restriction  that  no  agency  shall  be  located  on  premises  where  in- 
toxicating liquors  are  sold,  excepting  cafes  and  restaurants  m  office 
buildings. 

The  license  is  not  valid  to  protect  any  place  other  than  the  one  desig- 
nated therein,  but  if  a  change  of  location  is  desired  and  the  licensed 
person  obtains  the  consent  of  the  board  of  labor  commissioners,  or  the 
chief  inspector  of  private  employment  agencies,  and  in  addition  secures 
the  written  consent  of  the  sureties  on  the  bond,  the  license  will  then 
cover  the  new  location. 

The  act  contains  detailed  regulations :  as  to  the  registers  for  applica- 
tions for  help  and  for  employment,  which  are  to  be  kept  open  during 
office  hours  for  inspection  by  the  officers  vested  with  the  enforcement 
of  the  act ;  as  to  the  employes  or  solicitors  of  such  agencies ;  as  to  the 
registration  and  other  fees ;  as  to  receipts  for  fees  and  return  thereof 
in  case  employment  is  not  obtained  within  a  certain  time  or  does  not 
extend  beyond  a  certain  time ;  as  to  sending  applicants  to  places  where 
no  employment  actually  exists ;  as  to  safeguards  in  sending  applicants 
outside  of  the  city  in  which  the  agency  is  located ;  and  as  to  numerous 
other  matters. 

Each  receipt  of  an  agency  is  required  to  have  printed  on  its  back  the 
name  and  address  of  the  State  board  of  labor  commissioners  and  of  the 
chief  inspector  of  private  employment  agencies.  The  agencies  are  also 
required  to  have  the  more  important  provisions  of  the  act  posted  in 
their  offices.  The  agencies  are  specifically  forbidden  to  send  female 
help  to  any  place  known  to  be  of  questionable  character,  or  to  aid  in 
obtaining  employment  for  any  child  in  violation  of  the  child  labor  acts 
of  1897  and  1903. 

For  sending  females  to  questionable  places  and  for  certain  other 
offences,  the  penalty  (under  section  6  of  the  act)  is  a  fine  of  not  less 
than  $50  and  not  more  than  $200 T)r  imprisonment  in  the  county  jail 
or  house  of  correction  for  a  period  of  not  more  than  one  year,  or  both 


524  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

at  the  discretion  of  the  court.  For  the  violation  of  the  other  pro- 
visions there  is  a  possible  fine  of  $25  or  imprisonment  for  30  days. 
In  addition  the  license  may  be  revoked  for  any  illegal  conduct.  . 

Organisation  of  the  Enforcing  Authority. 

Enforcement  of  the  act  is  committed  to  the  State  board  of  labor 
commissioners  and  an  officer  to  be  known  as  the  chief  inspector  of 
private  employment  agencies.  The  chief  inspector  is  first  recom- 
mended by  the  State  board  of  labor  commissioners  and  appointed  by 
the  Governor,  at  a  salary  of  $3,600  per  year  for  a  term  of  office  ex- 
tending through  the  period  of  the  incumbency  of  the  Governor  appoint- 
ing him,  or  until  his  successor  is  appointed.  By  the  terms  of  the  act 
deputy  inspectors  may  be  appointed  by  the  chief  inspector  with  the 
approval  of  the  Governor,  one  inspector  for  every  fifty  licensed 
agencies  or  major  fraction  thereof,  at  a  salary  of  $1,500  per  annum. 
By  an  amendment  of  1911  one  woman  investigator  of  domestic  agencies 
was  added.  The  deputy  inspectors  and  the  woman  investigator  are 
now  appointed  under  the  terms  of  the  civil  service  amendment  act  of 
1911. 

The  chief  inspector  of  private  employment  agencies  is  required  to 
furnish  bond  payable  to  the  State  of  Illinois  in  the  sum  of  $5,000. 
Each  inspector  is  required  to  make  at  least  bi-monthly  visits  to  every 
agency  over  which  he  has  jurisdiction.  Such  inspectors  are  charged 
in  the  same  manner  as  the  chief  inspector  and  board  of  labor  commis- 
sioners, to  see  that  all  the  provisions  of  the  act  are  complied  with,  and 
they  shall  have  no  other  occupation  or  business. 

Duties  of  the  Enforcing  Authority. 

Under  the  act  the  enforcing  authorities  perform  in  the  main,  three 
functions:  (a)  granting  of  licenses,  (b)  compelling  an  observance  of 
the  specific  provisions  of  the  act  (by  inspections  and  prosecutions), 
and  (c)  revocation  of  licenses. 

(a)  Granting  of  Licenses.  The  provisions  of  the  statute  govern- 
ing issuance  of  licenses  have  already  been  noted.  The  granting  of 
licenses  is  committed  exclusively  to  the  State  board  of  labor  commis- 
sioners. The  general  requirements  before  a  license  may  be  issued  are : 
That  the  applicant  tender  the  required  fee,  submit  affidavits  of  two 
persons  who  have  known  him  for  two  years,  which  shall  state  that  the 
applicant  is  of  good  moral  character,  and  submit  a  bond  in  a  penal  sum 
of  $500.  But  even  if  these  provisions  are  complied  with  the  board  is 
not  bound  as  a  matter  of  course  to  issue  the,  license.  The  act  expressly 
provides  that  the  State  board  of  labor  commissioners  may  refuse  to 
issue  a  license  for  any  good  cause  shown,  within  the  meaning  and  pur- 
pose of  this  act.  However,  if  a  license  is  refused,  the  determination  is 
subject  to  review  on  a  writ  of  certiorari. 

(b)  Compelling  observ^ance  of  the  provisions  of  the  act.  The 
state  board  of  labor  commissioners  and  the  chief  inspector  of  private 
employment  agencies  (and  under  his  direction  the  inspectors)  are  en- 
trusted with  the  enforcement  of  the  act.  For  the  most  part  the  act 
lays  down  specific  requirements  and  prohibitions  upon  persons  licensed 
to  conduct  private  employment  agencies.     The  act  expressly  provides 


LABOR   AND    MINING. 


525 


that  the  "violation  of  any  provision  of  this  act  except  as  provided  in 
Section  1  and  6  shall  be  punishable  by  a  fine  not  to  exceed  $25  and  any 
city  magistrate,  judge  of  a  municipal  court,  police  justice,  justice  of  the 
peace,  or  any  inferior  magistrate  having  original  jurisdiction  in  crim- 
inal cases  shall  have  power  to  impose  said  fine,  and  in  default  of  pay- 
ment thereof  to  commit  to  the  county  jail  or  house  of  correction  the 
persons  so  offending  for  a  period  of  not  exceeding  30  days." 

The  State  board  of  labor  commissioners  or  the  chief  inspector  of 
private  employment  agencies  or  any  of  the  inspectors  created  by  this 
act,  may  institute  criminal  proceedings  for  its  enforcement  before  any 
court  of  competent  jurisdiction,  and  the  State  board  of  labor  commis- 
sioners is  given  authority  to  employ  legal  advice  or  services  whenever 
in  its  opinion  such  advice  or  services  are  necessary. 

Further  to  ensure  the  enforcement  of  the  provisions  of  the  act,  the 
chief  inspector  of  private  employment  agencies  and  all  inspectors 
created  by  this  act  are  given  full  power  to  execute  and  serve  all  war- 
rants and'  process  of  law  issued  by  any  justice  of  the  peace  or  police 
magistrate,  or  by  any  court  having  competent  jurisdiction  under  the 
law  relating  to  employment  agencies,  in  the  same  manner  as  any  con- 
stable or  police  officer,  and  they  may  arrest  on  view  and  without  war- 
rant any  unlicensed  person  detected  by  them  actually  violating  any  of 
the  provisions  of  the  act  and  may  take  such  persons  so  oflFending  before 
any  court  having  jurisdiction  of  the  offense,  and  make  proper  com- 
plaint before  such  court,  which  shall  proceed  with  the  case  in  the  man- 
ner and  form  provided  by  law. 

(c)  Power  to  revoke  licenses.  The  State  board  of  labor  commis- 
■  sioners  is  given  power  to  revoke  any  license  for  good  cause  shown 
within  the  meaning  and  purpose  of  this  act,  and  when  it  is  shown  to 
the  satisfaction  of  the  board  of  commissioners  of  labor  that  any  person 
is  guilty  of  any  immoral,  fraudulent  or  illegal  conduct  in  connection 
with  said  business,  it  is  then  the  duty  of  the  board  to  revoke  the  license 
of  such  person.  But  before  any  license  may  be  revoked  notice  of  the 
charge  must  be  presented  and  reasonable  opportunity  given -the  licensed 
person  to  defend  himself  in  the  manner  and  form  as  provided  in  this 
act.  Such  proceedings  are  begun  by  filing  a  complaint  against  the 
licensed  person  with  the  State  board  of  labor  commissioners  or  with  the 
chief  inspector  of  private  employment  agencies.  This  complaint  may 
be  made  orally  or  in  writing. 

A  concise  statement  of  the  facts  constituting  the  complaint  is  then 
written  out  and  served  (personally)  upon  the  licensed  nerson,  and 
notice  of  the  place  of  hearing  must  be  given.  A  hearing  may  be  had 
before  the  state  board  of  labor  commissioners,  or  before  the  chief 
inspector  of  private  employment  agencies  if  the  board  so  designates. 
The  licensed  person  is  entitled  to  at  least  one  day  before  the_ hearing, 
after  receiving  notice  thereof,  but  the  hearing  must  be  had  within  one 
week  from  the  filing  of  the  complaint.  The  determination  must  be 
within  eight  days  from  the  time  the  matter  is  finally  submitted.  If  the 
license  is  thereupon  revoked,  the  determination  is  subject  to  review  on 
writ  of  certiorari. 


526  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

A  calendar  must  be  kept  by  the  state  board  of  labor  commissioners 
of  the  complaints  they  are  to  hear  and  by  the  chief  inspector  of  those 
he  is  to  hear,  and  must  be  posted  in  a  conspicuous  place  in  its  or  his 
office  for  at  least  one  day  before  the  date  of  such  hearing. 

The  chief  inspector  of  private  employment  agencies  is  given  con- 
current power  vi^ith  the  State  board  of  labor  commissioners  with  re- 
spect to  the  hearing  of  complaints  against  licensed  persons,  provided 
he  is  designated  by  the  board  to  hold  such  hearings,  but  cannot  him- 
self revoke  the  license.  The  State  board  of  labor  commissioners,  which 
issued  the  license,  is  the  only  body  granted  power  to  revoke.  W  hen 
the  board  has  issued  an  order  revoking  a  license,  the  order  does  not 
become  effective  until  seven  days  after  such  revocation  has  been  of- 
ficially announced.  Such  revocation  is  good  cause  for  refusing  to 
issue  another  license  to  the  same  person  or  his  representative,  or  to 
any  person  with  whom  he  is  associated. 

Finances. 

The  act  of  1909  contemplated  that  the  office  of  chief  inspector  of 
private  employment  agencies  should  be  self-supporting.  Salaries  and 
general  expenses  were  to  be  paid  from  the  license  fees  and  fines  col- 
lected under  the  provisions  of  the  act.  The  following  items  were  to 
be  paid  from  this  fund: 

Salary  of  chief  inspector,  $3,600  per  annum,  payable  monthly,  upon 
voucher  therefor  filed  with  the  Auditor  of  Public  Accounts,  and  ap- 
proved by  the  Governor;  necessary  printing,  stationery  and  postage, 
office  furniture,  rent  of  rooms,  salaries  of  assistants,  such  as  clerks 
and  stenographers,  as  the  office  required ;  any  expense  incurred  in  ob- 
taining legal  advice;  salaries  of  inspectors  $1,500  .per  annum,  such 
salary  to  be  audited  and  paid  on  certificates  of  the  chief  inspector  of 
private  employment  agencies.  Should  the  fund  prove  insufficient,  the 
board  of  labor  commissioners  was  given  power  to  suspend  any  number, 
or  all  of  such  inspectors  until  the  fund  was  again  replenished. 

The  State  board  of  labor  commissioners,  at  the  end  of  each  fiscal 
year,  was  required  to  make  an  account  of  said  license  fee  fund  and  pay 
into  the  State  treasury  whatever  balance  remained  after  having  made 
the  necessary  disbursements.  But  by  legislation  of  1911,  all  fees  are 
required  to  be  paid  into  the  State  Treasury,  quarterly,  and  no  money 
is  expended  except  upon  the  warrant  of  the  auditor  of  public  accounts, 
based  upon  appropriations  made  by  the  general  assembly. 

In  the  act  relating  to  private  employment  agencies  there  is  no  pro- 
vision requiring  reports  of  the  work  of  supervision.  The  work,  how- 
ever, is  under  the  control  of  the  State  board  of  commissioners  of  labor, 
and  this  board  is  required  to  collect,  assort,  systematize  and  present  in 
biennial  report  to  the  General  Assemblv  statistical  details  relating  to 
all  departments  of  labor  in  the  State. 

Reports. 

The  act  relating  to  free  employment  offices  requires  an  annual  re- 
port to  be  made  to  the  bureau  of  labor  statistics  by  each  superintendent 
of  a  free  employment  office,  not  later  than  December  1,  concerning  the 


LABOR   AND    MINING.  527 

work  of  his  office  for  the  year  ending  October  1.  The  reports  from 
all  free  employment  offices  are  systematized,  rearranged  and  published 
annually  by  the  bureau  of  labor  statistics.  The  report  for  1909  of  the 
bureau  of  labor  statistics  of  the  Illinois  free  employment  offices  con- 
tains also  a  report  of  the  chief  inspector  of  private  employment 
agencies  for  the  years  ending  August  31,  1909  and  August  31,  1910;  a 
similar  report  for  the  period  Sept.  1,  1910 — June  30,  1911,  is  contained 
in  the  free  employment  offices  reports  for  1911 ;  and  for  1912  and  1913 
the  reports  appear  in  the  1912  and  1913  reports  of  the  free  employ- 
ment offices. 

Before  1911  the  chief  inspector  of  private  employment  agencies  re- 
ported to  the  bureau  of  labor  statistics  concerning  the  work  of  his 
office  for  the  year  ending  August  31.  Legislation  of  this  year  required 
all  fees  and  fines  collected  by  him  and  the  commissioners  of  labor  to 
be  paid  over  to  the  State  Treasury  on  or  before  the  second  Wednesday 
of  January,  April,  July  and  October  of  each  year.  Referring  to  this 
amendment  in  his  report  to  the  Bureau  of  Labor  Statistics  in  1910,  the 
Chief  Inspector  of  Private  Employment  Offices  says : 

"This  change  having  made  it  necessary  for  the  General  Assembly  to 
make  appropriations  for  the  maintenance  of  our  office  and  creating  a 
new  channel  through  which  the  license  fees  reach  the  State  Treasury, 
I  therefore,  submit  to  you  another  report  on  the  supervision  of  the 
private  employment  agencies  in  Illinois  for  a  period  of  ten  months 
from  September  1,  1910  to  June  30,  1911."  The  reports  of  the  chief 
inspector  for  1912  and  1913  published  in  reports  of  the  bureau  of  labor 
statistics  on  free  employment  offices,  cover  the  regular  fiscal  year,  July 
1  to  June  30,  although  some  of  the  information  presented  by  the  sec- 
retary of  the  board  of  commissioners  of  labor  covers  the  years  ending 
August  31. 

The  law  for  the  inspection  of  private  employment  agencies  is  en- 
forced primarily  in  Chicago,  and  has  little  operation  with  respect  to 
other  parts  of  the  State,  except  so  far  as  other  places  may  be  easily 
reached  from  Chicago.  As  stated  in  the  1912  report  and  as  stated  for 
the  present  time  by  the  chief  inspector  personally  this  is  due  to  the 
small  appropriation.  Personal  inspections  are  not  made  outside  of 
Chicago,  and  the  problem  there  is  probably  sufficient  to  keep  all  the 
inspectors  busy.  In  smaller  cities,  especially  in  the  southern  part  of 
the  State,  there  are  probably  a  number  of  agencies  of  which  no  record 
even  is  had.  In  1912  there  were  in  this  office  a  chief  inspector,  five 
deputies  and  three  other  employees.  Because  of  the  smallness  of 
funds,  the  public  notice  by  advertisement  of  the  applications  for  license, 
was  not  given  in  1912,  and  there  was  little  opportunity  to  employ 
special  counsel.  Some  use  during  this  year  has  been  made  of  special 
counsel  but  reliance  is  ordinarily  placed  upon  the  regular  prosecuting 
officers. 

Reference  has  already  been  made  to  the  fact  that  the  law  requires 
an  inspection  of  each  agency  once  every  two  months.     If  the  whole 


528  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

tield  of  employment  agencies  is  covered  an  inspection  of  this  frequency 
probably  cannot  be  had;  for  some  types  of  agencies  it  may  be  unneces- 
sary, while  as  to  other  agencies  an  even  more  frequent  inspection  is 
desirable.     This  requirement  has  not  been  observed. 

With  reference  to  the  revocation  of  licenses  it  has  already  been  sug- 
gested that  the  commissioners  of  labor  may  themselves  hold  hearings 
or  may  authorize  the  chief  inspector  to  do  so.  The  commissioners 
have  not  ordinarily  (if  in  any  cases)  authorized  the  chief  inspector  to 
hold  hearings,  and  this  makes  difficulty  in  that  the  hearing  must  be 
held  within  one  week  after  the  filing  of  the  complaint.  It  is  difficult 
to  get  the  commissioners  together  to  hold  a  hearing  inasmuch  as  their 
compensation  is  nominal.  Proceedings  to  forfeit  licenses  may  there- 
fore fail  on  this  account.  Of  course,  the  commissioners  must  act  in 
revoking  the  license,  and  such  action  is  under  present  law  required  to 
be  taken  within  eight  days  after  the  matter  is  finally  submitted.  It 
would  be  well  for  the  commissioners  to  employ,  the  chief  inspector  to 
a  greater  extent  for  the  taking  of  testimony,  and  the  law  should  be 
amended  so  as  to  permit  a  longer  time  between  the  filing  and  the  hear- 
ing of  complaints. 

The  present  method  of  appointing  the  chief  inspector  is  one  which 
is  not  conducive  to  the  best  results.  In  offices  of  this  character  poli- 
tical influence  should  not  count,  but  some  impartial  method  should  be 
employed  to  test  efficiency  for  the  duties  to  be  performed. 

A  difficulty  in  the  enforcement  of  the  act  arises  from  the  fact  that 
charitable  institutions  are  not  included.  In  many  cases  agencies  ac- 
tually charging  fees  and  doing  a  general  business  as  employment 
agencies  masquerade  as  charitable  institutions  in  order  to  escape  the 
operation  of  the  law. 


V.     FREE  EMPLOYMENT  OFFICES. 

By  an  act  approved  April  11,  1899,  free  employment  offices  were 
created,  one  in  each  city  of  not  less  than  50,000  population,  and  three 
in  each  city  containing  a  population  of  one  million  or  over.  A  super- 
intendent, assistant  superintendent,  and  clerk  for  each  of  these  offices 
were  to  be  appointed  by  the  Governor,  with  the  advice  and  consent  of 
the  Senate  upon  the  recommendation  of  the  State  board  of  commission- 
ers of  labor.  The  duties  of  the  superintendent  were  definitely  pre- 
scribed, and  he  was  required  to  make  an  annual  report  to  the  State 
bureau  of  labor  statistics.  Whenever  the  commissioners  of  labor  were 
of  the  opinion  that  a  superintendent  was  not  duly  diligent  and  ener- 
getic in  the  performance  of  his  duties,  they  were  authorized,  after  a 
hearing,  to  recommend  his  removal  to  the  Governor.  The  Governor 
was  authorized  to  remove  the  superintendents  upon  such  recommenda- 
tion, or  to  remove  at  any  time  for  cause  any  superintendent,  assistant 
superintendent,  or  clerk.  Under  this  act  three  free  employment  offices 
were  established  in  Chicago  in  1899,  and  after  the  census  of  1900,  one 
in  Peoria  in  1901. 

The  act  of  1899  was  superseded  by  an  act  of  1903,  which  repeats  in 
large  part  the  provisions  of  the  earlier  act,  but  does  not  contain  pro- 
visions regarding  the  removal  of  superintendents.  An  amendment  of 
1913  to  the  act  of  1903  creates  free  employment  agencies,  "one  in  two 
or  more  contiguous  cities  or  towns  having  an  aggregate  or  combined 
population  of  not  less  than  50,000  population."  Under  the  act  of  1903, 
as  amended,  there  are  three  free  employment  offices  in  Chicago  (1899), 
and  one  each  in  Peoria  (1901),  East  St.  Louis  (1907),  Springfield 
(1909),  Rockford,  and  Rock  Island  (1913). 

The  purpose  of  these  offices  is,  as  stated  in  the  act,  to  receive  appli- 
cations of  persons  seeking  employment  and  to  receive  applications  of 
persons  seeking  to  employ  labor.  Each  free  employment  office  is  placed 
in  the  charge  of  a  superintendent,  who  is  aided  by  an  assistant  super- 
intendent and  a  clerk,  all  of  whom  are  to  devote  their  entire  time  to 
the  duties  of  their  respective  offices.  The  Governor  is  given  power 
to  appoint,  upon  the  recommendation  of  the  commissioners  of  labor, 
the  superintendent,  assistant  superintendent,  and  clerk,  by  and  with 
the  advice  and  consent  of  the  Senate.  The  act  provides  that  in  each 
case,  either  the  assistant  superintendent  or  the  clerk  shall  be  a  woman. 
The  salary  of  the  superintendent  is  fixed  at  $1,500  per  year,  assistant 
superintendent  $1,200  per  year,  and  of  the  clerk  $1,000  per  year.  By 
appropriation  acts  additional  assistants  have  been  provided  for  all  of 
the  offices  except  that  of  Rock  Island.  The  additional  employees  of 
these  offices  are  in  the  classified  civil  service.  At  present  the  Chicago 
South  Side  office  has  seven  employees,  and  each  of  the  other  Chicago 


530  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

offices  six ;  the  East  St.  Louis,  Peoria,  Springfield  and  Rockford  offices 
have  five  employees  each;  and  the  Rock  Island  office  the  three  em- 
ployees provided  by  the  Statutes  of  1899  and  1903. 

The  first  duty  devolving  upon  a  superintendent  is  the  selection  of  an 
office  in  the  city  where  the  free  employment  office  is  to  be  opened. 
Th  location  of  the  office  is  agreed  upon  between  the  superintendent  and 
the  secretary  of  the  bureau  of  labor  statistics. 

The  primary  duty  of  free  employment  offices  is  to  supply  laborers 
to  those  who  apply  for  help  and  to  supply  work  to  those  who  apply  for 
employment.  That  is,  it  is  the  duty  of  the  offices  to  bring  employer 
and  employee  together.  Their  duty  is  not  confined  to  unskilled  labor- 
ers, for  the  language  of  the  statute  is  sufficiently  broad  to  cover  any 
kind  of  employment  whether  skilled,  unskilled,  or  even  professional. 
A  person  may  apply  for  any  kind  of  help  or  any  kind  of  work. 

The  act  expressly  provides  that  the  superintendent  shall  keep  a  book 
in  which  he  is  to  keep  the  names  of  all  applicants  for  employment  and 
help,  and  section  8  of  the  act  defines  "applicant  for  employment"  to 
mean  any  person  seeking  work  of  any  lawful  character,  and  "applicant 
for  help"  as  meaning  any  person  or  persons  seeking  help  in  any  legiti- 
mate enterprise,  "and  nothing  in  this  act  shall  be  construed  to  limit 
the  meaning  of  the  term  work  to  manual  occupation,  but  it  shall  in- 
clude professional  services  and  all  other  legitimate  service." 

The  superintendent  is  required  to  do  something  more  than  to 
attempt  to  fill  requests  for  work  and  help  which  come  to  the  office.  An 
active  duty  is  imposed  upon  him  to  find  out  where  work  is  available  and 
where  laborers  of  all  kinds  are  wanted.  The  statute  expressly  pro- 
vides that  it  shall  be  the  duty  of  each  superintendent  of  a  free  employ- 
ment office  immediately  to  put  himself  in  communication  with  the 
principal  manufacturers,  merchants  and  other  employers  of  labor,  and 
to  use  all  diligence  in  securing  the  co-operation  of  the  said  employers 
of  labor.  To  this  eijd  the  superintendent  is  authorized  to  advertise  in 
the  columns  of  newspapers,  or  other  media  for  such  situations  as  he 
has  applicants  to  fill,  and  he  may  advertise  in  a  general  way  for  the 
co-operation  of  large  contractors  and  employers,  in  such  trade  journals 
or  special  publications  as  reach  such  employers,  whether  such  trade 
or  special  journals  are  published  in  this  state  or  not.  The  following 
out  of  this  scheme  of  general  advertising  for  information  concerning 
places  where  work  may  be  had  and  where  laborers  are  wanted,  does  not, 
however,  relieve  the  superintendent  from  pursuing  other  methods  by 
means  of  which  employers  and  employees  may  be  brought  together 
The  superintendent  is  given  a  wide  range  of  discretion  in  choosing 
effective  methods  for  finding  out  just  what  the  needs  of  employers  and 
employees  are.  The  act  expressly  provides  that  in  addition  to  the 
means  suggested,  the  superintendent  is  "to  use  all  diligence  in  secur- 
ing the  co-operation  of  the  said  employers  of  labor  with  the  purposes 
and  objects  of  this  act."  There  is  in  the  statute  an  authorization  for 
payment  of  an  interpreter,  when  necessary. 


LABOR    AND    MINING. 


53] 


With  reference  to  general  office  management,  the  act  provides: 

(1)  That  the  superintendent  is  to  receive  and  record  in  books' 
kept  for  that  purpose  the  names  of  all  persons  applymg  for  help, 
designating  opposite  the  name  and  address  of  each  applicant  the 
character  of  the  employment  or  help  desired. 

(2)  That  separate  rooms  be  kept  for  women  who  register  for 
situations  or  help. 

(3)  That  the  superintendent  shall  keep  a  separate  register  for 
applicants  for  employment  which  must  show :  (a)  the  age,  sex,  nativ- 
ity, trade  or  occupation  of  each  applicant;  (b)  cause  and  duration  of 
non-employment;  (c)  whether  married  or  single;  (d)  the  number  ot 
dependent  children. 

The  act  also  requires  that  the  registers  for  applicants  shall  show 
"such  other  facts  as  may  be  required  by  the  bureau  of  labor  statistics 
to  be  used  by  said  bureau,"  but  provides  "that  no  special  registers  shall 
be  open  to  public  inspection  at  any  time,  and  that  such  statistical  and 
sociological  data  as  the  bureau  of  labor  statistics  may  require  shal 
be  held  in  confidence  by  said  bureau,  and  so  published  as  not  to  reveal 
the  identitv  of  any  one,"  and  further,  "that  any  applicant  who  shall 
decline  to  furnish  answers  as  to  the  questions  contained  in  special  reg- 
isters shall  not  thereby  forfeit  any  rights  to  any  employment  the  office 
might  secure."  Another  provision  of  the  act  requires  that  each  super- 
intendent "also  perform  such  other  duties  in  the  collection  of  statistics 
of  labor  as  the  secretary  of  the  bureau  of  labor  statistics  may  require. 

Section  7  of  the  act  provides  that  no  fee  or  compensation  shall  be 
charged  or  received  directly  or  indirectly  from  persons  applying  for 
employment  or  help  through  the  free  employment  offices,  and  the  vio- 
lation of  this  clause  is  made  a  misdemeanor  punishable  by  fine  and 
imprisonment. 

The  superintendent  of  each  employment  office  is  required  to 
make  two  reports,  a  weekly  report,  on  Thursday  of  each  week,  and  an 
annual  report  not  later  than  December  of  each  year,  concerning  the 
work  of  his  office  for  the  year  ending  October  1 ;  both  reports  are 
to  be  made  to  the  bureau  of  labor  statistics. 

In  his  weekly  report  to  the  bureau  of  labor  statistics,  the  super- 
intendent must' give  the  following  information:  (1)  The  number  of 
applications  for  positions  received  during  the  preceding  week._  (2)  The 
number  of  applications  for  help  received  during  the  preceding  week 
(3)  The  number  of  positions  secured.  (4)  The  number  of  unfilled 
applications  remaining  on  the  books  at  the  beginning  of  the  week,  and 
(5)  the  number  and  character  of  positions  secured  during  the  pre- 
ceding week. 

The  secretary  of  the  bureau  of  labor  statistics  is  required  to  cause 
to  be  printed  not  later  than  Saturday  of  each  week,  a  sheet  showing 
separately  and  in  combination  the  lists  received  from  all  such  free 
employment  offices.  The  publication  of  weekly  reports  seems  to  be 
of  no  great  value, 

^Section  13  provides  that  blank  books  and  such  supplies  as  may  be  necessary  shall 
be  furnished  by  the  Secretary  of  State  upon   requisition  made  by  the  superintendents. 


532  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

In  his  annual  report  to  the  bureau  of  labor  statistics,  which  must 
be  made  not  later  than  December  1,  of  each  year,  each  superintendent 
must  report  "concerning  the  work  of  his  office  for  the  year  ending 
October  1st  of  the  same  year,  together  with  a  statement  of  the  expenses 
of  the  same,  including  the  charge  of  an  interpreter  when  necessary." 
The  annual  reports  are  required  to  be  published  by  the  bureau  of  labor 
statistics,  and  under  the  act  of  1903,  were  to  be  published  with  the 
Coal  Report  of  that  bureau.  The  publication  of  the  Coal  Report  was 
in  1911  transferred  to  the  state  mining  board.  Even  before  this,  the 
bureau  of  labor  statistics  issued  the  annual  report  of  free  employment 
agencies  in  separate  form,  as  well  as  in  combination  with  the  Coal 
Report. 

The  annual  reports  issued  by  the  bureau  of  labor  statistics  give 
consolidated  statistics  for  all  of  the  offices,  as  well  as  the  separate 
reports  for  each  free  employment  office,  but  these  reports  indicate 
little  as  to  the  efficiency  of  the  offices.  The  total  number  of  applications 
for  employment  in  1912  was  73,356,  and  in  the  same  period  69,883  posi- 
tions were  secured  by  the  six  offices  then  in  existence.  But  far  the 
greater  number  of  applications  for  employment  go  to  private  employ- 
ment agencies,  in  Chicago  especially. 

The  free  employment  offices  do  only  a  small  amount  of  the  busi- 
ness, and  their  small  number,  of  course,  accounts  in  part  for  this.  In 
1912  two  hundred  and  eighty-four  licenses  were  issued  to  private  em- 
ployment agencies,  and  reports  from  113  of  these  showed  404,153 
positions  secured.  The  creation  of  free  employment  offices  has  not 
appreciably  reduced  the  demand  for  the  services  of  private  agencies 
(although  statistics  are  not  available  and  the  proportionate  demand  for 
positions  has  of  course  increased).  It  would  be  difficult  to  determine 
to  what  extent,  if  any,  the  existence  of  the  free  offices  has  caused 
the  rendering  of  better  ser^'ice  by  private  agencies. 

As  far  as  organization  is  concerned,  it  would  seem  that  a  more 
effective  scheme  may  be  devised.  The  free  employment  offices  are 
now  subject  to  the  commissioners  of  labor  and  the  secretary  of  the 
bureau  of  labor  statistics  in  the  following  matters:  (1)  The  super- 
intendent, assistant  superintendent,  and  clerk  of  each  office  are  ap- 
pointed by  the  Governor,  with  the  advice  and  consent  of  the  Senate, 
upon  the  recommendation  of  the  commissioners  of  labor.  (2)  The 
original  location  of  each  office  is  determined  by  agreement  between 
the  superintendent  and  the  secretary  of  the  bureau  of  labor  statistics. 
(3)  Reports  must  be  made  by  each  office  to  the  bureau  of  labor  sta- 
tistics, and  published  by  that  bureau.  (4)  The  bureau  of  labor  statis- 
tics may  require  the  free  employment  offices  to  collect  and  furnish  to 
it  certain  statistical  and  other  information. 

Aside  from  these  requirements,  each  office  is  independent,  not 
only  of  every  other  office,  but  also  from  any  central  control.  Such 
a  situation  should  not  exist,  and  a  co-ordination  of  the  work  of  the 
several  offices  would  probably  result  in  more  efficient  service. 

The  superintendent  of  one  of  the  Chicago  offices  has  suggested 
that  the  superintendents  in  that  city  should  meet  to  discuss  ways  and 
means  of  increasing  the  efficiency  of  these  offices;  and  the  superin- 


LABOR   AND    MINING.  533 

tendent  of  the  Springfield  office  has  suggested  the  advisability  of  co- 
operation in  order  to  prevent  the  congestion  of  the  labor  market  in 
certain  localities.  Some  central  official  organization  would  correlate 
the  work  of  the  various  offices.  Under  the  present  organization  there 
has  been  little  if  any  effective  co-operation  among  the  several  offices. 

There  has  been  no  systematic  effort  through  the  free  employment 
offices  to  cope  with  the  unemployment  problem  as  a  whole.  The 
Chicago  Unemployment  Commission,  appointed  by  Mayor  Harrison, 
has  published  a  report  dealing  with  this  whole  problem.  A  resolution 
adopted  by  this  Commission  reads  as  follows : 

"1.  We  recommend  the  establishment  of  a  labor  exchange  so 
organized  as  to  assure:  (a)  adequate  funds  to  make  it  efficient  in  the 
highest  possible  degree;  (b)  a  mode  of  appointment  of  the  salaried 
directors  which  will  protect  it  against  becoming  the  spoils  of  political 
factions  and  parties  ;  and  (c)  a  board  or  council  of  responsible  citizens, 
representing  employers,  employees  and  the  general  public,  to  direct  the 
general  policy  and  watch  over  the  efficiency  of  the  administration,  this 
board  or  council  having  the  power  to  employ  and  discharge  all  em- 
ployees subject  to  proper  regulations  of  the  civil  service  commission. 

"2.  We  recommend  that  the  Governor  and  legislature  be  re- 
quested at  the  next  session  of  the  legislature  to  amend  the  present  law 
relating  to  free  state  employment  bureaus  so  as  to  secure  a  central 
state  labor  exchange,  based  on  the  principles  just  stated." 

Professor  Ernst  Freund  has  drafted  a  bill  embodying  these  ideas. 
■  The  bill  drafted  by  Professor  Freund  and  another  bill  introduced  in 
1913  to  centralize  control  over  the  present  agencies,  are  published  in 
the  report  of  the  Chicago  Commission.  (Report  of  the  Mayor's 
Commission  on  Unemployment,  pp.  8-12).  The  text  of  a  proposed 
bill  may  also  be  found  in  the  third  report  of  the  New  York  Commission 
to  inquire  into  the  question  of  employers'  liability  and  other  matters. 
(1911). 

The  General  Assembly  at  its  1913  session  (Laws,  1913,  p.  627) 
authorized  the  appointment  of  a  state  commission  to  investigate  the 
subject  of  unemployment  in  Illinois,  but  made  no  appropriation  for 
the  expenses  of  such  a  commission. 


VI.  INDUSTRIAL  BOARD. 

The  first  workmen's  compensation  act  was  passed  in  1911,  and 
was  made  applicable  only  to  certain  designated  employments.  Its 
administrative  features  were  relatively  simple,  and  authority  was  vested 
in  the  bureau  of  labor  statistics  to  handle  the^  administrative  work. 
Elections  by  employer  or  employee  not  to  come  within  the  act  were 
filed  with  the  bureau ;  in  case  matters  between  employer  and  employee 
were  submitted  for  arbitration  the  third  arbitrator  was  selected  by  a 
court  of  competent  jurisdiction,  and  a  copy  of  the  award  was  filed  with 
the  bureau;  employers  under  the  act  were  required  to  send  to  the 
bureau  reports  of  accidents  for  which  compensation  had  been  paid. 

The  administrative  features  of -the  act  of  1913  (which  replaced 
that  of  1911)  are  much  more  complete,  and  the  administration  of  this 
act  is  committed  to  -a  special  body  known  as  the  industrial  board. 
The  industrial  board  consists  of  three  members  appointed  by  the 
Governor,  by  and  with  the  advice  and  consent  of  the  Senate,  one.  of 
whom  must  be  a  representative  of  the  employing  class  operating  under 
the  act,  and  one  of  whom  must  be  a  representative  chosen  from  among 
the  employees  operating  under  this  act,  and  one  of  whom  shall  be  a 
representative  citizen  not  identified  with  either  the  employing  or  em- 
ployed classes  and  who  shall  be  designated  by  the  Governor  as  chairman. 
The  term  of  the  members  of  this  board  is  fixed  at  six  years,  except 
that  when  first  constituted  one  member  serves  for  two  years,  one  for 
four  years  and  one  for  six  years.  Not  more  than  two  members  of  the 
board  may  belong  to  the  same  political  party.  The  salary  of  each 
member  is  fixed  at  $4,000  per  year.  The  board  is  given  power  to 
appoint  a  secretary  and  to  employ  such  assistants  and  clerical  help  as 
may  be  necessary. 

Notices  of  election  to  be  bound  or  not  to  be  bound  by  the  act  are 
to  be  filed  with  the  industrial  board.  An  agreement  or  award  under 
the  act,  providing  for  compensation  in  installments,  may  at  any  time 
within  eighteen  months  be  reviewed  by  the  industrial  board,  upon 
application  of  either  the  employer  or  the  employee. 

Where  an  employer  and  employee,  who  have  come  under  the  law, 
are  unable  to  agree,  a  committee  of  arbitration  is  constituted,  composed 
of  a  member  or  agent  of  the  board,  as  chairman,  and  representatives 
of  the  two  parties.  An  arbitration  award  is  subject  to  review  by  the 
industrial  board,  and  questions  of  law  involved  in  the  decision  of  the 
board  may  be  reviewed  by  the  Supreme  Court  if  application  be  made 
within  thirty  days  after  the  board's  decision. 

A  certified  copy  of  the  decision  upon  arbitration  proceedings  when 
rendered  is  filed  with  the  circuit  court  of  the  county  in  which  the 


LABOR   AND    MINING.  535 

accident  occurred,  whereupon  such  court  renders  judgment.  But  judg- 
ment cannot  be  entered  until  fifteen  days'  notice  of  the  time  and  place 
of  the  application  for  the  entry  of  judgment  shall  be  served  upon  the 
employer  by  hling  such  notice  with  the  industrial  board. 

The  board  is  given  power  to  make  rules  and  orders  for  carrying 
out  its  duties,  which  rules  and  orders  are  to  be  deemed  prima  facie 
reasonable  and  valid.  The  board  or  any  member  thereof  has  power 
to  administer  oaths,  issue  subpoenas,  and  examine  witnesses,  and  to 
examine  and  inspect  such  books,  papers,  and  records,  places  or  premises 
as  may  relate  to  questions  in  dispute. 

Section  twenty-three  of  the  act  provides  that  no  employee,  personal 
representative  or  beneficiary  shall  have  power  to  waive  any  provision 
of  this  act  in  regard  to  amount  of  compensation  except  after  approval 
of  the  industrial  board. 

An  employer  against  whom  liability  may  exist  for  compensation 
may  be  relieved  therefrom  by  purchasing  an  annuity  or  by  depositing, 
in  a  depository  approved  by  the  board,  the  commuted  value  of  thq 
unpaid  compensation.  Upon  petition  a  lump  sum  compensation  may 
be  awarded  by  the  board  instead  of  periodical  payments. 

By  section  twenty-six  every  employer  who  elects  to  provide  and 
pay  the  compensation  provided  for  by  this  act  shall  within  ten  days  of 
the  receipt  of  a  written  demand  by  the  industrial  board  (1)  file  with 
the  board  a  sworn  statement  showing  his  financial  ability  to  psty  com- 
pensation normally  required  to  be  paid,  (2)  or  furnish  security  or  (3) 
insure  to  a  reasonable  amount  his  normal  liability  to  pay  such  com- 
pensation or  (4)  make  some  other  provisions  for  securing  payment  of 
compensation.  The  sworn  statement  of  financial  ability,  or  security, 
or  amount  of  insurance,  or  other  provision  is  subject  to  the  approval  of 
the  board. 

Section  thirty  provides  that  every  employer  within  the  provisions 
of  the  act  shall  send  to  the  industrial  board  a  report  of  all  accidental 
injuries  for  which  compensation  has  been  paid.  Section  twenty  makes 
it  the  duty  of  the  industrial  board  to  report  in  writing  to  the  Governor 
on  the  thirtieth  of  June  annually  the  details  and  results  of  its  admin- 
istration of  the  act. 

The  industrial  board  has  been  in  existence  for  so  short  a  time  that 
little  can  be  said  as  to  its  manner  of  conducting  business.  Reference 
is  made  later  in  this  report  to  the  fact  that  in  accident  reporting  great 
difficulty  has  been  occasioned  by  the  creation  of  a  board  independent 
of  the  other  labor  offices.  The  administration  of  a  compensation  scheme 
should  be  closely  allied  with  the  work  of  accident  'prevention,  and 
at  present  there  is  no  relation  whatever  in  Illinois.  From  the  stand- 
point of  accident  prevention,  it  would  be  well  to  have  a  compensation 
law  whose  burden  would  fall  more  heavily  upon  the  careless  than  upon 
the  careful  employer.  From  the  nature  of  the  compensation  board's 
work  there  appears  to  be  no  reason  why  the  administrative  details  can- 


536  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

not  be  handled  by  a  chief  of  bureau,  and  the  discretionary  functions 
by  a  board  which  should  perform  all  discretionary  duties  for  a  con- 
solidated department  of  labor. 

With  respect  to  one  matter  there  has  been  criticism  of  the  opera- 
tion of  the  compensation  law.  Some  employers  who  have  had  experi- 
ence under  it  complain  that  the  arbitration  boards  have  been  partial  to 
workmen  and  that  the  decisions  of  these  boards  are  almost  uniformly 
sustained  by  the  industrial  board. 


VII.  STATE  BOARD  OF  ARBITRATION. 

The  state  board  of  arbitration  was  created  by  an  act  approved 
August  2,  1895,  and  consists  of  three  members,  appointed  by  the  Gov- 
ernor, with  the  advice  and  consent  of  the  Senate.  The  members  are 
appointed  for  three  years,  and  the  terms  are  §o  arranged  that  one 
member  retires  each  year.  Not  more  than  two  of  them  may  belong 
to  the  same  poHtical  party.  One  and  only  one  of  them  shall  be  an 
employer  of  labor;  and  one  and  only  one  an  employee,  who  shall  be 
selected  from  some  labor  organization.  The  members  of  the  board 
each  receive  a  salary  of  $1,500  per  anhum.  The  board  was  authorized 
by  the  act  of  1895,  as  amended  in  1903,  to  select  and  remove  a  secre- 
tary, who  is  required  to  be  a  stenographer,  and  who,  under  the  amend- 
ment of  1903,  receives  $2,500  per  annum.  The  secretary,  however, 
now  comes  under  the  terms  of  the  state  civil  service  act  of  1911. 

Under  the  act  of  1895,  as  amended  in  1899  and  1901,  the  board 
may  (1)  upon  application  made  by  an  employer  or  by  employees,  act 
as  a  board  of  arbitration  or  (2)  on  its  own  initiative,  it  may  attempt  to 
effect  an  amicable  settlement  of  labor  disputes,  or,  if  a  controversy  is 
one  in  which  the  general  public  is  likely  to  suffer  injury  or  inconven- 
ience, the  board  may,  in  absence  of  application  by  either  party,  investi- 
gate the  facts  and  make  public  its  findings  and  recommendations. 

Arbitration.  Upon  application  of  an  employer  or  a  majority  of 
his  employees  in  the  department  of  business  in  which  a  controversy 
exists,  the  board  is  required  to  undertake  a  settlement  by  arbitration, 
provided  the  controversy  does  not  involve  questions  which  may  be  the 
subject  of  an  action  at  law  or  a  bill  in  equity.  The  application  must 
contain  a  concise  statement  of  the  grievance  complained  of,  and  an 
agreement  to  continue  in  business  or  at  work  without  strike  or  lockout 
until  the  decision  of  the  board,  provided  a  decision  is  made  within 
three  weeks  after  the  filing  of  the  application.  The  act  of  1895  pro- 
vided that  such  application  could  be  made  only  in  case  the  employer 
involved  employed  not  less  than  twenty-five  men,  but  in  1899  an  amend- 
ment permitted  the  union  of  employers  or  employees  to  make  the 
number  twenty-five,  even  though  that  number  was  not  employed  by 
the  same  employer,  provided  the  employers  were  engaged  in  the  same 
general  line  of  business  and  the  controversy  involved  a  common  dif- 
ference between  such  employers  and  employees. 

Upon  the  receipt  of  such  an  application  the  board  is  required  to 
give  public  notice  of  the  time  and  place  of  hearings  thereon,  but  such 
public  notice  may  be  dispensed  with  should  both  parties  to  the  con- 
troversy join  in  the  application  and  request  in  writing  that  public  notice 


538  EFFICIENCY    AND    ECONOMY    COMMITTEE, 

be  not  given.  The  board. is  required  to  visit  the  locaHty  of  the  dispute 
and  make  a  careful  investigation  of  the  controversy,  hearing  all  per- 
sons interested  who  may  come  before  them,  and  advising  the  parties 
what  ought  to  be  done  to  adjust  the  dispute.  Under  the  act  of  1895 
the  board  was  given  authority  to  summon  witnesses  and  administer 
oaths,  and  to  compel  the  production  of  certain  papers,  but  not  until 
1899  was  it  really  empowered  to  compel  testimony  by  means  of  an 
application  to  the  County  or  Circuit  Court,  and  to  require  the  produc- 
tion of  all  relevant  books  and  papers. 

The  board  is  required  to  make  a  written  decision  of  a  controversy 
submitted  to  it  as  above,  and  the  decision  is  open  to  public  inspection. 
The  decision  is  binding  upon  the  parties  who  joined  in  the  application 
"for  six  months  or  until  either  party  has  given  the  other  notice  in 
writing  of  his  or  their  intention  not  to  be  bound  by  the  same  at  the 
expiration  of  sixty  days  therefrom."  An  amendment  of  1899  provided 
that  any  person  aggrieved  by  a  failure  to  abide  by  a  decision  might 
apply  to  the  Circuit  or  County  Court  to  have  the  violator  punished  for 
contempt,  but  such  punishment  was  not  to  extend  to  imprisonment. 
These  provisions  apply  only  where  both  parties  to  the  controversy  have 
agreed  to  arbitrate.  Otherwise  the  board  has  power  only  to  advise  or 
recommend. 

Conciliation  and  Investigation.  The  board  is  required  when  there 
comes  to  its  knowledge  a  threatened  strike  or  lockout  involving  an 
employer  of  not  less  than  twenty-five  persons,  to  put  itself  into  com- 
munication as  soon  as  possible  with  the  employer  or  employees,  "and 
endeavor  by  mediation  to  effect  an  amicable  settlement  between  them, 
or  to  endeavor  to  persuade  them  to  submit  the  matter  in  dispute  to  the 
state  board." 

In  1901  a  wide  power  was  conferred  upon  the  board  in  certain 
cases  to  investigate  labor  controversies  as  to  which  efforts  at  both 
conciliation  and  arbitration  had  failed.  This  provision  of  law  is  of 
sufficient  importance  to  be  quoted  in  full :  "Whenever  there  shall  exist 
a  strike  or  a  lockout  wherein,  in  the  judgment  of  the  majority  of  said 
board,  the  general  public  shall  appear  likely  to  suffer  injury  or  incon- 
venience with  respect  to  food,  fuel,  or  light,  or  the  means  of  com- 
munication or  transportation,  or  in  any  other  respect,  and  neither  party 
to  such  strike  or  lockout  shall  consent  to  submit  the  matter  or  matters 
in  controversy  to  the  state  board  of  arbitration  in  conformity  with 
this  act,  then  the  said  board,  after  first  having  made  due  effort  to  effect 
a  settlement  thereof  by  conciliatory  means,  and  such  effort  having 
failed,  may  proceed  of  its  own  motion  to  make  an  investigation  of  all 
facts  bearing  upon  such  strike  or  lockout,  and  make  public  its  findings, 
with  such  recommendations  to  the  parties  involved  as  in  its  judgment 
will  contribute  to  a  fair  and  equitable  settlement  of  the  differences 
which  constitute  the  cause  of  the  strike  or  lockout;  and  in  the  prosecu- 
tion of  such  inquiry  the  board  shall  have  the  power  to  issue  subpoenas 
and  compel  the  attendance  and  testimony  of  witnesses  as  in  other 
cases." 


LABOR    AND    MINING.  539 

To  1910  no  use  had  been  made  of  the  powers  conferred  by  the 
amendment  of  1901,  and  the  same"  statement  is  probably  true  for  the 
period  since  1910. 

Activities  of  the  Board  of  Arbitration. 

The  law  goes  as  far  as  it  well  may  in  requiring  the  board  to  use 
its  best  efforts"  in  securing  a  peaceful  settlement  of  every  labor  dispute 
which  arises  in  the  state,  whether  the  board  is  called  upon  or  not  by 
the  parties  to  such  dispute.  Under  the  act  as  originally  passed  diffi- 
culty was  experienced  in  gaining  information  of  the  existence  of  strikes. 
Partially  to  remedy  this  an  amendment  was  added  in  1899,  making  it 
the  duty  of  the  mayor  of  every  city,  the  president  of  the  council  of 
every  incorporated  town  or  village,  and  the  chief  executive  officer  of 
every  labor  organization,  whenever  a  strike  or  lockout  involving  more 
than  twenty-five  employees  is  threatened,  immediately  to  communicate 
this  fact  to  the  state  board  of  arbitration. 

The  annual  reports  of  the  board  do  not  present  any  formal  sta- 
tistics of  cases  handled,  and  it  is  difficult  to  determine  to  what  extent 
the  efforts  of  the  board  have  met  with  success.  The  reports  do  show 
a  greater  use  of  its  powers  of  conciliation  than  of  those  of  arbitration. 
In  the  report  of  1901  is  reprinted  the  testimony  of  J-  McCan  Davis, 
then  secretary  of  the  board,  before  the  United  States  Industrial  Com- 
mission. This  testimony  indicated  that  in  the  four  years  from  1895 
to  1898,  43  cases  were  acted  upon  bv  the  board,  of  which  seven  were 
arbitrations  on  the  foint  petition  of  the  parties,  thirty-three  were  cases 
of  mediation :  twentv-two  of  the  cases  were  satisfactorily  settled.  In 
more  than  half  of  all  the  cases  presented,  action  was  initiated  by  the 
bogrd. 

In  recent  years  the  board  seems  not  to  have  been  as  active  as  in  the 
bep-inning.  The  policy  of  the  board,  as  stated  in  its  1910  report  (the 
latest  report  in  print)  is  to  allow  the  disputants  to  settle  between  them- 
selves, Avherever  that  appeared  possible,  as  it  believes  that  better  results 
are  obtainable  in  that  wav.  while  at  the  same  time  it  has  stood  by  readv 
to  intervene  at  the  opportune  moment.  An  examination  of  its  reports 
shows  that  the  board  has  in  the  main  "stood  by"  and  looked  on.  The 
1910  report  shows  consideration  by  it  of  five  labor  controversies,  of 
which  one  was  settled  bv  the  arbitration  of  the  board.  In  three  cases 
offers  bv  the  board  resulted  in  no  action,  and  in  the  fourth  the  board 
united  with  boards  from  other  states  in  an  unsuccessful  effort  to  bring 
about  a  settlement.  The  renorts  of  the  board  are  devoted  in  the  main 
to  statements  rerrardinp-  labor  controversies  settled  without  its  assist- 
ance, and  give  no  sntisfactory  account  of  all  labor  disputes  in  the  state 
during  the  year.  There  is  no  indication  as  to  whether  strikes  and 
lockouts  were  actually  reported  to  the  board  by  municipal  officers  and 
labor  organizations,  as  required  by  statute. 

The  Board  of  Arbitration  was  established  after  the  ereat  railway 
strike  of  1894.  in  response  to  a  popular  demand  that  something  should 
be  done.  During  a  good  part  of  the  time  since  its  creation,  the  board 
has  been  quiescent,  and  has  done  little  good  or  harm  in  the  field  marked 


540  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

out  for  it  by  the  law.  All  the  activities  of  the  board  indicated  in  its 
1910  report  could  not  have  required  inore  than  a  few  weeks'  work  upon 
the  part  of  the  members  and  the  secretary.  Since  1910  the  board  has 
issued  no  printed  report,  and  for  a  good  part  of  the  time  within  recent 
years  its  membership  has  not  been  complete.  Beginning  with  March 
15,  1914,  the  board  has  transmitted  written  monthly  reports  to  the 
Governor  but  an  examination  of  these  reports  covering  the  period  from 
January  to  August,  1914,  indicates  that  no  work  of  value  has  been  done. 
The  duties  of  this  board  could  well  be  transferred  to  some  other  body. 
The  arbitration  law  should  at  the  same  time  be  so  amended  as  to  pro- 
vide for  the  creation  of  special  boards  to  arbitrate  particular  labor 
disputes.  In  many  cases  a  specially  created  board  would  prove  more 
eflfective  that  a  permanent  board  of  arbitration.  There  should  also  be 
an  express  provision  for  the  rendering  of  aid  to  employers  and  em- 
ployees who  desire  to  enter  into  arbitration  agreements. 


VIII.     MINING  AUTHORITIES 
State  Mining  Board  and  Mine  Inspectors. 

With  the  exception  of  a  few  minor  statutes,  the  first  general  law 
providing  for  the  health  and  safety  of  persons  employed  in  mines 
in  Illinois  was  passed  in  1872.  By  this  act,  which  applied  to  mmes  m 
which  more  than  ten  men  were  employed,  county  surveyors  were 
constituted  ex-officio  inspectors  of  mines.  The  general  subjects  of 
ventilation,  escapement  shafts,  bore  holes,  signalling,  hoisting,  explo- 
sions, and  accidents  were  covered,  and  the  several  inspectors  were 
charged  with  the  duty  of  making  inspections,  enforcing  the  act,  and 
reporting  the  general  results  of  their  inspections  annually  to  the  Gov- 
ernor. An  amendment  of  1877,  in  addition  to  minor  changes,  repealed 
the  provision  of  the  act  of  1872  which  made  county  surveyors  _ex-officio 
inspectors  of  mines,  and  vested  the  administration  of  the  act  in  county 
mine  inspectors  to  be  appointed  by  the  several  county  boards.  _  No 
reporting  was  expressly  required  by  the  amendment.  A  general  revision 
of  the  mining  act  followed  in  1879  which  enlarged  its  scope,  but  left 
the  administrative  features  practically  the  same.  Mine  inspectors  were 
required  to  make  annual  reports  to  the  Governor. 

Amendments  of  1883  further  perfected  the  system  of  mine  inspec- 
tion by  requiring  that  additional  safeguards  be  taken  in  mines  and 
by  introducing  important  changes  in  the  administration  of  the  act.  The 
minimum  age  at  whch  children  were  allowed  to  work  in  mines  was 
changed  from  12  years  to  14  years.  The  act  was  made  to  apply  to  all 
mines.  The  appointment  of  a  board  of  examiners  by  the  commissioners 
of  labor  was  authorized,  the  board  to  consist  of  two  practical  coal 
miners,  two  coal  operators,  and  one  mining  engineer.  The  state  was 
divided  into  five  inspection  districts.  The  Governor,  upon  the  recom- 
mendation of  the  board  of  examiners,  was  empowered  to  appoint  five 
inspectors  who  were  to  devote  their  whole  time  to  the  inspection  of 
mines  and  the  enforcement  of  the  act.  The  policy  of  inspection  of 
mines  bv  county  inspectors  was  abandoned,  but  county  boards  were 
authorized  to  appoint  assistant  inspectors.  Qualifications  for  inspectors 
were  greatly  increased.  A  knowledge  of  mine  engineering  was  required 
and  ten  years'  practical  experience  in  mining.  Annual  reports  of 
inspectors  instead  of  going  to  the  Governor  were  to  be  sent  to  the 
bureau  of  labor  statistics.  "^The  term  of  office  of  inspectors  was  fixed 
at  one  year  and  the  salary  at  $1,800.  The  commissioners  of  labor  were 
given  power  to  remove  inspectors  for  cause. 

An  amendment  of  1885  increased  the  term  of  office  of  inspectors 
from  one  to  five  years.  Further  amendments  were  made  at  almost 
every  biennial  session  of  the  General  Assembly ;  and  in  1899  a  complete 


542  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

revision  of  mining  legislation  was  effected.  Under  the  legislation  of 
1899,  the  subordination  to  the  bureau  of  labor  statistics  continued  and 
the  board  of  examiners  was  styled  the  state  mining  board.  The  powers 
of  the  state  mining  board,  however,  were  considerably  enlarged  in 
1899,  and  by  an  amendment  of  1907  it  was  provided  that  this  board 
should  be  appointed  by  the  Governor,  with  the  advice  and  consent  of 
the  Senate.  In  1911  a  complete  revision  of  the  mining  act  occurred. 
Following  is  an  analysis  of  the  mining  act  of  1911  with  its  amendments 
of  1913. 

The  enforcement  of  the  act  is  committed  to  the  state  mining  board 
and  under  it  to  twelve  state  mine  inspectors.  The  act  imposes  specific 
duties  upon  all  mine  operators,  with  penalties  for  violation,  requiring 
that  every  mine  manager,  hoisting  engineer  and  mine  examiner  shall 
possess  a  certificate  of  competency  from  the  state  mining  board.  The 
nature  of  the  examinations,  in  order  to  obtain  these  certificates,  is  laid 
down  in  the  act,  and  the  board  is  authorized  upon  notice  and  hearing 
to  cancel  such  certificates.  The  emplo3anent  of  any  mine  manager, 
mine  examiner,  or  hoisting  engineer  who  does  not  possess  a  certificate 
is  forbidden.  Inspections  of  every  mine  in  the  state  are  required  to 
be  made  at  certain  intervals  by  state  mine  inspectors,  who  must  be 
duly  certified  as  competent  by  the  state  mining  board,  and  the  state 
mining  board  is  made  the  general  administrative  authority  through 
which  the  object  of  the  act  is  to  be  carried  out. 

The  act  goes  into  great  detail  in  laying  down  specific  requirements 
as  to  conditions  which  must  be  maintained  in  mines.  These  require- 
ments deal  with  the  sinking  of  shafts,  hoisting  equipment,  places  of 
egress,  stairways  and  cages,  passageways,  gates,  light,  signals,  gauges, 
safety  valves,  boilers,  obstructions,  buildings  on  surface,  oils  and  ex- 
plosives, engine  boiler-houses,  speed  of  cages,  safety  lamps,  ventila- 
tion, refuge  places,  hauling  roads,  cars,  voltage,  wires,  dead  holes, 
shots,  tools,  tamping,  etc.    General  penalties  are  provided  for  violations. 

The  Governor,  by  and  with  the  advice  and  consent  of  the  Senate, 
is  given  power  to  appoint  the  state  mining  board.  It  is  composed  of 
five  members,  two  of  whom  must  be  practicing  coal  miners,  one  a 
practicing  coal  mine  hoisting  engineer,  and  two  coal  operators.  One  of 
the  coal  operators  is  to  be  elected  president  and  one  of  the  coal  miners 
secretary.  Their  term  of  office  is  for  two  years  at  a  salary  of  $5.00 
per  day  for  a  term  of  not  more  than  one  hundred  days  in  any  one  year. 
The  board  is  given  power  to  appoint  a  chief  clerk,  at  a  salary  of  $2,000 
per  year  and  they  may  employ  such  other  persons  as  may  be  necessary 
for  the  proper  discharge  of  their  duties.  The  chief  clerk  comes  under 
the  state  civil  service  law. 

The  board  is  given  power  to  prescribe  standing  and  other  rules 
for  the  control  and  direction  of  its  officers  and  employes  and  of  the 
state  mine  insi)ectors.  It  is  also  the  duty  of  the  board  to  collect  statis- 
tical details  relating  to  coal  mining  in  the  state  and  to  publish  such 
information  yearly  as  a  report  to  be  known  as  the  Annual  Coal  Report. 
Before  1911  the  Annual  Coal  Report  was  prepared  by  the  bureau  of 
labor  statistics.  The  state  is  divided  into  twelve  inspection  districts 
by  the  state  mining  board. 


LABOR    AND    MINING.  543 

The  board  is  required,  by  examinations,  to  make  formal  inquiry 
into  and  to  pass  upon  the  practical,  technological  and  personal  fit- 
ness of  men  seeking  appointment  as  state  mine  inspectors,  mine  mana- 
o-ers,  hoisting  engineers  and  mine  examiners.  Before  an  applicant  is 
permitted  to  take  any  examination,  he  is  required  to  register  his  name 
with  the  state  mining  board,  and  file  with  it  an  affidavit  as  to  all  matters 
of  fact  establishhig  his  right  to  take  such  examination,  and  a  certificate 
of  good  character  and  temperate  habits  signed  by  at  least  ten  residents 
of  the  community  in  which  he  resides. 

Persons  applying  to  the  state  mining  board  as  candidates  for 
appointment  as  state  mspectors  of  mines  must  produce  evidence  satis- 
factory to  the  board  that  they  are  citizens  of  the  state,  at  least  thirty 
years  of  age,  that  they  have  had  a  practical  mining  experience  of  ten 
years,  and  that  they  are  men  of  good  repute  and  temperate  habits. 
They  must  pass  an  examination  as  to  their  practical  and  technical 
knowledge  of  mine  surveying  and  mining  machinery  and  appliances, 
of  the  proper  development  and  operation  of  coal  mines,  of  ventilation 
of  mines,  of  the  nature  and  properties  of  mine  gases,  of  first  aid  to 
injured,  of  mine  rescue  methods  and  appliances,  of  the  geology  of  the 
coal  measures  in  this  state,  and  of  the  laws  of  this  state  relating  to> 
coal  mines.  From  those  who  pass  said  examination,  the  Governor 
appoints  twelve  state  inspectors,  to  serve  for  a  period  of  two  years 
unless  sooner  removed  by  the  state  mining  board  for  cause.  Any  inspec- 
tor in  actual  service  who  has  passed  one  examination  under  this  act  may 
be  reappointed  without  further  certification  but  may  not  be  so  reap- 
pointed more  than  three  times.  The  salary  of  inspectors  is  fixed  at 
eighteen  hundred  dollars  per  annum,  and  they  are  allowed  all  neces- 
sary traveling  expenses.  A  bond  of  five  thousand  dollars  is  required 
of  each  inspector.  No  one  is  eligible  for  such  a  position  if  he  has  any 
pecuniary  interest  in  any  coal  mine  in  Illinois. 

For  a  while  the  state  mine  inspectors  were  under  the  civil  service 
law  (as  amended  in  1911),  but  under  a  ruling  of  the  present  Attorney- 
General  they  are  exempt.  Since  this  ruling  the  entire  personnel  of  the 
state  mine  inspecting  force  has  changed. 

Each  state  mine  inspector,  if  in  his  judgment  the  work  in  his 
district  requires  the  services  of  an  assistant,  is  given  authority  to  call 
upon  county  boards  to  appoint  some  person  as  such  assistant,  (to  be 
paid  out  of  the  county  treasury  at  a  rate  of  not  less  than  $3.C0  per 
day).  Each  assistant  thus  appointed  must  be  the  holder  of  a  certificate 
of  competency  as  a  mine  manager.  Each  state  inspector  is  permitted  to 
authorize  (in  writing)  the  county  inspector  to  assume  and  discharge  all 
the  duties  and  exercise  all  the  powers  of  the  state  inspector.  The  bond 
of  the  state  mine  inspector  may  be  held  for  the  faithful  performance 
of  duty  by  such  assistant  inspectors. 

Each  state  inspector  is  to  devote  his  entire  time  to  the  duties 
of  his  office,  and  his  duties  consist  chiefly  in  making  personal  inspec- 
tions of  all  mines  in  his  district.  Under  the  act  of  1911,  the  state 
inspectors  were  required  to  make  personal  examination  at  least  once 
in  every  six  months  of  each  mine  in  their  district,  in  which  marsh 
gas  had  been  detected  in  quantities  which  the  state  mining  board 


SA4  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

thought  dangerous.  The  state  mining  board,  however,  could  require 
state  inspectors  personally  to  examine  any  or  all  other  mines  in  their 
respective  districts  and  the  state  mining  board  could  assign  inspectors 
to  examine  mines  which  had  not  been  classified  as  generating  marsh 
gas  in  dangerous  quantities.  The  act  also  required  that  every  mine 
in  the  state  should  be  examined  at  least  once  in  every  six  months.  Some 
changes  were  made  in  these  requirements  by  amendments  of  1913.  The 
act  of  1911  contemplated  chiefly  the  personal  inspection  by  the  state 
inspector  of  mines  in  which  gas  was  being  generated.  The  amendment 
of  1913  strikes  out  this  limitation  and  expressly  requires  state  inspec- 
tors to  make  personal  examinations  at  least  once  in  every  six  months 
or  oftener  if  necessary  of  every  mine  in  their  districts  in  which  ten  or 
more  men  are  employed.  The  provision  allowing  the  state  mining 
board  to  require  state  inspectors  personally  to  examine  any  or  all  other 
mines  in  their  respective  districts  remain  the  same.° 

It  is  the  duty  of  the  state  mine  inspectors  to  see  to  it  that  the  re- 
quirements of  the  act  are  in  all  cases  complied  with  and  that  every 
necessary  precaution  be  taken  to  insure  the  health  and  safety  of  work- 
men. After  an  examination  has  been  conducted  a  notice  is  to  be  posted 
by  the  state  inspector  in  some  conspicuous  place  at  the  top  of  the  mine, 
which  notice  shall  contain  a  plain  statement  showing  what,  in  the 
inspector's  judgment,  is  necessary  for  the  better  protection  of  the  lives 
and  health  of  persons  employed  in  such  mine.  In  case  any  violation  is 
discovered,  it  is  the  duty  of  the  state  inspector  to  enforce  the  penalties 
provided  therefor.  In  addition  to  the  regular  inspection  the  state 
inspector  must  make  a  personal  investigation  as  to  the  nature  and  cause 
of  all  serious  accidents  which  occur  in  mines  wdthin  his  jurisdiction. 
Each  inspector  is  ex-officio  a  sealer  of  weights  and  measures  with 
power  (and  upon  request,  with  the  duty)  to  inspect  scales  used  at 
mines.  Upon  operators  paying  by  weight  for  mining  is  imposed  the 
duty   of   providing  accurate   scales. 

Each  state  inspector  is  required  to  render  to  the  state  mining 
board  a  written  report  of  each  mine  inspected,  the  form  of  the  report 
to  be  fixed  by  the  board  itself.  In  addition  to  this  report  each  inspector 
is  required,  within  sixty  days  after  June  30th,  to  prepare  and  forward 
to  the  state  mining  board  a  formal  report  of  his  acts  during  the  year 
in  the  discharge  of  his  duties,  together  with  any  recommendations 
which  he  may  have.  Each  inspector  is  required  to  collect  and  tabulate 
upon  blanks  furnished  by  the  state  mining  board  all  desired  statistics 
of  mines  and  mining. 

Upon  a  petition  signed  by  not  less  than  three  coal  operators  or 
ten  coal  miners  setting  forth  that  any  state  inspector  of  mines  neglects 
his  duties,  or  that  he  is  incompetent,  or  that  he  is  guilty  of  malfeasance 
in  of^ce,  or  guilty  of  any  act  tending  to  the  unlawful  injury  of  miners 
or  operators  of  mines,  it  is  the  duty  of  the  state  mining  board  td 
issue  a  citation  to  the  said  inspector  to  appear  before  it  within  a  period 
of  fifteen  days  on  a  day  fixed  for  hearing,  when  the  board  shall  investi- 

"Numerous  other  changes  were  introduced  into  the  act  by  revision  of  1913,  dealing  with 
conditions  which  should  be  maintained  in  mines.  No  other  change  of  importance  affecting 
the  administration  of  the  act  was  made  by  this  revision. 


LABOR    AND    MINING.  545 

gate  the  allegations  of  the  petition  and  if  the  board  shall  find  that 
the  inspector  is  neglectful  of  his  duty  or  that  he  is  guilty  of  malfeasance 
in  office  or  guilty  of  any  act  tending  to  the  injury  of  miners  or  operators 
of  mines,  the  board  shall  declare  the  office  of  said  inspector  vacant,  and 
a  .properly  qualified  person  shall  be  duly  appointed  to  fill  the  vacancy. 

The  state  mining  board  has  power  to  direct  the  state  mine  in- 
spectors in  the  discharge  of  their  duties,  and  "shall  have  power  and 
shall  in  person  and  through  the  state  mine  inspectors  see  that  all  the 
provisions  of  the  state  mining  law  are  .enforced."  But  each  inspector 
is  left  practically  independent  as  to  the  enforcement  of  the  law  within 
his  district,  subject  to  the  requirement  that  he  report  to  the  board,  and 
subject  also  to  the  possibility  that  the  board  may  order  him  to  make 
specific  inspections.  No  chief  inspector  has  ever  been  provided,  and 
there  has  been  little  co-ordination  of  the  inspection  work  in  the  several 
districts. 

The  act  also  imposes  specific  duties  upon  all  mine  operators  and 
upon  all  mine  managers,  mine  examiners  and  hoisting  engineers.  In 
addition  to  the  requirement  that  all  mine  managers,  mine  examiners, 
and  hoisting  engineers  shall  hold  certificates  of  competency  from  the 
state  mining  board,  specific  duties  and  restrictions  are  placed  upon 
each. 

E!ach  operator  is  required  to  furnish  annually  to  the  state  mine 
inspector  of  his  district,  on  blanks  furnished  by  him,  statistics  of  wages 
and  conditions  of  employees,  said  report  to  be  in  the  hands  of  the  state 
board  within  thirty  days  after  June  30th.  A  penalty  of  one  hundred 
dollars  is  fixed  for  violation  of  this  provision.  Each  operator  must 
keep  accurate  maps  of  mines,  survey  maps,  maps  of  seams,  etc.,  and 
must  make  an  annual  survey,  and  furnish  a  copy  of  all  survey  maps 
to  the  state  inspector.  All  illuminating  oil  and  other  illuminants  used 
in  coal  mines  are  required  to  conform  to  specifications  prescribed  by 
the  state  mining  board.  When  any  loss  of  life  or  personal  injury 
occurs  in  or  about  a  mine  the  operator  must  report  such  fact  without 
delay  to  the  state  mine  inspector. 

An  act  of  1910,  amended  in  1911  and  1913,  deals  with  the  subject 
of  fire  fighting  equipment  in  coal  mines,  and  imposes  the  obligation  upon 
all  persons  operating  coal  mines  to  observe  certain  specified  precautions 
for  the  prevention  and  controlling  of  fires  and  prevention  of  loss  of 
life  from  fires  in  coal  mines.  The  act  contains  provisions  relating  to 
water  supply,  pipe  and  hose  connections,  automatic  sprinklers,  fire 
extinguishers,  water  pipes,  underground  stables,  telephones,  passage- 
ways, etc.  Penalties  are  provided  for  violations.  The  act  makes  it  the 
duty  of  any  state  mine  inspector  or  any  county  inspector,  if  he  shall 
find  that  any  provision  of  the  act  has  been  violated,  to  file  a  sworn 
complaint  before  any  court  of  competent  jurisdiction,  asking  that 
the  violator  be  bound  over  to  the  next  grand  jury,  and  the  state's 
attorney  is  required  to  prosecute.  Each  county  mine  inspector  is  re- 
quired to  report  at  least  once  each  month  to  the  state  mine  inspector, 
stating  the  mines  he  has  examined,  the  violations  discovered,  and  com- 
plaints filed.  If  state  mine  inspectors  or  county  mine  inspectors  neglect 
or  refuse  to  file  such  complaints  any  person  may  file  a  complaint  against 


546  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

such  inspector  charging  nonfeasance  in  office,  and  the  state's  attorney 
is  required  to  prosecute.  If  convicted  said  inspector  is  disquaHfied 
from  holding  such  office,  and  is  not  entitled  to  receive  another  certificate 
of  competency  within  three  months  from  date  of  conviction.  It  is  also 
provided  that  when  any  mine  manager  or  any  miner  has  been  convicted 
of  violating  the  provision  of  the  act,  the  state  mining  board  or  the  min- 
ers' examining  board,  as  the  case  may  be,  shall  cancel  and  revoke  his 
certificate  of  competency  and  such  person  shall  not  be  entitled  to  receive 
another  certificate  for  three  months. 

Further  to  promote  the  safety  of  persons  and  property  in  coal 
mines,  an  act  of  1913  relating  to  explosives  provides  that  all  permis- 
sible explosives  for  use  in  blasting  coal  in  the  State  of  Illinois  shall  con- 
fomi  to  certain  specifications  which  have  been  fixed  by  the  United 
States  Bureau  of  Mines.  State  mine  inspectors,  county  mine  inspectors 
and  accredited  representatives  of  coal  operators  or  coal  miners  are 
given  authority  to  sample  permissible  explosives,  or  to  have  the  same 
sent  to  the  United  States  Bureau  of  Mines  for  that  purpose.  All 
explosives  must  be  kept  in  magazines  constructed  in  accordance  with 
plans  that  are  approved  by  the  state  mine  inspector.  General  penalties 
are  provided  for  violations. 

An  act  of  1911  relating  to  blasting  powder  contains  specifications 
for  black  blasting  powder  which  may  be  used  in  coal  mines,  provides 
rules  for  stamping  kegs,  defines  offenses  and  fixes  penalties.  It  is 
further  provided  that  state  mine  inspectors  and  deputy  mine  inspectors 
shall  have  authority  to  sample  black  blasting  powder  used  for  blast- 
ing purposes  in  coal  mines  in  this  state  or  kept  for  sale  for  such  a' 
purpose.  Inspectors  may  have  such  powder  tested  by  the  state  mining 
board. 

An  act  relating  to  oil  or  gas  wells  adopted  in  1905,  amended  in 
1911,  has  to  do  generally  with  the  sinking,  filling  and  operating  of  gas 
and  oil  wells,  and  provides  penalties.  It  is  made  the  duty  of  any  person 
having  custody  or  control  of  any  well  drilled  for  gas  or  oil  and  of  the 
owner  of  the  land  in  which  such  well  is  drilled,  when  the  drill  hole 
penetrates  a  coal  seam,  to  file  in  the  office  of  the  recorder  of  the! 
county  and  in  the  office  of  the  state  mining  board  a  statement  and  map, 
giving  the  location  and  depth  of  every  well  so  drilled. 

The  shot  firers  act  of  1907,  as  amended  in  1913,  requires  all  mine 
owners  to  furnish  shot  firers  for  mines,  specifies  the  duty  of  shot  firers 
and  lays  down  rules  for  firing  of  shots  and  fixes  penalties  for  violation. 
The  enforcement  of  the  act  is  committed  to  the  state's  attorney,  and 
no  duties  under  it  are  imposed  upon  the  state  mining  board. 

Miners'  Examining  Board. 

In  1897  an  act  was  passed  requiring  every  person  desiring  to  work 
by  himself  in  a  coal  mine  to  present  evidence  to  the  mine  manager  of 
the  mine  at  which  he  was  employed  that  he  had  worked  at  least  two 
years  with,  or  as,  a  practical  miner.  In  1908  an  act  was  passed 
(amended  in  1909)  providing  for  the  creation  of  a  miners'  examining 
board  in  each  county  in  which  coal  mining  was  carried  on.  These 
boards,  composed   of   three   members   each,   were  appointed   by   the 


LABOR    AND    MINING. 


547 


county  judges,  and  were  authorized  to  issue  certificates  after  examina- 
tion to  those  desiring  to  work  as  miners.  In  1913  the  county  boards 
were  aboHshed  and  a  single  state  board  having  the  same  general  powers 
and  duties  was  created. 

The  state  miners'  examining  board  consists  of  three  persons, 
appointed  bv  the  Governor,  by  and  with  the  advice  and  consent  of  the 
Senate,  for  a  term  of  three  years,  each  with  a  salary  of  $1,500  per  year. 
Each  examiner  must  have  at  least  five  years  practical  and  continuous 
experience  as  a  coal  miner,  and  must  have  been  actually  engaged  in 
coal  mining  as  a  miner  in  this  state  continuously  for  twelve  months 
next  preceding  his  appointment.  The  Governor  may  remove  any 
member  for  neglect  of  duty,  incompetency  or  malfeasance  in  office. 

The  duty  of  the  board  is  to  hold  an  examination,  one  in  each 
calendar  month  in  at  least  twelve  places  located  most  conveniently 
with  reference  to  the  districts  in  which  coal  is  mined,  for  all  persons 
in  such  districts  who  wish  to  engage  in  mining.  The  examination  is 
to  be  of  a  practical  nature  so  as  to  determine  the  competency  and  quali- 
fication of  the  applicant  to  engage  in  the  business  of  mining. 

Each  applicant  is  charged  a  fee  of  $2.00,  this  fee  to  be  paid  by 
the  board  to  the  State  Treasurer,  once  each  month,  together  with  a 
report  showing  where  and  from  whom  each  fee  was  collected.  The 
board  is  empowered  to  grant  certificates  of  competency,  upon  the 
applicant's  producing  evidence  of  having  had  not  less  than  two  years 
practical  experience  as  a  miner  or  with  a  miner  and  upon  his  passing 
the  required  examination.  This  act  provides  that  no  person  shall 
hereafter  be  employed  as  a  miner  in  any  coal  mine  unless  he  holds  a 
certificate  from  the  Miners'  examining  board.  The  act  provides,  how- 
ever, that  a  certificated  miner  may  have  one  person  without  a  certificate 
working  with  him  as  an  apprentice. 

It  is  made  the  duty  of  the  board  to  report  all  complaints  and  all 
violations  to  the  state's  attorney  of  the  proper  county ,_  such  officer 
being  under  obligation  to  prosecute  all  persons  so  ofTending. 

The  board  has  no  official  connection  with  the  state  mining  board. 
It  makes  an  annual  report  on  the  first  day  of  March,  to  the  Governor, 
of  examinations  held  by  it  and  work  done  by  it  during  the  preceding 
year,  together  with  such  recommendations  as  it  may  deem  advisable. 

Mine  Fire  Fighting  and  Rescue  Stations. 

For  the  purpose  of  providing  prompt  and  efficient  means  of  fight- 
ing mine  fires  and  of  saving  lives  and  property  jeopardized  by  fires, 
explosions  or  other  accidents,  the  general  assembly  in  1910  authorized 
the  establishment  of  three  rescue  stations  to  serve  the  northern,  the  cen- 
tral and  the  southern  coal  fields  of  the  state.  The  rescue  stations  thus 
established  were  to  be  under  the  direction  and  management  of  a  special 
commission  appointed  by  the  Governor.  The  commission  consists  of 
seven  members  including  two  coal  mine  operators,  two  coal  miners,  one 
state  mine  inspector,  one  representative  of  the  department  of  mining 
at  the  University  of  Illinois,  and  one  representative  of  the  Federal 


548  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

Bureau  of  Mines.  For  service  rendered  they  receive  compensation  at 
the  rate  of  ten  dollars  per  day,  not  to  exceed  twenty-five  days  during 
any  one  year. 

The  commission  was  empowered  to  appoint  as  manager  of  the 
three  stations  a  man  experienced  in  mining  and  mine  engineering  and 
the  manager  by  and  wdth  the  advice  and  consent  of  the  commission 
was  authorized  to  appoint  for  each  station  a  superintendent  and  an 
assistant,  each  to  serve  for  two  years.  These  officers  now  come  under 
the  civil  service  amendment  act  of  1911.  The  manager  receives  $250 
per  month,  the  superintendents  $125  per  month  and  the  assistants,  who 
under  the  act  of  1910  received  $75  per  month,  by  amendment  of  1913, 
receive  a  salary  of  $100  per  month.  But  apparently  the  increased 
salary  is  not  being  paid.  Only  one  extra  assistant  and  one  porter  could 
be  employed  for  each  rescue  car,  until  by  amendment  of  1913  two  extra 
assistants  were  allowed. 

The  act  makes  it  the  duty  of  the  manager,  subject  to  the  approval 
of  the  commission,  to  supervise  the  work  at  each  station,  and  to  file, 
at  the  end  of  each  quarter  a  complete  report  of  all  operations  and 
expenditures.  He  must  provide  that  some  representative  be  on  duty 
at  each  station  at  all  hours  of  the  day  and  night. 

Whenever  the  manager  or  the  superintendent  is  notified  of  any 
accident  or  expjosion  requiring  his  services,  it  is  his  duty  to  go  im- 
mediately and  superintend  the  rescue  work,  co-operating  with  the 
management  of  the  mine  and  (an  amendment  of  1913  adds)  with 
the  state  mine  inspector. 

The  commission  is  required  to  prepare  a  biennial  report  showing 
the  work  performed.  An  amendment  of  1913  provides  that  the  com- 
mission shall  be  given  suitable  rooms  in  the  state  house. 

Miners'  and  Mechanics'  Institutes. 

To  prevent  accidents  in  mines  and  other  industrial  plants  and  to 
conserve  the  resources  of  the  state  by  the  education  and  training  of 
all  classes  of  workers  in  and  about  mines  and  other  industrial  plants 
of  the  state,  legislation  of  1911  provided  for  the  establishment  and 
maintenance  of  a  form  of  educational  betterment  work  known  as  the 
Illinois  miners  and  mechanics  institutes.  The  purpose  of  these  institutes 
is  to  promote  the  technical  efficiency  of  all  persons  w^orking  in  and 
about  mines  and  other  industrial  plants  of  the  state  and  to  assist  them 
better  to  overcome  the  difficulties  of  mining  and  other  industrial  em- 
ployments. For  the  accomplishment  of  this  purpose  any  and  all  means 
may  be  employed  such  as  the  sending  of  bulletins,  travelling  libraries, 
lectures,  correspondence  work,  etc.  The  administration  of  the  Illinois 
miners'  and  mechanics'  institutes  is  vested  in  the  trustees  of  the  Univer- 
sity of  Illinois. 

The  methods  proposed  for  carrying  out  the  work  of  the  Illinois 
miners'  and  mechanics'  institutes  include  ofifering  (1)  a  two  years 
course  of  systematic  instruction  at  mining  centers,  (2)  unit  courses  in 
single  subjects  at  mining  towns,  (3)  a  short  course  at  the  University. 
(4)  co-operation  with  other  mining  authorities  and  with  schools  and 


LABOR   AND    MINING.  549 

libraries,  and  (5)  various  special  activities.*'  A  short  course  was 
offered  at  the  University  in  the  spring  of  1914;  and  courses  have  been 
organized  in  a  number  of  mining  towns. 

Mining  Investigation  Commission. 

The  General  Assembly  in  1909  created  a  mining  investigation 
commission  which  was  to  report  to  the  Governor  and  to  the  General 
Assembly  at  its  next  regular  session,  and  was  to  go  out  of  existence 
when  this  report  was  made.  The  sum  of  $25,000  was  appropriated  for 
the  use  of  this  commission.  An  act  of  1911,  almost  identical  with  that 
of  1909,  established  a  commission  which  was  to  report  to  the  Governor 
and  to  the  General  Assembly  at  its  next  regular  session,  and  which 
was  then  to  go  out  of  existence.  An  appropriation  of  $10,000  was 
made  for  the  use  of  the  commission.  In  1913  a  practically  identical 
act  was  again  passed,  with  the  provision  that  the  commission  should 
terminate  upon  the  adjournment  of  the  Forty-ninth  General  Assembly 
(i.  e.,  1915),  and  an  appropriation  of  $10,000  was  made.' 

The  mining  investigation  commission  established  by  these  laws, 
consists  of  three  coal  mine  owners  and  three  coal  miners,  together 
with  three  other  persons  not  identified  with  the  interests  of  either 
mine  owners  or  miners,  and  not  in  political  life,  all  of  whom  are 
appointed  by  the  Governor.  The  commission  having  been  authorized, 
with  a  limited  existence,  by  three  successve  acts,  new  appointments 
have  been  necessary  under  each  of  the  acts. 

The  Commission  elects  a  chairman  and  secretary  from  among 
their  number,  one  of  whom  must  be  a  mine  owner  and  the  other 
a  coal  miner.  Meetings  may  be  held  at  such  times  and  places  as  the 
Commission  may  fix,  but  called  meetings  must  be  held  upon  the  request 
of  three  members,  and  such  called  meetings  are  held  either  in  Springfield 
or  Chicago.  Members  of  the  Commission  who  are  mine  owners  or 
coal  miners  receive  no  compensation  for  their  services,  but  are  re- 
imbursed for  actual  expenses.  The  other  members  receive  $10  a  day 
for  services  rendered  and  are  also  reimbursed  for  actual  expenses. 
The  Commission  is  authorized  to  appoint  a  stenographer  or  clerk 
and  other  necessary  employees.  Disbursements  of  the  money  appropri- 
ated are  made  on  the  order  of  the  Commission,  signed  by  its  chair- 
man, attested  by  its  secretary,  and  approved  by  the  Governor.  The 
State  board  of  contracts  is  directed  to  provide  necessary  printing. 
Testimony  taken  by  the  Commission  is  required  to  be  reported  in  full 
and  may  be  published  by  the  Commission. 

The  Commission  is  empowered  to  investigate  "the  methods  and 
conditions  of  mining  coal  in  the  State  of  Illinois  with  special  reference 
to  the  safety  of  human  lives  and  property  and  the  conservation  of  the 
coal  deposits."  By  order  of  the  Commission  one  or  more  of  its  mem- 
bers may  be  authorized  to  take  testimony.  The  commissioners  have 
power  to  issue  subpoenas,  and  to  apply  to  the  circuit  courts  to  compel 
the  presence  of  witnesses  and  the  production  of  evidence.  The  Com- 
mission is  required  to  submit  to  the  Governor  and  to  the  General 

■Illinois  Miners'  and  Mechanics'  Institutes,  Bulletins  1  and  2. 

'111.  Laws,  1909,  p.  55;  111.  Laws,  1911,  p.  65;  111.  Laws,  1913.  p.  43. 


55U  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

Assembly  at  its  next  regular  session,  so  far  as  they  have  unanimously 
agreed,  a  proposed  revision  of  coal  mining  laws  of  the  state,  together 
with  such  other  recommendations  as  they  should  think  proper.  Where 
unanimous  agreements  could  not  be  had,  separate  reports  may  be  sub- 
mitted embodying  the  recommendations  of  any  one  or  more  members 
of  the  Commission. 

The  revision  of  the  mining  laws  in  1911  was  proposed  by  the 
first  mining  investigation  commission,  and  substantially  all  the  mining 
legislaton  of  the  47th  and  48lh  General  Assemblies  resulted  either 
directly  or  indirectly  through  the  activities  of  the  investigation  com- 
missions. The  Commission  has  served  as  a  valuable  agency  for  ob- 
taining agreements  between  operators  and  miners  upon  proposed  legis- 
lation. Its  expenses  have  not  been  heavy,  and  its  continuance  may  be 
desirable  so  long  as  the  subject  of  mining  is  one  actively  before  the 
General  Assembly. 

Suggestions  Regarding  the  Administration  of  Mining  Legislation. 

There  are  now  four  boards  in  IlHnois  having  to  do  with  the  mining 
laws :  the  State  mining  board ;  the  miners'  examining  board ;  the  com- 
mission in  control  of  the  mine  rescue  stations ;  and  the  mining  investig- 
ation commission.  The  mining  investigaton  commission  is  a  temporary 
body,  but  such  a  commission  will,  by  the  end  of  the  49th  General 
Assembly,  have  remained  in  existence  for  about  six  years. 

A  more  effective  organization  is  possible  and  it  is  recommended 
that  one  commission  be  vested  with  the  general  powers  now  exercised 
by  the  existing  four.  It  may,  however,  be  desirable  that  the  mining 
investigation  commission  remain  in  existence,  but  if  this  is  done  the 
Commission  should  be  organized  upon  a  permanent  basis.  The  mine 
rescue  work  is  similar  to  the  work  now  performed  by  the  State  mining 
board,  and  the  rescue  commission  can  now  be  abolished  without  any 
danger  to  the  work  of  the  rescue  stations. 

The  State  mining  board  now  examines  and  issues .  certificates  to 
mine  managers,  mine  examiners  and  hoisting  engineers,  and  there  is 
no  reason  why  it  should  not  have  supervision  over  the  issuance  of 
certificates  of  competency  to  miners.  It  is  desirable  that  the  actual 
conduct  of  the  examination  of  miners  should  remain  in  the  hands  of  a 
committee  of  miners,  but  supervision  of  the  examinations,  some  control 
over  the  questions  to  be  asked,  and  the  administrative  details  with 
respect  to  the  examinations  should  be  in  the  hands  of  the  state  mining 
board.  The  appointment  of  the  miners'  examining  board  should  also 
be  vested  in  the  State  mining  board. 

A  larger  power  should  be  conferred  upon  this  board  with  respect 
to  the  enforcement  of  the  act  providing  for  fire  fighting  equipment 
and  the  acts  relating  to  explosives ;  and  the  enforcement  of  the  shot 
firers'  act  should  be  committed  to  the  board.  To  this  board  should 
also  be  given  power  to  make  rules  and  regulations  (after  hearing  and 
with  judicial  review)  supplementing  the  present  mining  laws.  The 
individual  inspectors  now  exercise  some  discretion  (not  conferred 
by  law)  as  to  specific  safeguards  in  mines;  and  an  authority  in  the 
State  mining  board  to  make  rules  of  general  application  would  prove 


LABOR   AND    MINING. 


551 


more  satisfactory  than  the  present  practice.  The  mining  investigation 
commission  in  its  1913  report  approved  the  plan  of  commiting  to  the 
mining  board  a  general  power  to  make  rules  and  regulation  for  the 
subject  of  mining  (such  rules  to  replace  the  rigid  statutory  require- 
ments), but  thought  the  time  not  a  favorable  one  for  the  introduction 
of  the  plan.  In  view  of  the  fact  that  both  miners  and  operators  have 
adjusted  themselves  to  the  provisions  of  the  present  mining  laws,  it 
has  been  thought  best  to  recommend  now  that  the  State  mining  board 
be  granted  power  to  make  supplementary  rules  only. 

The  functions  of  the  state  mining  board  will  be  primarily  advisory 
rather  than  administrative,  and  a  permanent  salaried  board  is  unneces- 
sary. The  present  State  mining  board,  the  mining  investigation  com- 
.mission,  and  the  mine  rescue  commission  are  on  a  per  diem,  and  this 
plan  should  be  continued  for  the  state  mining  board,  but  with  the  per 
diem  increased  from  $5  to  $10. 

The  executive  supervision  of  the  work  of  the  State  mining  board 
should  be  in  charge  of  a  secretary,  and  the  central  control  over  state 
mine  inspectors  should  be  very  materially  increased.  The  secretary 
should  be  a  member  of  the  board,  and  should  be  a  competent  person 
affiliated  neither  with  employers  nor  employes.  The  board  may  then 
be  composed  of  seven  members ;  of  the  six,  exclusive  of  the  secretary, 
five  may  perhaps  well  be  appointed  as  is  now  provided  by  law  for  the 
state  mining  board,  two  miners,  two  operators,  one  hoisting  engineer, 
although  there  is  no  reason  why  hoisting  engineers  should  be  preferred 
to  mine  managers  and  mine  examiners.  The  sixth  member  should 
be  a  competent  person  aftiliated  neither  with  miners  nor  operators.  For 
the  appointment  of  miners  and  operators  provision  should  be  made 
that  the  miners'  and  operators'  organizations  may  make  recommenda- 
tions to  the  Governor  from  which  the  Governor  may  make  appoint- 
ments. 

With  respect  to  county  mine  inspectors,  the  present  situation  is 
somewhat  chaotic.  The  county  inspectors  are  appointed  by  county 
boards  and  paid  from  county  funds;  county  inspectors  must  hold 
certificates  as  mine  managers  and  are  appointed  (at  least  the  statute 
provides  that  in  the  first  instance  the  office  shall  be  created)  upon 
the  written  request  of  the  State  inspector.  The  State  inspector  may 
authorize  a  county  inspector  to  exercise  all  the  inspection  functions  in 
his  county,  during  the  absence  therefrom  of  the  State  inspector.  Bond 
of  the  state  inspector  may  be  held  for  the  faithful  performance  of 
duty  by  the  county  inspector.  Otherwise  there  is  no  official  subordina- 
tion of  county  inspectors  to  the  state  inspectors  or  to  the  state  mining 
board,  and  the  State  mining  board  actually  has  no  record  of  the 
counties  which  have  appointed  inspectors. 

Reports  received  from  the  State  inspectors  for  the  various  dis- 
tricts indicate  that  all  the  more  important  coal  producing  counties  have 
provided  for  inspectors  who  are  to  give  full  time,  or  substantially  full 
time,  to  mine  inspection  work;  in  a  number  of  other  counties  inspectors 
have  been  appointed,  but  with  per  diem  payment,  limited  either  as 
to  total  annual  amounts  or  as  to  the  number  of  days.  The  State  law 
provides  that  the  compensation  of  county  inspectors  shall  not  be  less 


552  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

that  $3  a  day.  Altogether  thirty-six  counties  have  made  some  pro- 
vision for  county  inspectors,  and  it  may  be  roughtly  estimated  that  the 
expense  to  the  counties  in  this  connection  is  about  $25,000.  County 
inspectors  are  primarily  responsible  to  the  county  boards  from  which 
they  receive  their  appointments  and  salaries.  The  county  inspectors 
are  usually  appointed  for  one  year,  although  occasionally  appointments 
are  made  for  longer  terms.  The  county  inspectors  do  some  independent 
inspecting,  but  in  most  counties  they  make  inspections  with  the  State 
inspector,  one  taking  certain  passages  in  the  mine  and  the  other  inspect- 
ing a  different  part  of  the  mine. 

The  present  situation  with  respect  to  county  inspectors  is  unsatis- 
factory, because  of  the  lack  of  definite  responsibility,  varying  salaries, 
and  varying  terms  of  oflice.  For  the  correction  of  this  situation  two 
alternatives  present  themselves :  (a)  county  inspectors  may  be  con- 
tinued, but  under  a  much  greater  degree  of  subordination  to  the  state 
service  than  at  present;  or  (b)  the  scheme  of  county  inspectors  may 
be  abolished,  this  rendering  necessary  an  increase  in  the  state  inspection 
force  and  an  increase  of  state  expense  although  not  an  increase  of 
total  expense  for  mine  inspection. 

The  second  plan  is  thought  to  be  the  more  desirable  one.  The 
mining  investigation  commission  in  its  1911  report  said,  "an  important 
change  and  one  which  the  commission  has  agreed  should  be  made,  for 
the  purpose  of  securing  a  compact  organization  in  the  mine  inspection 
service,  directed  by  one  board,  available  for  use  anywhere  in  the  state 
and  thereby  providing  greater  efficiency,  is  the  substitution  of  deputy 
inspectors  appointed  by  the  Governor  and  subject  to  the  control  of  the 
state  mining  board,  in  place  of  the  present  county  mine  inspectors  ap- 
pointed by  the  various  county  boards  at  their  pleasure."  (p.  4.)  The 
essential  part  of  this  recommendation,  that  as  to  replacing  county 
inspectors  by  an  increased  state  inspection  force,  is  worth  adopting. 
If  the  state  inspection  force  is  increased  (at  least  twenty  inspectors 
will  be  necessary),  there  should  be  a  grading  of  salary  so  that  a  person 
appointed  at  one  salary  may  be  promoted  for  efficient  work.  Power 
should  also  be  given  the  state  mining  board  to  assign  inspectors  and 
transfer  them  from  one  district  to  another. 

With  respect  to  state  mining  services  the  essential  recommenda- 
tions for  reorganization  may  be  summarized  as  follows : 

(1)  Establishment  of  a  state  mining  board,  which  should  unite 
the  functions  now  exercised  by  the  state  mining  board,  mine  rescue 
commission,  miners'  examining  board,  and  possibly  the  mining  investi- 
gation commission. 

(2)  The  grant  to  this  board  of  power  to  make  rules  supplement- 
ing the  present  mining  laws. 

(3)  The  appointment  of  a  secretary,  who  shall  have  executive 
charge  of  tl^e  work  of  the  state  mining  board  and  direct  supervision 
over  the  several  inspectors. 

(4)  The  abolition  of  the  office  of  county  mine  inspector,  and 
the  increase  of  the  state  inspectional  force. 

The  work  of  the  state  mining  board  will,  in  large  part  be  some- 
what different  from  the  work  handled  by  other  branches  of  the  proposed 


LABOR   AND    MINING.  553 

department  of  labor.  For  this  reason  the  mining  board  and  its  secre- 
tary should  not  be  strictly  subordinated  to  the  department  of  labor, 
but  their  reports  should  be  transmitted  through  that  department,  and 
reports  of  mine  accidents  should  go  from  the  state  mining  board 
to  the  bureau  of  statistics  of  the  department  of  labor.  With 
respect  to  workmen's  compensation,  matters  relating  to  mines  as  well 
as  to  other  forms  of  employment  should  be  handled  through  the  com- 
pensation bureau  of  the  proposed  department  of  labor. 

The  scheme  here  proposed  will  cost  perhaps  a  little  less  than  that 
now  in  existence,  but  the  cost  to  the  state  treasury  will  be  greater  be- 
cause of  the  proposed  transfer  of  expense  now  borne  by  counties  in 
connection  with  the  appointment  of  county  mine  inspectors. 


IX.     ACCIDENT  REPORTING. 

It  will  be  well  to  indicate  just  what  accident  reports  each  office 
or  department  is  now  by  law  entitled  to  receive. 

Industrial  Board.  Under  the  workmen's  compensation  act  of 
1911,  the  administration  of  a  compensation  scheme  was  vested  in  the 
bureau  of  labor  statistics  and  reports  provided  for  by  that  law  were 
required  to  be  sent  to  that  bureau.  The  compensation  act  of  1913, 
however,  created  an  industrial  board,  and  provided  that  reports  under 
the  compensation  law  should  go  to  that  board.  For  employers  and 
employees  coming  under  the  terms  of  the  act,  compensation  is  payable 
in  case  of  incapacity  of  more  than  six  working  days,  resulting  from 
accident. 

The  reports  required  by  the  act  of  1913  to  be  sent  to  this  board 
by  employers  under  the  workmen's  compensation  act  are  as  follows : 

(1)  An  immediate  report  of  all  accidental  injuries  arising  out 
of  or  in  the  course  of  employment  and  resulting  in  death. 

(2)  A  report  between  the  15th  and  25th  of  each  month  of  all 
accidental  injuries  for  which  compensation  has  been  paid  under  the 
act,  which  injuries  entail  a  loss  to  the  employees  of  more  than  one 
week's  time. 

(3)  In  case  the  injury  results  in  permanent  disability  a  further 
report  as  soon  as  it  is  determined  that  permanent  disability  has  resulted 
or  will  result  from  such  injury. 

The  act  provides  (in  this  respect  repeating  a  provision  of  the 
compensation  act  of  1911)  that  "the  making  of  reports  as  provided 
herein  shall  release  the  employer  covered  by  the  provisions  of  this  act 
from  making  such  reports  to  any  other  officer  of  the  state."  This 
relieves  from  making  reports  such  as  above  required  to  any  other 
officer  of  the  state,  except  with  respect  to  the  public  utilities  commis- 
sion, which  was  created  by  an  act  approved  June  30,  1913,  whereas 
the  workmen's  compensation  act  of  1913  was  approved  June  28. 

It  becomes  important,  therefore,  to  know  just  what  reports  need 
now  be  made  to  other  state  officers  by  the  employers  accepting  the 
workmen's  compensation  act.  Such  reports  as  those  under  No.  3  above 
are  not  required  by  law  to  be  made  to  any  other  office,  and  as  to  them 
there  is  no  question. 

As  to  No.  1  above  reports  of  accidents  resulting  in  death  would, 
under  the  laws  of  1907  and  1909,  have  to  be  made  to  other  officers  if 
the  employer  were  not  under  the  compensation  law,  but  do  not  have 
to  made  if  he  is  under  this  law.  Reports  of  death  in  such  cases  need 
not  go  to  the  factory  inspector's  office  or  to  the  bureau  of  labor  statistics, 
or  to  the  state  mine  inspector  if  the  employee  is  engaged  in  mining. 


LABOR    AND    MINING.  555 

An  employer  (other  than  a  pubhc  utility)   accepting  the  workmen's 
compensation  act  is  excused  from  reporting  deaths  to  any  one  else. 

As  to  the  second  class  of  reports  noted  above,  attention  should  be 
called  to  the  fact  that  they  are  reports  not  of  accidents  primarily  but 
of  accidental  injuries  for  which  compensation  has  been  paid.  Reports 
of  precisely  this  character  are  not  required  to  be  made  to  any  other 
office  of  this  state,  and  it  may  be  argued  that  the  making  of  such  reports 
does  not  properly  exempt  the  employer  from  the  requirement  that 
he  make  to  other  offices  within  a  certain  time  a  report  of  the  accident, 
or  at  least  that  he  report  to  other  offices  accidents  for  which  compensa- 
tion has  not  yet  been  paid.  Under  the  compensation  act  of  1913 
(Sec.  12),  a  delay  of  at  least  30  days  may  take  place  in  some  cases 
before  it  is  known  whether  compensation  will  be  claimed,  and  if  reports 
were  still  required  under  earlier  laws,  they  would  very  likely  be  due 
before  compensation  has  actually  been  paid.  However,  the  purpose 
of  the  legislature  was  probably  to  exempt  an  employer  under  the  com- 
pensation law  from  reporting  to  any  other  officer  all  accidents  for 
which  compensation  might  be  pavable  or  had  been  paid.  And  such 
was  the  ruling  of  the  Attorney  {General,  under  the  compensation  act 
of  1911.  In  reply  to  a  letter  from  the  chief  factory  inspector.  Attorney 
General  Stead  wrote  on  May  3,  1912: 

"All  establishments  which  have  elected  to  come  under  the  pro- 
visions of  the  compensation  act  are  required  by  that  act  to  compensate 
for  injuries  resulting  in  accordance  with  the  provisions  thereof,  and 
inasmuch  as  section  19  provides  that  all  accidents  resulting  in  the  loss 
of  more  than  one  week  shall  be  reported,  and  section  112  [the  health, 
safety  and  comfort  act  of  1909]  .  .  .  fixes  the  loss  of  fifteen 
consecutive  davs'  time  or  more  as  the  basis  of  the  report,  I  am  of  the 
opinion  that  the  words  'all  accidents  or  injuries  for  which  compensa- 
tion has  been  paid  under  this  act',  were  not  intended  by  the  General 
Assemblv  to  require  those  establishments  which  have  elected  to  accept 
the  provisions  of  the  compensation  act,  to  make  reports  to  your  depart- 
ment of  accidents  for  which  compensation  has  not  been  paid,  ^for^ the 
reason  that  the  act  contemplates  payment  for  all  injuries  resulting  in  a 
loss  of  more  than  one  week's  time."^ 

The  Attorney  General  ruled  that  all  establishments  accepting  the 
provisions  of  the  compensation  act  were  excused  from  the  necessity 
of  making  reports  to  the  office  of  the  chief  factory  inspector  and  the 
principle  of  this  ruling  would  apply  to  the  compensation  act  of  1913. 
This  principle,  if  established  as  to  reports  to  the  state  factory  inspector, 
would  also  exempt  any  employer  under  the  compensation  act  from 
reporting  to  the  bureau  of  labor  statistics  or  the  state  mine  inspectors. 
Of  course,  employers  not  accepting  the  compensation  act  are  in  no 
way  excused  from  reporting  accidents  under  earlier  laws.  Throughout 
the  remainder  of  this  discussion  the  Attorney  General's  view  is  adopted, 
inasmuch  as  it  is  the  view  upon  which  the  several  labor  offices  have 
acted. 

sReport  of  the  Attorney  General,   1912,  p.   1089. 


556  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

Public  Utilities  Commission. 

Every  public  utility  in  the  state  is  required  to  make  reports  of 
certain  classes  of  accidents  to  the  public  utilities  commission.  Two 
classes  of  accidents  are  to  be  reported  :  ( 1 )  "Every  accident  occurring 
or  that  may  occur  to  or  on  its  plant,  equipment  or  other  property  of  such 
a  nature  as  to  endanger  the  safety,  health  or  property  of  any  person." 
These  reports  are  to  be  sent  in  under  such  rules  and  regulations  as  the 
commission, may  prescribe.  This  first  class  of  accidents  includes  acci- 
dents to  property,  primarily,  and  as  such  is  of  only  incidental  importance 
in  this  connection.  (2)  The  second  class  of  accident  reports  to  be 
sent  to  the  public  utilities  commission  includes  "any  accident  which 
occasions  the  loss  of  life  or  limb  to  any  person."  These  reports  are  to 
be  sent  immediately  upon  the  happening  of  the  accident,  by  the  speed- 
iest means  of  communication,  whether  telephone,  telegraph,  or  post. 
The  public  utilities  act  contains  no  provision  which  exempts  public 
utilities  from  making  reports  of  accidents  to  other  state  agencies.  Con- 
sequently this  act  does  not  affect  any  other  act  which  requires  accident 
reporting.  Nor  is  the  act  affected  by  any  other  act.  The  public  utilities 
act  was  approved  June  30,  1913,  subsequent  to  any  of  the  other  acts 
here  considered,  and  consequently  provisions  in  the  workmen's  compen- 
sation act  of  June  28,  1913,  and  in  the  health,  safety  and  comfort  act 
of  1909,  which  release  persons  affected  by  either  from  reporting  to 
other  state  agencies,  do  not  operate  to  release  any  public  utility  from 
reporting-accidents  required  of  it  by  tbis  act,  to  the  public  utilities  com- 
mission. The  public  utilities  commission  will  therefore,  be  entitled  to 
receive  reports  of  all  accidents  which  by  the  public  utilities  act  are  re- 
quired to  be  sent  to  it. 

A  public  utility,  however,  will  be  affected  by  other  acts  and  will 
be  required  to  make  additional  reports  to  other  state  agencies.  If 
it  is  under  the  workmen's  compensation  act,  reports  required  by  that 
act  must  be  sent  to  the  industrial  board. 

If  the  public  utility  is  under  the  workmen's  compensation  act  it 
will  report  only  to  the  public  utilities  commission  and  to  the  industrial 
board.  If  it  is  not  under  the  workmen's  compensation  act  the  public 
utility  will  be  required  to  report  to  the  bureau  of  labor  statistics 
all  accidents  covered  by  the  accident  reporting  act  of  1907,  in  addition 
to  its  regular  reports  to  the  public  utilities  commission.^ 

State  Mine  Inspectors. 

Under  section  25  of  the  coal  mining  act  of  1911,  the  state  mine 
inspector  is  entitled  to  receive  reports  from  every  person  having  charge 
of  any  mine,  of  every  accident  which  occasions  "any  loss  of  life  or 
i:)crsonal  injury  in  or  about  any  coal  mine."  The  report  is  to  be  sent 
"without  delay"  to  the  state  inspector  having  charge  of  the  district  in 
which  this  accident  occurred.  The  mines  and  mining  act  does  not 
release  any  mine  operator  from  making  reports  of  accidents  to  other 
state  agencies.    It,  therefore,  does  not  affect  any  other  such  act.    The 

*Under  opinion  of  Attorney  General  under  Railroad  and  Warehouse  Law.  Report  of 
Attorney  General,  1908,  p.  558.  For  the  view  that  reporting  to  tnine  inspectors  does  not 
relieve  from  reporting  under  act  of  1907,  see  Ibid,   p.   559. 


LABOR   AND    MINING.  557 

act,  however,  is  affected  by  the  workmen's  compensation  act,  but  by 
no  other  act.  If  a  mine  operator  is  under  the  workmen's  compensation 
act,  reports  thereunder,  which  go  to  the  industrial  board  reheve  from 
the  necessity  of  reporting  the  same  accidents  to  the  state  mine  inspector. 
This  does  not  reheve  mine  operators  who  are  under  the  compensation 
law  from  reporting  to  the  mine  inspector  minor  accidents  not  subject 
to  the  compensation  law. 

In  some  cases  mine  operators  under  the  workmen's  compensation 
act  have  declined  to  report  accidents  to  the  state  mine  inspectors,  and 
there  is  a  possibility  of  the  mine  operators  uniting  in  such  refusal.  The 
present  Attorney  General  has  ruled  that  mine  inspectors  are  entitled 
to  receive  reports  of  accidents,  even  though  the  operators  are  under 
the  workmen's  compensation  law,  but  it  is  doubtful  whether  this  view 
would  be  upheld  by  the  courts. 

Under  the  act  of  1907  the  bureau  of  labor  statistics  is  entitled  to 
receive  reports  of  a  certain  class  of  accidents  from  all  mines.  The 
bureau  of  labor  statistics  will  still  receive  these  reports  from  mine 
operators  provided  they  are  not  under  the  workmen's  compensation 
act.  Reports  from  mines  which  are  sent  to  the  industrial  board  need  not 
be  sent  to  the  bureau  of  labor  statistics.  The  bureau  of  labor  statistics 
will  receive  accident  reports  only  from  mining  companies  which  are  not 
under  the  workmen's  compensation  act. 

Department  of  Factory  Inspection. 

The  state  factory  inspector,  under  the  health,  safety  and  comfort 
act  of  1909,  is  entitled  to  receive  reports  of  two  classes  of  accidents 
occurring  in  "all  factories,  mercantile  establishments,  mills  and  work- 
shops in  this  state."  The  first  class  includes  "all  accidents  or  injuries 
resulting  in  death."  Reports  of  such  accidents  must  be  sent  to  the  state 
factory  inspector  immediately  upon  the  happ.ening  of  the  accident. 
The  second  class  includes  "all  accidents  or  injuries  occurring  during 
the  previous  calendar  month  which  entailed  a  loss  to  the  person  injured 
of  15  consecutive  days'  time  or  more."  These  reports  must  be  made 
to  the  state  factory  inspector  between  the  15th  and  25th  of  each  month. 
Any  employer  who  makes  the  reports  of  accidents  required  by  this 
act  is  not  required  to  make  such  reports  to  any  other  state  officer, 
board  or  commission.  This  act,  having  been  adopted  in  1909,  aiifects  the 
act  of  1907  requiring  reports  to  be  sent  to  the  buerau  of  labor  statistics, 
but  does  not  aff'ect  any  other  act.  The  bureau  of  labor  statistics  is  not 
entitled  to  receive  reports  of  any  accidents  occurring  in  any  factory, 
mercantile  establishment,  mill  or  workshop  in  this  state. 

The  health,  safety  and  comfort  act  is  affected  by  the  workmen's 
compensation  act  of  1913  but  by  no  other  act.  The  latter  act  relieves 
all  persons  reporting  to  the  industrial  board  from  reporting  the  same 
accidents  to  any  other  state  officer.  The  state  factory  inspector  is  not 
entitled  to  receive  reports  of  any  accident  from  any  factory,  mercantile 
establishment,  mill  or  workshop  which  has  adopted  the  workmen's 
compensation  act. 


558  EFFICIENCY    AND   ECONOMY    COMMITTEE. 

Bureau  of  Labor  Statistics. 

The  bureau  of  labor  statistics,  under  the  accident  reporting  act 
of  1907,  is  entitled  to  receive  reports  from  "all  persons  employing 
laborers  of  any  character,"  "of  every  serious  injury  entailmg  a  loss  of 
30  or  more  days'  time,  injury  or  death  of  every  employee  caused  by 
accident  while  in  the  performance  of  any  duty  or  service  for  such  em- 
ployer." These  reports  are  to  be  sent  in  within  thirty  days  from  the 
date  of  the  injury  or  death.  The  act  does  not  affect  any  other  act 
having  to  do  with  accident  reporting,  but  is  affected  by  the  health, 
safety  and  comfort  act  of  1909,  and  by  the  workmen's  compensation 
act  of  1913  when  such  person  comes  within  its  provisions.  The  health, 
safety  and  comfort  act  relieves  a  person  reporting  accidents  to  the 
state  factory  inspector  from  reporting  such  accidents  to  any  other 
state  officer  and  the  workmen's  compensation  act  as  interpreted  relieves 
a  person  reporting  to  the  industrial  board  from  reporting  the  same 
accidents  to  any  other  state  officer.  The  bureau  of  labor  statistics 
therefore,  will  receive  reports  only  from  those  persons  who  are  not 
under  the  provisions  of  either  of  these  two  acts.  Factories,  mercantile 
establishments,  mills  and  workshops  will  not  report  to  the  bureau  of 
labor  statistics,  .they  being  relieved  by  reporting  to  the  state  factory 
inspector.  Public  utilities,  mines  and  all  other  persons  employing  labor- 
ers (not  in  factories,  mercantile  establishments,  mills  and  workshops) 
will  still  report  to  the  bureau  of  labor  statistics,  unless  they  elect  to 
come  within  the  provisions  of  the  workmen's  compensation  act.  Since 
the  bureau  of  labor  statistics  act  appUes  to  all  persons  employing  labor- 
ers, there  will  be  a  large  class  still  bound  to  report  to  that  body.  _  They, 
however,  may  be  relieved  from  making  such  reports  by  adopting  the 
workmen's   compensation   act. 

Character  of  Reports. 

One  other  situation  arising  out  of  the  general  scheme  of  accident 
reporting  may  be  noted.  The  reports  sent  to  the  various  state  offices 
are  not  identical  nor  do  they  cover  the  same  classes  of  injuries.  To 
the  bureau  of  labor  statistics  is  sent  a  report  of  the  death  of  every 
employee  and  the  injury  to  every  employee  caused  by  accident,  while  in 
the  performance  of  his  duty  and  which  entails  a  loss  of  30  or  more 
days'  time.  The  character  of  the  report  is  specified  in  the' statute. 
To  the  state  factory  inspector  is  sent  reports  of  all  accidents  or  injuries 
resulting  in  death,  and  all  accidents  or  injuries  which  entail  a  loss  to  the 
person  injured  of  15  consecutive  days'  time  or  more.  The  character  of 
the  report  is  specified  in  the  act  of  1909  and  is,  except  in  a  few  minor 
points,  identical  with  that  of  the  report  to  be  sent  to  the  bureau  of 
labor  statistics.  The  state  mine  inspectors  are  entitled  to  receive  reports 
of  any  loss  of  life  or  personal  injury  in  or  about  a  mine ;  minor  injuries 
are  included  here  which  are  not  included  in  the  acts  of  1907  and  1909. 
The  character  of  the  report  is  left  to  be  determined  by  the  state  mine 
inspectors  or  by  the  State  mining  board.  The  public  utilities  commis- 
sion receives  reports  (exclusive  of  reports  of  accidents  to  property) 
only  of  accidents  which  occasion  the  loss  of  life  or  limb  to  any  person, 
but  less  serious  accidents  would  in  most  cases  have  to  be  reported  in 


LABOR   AND    MINING.  559 

connection  with  reports  of  accidents  to  public  utility  property.     The 

character  of  the  report  is  to  be  fixed  by  the  rules  of  the  commission. 

To  the  Industrial  Board  are  sent  reports  of  (1)  accidental  injuries 

arising  out  of  the  course  of  the  employment  and  resulting  in  death, 

(2)  accidental  injuries  for  which  compensation  has  been  paid,  and 

(3)  an  additional  report  of  all  injuries  which  result  in  permanent  dis- 
ability.   The  character  of  the  reports  is  specified  by  the  act. 

Purposes  of  Accident  Reporting. 

Accident  reporting  by  employers  has  a  three- fold  purpose : 

(1)  The  indication  of  conditions  bearing  upon  safety  in  employ- 
ment.    This  is  its  main  purpose. 

(2)  For  statistical  statement  and  publication  as  to  conditions 
under  which  labor  is  conducted  in  Illinois. 

(3)  The  enforcement  of  the  compensation  act  as  to  employers 
and  employees  who  are  under  its  terms. 

(1)  Reports  of  accidents  to  the  chief  state  factory  inspector, 
the  public  utilities  commission  and  the  state  mine  inspectors  have  to 
do  with  the  subject  of  safety.  Reports  to  the  public  utilities  commis- 
sion under  the  act  of  1913  are  not  affected  by  the  possibility  that  reports 
of  the  same  accidents  may  have  to  go  to  the  bureau  of  labor  statistics 
and,  if  the  employer  is  under  the  compensation  act,  to  the  industrial 
board.  Reports  to  the  state  mine  inspectors  will  not  be  necessary,  it 
would  seem,  if  the  same  accidents  are  to  be  reported  to  the  industrial 
board  by  the  employers  under  the  compensation  law.  And  an  employer 
under  the  compensation  law  need  not  report  accidents  to  the  office 
of  the  chief  state  factory  inspector. 

It  is  out  of  the  question  for  the  factory  inspector's  office  to  make 
frequent  inspections  of  all  establishments  in  the  state,  but  the  occurrence 
of  an  accident  in  any  factory  should  result  in  an  immediate  inspection. 
An  effective  system  of  accident  reporting  is  necessary  in  order  to 
obtain  a  satisfactory  enforcement  of  the  laws  having  to  do  with  safety 
in  factories.  But  under  present  conditions  there  can  be  no  assurance 
whatever  that  accidents  are  reported  to  the  factory  inspector's  office^ 
An  employer  under  the  workmen's  compensation  act  is  exempt  from 
making  such  reports  and  the  factory  inspector's  office  does  not  know 
what  factories  are  exempt  and  what  are  not  (although  it  would  be 
possible  to  get  from  the  industrial  board  a  list  of  those  coming  under 
the  compensation  law).  The  factory  inspector's  office  therefore  not 
only  does  not  get  all  the  accident  reports  which  it  should  have  as  a 
basis  for  its  work,  but  also  it  does  not  get  all  the  reports  to  which  it  is 
entitled  under  the  Jaw,  for  it  is  clearly  entitled  to  get  reports  of.  h\\ 
accidents  occurring  in  factories,  mercantile  establishments,  mills,  or 
workshops  which  result  in  a  loss  of  fifteen  days'  time  or  more,  if 
such  establishments  are  not  under  the  compensation  act.  The  fact 
that  some  employers  who  previously  reported  accidents  to  this  office 
need  not  do  so  now  makes  it  easy  for  an  employer  to  escape  accident 
reporting  altogether. 

In  truth  the  factory  inspector's  office  seems  to  have  been  under  the 
impression  that  the  compensation  act  of  1911  relieved  the  employer 


560  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

from  the  necessity  of  making  any  accident  reports  to  it,  and  such  a  state- 
ment is  made  in  the  report  of  that  office  (in  manuscript)  for  1912-13. 
At  the  same  time  the  report  of  the  chief  state  factory  inspector  for 
1912-13  urges  the  desirabihty  of  having  all  accident  reports  come 
directly  or  indirectly  to  the  factory  inspector's  office.  At  present  this 
office  gets  some  accident  reports,  but  cannot  be  sure  what  proportion 
of  accidents  is  reported,  and  for  Chicago  relies  upon  reports  obtained 
from  the  police  bureau.  For  the  rest  of  the  state  the  factory  inspector's 
office  relies  upon  more  or  less  haphazard  information  as  to  accidents. 
Under  the  present  laws  the  reports  of  accidents  in  mines  are  almost  if 
not  equally  as  confused  as  those  of  accidents  in  factories,  etc. 

Another  difficulty  under  which  the  chief  state  factory  inspector's 
office  would  labor,  even  if  it  were  trying  systematically  to  get  all  acci- 
dent reports  to  which  it  is  entitled,  is  that  the  health,  safety  and  com- 
fort act  of  1909  requires  reports  of  accidents  in  factories,  mercantile 
establishments,  mills,  or  workshops  to  go  to  the  factory  inspector's 
office,  while  other  employers  of  labor  are  under  the  act  of  1907  required 
to  report  accidents  to  the  state  bureau  of  labor  statistics.  In  many 
cases  it  would  not  be  clear  which  of  these  offices  should  receive  reports 
from  an  employer  of  labor  (who  is  not  under  the  compensation  act  of 
1913)  and  the  result  would  probably  be  that  such  an  employer  would 
escape  making  accident  reports  to  any  state  office.  Under  present  law 
in  Illinois  no  one  office  can  make  a  list  of  all  establishments  required 
to  report  accidents,  and  systematically  enforce  the  duty  of  accident 
reporting  imposed  upon  employers. 

(2)  For  the  second  purpose  of  accident  reporting,  that  of  provid- 
ing and  publishing  statistical  information,  the  bureau  of  labor  statistics 
Is  the  state  organ.  Under  the  act  of  1907  and  the  workmen's  compensa- 
tion act  of  1911  accident  reports  went  to  this  bureau,  except  those  of 
accidents  occurring  in  factories,  mercantile  establishments,  mills  or 
workshops,  which  went  to  the  chief  state  factory  inspector's  office 
under  the  act  of  1909.  Now  (under  the  act  of  1913)  accidents  occur- 
ring in  cases  where  the  establishment  is  under  the  compensation  act  of 
1913  are  reported  to  the  industrial  board.  Under  the  mining  act  of 
1899,  repealed  in  1911,  certain  reports  from  mine  inspectors  went  also 
to  the  bureau  of  labor  statistics.  In  its  1912  report  the  bureau  of 
labor  statistics  compiled  the  reports  received  by  it  under  the  act  of 
1907,  the  reports  received  by  it  as  the  organ  administering  the  com- 
pensation act  of  1911,  and  in  addition  obtained  the  reports  made  to 
the  state  factor}-  inspector  under  the  act  of  1909.  Now,  however,  if 
satisfactory  accident  reports  are  to  be  published,  the  bureau  of  labor 
statistics  must  make  sure  of  getting  not  only  the  accident  reports 
coming  to  itself,  but  also  those  coming  to  the  chief  factory  inspector's 
office,  to  the  industrial  board,  and  to  the  state  mining  board  (although 
all  reports  reaching  the  latter  should  also  be  in  the  hands  of  the  bureau 
of  labor  statistics  or  of  the  industrial  board).  There  is  no  power  in 
the  bureau  of  labor  statistics  to  require  the  delivery  to  it  of  accident 
reports  made  to  other  offices,  nor  need  the  reports  to  the  several  offices 
be  uniform.    It  will  be  a  matter  of  surprise  should  the  statistical  reports  • 


LABOR   AND    MINING.  561 

of  accidents  published  by  the  bureau  of  labor  statistics  prove  at  all 
complete  or  satisfactory,  in  the  present  state  of  the  law. 

(3)  For  the  purpose  of  enforcing  the  compensation  act,  the 
act  of  1911  provided  for  accident  reports  to  the  bureau  of  labor  statistics 
and  the  act  of  1913  for  reports  to  the  industrial  board.  Reference  has 
already  been  made  to  the  difficulties  occasioned  by  the  act  of  1913, 
with  respect  to  accident  reports  to  other  offices.  In  addition,  attention 
should  be  called  to  the  fact  that  the  compensation  acts  of  1911  and 
1913  each  required,  except  in  case  of  death,  the  reporting  only  of  "acci- 
dents for  which  compensation  has  been  paid"  under  the  acts,  whereas 
those  administering  a  compensation  scheme  are  even  more  interested 
in  accidents  for  which  compensation  may  be  due,  but  has  not  yet 
been  paid.  Compensation,  under  the  act,  is  not  necessarily  paid  at 
once  but  may  be  delayed  for  a  period  of  some  length. 

The  Employer  Under  the  Present  Situation. 

From  the  standpoint  of  the  employer  the  present  situation  is  a 
troublesome  one.  If  under  the  compensation  act  his  position  is  not 
difficult  (as  that  law  is  interpreted  by  the  Attorney  General),  although 
a  public  utility  under  the  compensation  law  is  required  to  report  its 
accidents  both  to  the  industrial  board  and  to  the  public  utility 
commission. 

If  not  under  the  compensation  law  the  employer  must  decide 
whether  under  the  law  as  it  now  stands  he  is  to  report  to  the  chief 
state  factory  inspector's  office  or  the  bureau  of  labor  statistics ;  and  it 
may  not  always  be  clear  whether  his  business  is  or  is  not  a  factory, 
mercantile  establishment,  mill  or  workshop.  If  this  point  is  difficult 
to  decide  the  employer  is  apt  to  wait  until  one  office  or  the  other  reminds 
him  of  his  failure  to  report,  in  many  cases  perhaps  thinking  rightly  that 
his  failure  will  not  be  detected.  Such  a  failure  to  define  clearly  the 
jurisdictions  of  the  two  offices  probably  results  in  incomplete  accident 
reports  from  employers. 

Even  if  the  point  just  discussed  were  clear,  the  employer's  diffi- 
culties are  not  at  an  end.  If  a  public  utility,  not  under  the  compensation 
act,  reports  of  accidents  must  go  both  to  the  puWic  utilities  commission 
and  to  the  bureau  of  labor  statistics.  If  a  mine,  and  not  under  the 
compensation  act,  reports  of  accidents  must  go  to  the  bureau  of  labor 
statistics  and  to  the  state  mine  inspector.  Moreover,  where  reports 
to  two  state  officers  are  required,  the  content  of  the  reports  is  diflferent 
and  the  employer  is  put  to  much  unnecessary  annoyance. 

Suggestions. 

If  there  is  to  be  a  consolidated  department  of  labor,  it  will 
probably  be  best  to  have  all  'reports  of  accidents  to  workmen 
(except  those  with  respect  to  miners),  go  directly  to  the  bureau  of 
statistics ;  from  this  bureau  copies  could  at  once  be  forwarded  to  the 
other  bureaus.  Such  a  plan,  however,  would  not  work  satisfactorily 
unless  the  central  offices  of  all  bureaus  were  in  the  same  building. 


562*  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

Another  function  of  a  bureau  of  statistics  may  properly  be  that 
of  preparing  and  keeping  up  to  date  an  industrial  directory  of  the 
state.  A  definite  knowledge  as  to  what  establishments  are  doing  busi- 
ness in  the  state  is  necessary,  not  only  that  full  statistics  may  be  ob- 
tained, but  also  in  order  that  an  efficient  inspection  of  factories  may  be 
had. 

It  is  undesirable  to  have  the  forms  for  accident  reporting  fixed  by 
law.  Power  to  determine  forms  for  all  industries  except  mines  should 
be  vested  in  the  industrial  commission  (formed  as  indicated  on  p.  84). 
For  mines  the  form  should  first  be  determined*  by  the  state  mining 
board,  subject  to  review  by  the  industrial  commission.  The  forms 
should  be  so  devised  that  an  employer  need  make  but  one  report  for 
each  accident. 


X.     GENERAL  SUMMARY  AND  RECOMMENDATIONS 

Recent  Developments  in  Other  States. 

The  tendencies  of  labor  legislation  in  other  states  have  been  toward 
(1)  centralization  of  administration  in  the  hands  of  one  bureau  or 
department,  (2)  a  greater  degree  of  flexibility  in  the  labor  legislation 
itself,  and  (3)  a  closer  co-operation  between  employer  and  employee 
in  the  enforcement  of  labor  laws. 

( 1 )  Effective  administration  cannot  be  expected  from  a  series  of 
independent  offices,  with  conflicting  powers.  Wisconsin  in  1911  estab- 
lished an  industrial  commission  and  placed  the  administration  of  all 
labor  legislation  in  the  hands  of  this  commission.  Ohio  in  1913  adopted 
a  similar  plan.  New  York  and  Pennsylvania  have  to  a  large  extent 
centralized  the  administration  of  labor  legislation.^"  , 

(2)  The  policy  in  this  country  until  recently  has  been  to  enactv 
statutes  which  attempt  to  cover  in  detail  every  contingency  that  may 
arise  in  connection  with  the  guarding  of  machinery,  etc.  It  is  impossible 
to  cover  all  such  details  in  a  statute,  and  to  change  statutory  provisions 
quickly  so  as  to  adjust  them  to  changing  industrial  conditions.  The 
situation  is  much  the  same  as  that  which  prevailed  some  years  ago  with 
reference  to  the  fixing  of  railroad  rates.  Legislatures  have  now  realized 
that  it  is  impossible  to  regulate  rates  in  detail  by  statute,  and  have 
committed  this  task  to  permanent  commissions,  laying  down  in  the 
statute  the  general  principles  under  which  the  commission  should  act. 

The  New  York  State  Factory  Investigating  Commission  said  in 
Its  report^^  in  1913 :  "The  labor  law  is  framed  on  what  we  believe  to 
be  a  mistaken  theory,  that  the  requirements  for  the  protection  of  the 
health  and  safety  of  workers  should  all  be  expressed  within  the  four 
corners  of  the  statute  itself.  The  attempt  to  carry  out  this  theory  has 
led  to  the  enactment  of  provisions  so  specific  and  rigid  in  their  require- 
ments as  to  make  their  enforcement  in  many  cases,  unjust  or  even 
impossible.  They  fail  to  take  into  account  the  varying  conditions  in 
diiterent  industries.  In  some  instances  where  the  impossibility  of 
setting  a  rigid  standard  for  all  cases  was  manifest,  the  provisions  of 
the  law  were  made  so  vague  and  indefinite  that  their  meaning  or 
application  could  not  be  determined  at  all,  or  had  to  depend  upon  the 
exercise  of  an  administrative  discretion,  a  one-man  discretion,  so 
arbitrary  in  character  and  so  calculated  to  work  injustice,  that  it  was 
either  not  exercised  at  all.  or  when  exercised,  became  a  natural  subject 
of  distrust  on  the  part  of  the  courts.     We  believe  that  the  only  way 

I'See  Report  on  the  Reorganization  of  Labor  Departments   in   other  states,   appended   to 
this  report. 

"Second    Report,    1.    p.    30. 


564  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

of  obtaining  a  labor  law  which  can  be  enforced,  is  to  abandon  the 
theory  underlying  the  labor  law  as  it  now  stands;  namely,  that  it  is 
possible  in  any  statute  to  provide  specifically  the  measures  to  be  taken 
for  the  protection  of  the  lives,  health,  and  safety  of  workers  in  each 
industry  and  under  all  conditions.  We  are  of  opinion  that  the  legisla- 
ture should  make  broad  and  general  requirements  for  safety  and 
sanitation,  setting  forth  where  practicable  minimum  requirements,  and 
delegating  to  some  responsible  authority  the  power  to  make  special 
rules  and  regulations  to  carry  the  provisions  of  the  statute  into  effect 
in  the  different  industries  and  under  varying  conditions. 

These  rules  and  regulation  should  be  collected  in  an  industrial 
code  that  could  be  enlarged  or  changed  with  comparative  ease  from 
time  to  time  as  occasion  might  require.  Such  a  principle  is  approved 
by  all  those  who  have  given  time  or  study  to  this  important  subject." 

In  1913  the  New  York  legislature  put  this  recommendation  into 
effect ;  and  the  New  York  example  was  immediately  copied  by  Pennsyl- 
vania. Massachusetts  and  California  in  1913  adopted  a  similar  prin- 
ciple. Wisconsin,  through  her  industrial  commission  law  in  1911 
(largely  copied  by  Ohio  in  1913)  set  the  standard  for  legislation  of 
this  type.  Rules  for  industry  were  to  be  made  by  the  industrial  com- 
mission after  a  hearing  and  were  to  be  reviewable  on  appeal  to  the 
courts  under  certain  conditions.  There  is  no  arbitrary  power  and 
every  legitimate  interest  is  properly  safeguarded. 

Several  plans  of  organization  are  possible,  if  the  labor  bureaus 
are  to  be  consolidated,  and  if  a  wide  power  to  make  rules  and  regulations 
is  vested  in  the  consolidated  department.  Upon  this  subject  the  follow- 
ing quotation  from  the  report  of  the  New  York  commission  is  of 
interest : 

"To  give  one  man,  namely  the  Commissioner  of  Labor,  the  power 
to  make  rules  and  regulations,  would  be  entirely  out  of  the  question. 
This  power  is  too  great  to  entrust  safely  to  any  one  individual.  Two 
other  methods  were  suggested:  (1)  to  create  a  commission  at  the 
head  of  the  Department  of  Labor  in  place  of  the  present  single  com- 
missioner, with  power  to  make  rules  and  regulations  and  to  enforce 
them,  and  (2)  to  create  a  board  within  the  Department  of  Labor 
to  make  rules  and  regulations,  and  to  leave  the  Commissioner  of  Labor 
at  the  head  of  the  department  as  at  present,  with  full  power  to  enforce 
the  provisions  of  the  statute  and  the  rules  and  regulations  adopted  by 
the  board,  and  with   full  responsibility   for  their  enforcement." 

"The  Commission  has  carefully  considered  the  advantages  and 
disadvantages  of  each  plan.  We  have  found  that  there  are  advantages 
and  disadvantages  in  each,  but  after  careful  study  we  have  decided 
that  the  second  alternative  is  the  one  likely  to  produce  better  results 
in  the  state.  In  reaching  that  conclusion  we  were  guided  by  the  fol- 
lowing principles : 

1.  Responsibility  for  enforcement  of  law  must  be  definitely 
located. 

2.  Administrative  work  can  best  be  done  by  one  man. 

3.  Questions  involving  discretion  and  requiring  deliberation  are 
best  decided  by  a  body  of  men." 


LABOR  AND    MINING.  565 

"The  plan  we  propose  has  the  dehherative  advantages  of  com- 
mission government,  and  the  administrative  advantages  of  a  single 
head.  The  formation  of  a  board  to  make,  with  due  deHberation,  regu- 
lations that  shall  carry  into  effect  the  intent  and  purposes  of  the  law, 
will  secure  for  the  department  all  the  benefits  of  a  commission;  and 
the  retention  at  the  head  of  the  department,  of  a  single  commissioner 
to  enforce  the  law  and  the  regulations  adopted  thereunder,  will  prevent 
any  shifting  of  responsibility." 

"The  question  has  arisen,  whether  this  board  shall  be  merely  ad- 
visory and  its  conclusions  subject  to  veto  by  the  Commissioner  of 
Labor.  We  believe,  however,  that  such  veto  power  would  not  produce 
good  results.  Nevertheless,  the  Commissioner  of  Labor  should  not  be 
placed  in  a  subordinate  capacity,  but  should  be  chairman  of  this  board 
and  thus  have  an  important  voice  in  framing  the  rules  and  regulations 
upon  which  the  successful  administration  of  his  department  so  largely 
depends." 

There  are  four  possible  plans  of  organization:  (1)  The  Wis- 
consin plan,  where  the  executive  administration,  as  well  as  the  framing 
of  rules,  is  placed  in  the  hands  of  a  commission  of  three  members.  This 
plan  is  open  to  the  objection  that  it  scatters  administrative  responsibility 
for  the  work  of  the  department.  (2)  The  plan  of  creating  a  board  by 
associating  with  the  head  of  the  department  of  labor  several  advisory 
members  who  do  not  give  their  whole  time  to  the  work  of  the  board. 
Advisory  boards,  performing  only  occasional  services,  have  not  in  gen- 
eral proven  satisfactory.  (3)  The  plan  of  creating  a  board  by 
associating  the  chiefs  of  the  several  labor  bureaus  with  the  head  of 
the  labor  department.  This  plan  has  advantages,  but  is.  open  to  the 
objection  that  it  confers  independent  advisory  and  discretionary  func- 
tions upon  officers  who  are  administratively  subordinate  to  the  head  of 
the  labor  department.  (4)  The  plan  of  associating  with  the  head 
of  the  department,  two  deputies,  who  should  be  free  from  administra- 
tive duties  but  devote  their  whole  time  to  the  work  of  the  department, 
the  three  to  act  as  a  board  for  matters  requiring  discretionary  action. 
It  may  be  objected  to  this  plan  that  it  proposes  the  appointment  of 
two  important  officers  who  would  have  very  little  to  do.  Yet  these 
deputies  would  have  enough  to  do  if  they  (a)  acted  as  part  of  a  board 
in  compensation  cases,  in  passing  upon  matters  affecting  private  em- 
ployment agencies,  and  in  arbitration  matters  (b)  conducted  investiga- 
tions and  hearings  upon  matters  affecting  labor ;  and  acted  in  obtaining 
co-operation  by  employers  and  employees  in  drawing  up  rules  applicable 
to  particular  industries  (c)  acted  as  a  part  of  the  board  in  adopting 
rules  and  regulations.  A  more  serious  objection  is  the  one  that  friction 
may  result  from  having  two  officers  exercising  independent  powers  by 
the  side  of  the  head  of  the  department  of  labor ;  yet  the  possibility  of 
friction  is  hardly  as  great  as  under  the  Wisconsin  plan.  For  Illinois 
the  choice  seems  to  lie  between  the  third  and  fourth  plans  suggested 
above,  with  some  advantage  in  favor  of  the  fourth  plan. 

The  present  chief  factory  inspector  is  opposed  to  any  plan  which 
would  vest  in  him  a  large  discretion  as  to  what  rules  should  be  observed, 
and  such  a  discretion  clearly  should  not  in  any  case  be  vested  in  one 


566  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

individual.  Yet  at  present  a  wide  discretion  is  vested  in  the  factory 
inspector's  ofBce  under  the  health,  safety  and  comfort  act  and  under 
the  occupational  diseases  act,  and  the  discretion  here  is  almost  neces- 
sarily in  fact  the  personal  discretion  of  the  individual  inspector  who 
inspects  a  particular  factory. 

Much  of  the  Illinois  legislation  is  either  too  rigid  or  too  indefinite. 
Where  rigid  and  detailed  standards  are  set  they  are  often  inapplicable 
to  particular  factories  (or  mines)  and  the  inspector  does  not  attempt 
to  enforce  them.  Where  no  definite  standard  is  fixed  the  inspector 
either  does  not  impose  one  (this  being  perhaps  the  more  frequent 
case)  or  he  exercises  an  uncontrolled  discretion,  in  first  instance,  in 
doing  so ;  of  course  the  standard  which  he  may  fix  in  such  a  case  is 
subject  to  review  by  the  courts,  but  judicial  training  devolops  no 
especial  competence  to  pass  upon  the  proper  safeguarding  of  machinery. 
The  health,  safety  and  comfort  act  provides  that  dangerous  places 
"where  practicable"  shall  be  enclosed  (Sec.  1),  that  poisonous  fumes 
or  gases  and  dusts  injurious  to  health  "shall  be  removed,  so  far  as 
practicable"  (Sec.  12),  and  that  in  factories,  etc.,  "sufficient  and  reason- 
able means  of  escape  in  case  of  fire  shall  be  provided"  (Sec.  14).  The 
occupational  diseases  act  provides  that  the  department  of  factory  in- 
spection shall  require  the  "installation  of  adequate  and  approved 
appliances"  (Sec.  12).  If  under  these  provisions  action  is  taken  by 
the  department  in  setting  a  standard  for  a  particular  factory,  such 
action  is  reviewable  only  through  a  court  proceeding.  Greater  efficiency 
from  the  standpoint  of  the  factory  department  and  a  more  adequate 
safeguarding  of  the  rights  of  the  employer  will  be  obtained  by  vesting 
in  a  commission  (acting  under  proper  safeguards)  power  to  fix  general 
standards  for  each  industry.  Under  this  plan  the  powers  of  individual 
inspectors  to  fix  different  standards  for  factories  in  substantially  the 
same  condition  would  largely  disappear. 

In  order  to  control  more  effectively  power  granted  to  a  commission 
to  make  rules,  the  General  Assembly  in  conferring  such  power  may 
properly  ( 1 )  fix  in  important  matters  certain  maximum  or  minimum 
standards  limiting  the  authority  of  the  commission;  (2)  require  that 
rules  made  by  the  commission  be  submitted  at  the  next  succeeding 
session  of  the  General  Assembly.  Rules  thought  improper  by  the 
General  Assembly  could  then  be  repealed. 

(3)  A  man  familiar  with  labor  administration  in  Illinois  has 
recently  said  that  the  mining  legislation  is  effective  only  so  far  as  it 
is  enforced  by  agreements  between  employers  and  employees.  This 
statement  may  not  be  altogether  true,  yet  it  is  true  that  the  enforce- 
ment of  safeguards  in  industry  must  depend  primarily  upon  the  em- 
ployer and  employee  rather  than  upon  state  inspection.  An  inspection 
force,  no  matter  how  large,  cannot  enforce  in  detail  all  requirements 
now  imposed  by  labor  legislation  in  Illinois.  Under  the  Wisconsin  In- 
dustrial Commission  law,  an  effective  administration  has  been  made 
possible  by  the  fact  that  committees  of  employers  and  employees  have 
been  appointed  for  each  industry  to  work  out  safety  rules  for  that 
industry.  The  framing  of  such  rules  has  been  in  itself  an  education 
regarding  the  need  for  the  rules  framed.     But  such  co-operation  be- 


LABOR  AND   MINING. 


567 


tween  employer  and  employee  cannot  be  obtained  without  some  degree 
of  centralization  in  the  enforcement  of  labor  laws,  and  some  flexibility 
in  the  rules  to  be  framed.  In  one  or  two  cases  factory  inspectors  in 
Illinois  have  already  made  successful  efforts  to  work  out,  in  co-opera- 
tion with  employers,  standards  for  particular  industries,  but  little  can 
be  expected  in  this  field  without  a  reorganization  of  the  officers 
administering  the  labor  laws. 
Present  Situation  in  Illinois. 

According  to  the  census  of  1910  there  were  in  1909,  18,026  manu- 
facturing establishments  in  Illinois  employing  465,764  wage  earners. 
Of  these,  9,656  establishments,  employing  293,977  wage  earners,  were 
in  Chicago.  There  were  in  the  same  year  470  bituminous  coal  mines, 
employing  74,445  wage  earners.  For  the  enforcement  of  the  health, 
safety  and  other  labor  laws  with  respect  to  these  and  other  employ- 
ments there  are  thirty  state  factory  inspectors  (and  a  chief  inspector) 
and  twelve  state  mining  inspectors.  The  factory  inspectors  operate 
mainly  in  Cook  County  and  the  mine  inspectors  entirely  outside  of 
that  county.  For  the  enforcement  of  safety  appliances  on  railroads, 
safety  inspectors  (two  at  present)  are  provided  under  the  public 
utilities  commission,^^  who  largely  dupHcate  work  done  under  federal 
law.  Under  the  food  inspection  act  of  1911,  state  food  inspectors  are 
required  to  enforce  sanitary  conditions  for  employees  in  the  manufac- 
ture of  foodstuffs.  In  earlier  parts  of  this  report  reference  has  been 
made  to  the  powers  of  the  board  of  health  under  the  occupational 
diseases  act ;  and  the  powers  of  local  school,  health,  building,  and  other 
authorities  under  other  acts  relating  to  conditions  in  factories  or  other 
work. 

The  following  statement  shows  the  various  authorities  for  the 
administration  of  labor  legislation,  the  number  of  persons  employed, 
and  the  salaries  and  appropriations  for  the  two  years  1913-15: 

Salaries  and 
Number  Appropriations 
Employed  1913-15 
Bureau  of  Labor  Statistics   (and  Commis- 
sioners of  Labor) 12  $  28.655 

Inspector  of  Private  Employment  Agencies.     10  30,740 

Free  Employment  Offices  (8) 42  108,670 

Factory  Inspection  Department 46  164,820 

Industrial   Board 8  79,600 

Board  of  Arbitration 4  14,000 

State  Mining  Board  and  Mine  Inspectors. .     23  103,800 

Miners'  Examining  Board 3  16,200 

Mine  Rescue  Commission 14  95,700 

Mining  Investigation  Commission 10,000 

Miners'  and  Mechanics'  Institutes 30,000 

Total \ 162  $682,185 

"Illinois    Laws,    1913,   p.    508. 


568  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

The  only  revenue  producing  offices  are  the  miners'  examining  board 
and  the  office  of  the  chief  inspector  of  private  employment  agencies. 
The  miners'  examining  board  has  just  been  established  as  a  state  board. 
In  the  year  1912-13  the  revenue  from  private  employment  agencies  was 
$15,825. 

Several  of  these  offices  (the  three  first  listed  above)  are  sub- 
ordinated to  a  small  extent  to  the  commissioners  of  labor,  but  other- 
wise each  is  independent  in  its  own  sphere.  INIoreover,  the  free  em- 
ployment offices  are  entirely  independent  of  each  other.  As  to  accident 
reporting  to  the  various  offices,  the  situation  is  especially  confused,  and 
accident  reports  in  this  state  are  incomplete  and  of  little  value. 

The  state  miners'  examining  board,  created  in  1913,  examines 
miners,  while  the  state  mining  board  examines  mine  officers.  There  is 
no  satisfactory  reason  for  two  entirely  independent  boards.  The  board 
of  arbitration  has  little  to  do,  and  its  powers  may  well  be  bestowed 
upon  some  other  board.  Discretionary  functions,  which  should  properly 
be  handled  by  a  board,  are  exercised  by  the  commissioners  of  labor 
(especially  with  reference  to  the  revocation  of  licenses  of  private  em- 
ployment agencies),  by  the  board  of  arbitration,  and  by  the  industrial 
board  ( in  "hearing  contests  regarding  compensation).  All  of  these 
discretionary  functions  may  easily  and  more  efficiently  be  exercised 
by  one  board. 

Under  present  legislation,  moreover,  there  has  been  no  adjustment 
of  salaries  to  the  work  done.  Factory  inspectors  receive  $1,200,  in- 
spectors of  private  employment  agencies  $1,500,  and  state  mine  in- 
spectors $1,800.  The  character  of  work  does  not  justify  these 
differences,  and  here  there  must  be  some  leveling  up,  if  efficient  in- 
.  spectors  are  to  be  obtained.  The  chief  inspector  of  private  employment 
agencies  receives  $3,600,  while  the  chief  of  the  factory  inspection 
department,  a  much  more  important  officer,  receives  $3,000.  The 
commissioners  of  labor  receive  $150  a  year,  for  which  they  are  called 
upon  to  do  more  than  the  members  of  the  board  of  arbitration  who 
receive  $1,500  a  year.  The  secretary  of  the  board  of  arbitration  re- 
ceives the  same  salary  ($2,500)  as  the  secretary  of  the  commissioners 
of  labor  (the  executive  officer  of  the  bureau  of  labor  statistics),  yet 
one  office  has  apparently  had  few  duties  while  the  other  requires 
continuous  service. 

An  even  more  serious  situation  exists  with  reference  to  the  appoint- 
ment of  officers  administering  labor  legislation.  The  civil  service  law 
exempts  from  its  terms  officers  appointed  by  the  Governor,  subject 
to  confirmation  by  the  Senate.  The  Attorney  General  has  ruled  ap- 
parently that  this  exempts  all  officers  who  were  by  law  to  be  appointed 
by  the  Governor.  The  superintendent,  assistant  superintendent  and  a 
clerk  of  each  free  employment  office  are  appointed  by  the  Governor 
with  the  advice  and  consent  of  the  Senate,  and  are  clearly  exempt 
from  civil  service,  as  are  also  members  of  the  board  of  arbitration, 
state  mining  board,  miners'  examining  board,  industrial  board  and 
commissioners  of  labor.  Under  the  terms  of  the  law,  the  mine  rescue 
commission  is  appointed  by  the  Governor  alone.  The  chief  inspector 
of  private  employment  agencies,  the  chief  factory  inspector,  the  factory 


LABOR    AND    MINING.  569 

inspectors  and  several  other  officers  of  the  factory  inspection  depart- 
ment, and  state  mine  inspectors,  were  by  law  made  appointive  by  the 
Governor,  and  are  exempt  from  civil  service  under  the  Attorney 
General's  ruling.  For  mine  inspectors  the  state  mining  board  conducts 
an  examination  and  appointments  are  for  a  two-year  term.  The 
clerical  forces  are  appointed  under  the  civil  service  law,  as  are  also 
deputy  inspectors  of  private  employment  agencies,  and  the  secretaries 
of  the  board  of  arbitration  and  the  bureau  of  labor  statistics.  How- 
ever, there  is  for  the  body  of  technical  positions  no  guaranty  of  technical 
efficiency  or  permanence  of  tenure. 

The  annual  reports  of  the  various  offices  do  not  cover  the  same 
period.  Reports  for  the  year  ending  June  30  are  now  made  by  the 
chief  state  factory  inspector,  by  the  inspector  of  private  employment 
agencies,  by  the  state  mining  board,  and  reports  for  the  same  period 
are  to  be  made  by  the  industrial  board.  Reports  of  the  free  employ- 
ment offices  are  made  for  the  year  ending  September  30,  the  report  of 
the  bureau  of  labor  statistics  on  accidents  is  made  for  the  year  ending 
December  31,  and  the  report  of  the  miners'  examining  board  is  to  be 
made  on  the  first  day  of  IMarch,  so  that  the  results  shown  by  these 
reports  are  not  comparable  with  those  of  the  other  offices. 

Under  present  legislation  in  Illinois  it  is  natural  that  no  systematic 
effort  should  have  been  made  to  view  the  labor  problem  as  a  whole 
and  to  co-ordinate  the  activities  of  all  the  state  offices.  A  number  of 
the  less  important  laws  are  not  committed  to  any  one  of  the  present 
offices  for  enforcement.  The  best  single  piece  of  individual  investiga- 
tion of  a  labor  problem  in  this  state  was  done,  not  by  a  permanent 
office,  but  by  the  special  commission  on  occupational  diseases. 

Recommendations. 

(1)  That  all  labor  bureaus  and  offices  be  consolidated  into  a 
Department  of  Labor  and  Mining  which  should  have  the  following 
bureaus   or   divisions : 

(a)  Bureau  of  Statistics. 

(b)  Bureau  of  Inspection,  to  cover  the  work  now  under- 

taken by  the  factory  inspection  department. 

(c)  Bureau  of  employment,  to  operate  public  employment 

offices  and  to  inspect  private  employment  agencies. 

(d)  Bureau  of  Workmen's  Compensation. 

(e)  Bureau  of  Arbitration  and  Mediation. 

(f)  Division  of  Mining. 

Much  may  be  said  for  the  plan  of  organizing  an  industrial  com- 
mission and  giving  it  full  power  to  create  bureaus  and  appoint  its 
subordinates.  From  a  practical  standpoint,  however,  it  will  probably 
be  necessary  to  provide  by  statute  for  bureaus  to  perform  functions 
now  performed  by  existing  bureaus  and  offices.  It  would  be  desirable 
to  give  the  commission  power  to  create  new  bureaus,  and  transfer 
functions  and  officers  from  one  bureau  to  another.  The  commission 
should  also  have  some  power  to  determine  the  salaries  of  its  sub- 
ordinates, and  the  number  of  employees  to  be  used  in  several  bureaus. 


570  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

Much  of  the  administrative  detail  now  in  the  statutes  should  be 
omitted.  This  is  especially  true  with  respect  to  free  employment  offices 
and  the  inspection  of  private  errtployment  agencies. 

(2)  That  the  department  of  labor  be  under  a  commissioner  as 
an  administrative  head ;  that  each  bureau  be  under  a  single*  chief  of 
bureau.  The  division  of  mining  sliould  have  a  secretary,  as  executive 
officer,  and  a  State  mining  board  to  exercise  the  powers  of  the  several 
mining  boards.  For  an  outline  of  suggestions  with  respect  to  mining, 
see  pp.  64-67. 

(3)  That  two  deputies  to  the  commissioner  of  labor  be  provided, 
they  with  the  commissioner  to  act  as  an  industrial  commission  for  the 
functions  which  more  properly  require  board  action.  The  deputies 
should  also  have  power  individually  to  hold  hearings  and  investigations 
upon  matters  affecting  labor  or  any  of  the  laws  committed  to  the  de- 
partment of  labor  for  enforcement. 

(4)  To  the  commissioner  and  deputies  as  a  board  should  be 
granted  wide  power  to  make  regulations  governing  conditions  of  labor, 
such  regulations  to  be  made  after  hearing,  and  subject  to  court  review 
as  in  Wisconsin.  This  would  be  no  more  open  to  constitutional  ob- 
jection than  is  the  delegation  of  rate-making  power  to  the  public 
utilities  commission.  If  such  power  is  conferred,  there  should  in  any 
re-enactment  of  present  labor  laws,  be  a  provision  that  the  present 
detailed  statutory  regulations  shall  remain  in  force  until  the  subjects 
in  each  particular  case  have  been  covered  by  regulations  issued  under 
the  authority  of  the  new  department  of  labor. 

(5)  Each  person  inspecting  factories,  etc.,  under  one  law  should 
have  full  authority  to  enforce  all  labor  laws.  The  penalties  imposed 
under  the  several  laws  should  be  more  uniform  than  at  present. 

If  carried  out,  these  recommendations  would  permit  an  adjust- 
ment so  far  as  concerns  the  present  situation  with  respect  to  accident 
reporting,  and  would  make  necessary  some  co-ordinated  management 
of  public  employment  offices.  In  addition  it  would  make  it  possible 
to  work  out  an  effective  administration  of  labor  legislation  as  a  whole. 

It  should  be  suggested,  however,  that  much  of  the  advantage  of 
a  consolidation  of  labor  offices  will  be  lost  unless  arrangements  are 
at  the  same  time  made  for  the  housing  together  of  related  bureaus. 
The  scattered  location  of  the  present  offices  is  such  as  to  make  co- 
operation difficult,  were  such  co-operation  sought.  The  offices  of  the 
factory  inspection  department,  industrial  board,  and  chief  inspector 
of  private  employment  agencies  are  in  Chicago,  and  each  is  in  a 
different  building.  The  secretary  of  the  state  board  of  arbitration  also 
has  an  office  in  Chicago.  The  mining  boards  and  the  bureau  of  labor 
statistics  (with  what  supervision  exists  over  free  employment  offices) 
are  in  Springfield.  For  a  consolidated  department  all  of  the  central 
offices  should  be  in  one  building;  and  if  particular  bureaus  require 
offices  in  other  parts  of  the  state,  all  of  such  branch  offices  in  any  one 
city  should  be  in  the  same  building.  This  statement,  however,  should 
not  apply  to  free  employment  offices,  where  it  is  desirable  to  have 
several  offices  in  the  same  city. 


LABOR   AND    MINING.  571 

(6)  The  enforcement  provisions  of  some  of  the  laws  should 
be  made  more  effective,  as,  for  example,  by  so  amending  the  hours 
of  labor  law  for  women  as  to  penalize  the  obstructing  of  an  inspector. 

(7)  Attention  has  been  called  in  a  number  of  places  throughout 
this  report  to  defects  in  the  substance  of  legislation.  So,  for  example, 
with  respect  to  child  labor  laws,  a  medical  certificate  should  be  required 
of  children  where  there  is  no  evidence  of  age  except  the  parent's 
statement,  children  between  the  ages  of  14  and  16  should  be  required 
to  read  and  write  in  English  before  being  given  certificates  entitling 
them  to  work,  and  a  duty  should  be  imposed  upon  inspectors  to  require 
medical  certificates  of  children  between  14  and  16  who  appear  to  be 
physically  unable  to  work.  Inasmuch,  however,  as  the  work  of  this 
committee  is  that  of  dealing  with  administrative  organization  and 
methods,  it  would  hardly  be  wise  to  attempt  a  thoroughgoing  revision 
of  the  substance  of  labor  laws. 

If  the  plan  here  recommended  is  adopted,  the  expense  of  the  new 
organization  will  probably  be  equally  as  great  as  that  under  the  present 
organization.  Of  the  general  labor  boards  whose  abolition  is  recom- 
mended, the  members  of  the  board  of  arbitration  receive  $4,500,  the 
members  of  the  industrial  board,  $12,000;  and  the  commissioners  of 
labor  $750.  The  commissioner  of  labor  and  his  deputies  (under  the 
plan  recommended)  should  receive  rather  large  salaries,  and  a  chief 
of  the  compensation  bureau  must  replace  the  present  industrial  board. 
The  salaries  for  new  offices  would  therefore,  probably  equal  those  of 
the  abolished  positions. 

Substantially  the  same  statement  will  hold  as  to  the  recommenda- 
tions with  respect  to  a  reorganization  of  mining  services.  It  is  recom- 
mended that  the  mine  rescue  commission  be  abolished,  but  this  is  a 
per  diem  commission  the  payment  of  whose  members  does  not  consti- 
tute a  heavy  expense.  It  has  been  recommended  also  that  the  miners' 
examining  board  be  abolished  as  an  independent  board,  but  an  equal 
cost  must  be  incurred  by  the  establishment  of  a  subordinate  board  to 
conduct  examinations  of  miners.  With  respect  to  the  reorganization 
of  mining  services  it  has  already  been  suggested  that  an  increased 
expense  to  the  state  treasury  (but  not  an  increased  total  expense)  will 
be  incurred  by  the  abolition  of  county  mine  inspectors  and  the 
increase  in  the  number  of  state  mine  inspectors. 

This  statement  regarding  relative  expense  leaves  entirely  out  of 
account  any  changes  which  may  result  from  a  proposed  equalization  of 
salaries  throughout  the  whole  state  service. 

Legislative  Methods  of  Carrying  the  Above  Recommendations  into 
Effect. 

The  present  labor  legislation  of  Illinois  is  scattered  through  a 
number  of  acts,  and  each  office  or  bureau  is  vested  with  certain 
powers  by  the  act  creating  it.  To  centralize  the  administration  of 
labor  laws,  will,  therefore,  require  the  changing  of  provisions  now 
found  in  at  least  eight  separate  acts.  If  the  substance  of  legislation 
is  not  to  be  materially  changed  the  problem  here  is  to  create  a  new 
organization  and  to  carry  over  to  this  new  organization  all  powers 
now  vested  in  a  number  of  independent  offices  by  different  laws. 


572  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

The  constitution  provides  that  "no  law  shall  be  revised  or  amended 
by  reference  to  its  title  only,  but  the  law  revised  or  the  section  amended, 
shall  be  inserted  at  length  in  the  new  act" ;  and  also  that  "no  act  here- 
after passed  shall  embrace  more  than  one  subject  and  that  shall  be 
expressed  in  the  title."  A  single  act,  providing  for  a  new  organization 
and  carrying  over  to  the  new  organization  the  substance  of  present 
legislation  as  embodied  in  a  number  of  acts,  would  pretty  clearly  be 
unconstitutional  because  not  complete  in  itself.^'' 

It  may  be  possible  to  embody  the  new  organization  in  one  act, 
and  then  in  the  same  act,  by  separate  sections,  to  amend  each  of  the 
present  acts  in  its  enforcement  provision,  setting  out  in  full  the  section 
of  each  such  act  as  amended.  But  this  would  be  opposed  to  the  spirit 
of  the  constitution,  by  amending  a  number  of  separate  acts  in  terms 
by  one  amending  act,  and  would  probably  be  defeated  on  the  ground 
that  more  than  one  subject  is  embraced  in  an  act  which  amends  a 
number  of  previous  laws,  even  though  tjiese  laws  relate  generally  to 
the  same  subject.^* 

The  choice  of  procedure,  then,  lies  between  (1)  a  series  of  specific 
bills,  one  creating  the  new  organization,  and  one'  for  the  amendment 
of  each  specific  act  whose  enforcement  provisions  are  being  changed, 
or  (2)  a  complete  re-enactment  or  revision  of  the  labor  laws  of  the 
state.  The  first  plan  presents  a  difficulty  in  that  it  submits  the  pro- 
posed changes  piecemeal  to  the  General  Assembly.  The  second  plan 
is  essential  if  many  changes  are  to  be  made  in  the  substance  of  the 
present  legislation,  and  a  re-enactment  will  be  the  most  feasible  method 
of  making  the  administrative  changes  even  though  few  changes  of 
substance  are  contemplated. 

The  report  as  prepared  deals  primarily  with  labor  legislation 
which  is  now  committed  to  some  administrative  authority  for  enforce- 
ment or  which  should  be  so  committed.  There  are  a  number  of  other 
laws  relating  to  labor  which  have,  therefore,  not  been  discussed.  Of 
laws  of  this  character  printed  in  the  recent  compilation  issued  by  the 
bureau  of  labor  statistics,  the  following  may  be  mentioned :  apprentices 
(p.  9)  ;  boycotting  and  blacklisting  (p.  37)  ;  legal  day  in  absence  of 
contract  (p.  49)  ;  permitting  women  to  engage  in  any  lawful  occupa- 
tion (p.  50)  ;  garnishment  (pp.  82.  90)  ;  mechanics'  liens  (p.  121)  ; 
payment  of  wages  (pp.  174,  257-260.  263.  264)  ;  wage  loan  corpora- 
tions (p.  260). 

The  question  presents  itself  as  to  whether  the  redraft  should  in- 
clude merely  the  laws  en  forcible  through  administrative  machinery,  or 
should  include  all  labor  laws  of  the  state,  whether  enforced  by  the 
administrative  organization  or  merely  by  judicial  proceedings. 

The  redraft  is  being  made  primarily  in  connection  with  a  proposed 
administrative  reorganization,  and  for  this  purpose  it  is  unnecessary 
to  include  laws  not  to  be  enforced  by  the  administrative  authorities. 
On  the  other  hand  it  is  desirable  to  have  all  the  labor  legislation  con- 
solidated into  one  act,  so  that  any  one  may  find  all  the  law  upon  this 
subject  easily.    Moreover,  the  legislation  not  enforcible  by  administra- 

"People  ex  rel  Cnnt  v.  Crossley,  261   111.  78;  Brooks  v.  Hatch,  261   111.  179. 
"See  Kennedy  v.  LeMoyne,   188  111.  255. 


LABOR   AND    MINING,  573 

tive  authority  is  relatively  small  'in  bulk  as  compared  with  that  so 
enforcible.  For  these  reasons  it  seems  desirable  to  place  all  labor 
legislation  in  one  bill. 

It  all  labor  legislation  is  to  go  into  one  bill  the  question  presents 
itself  as  to  what  shall  be  excluded  and  what  included.  Wage  loan 
corporations  bear  a  close  relation  to  the  subject  of  labor  yet  this 
relation  seems  hardly  close  enough  to  justify  the  inclusion  of  legisla- 
tion relating  to  this  subject.  The  subject  of  apprentices  bears  an  even 
closer  relation,  but  raises  problems  involving  the  substance  of  legisla- 
tion in  such  a  manner  that  its  inclusion  would  hardly  be  desirable.  The 
apprentice  and  wage  loan  corporation  acts  are  sufficiently  distinct  to 
be  left  to  themselves.  The  same  statement  is  true  of  garnishment 
and  mechanics'  liens.  If  these  laws  are  excluded  from  a  redraft,  the 
other  laws  enumerated  above  (and  other  similar  laws  found  in  the 
statutes)  may  well  be  included. 


XI.     SUMMARY  OF  RECENT  LEGISLATION  IN  OTHER 
STATES 

A  summary  is  here  presented  of  some  of  the  more  important 
recent  legislations  of  other  states.  Wisconsin  and  Ohio  on  the  one  side, 
and  New  York  and  Pennsylvania  on  the  other,  present  two  types  of 
organization  for  consolidated  labor  departments.  In  both  types  the 
two  objects  are  sought:  (1)  of  uniting  labor  services  under  one  con- 
trol; (2)  of  permitting  flexibility  in  the  regulations  to  be  applied  to 
labor  conditions. 

In  the  other  states  here  discussed  these  two  objects  have  not 
been  accomplished.  Massachusetts,  California  and  Oregon  have 
sought  to  provide  flexibility  as  to  rules  to  be  administered,  but  without 
consolidating  their  various  labor  services.  Kansas  has  concentrated 
the  administrative  organization,  but  without  introducing  any  flexibility 
in  the  body  of  rules  to  be  administered  by  that  organization. 

The  Wisconsin  law  has  been  longest  in  operation,  and  has  to  a  very 
large  extent  accomplished  the  three-fold  purpose:  (1)  of  co-ordinating 
the  administration  of  all  labor  laws ;  (2)  of  providing  a  flexible  body  of 
rules  better  adapted  to  meet  the  needs  of  the  state;  and  (3)  of  obtain- 
ing co-operation  between  employers  and  employees.  Nothing  appears 
in  the  Wisconsin  law  which  requires  the  commission  to  work  out 
rules  and  regulations  in  co-operation  with  employers  and  employees  in 
the  various  industries,  but  such  co-operation  has  been  obtained,  and  is 
expressly  authorized  in  the  Wisconsin  law  by  a  provision  authorizing 
the  commission  "to  appoint  advisers  who  shall  without  compensation 
assist  the  industrial  commission  in  the  execution  of  its  duties." 
The  Wisconsin  Industrial  Commission. 

In  1911  the  legislature  of  Wisconsin  adopted  a  law  creating  an 
industrial  commission  and  consolidating  in  its  hands  the  functions  for- 
merly exercised  by  the  bureau  of  factory  inspection,  the  board  of 
arbitration  and  conciliation  and  the  state  liability  board  of  awards. 
The  latter  board  had  been  established  in  the  same  year  by  the  work- 
men's compensation  law.  Numerous  other  departments  and  bureaus 
concerned  with  the  administration  of  the  labor  laws  were  abolished 
and  their  powers  vested  in  the  newly  created  commission. 

The  commission  is  composed  of  three  members,  appointed  by 
the  governor  for  a  term  of  six  years.  The  commission  may  appoint 
and  remove  deputies,  clerks  and  other  assistants  and  may  assign  its 
employees  to  their  duties  and  fix  their  compensation.  The  number  of 
employees  shall  not  exceed  "the  number  now  employed  in  the  bureau 
of  industrial  and  labor  statistics  except  on  certificate  of  the  governor 
filed  with  the  secretary  of  state,  that  such  additional  employee  is  neces- 
sary to  the  work  of  the  commission."    The  commission  has  the  further 


LABOR   AND    MINING.  575 

power  of  appointing  advisors  who  shall  assist  the  commission  in 
carrying  out  its  investigations,  and  give  advice  and  make  recommenda- 
tions to  the  commission  when  called  upon  to  do  so.  The  commission 
may  appoint  any  deputy  a  special  prosecutor  in  any  case  arising  under 
the  labor  laws  or  the  rules  of  the  commission. 

Before  defining  the  powers  of  the  commission  the  act  provides 
certain  general  rules  of  conduct  for  employers.  Every  employer  is 
directed  to  furnish  a  safe  employment,  to  provide  a  safe  place  of 
employment  for  employees  therein  and  frequenters  thereof,  and  to 
adopt  such  safety  devices  as  may  be  reasonably  adequate  to  protect  the 
safety  and  welfare  of  his  employees.  No  employer  shall  permit  an 
employee  to  enter  a  place  that  is  not  safe  and  no  employee  shall  remove, 
damage  or  destroy  any  safety  device  or  prevent  its  use  by  any  other 
person.  Every  employer  or  owner  is  directed  to  so  construct,  repair 
and  maintain  places  of  employment  or  public  buildings  as  to  render 
the  same  safe.  Finally  every  employer  is  required  to  furnish  informa- 
tion to  the  commission  and  to  answer,  to  the  best  of  his  ability,  "any 
question  that  may  be  propounded  by  the  commission." 

The  general  power  of  the  commission  is  stated  in  the  following 
terms :  "The  industrial  commission  is  vested  with  power  and  juris- 
diction to  have  such  supervision  of  every  employment  and  of  every 
place  of  employment  and  public  building  in  this  state  as  may  be  neces- 
sary to  enforce  and  administer  all  laws  and  all  lawful  orders  of  the 
commission  requiring  such  employment,  place  of  employment  or  public 
building  to  be  safe,  and  requiring  the  protection  of  the  life,  health, 
safety  and  welfare  of  every  employee  in  every  such  employment  or 
place  of  employment  and  every  frequenter  of  such  place  of  employment 
and  the  safety  of  the  public  or  tenants  in  any  such  public  building." 

It  is  the  duty  of  the  commission  "to  administer  and  enforce  so 
far  as  not  otherwise  provided  for  in  the  statutes  the  laws  relating 
to  child  labor,  laundries,  stores,  employment  of  females,  licensed  occu- 
pations, school  attendance,  bakeries,  employment  offices,  intelligence 
offices  and  bureaus,  manufactures  of  cigars,  sweatshops,  corn  shredders, 
wood  sawing  machines,  fire  escapes  and  means  of  egress  from  build- 
ings, scaffolds,  hoists,  ladders  and  other  matters  relating  to  the  erection, 
alteration,  repair  or  painting  of  buildings  and  structures,  and  all  other 
laws  protecting  the  life,  health,  safety,  and  welfare  of  employes  in 
employments  and  places  of  employment  and  frequenters  of  places  of 
employment." 

As  suggested  above  the  duty  to  provide  safe  employment  is  im- 
posed in  general  terms  upon  the  employer.  Power  is  then  vested  in 
the  commission  to  work  out  the  rules  applicable  to  different  circum- 
stances and  conditions.  The  commission  is  expressly  authorized :  "To 
investigate,  ascertain,  declare  and  prescribe  what  safety  devices,  safe- 
guards or  other  means  or  methods  of  protection  are  best  adapted  to 
render  the  employes  of  every  employment  and  place  of  employment  and 
frequenters  of  every  place  of  employment  safe,  and  to  protect  their 
welfare  as  required  by  law  or  lawful  orders,  and  to  establish  and  main- 
tain museums  of  safety  and  hygiene  in  which  shall  be  exhibited  safety 
devices,  safeguards  and  other  means  and  methods  for  the  protection 
of  life,  health,  safety  and  welfare  of  employes." 


576  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

"To  ascertain  and  fix  such  reasonable  standards  and  to  prescribe, 
modify  and  enforce  such  reasonable  orders  for  the  adoption  of  safety 
devices,  safeguards  and  other  means  or  methods  of  protection  to  be  as 
nearly  uniform  as  possible,  as  may  be  necessary  to  carry  out  all  laws 
and  lawful  orders  relative  to  the  protection  of  the  life,  health  and  safety 
and  welfare  of  employes  in  employments  and  places  of  employment  or 
frequenters  of  places  of  employment." 

"To  ascertain,  fix  and  order  such  reasonable  standards,  rules  or 
regulations  for  the  construction,  repair  and  maintenance  of  places  of 
employment  and  public  buildings,  as  shall  render  them  safe." 

"To  investigate,  ascertain  and  determine  such  reasonable  classifica- 
tions of  persons,  employments,  places  of  employment  and  public  build- 
ings, as  shall  be  necessary  to  carry  out  the  purposes  of  this  law." 

The  term  "safety"  is  broadly  defined  in  the  act  as  "such  freedom 
from  danger  to  the  life,  heaUh,  safety  or  welfare  .  .  .  as  the 
nature  of  the  employment     .      .      .     will  reasonably  permit." 

Upon  its  own  motion  or  upon  petition  the  commission  may  investi- 
gate any  employment,  place  of  employment  or  public  building,  and 
"after  such  hearing  enter  such  order  as  may  be  necessary  to  render 
such  employment,  place  of  employment  or  public  building  safe."  AH 
orders  so  issued  are  prima  facie  reasonable  and  lawful  and  shall  be  in 
force  until  altered  by  the  commission  or  set  aside  by  the  courts.  The 
commission  is  empowered  to  make  rules  to  govern  its  proceedings  and 
"to  regulate  the  mode  and  manner  of  all  investigations  and  hearings." 
The  order-making  power  of  the  commission  does  not  interfere  with 
the  power  of  any  city  or  village  to  make  regulations  of  the  same  char- 
acter save  where  such  local  regulations  are  in  conflict  with  the  rules  of 
the  commission. 

If  any  employer  or  other  person  interested  wishes  to  raise  the 
question  ^of  the  reasonableness  of  any  order  of  the  commission  he  may 
do  so  by  petition  to  the  commission.  This  petition  shall  set. forth  in  full 
detail  the  reasons  why  such  order  is  unreasonable  and  any  objection  not 
raised  in  the  petition  shall  be  deemed  to  be  waived.  The  commission 
may  grant  or  refuse  a  hearing  upon  the  petition.  If  the  commission 
refuses  a  hearing,  or  if  upon  hearing  it  sustains  its  former  determina- 
tion the  petitioner  may  proceed  in  court  against  the  commission.  Anj 
person  affected  by  any  local  order  may  also  petition  for  a  hearing  on 
the  ground  that  the  order  in  question  is  unreasonable  and  in  conflict 
with  the  orders  of  the  commission.  Upon  receipt  of  the  petition  the 
commission  shall  hold  a  hearing  in  the  city  or  village  where  the  ques- 
tion has  arisen  and  may  after  such  hearing  modify  its  own  order  or 
substitute  for  the  local  order  appealed  from  such  order  as  shall  be 
reasonable. 

After  a  petition  for  hearing  has  been  denied  or  after  an  unfavor- 
able decision  by  the  commission  on  such  hearing  "any  employer,  owner 
or  other  person  in  interest  being  dissatisfied  with  any  order  of  the  com- 
mission may  commence  an  action  in  the  Circuit  Court  of  Dane  County 
against  the  commission  as  defendant  to  vacate  and  set  aside  such 
order  on  the  ground  that  the  order  is  unlawful,  or  that  any  such  order 
is  unreasonable."     If  it  appears  on  trial  of  such  action  that  the  issues 


LABOR    AND    MINING.  577 

raised  have  not  come  before  the  commission  the  court  shall  transmit  to 
the  commission  a  full  statement  of  such  issues  and  stay  proceedings 
for  fifteen  days  awaiting  further  decision  of  the  commission.  The 
commission  shall  report  its  determination  of  the  issues  presented  to  the 
court,  which  shall  then  proceed  with  the  action. 

Acting  under  the  powers  here  outlined  the  commission  has  exer- 
cised its  rule-making  authority  somewhat  as  follows :  It  established 
an  advisory  committee  on  safety  and  sanitation  which  was  composed 
of  representatives  from  the  State  Federation  of  Labor,  the  Milwaukee 
Merchants'  and  Manufacturers'  Association,  Milwaukee  Health  De- 
partment, Wisconsin  Manufacturers'  Association,  Employers'  Mutual 
Liability  Company,  and  the  Lidustrial  Commission.  Sub-committees 
were  organized  composed  of  manufacturers,  technical  experts,  repre- 
sentatives of  labor  and  of  the  commission,  on  the  subjects  of  elevators, 
boilers,  electricity,  sanitation,  safety  exhibit,  and  bakeries. 

The  committees  thus  constituted  proceeded  to  make  their  investi- 
gations, to  draw  up  tentative  rules  and  to  submit  them  to  the  commis- 
sion for  public  hearings.  After  the  hearings  the  rules  were  referred 
back  to  the  committee  for  further  inspection,  and  finally,  wlien 
completed,  they  were  issued  by  the  commission  as  "general  orders" 
applying  to  the  entire  state,  and  published  in  the  official  paper  and 
the  bulletins  of  the  commission.  The  violators  of  such  orders  cannot 
contest  the  reasonableness  of  the  orders  when  prosecuted,  but  the 
legality  of  the  orders  can  be  tested  only  in  a  proceeding  against  the  com- 
mission as  provided  in  the  act. 

The  commission  is  directed  to  do  all  in  its  power  to  promote  vol- 
untary arbitration  of  labor  disputes.  It  shall  appoint  one  deputy  who 
shall  be  known  as  "chief  mediator,"  appoint  temporary  boards  of 
mediation,  make  rules  for  the  procedure  of  such  boards  and  fix  the 
compensation  of  members.  Furthermore  the  commission  is  charged 
with  the  establishment  of  free  employment  bureaus  and  with  the  investi- 
gation of  unemployment.  An  amendment  to  the  act,  passed  in  1913, 
empowers  the  commission  to  oversee  private  employment  offices,  to  issue 
licenses  for  the  maintenance  of  such  offices,  to  inspect  the  books,  con- 
tracts and  registers  of  such  offices,  and  to  revoke  the  license  of  any 
office  for  cause.  Finally,  the  board  is  directed  to  collect  statistics  and 
make  reports  concerning  the  work  under  its  jurisdiction. 

The  Industrial  Commission  of  Ohio. 

In  1913  the  Ohio  legislature  created  an  industrial  commission  and 
centralized  in  its  hands  the  functions  formerly  exercised  by  the  state 
liability  board  of  awards,  the  state  board  of  arbitration  and  conciliation, 
the  board  of  boiler  rules,  the  commissioner  of  labor,  the  chief  inspector 
of  mines,  the  chief  inspector  of  workshops  and  factories,  and  the  chief 
examiner  of  steam  engines.  The  Ohio  act  is  modelled  after  the  Wis- 
consin industrial  commission  law,  many  sections  of  which  are  copied 
verbatim. 

The  Ohio  commission  is  composed  of  three  members,  appointed 
by  the  governor  for  a  term  of  six  years  at  a  salary  of  $5,000  a  year. 
Each  member  of  the  commission  is  forbidden  to  hold  any  position  of 
trust  or  profit  that  will  interfere  with  the  performance  of  his  duties  as 


578  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

commissioner  and  is  required  before  he  enters  upon  the  duties  of  his 
office  to  declare  upon  oath  that  he  holds  no  office  under  the  committee 
of  a  political  party.  Neither  the  employing  class  nor  the  laboring 
class  shall  be  represented  in  the  commission  by  more  than  one  member 
each,  and  not  more  than  two  commissioners  shall  be  of  the  same  political 
party.    The  commission  elects  its  own  chairman. 

The  commission  is  required  to  be  in  session  during  all  business 
hours,  and  all  sessions  are  open  to  the  public.  At  such  sessions  all 
voting  shall  be  by  roll  call  and  the  vote  of  each  commissioner  shall  be 
recorded. 

The  act  forbids  an  employer  "to  permit  employees  to  go  or  be  in 
any  employment  or  place  of  employment  which  is  not  safe"  and  re- 
quires him  "to  adopt  and  use  methods  and  processes,  follow  and  obey 
orders,  and  prescribe  hours  of  labor  reasonably  adequate  to  render 
such  employment  and  place  of  employment  safe,"  and  to  do  "every 
other  thing  reasonably  necessary  to  protect  the  health,  safety,  and 
welfare  of  such  employees  and  frequenters." 

The  clauses  of  the  Ohio  act  which  specifyin  detail  the  jurisdiction 
of  the  commission  are  more  inclusive  than  those  of  the  Wisconsin  act. 
The  Ohio  commission  is  directed  to  enforce  all  laws  relating  to  manu- 
facturing establishments,  mines,  "buildings  used  for  the  betterment 
of  the  people  of  the  state,"  building  operations,  hours  of  labor,  means 
of  egress  from  buildings,  explosives,  employment  of  women  and  min- 
ors, child  labor  and  school  attendance.  The  parts  italicized  indicate 
additions  to  the  Wisconsin  act.  Several  places  of  employment  such  as 
cigar  factories,  bakeries,  telegraph  offices  and  launderies  are  specifically 
enumerated  in  the  act.  In  Ohio  the  commission  also  has  the  power 
to  fix  hours  of  labor  reasonable  and  adequate  to  the  protection  of  the 
life,  health,  safety  and  welfare  of  employees.  It  is  also  empowered  to 
license,  after  examination,  persons  to  act  as  steam  engineers  and  oper- 
ators of  steam  boilers.  Aside  from  these  provisions  the  powers  of  the 
commission  in  Ohio  are  the  same  as  those  of  the  commission  in 
Wisconsin. 

In  the  matter  of  rehearings  the  Ohio  law  follows  the  Wisconsin 
act.  In  the  case  of  court  review,  however,  it  is  provided  that  the  su- 
preme court  of  the  state  shall  have  original  jurisdiction  in  all  actions 
brought  to  set  aside  a  rule  or  order  of  the  commission. 

The  New  York  Department  of  Labor. 

The  re-organization  of  the  department  of  labor  in  New  York  came 
as  the  result  of  the  report  of  the  "Factory  Investigating  Commission" 
which  was  created  to  investigate  the  conditions  under  which  manu- 
factures were  carried  on  in  cities  of  the  first  and  second  class  in  the 
state.  This  commission  recommended  a  plan  whereby  the  rule-making 
power,  in  matters  of  labor  control,  should  be  vested  in  a  board  and 
should  remain  separate  from  the  power  of  enforcement,  which  should 
be  exercised  by  the  commissioner  of  labor. 

The  act  of  1913  places  at  the  head  of  the  re-organized  department 
a  commissioner  of  labor  appointed  for  a  term  of  four  years  by  the 
governor,  with  the  advice  and  consent  of  the  senate.  This  officer  re- 
ceives a  salary  of  $8,000  a  year.     Serving  under  the  commissioner  are 


LABOR   AND    MINING.  579 

first  and  second  deputy  commissioners  appointed  by  him  and  holding 
their  offices  during  his  pleasure.  In  case  of  absence  or  disability  of  the 
commissioner  the  first  deputy  exercises  all  the  powers  of  the  commis- 
sioner save  that  of  appointment.  The  commissioner  also  has  power  to 
appoint  all  officers,  clerks,  and  other  employees  save  as  otherwise  pro- 
vided in  the  statute.  Special  provision  is  made  for  the  appointment, 
by  the  commissioner,  of  an  attorney  who  shall  act  as  counsel  for  the 
department. 

Under  the  act  bureaus  of  inspection,  mediation  and  arbitration, 
statistics  and  information  and  industries  and  immigration  are  erected. 
Such  other  bureaus  may  be  established  by  the  commissioner  as  that 
officer  deems  necessary. 

The  general  power  of  administering  oaths,  taking  affidavits  and 
issuing  orders  in  accordance  with  the  act,  subject  to  the  approval  of  the 
commissioner,  vests  in  every  administrative  officer  of  the  commission, 
and  their  rights  of  interrogation  and  investigation  are  not  to  be 
hindered  or  obstructed  by  any  person. 

The  law  provides  for  an  industrial  board  to  be  composed  of  four 
associate  members,  appointed  by  the  governor,  with  the  commissioner 
of  labor  as  ex-officio  chairman.  Associate  members  are  appointed  for 
four  years  and  receive  annual  salaries  of  $3,000.  The  board  may  ap- 
point and  remove  its  own  clerical  staflf  and  m.ay  call  upon  the  counsel 
of  the  department  of  labor  to  give  necessary  legal  advice.  The  industrial 
board  holds  regular  meetings  once  each  month  and  all  such  other 
meetings  "as  the  needs  of  public  service  may  require."  All  meetings 
are  to  be  open  to  the  public. 

The  board  has  the  power  to  investigate  all  matters  "touching  the 
enforcement  and  effect  of  the  provisions  of  this  chapter  and  the  rules 
and  regulations  made  by  the  board  thereunder,"  to  require  the  attend- 
ance of  witnesses  and  the  production  of  book^s,  to  administer  oaths 
and  take  affidavits.  It  is  entrusted  with  power  to  make  rules  for  the 
carrying  into  effect  of  this  act,  applying  the  provisions  of  the  act  to 
specific  conditions.  More  specifically  the  board  has  power  to  make 
rules  and  regulations  for  the  construction,  equipment  and  maintenance 
of  places  of  employment,  for  the  arrangement  and  guarding  of  machin- 
ery, for  the  methods  and  operations  by  which  trades  and  occupations 
are  conducted  and  for  the  conduct  of  employes  and  other  persons  about 
factory  buildings  and  mercantile  establishments.  These  regulations 
of  the  commission  are  to  be  adopted  and  enforced  in  the  light  of  the 
intent  of  the  law  that  all  "places  to  which  this  chapter  is  applicable  shall 
be  so  constructed  as  to  provide  reasonable  and  adequate  protection  for 
the  lives,  health  and  safety  of  all  persons  employed  therein."  The  act 
provides  that : 

"The  rules  and  regulations  adopted  by  the  board  pursuant  to  the 
provisions  of  this  chapter  shall  have  the  force  and  effect  of  law  and 
shall  be  enforced  in  the  same  manner  as  the  provisions  of  this  chapter. 
Such  rules  and  regulations  may  apply  in  whole  or  in  part  to  particular 
kinds  of  factories  or  workshops,  or  to  particular  machines,  apparatus 
or  articles ;  or  to  particular  processes,  industries,  trades   or  occupa- 


580  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

tions ;  and  they  may  be  limited  in  their  appHcation  to  factories  or 
workshops  to  be  estabhshed,  or  to  machines,  apparatus  or  other  arti- 
cles to  be  installed  or  provided  in  the  future." 

In  a  number  of  places  throughout  the  New  York  law  there  are 
further  specific  grants  of  power  to  the  board  to  make  regulations  re- 
garding elevators,  the  construction  of  factory  buildings,  the  guarding 
of  machinery,  and  regarding  especially  dangerous  occupations.  The 
New  York  law  is  detailed  and  the  power  of  the  board  is  almost  entirely 
that  of  making  supplementary  rules  or  rules  for  matters  not  already 
covered  by  statute.  With  regard  to  elevators  for  example  the  statute 
is  somewhat  detailed,  and  then  provides  that  the  industrial  board  "shall 
have  power  to  make  rules  and  regulations  not  inconsistent  with  the 
provisions  of  this  chapter"  regarding  elevators.  The  rule-making  power 
of  the  New  York  industrial  board  is  more  limited  than  that  of  the 
Wisconsin  industrial  commission.  There  is  no  provision  in  the  New 
York  statute  as  to  the  manner  of  testing  the  legality  of  rules  made 
by  the  industrial  board. 

The  bureau  of  inspection  which  is  created  by  the  law  is  divided 
into  four  "divisions,"  factory  inspection,  homework  inspection,  mer- 
cantile inspection  and  industrial  hygiene.  Each  of  these  divisions  is 
under  the  direct  control  of  a  division  chief.  The  first  deputy  commis- 
sioner is  the  inspector  general  for  the  state  and  is  in  charge  of  the 
work  of  the  first  three  divisions  subject  to  the  directions  of  the  com- 
missioner. The  division  of  industrial  hygiene  is  under  the  direct  control 
of  the  commissioner.  Should  it  appear  that  new  divisions  are  necessary 
the  commissioner  is  empowered  to  create  them. 

Under  the  chief  of  the  division  of  factory  inspection  there  are 
seven  grades  of  inspectors  each  with  special  duties  to  perform.  Many 
of  these  inspectors  are  required  to  possess  special  qualifications.  The 
inspectors  are  charged  with  the  visitation  of  all  factories  in  the  inspec- 
tion divisions  to  which  they  are  assigned  and  are  empowered  to  enforce 
the  provisions  of  the  act  in  all  such  factories.  They  are  also  charged 
with  the  enforcement,  jointly  with  municipal  authorities,  of  all  munici- 
pal ordinances  regulating  labor,  if  such  ordinances  are  not  in  conflict 
with  the  provisions  of  the  act. 

The  mercantile  inspectors  may  be  divided  into  three  grades  and 
are  required  to  perform  the  same  duties  of  visitation  and  enforcement 
in  mercantile  establishments  as  the  factory  inspectors  in  their  field. 

The  bureau  of  statistics  and  information  is  directed  by  a  chief 
statistician,  under  the  supervision  of  the  commissioner  of  labor.  The 
bureau  has  five  divisions :  general  labor  statistics,  industrial  directory, 
industrial  accidents  and  diseases,  special-  investigation,  and  printing 
and  publication.  The  division  of  industrial  directory  is  requred  to 
prepare  annually  a  directory  of  all  the  cities  and  villages  with  a  popula- 
tion of  over  1,000,  which  shall  contain  information  concerning  the 
hours,  wages  and  conditions  of  labor  and  whatever  intelligence  regard- 
ing the  opportunities  for  labor  or  industry  in  such  city  or  village  as 
may  be  obtainable.  The  other  divisions  of  the  bureau  have  the  func- 
tions which  are  indicated  by  the  name  of  the  division  in  each  case. 


LABOR    AND    MINING.  581 

The  Pennsylvania  Department  of  Labor. 

In  1913  Pennsylvania  created  a  Department  of  Labor  and  Industry. 
The  new  department  is  modeled  after  the  New  York  Department  of 
Labor.  The  Governor,  with  the  consent  of  the  Senate,  appoints  a 
commissioner  of  labor  and  industry,  who  is  the  administrative  head 
of  the  department  and  who  is  charged  with  the  responsibility  of 
executing  the  labor  laws  of  the  state.  He  is  authorized  to  appoint  and 
remove  at  pleasure  all  ofiicers,  clerlvs,  and  other  officers  of  the  depart- 
ment, except  as  provided  in  the  act.  He  is  a  member  of  the  industrial 
board  and  serves  in  the  capacity  of  chairman  of  that  body.  He  is 
also  in  immediate  charge  of  the  division  of  industrial  hygiene — a 
division  of   the  bureau  of   inspection. 

The  department  is  divided  into  three  bureaus,  but  this  number  may 
be  increased  by  the  commissioner  with  the  consent  of  the  Governor. 
The  bureaus  established  by  the  act  are:  the  bureau  of  inspection,  the 
bureau  of  statistics  and  information  and  the  bureau  of  arbitration. 

At  the  head  of' the  bureau  of  inspection  is  a  chief  inspector,  ap- 
pointed by  the  commissioner.  This  officer  may  in  the  absence  of  the 
commissioner  exercise  all  the  powers  of  that  officer  save  that  of  appoint- 
ment. He  has  full  charge,  subject  to  the  supervision  of  the  commis- 
sioner^  of  all  inspections  made  in  accordance  with  the  provisions  of 
the  act. 

The  bureau  of  statistics  and  information  is  in  charge  of  a  chief, 
appointed  by  and  working  under  the  direction  of  the  commissioner. 
The  act  provides  in  considerable  detail  what  the  fields  of  investigation 
shall  be.  Particular  emphasis  is  placed  upon  the  duty  of  the  bureau 
to  investigate  the  welfare  of  aliens,  to  gather  information  concerning 
the  labor  supply  furnished  by  aliens,  to  ascertain  for  what  employments 
they  are  best  fitted,  and  to  place  them  in  communication  with  employ- 
ments requiring  labor. 

The  bureau  of  mediation  and  arbitration  is  in  charge  of  a  chief 
appointed  in  the  same  manner  as  indicated  above.  In  case  of  a  strike 
the  chief  shall  ofifer  mediation.  If  this  is  rejected  he  is  to  use  his 
best  efforts  to  bring  about  voluntary  arbitration  of  the  questions  in- 
volved. Under  the  act,  in  cases  of  voluntary  arbitration  the  employer 
selects  one  member  of  the  arbitration  board,  the  employee  another,  and 
the  two  choose  a  third.  In  case  the  two  fail  to  select  the  third  member 
within  five  days  the  chief  of  the  bureau  becomes  a  member  and  shall 
act  as  chairman. 

The  Pennsylvania  law,  like  that  of  New  York,  provides  for  the 
establishment  of  an  industrial  board.  This  board  is  to  consist  of  the 
commissioner  and  four  associate  members,  appointed  by  the  Governor 
with  the  consent  of  the  senate,  "one  of  whom  shall  be  an  employer, 
one  a  wage  earner,  and  one  a  woman."  The  associate  members  receive 
a  per  diem.  The  board  may  appoint  a  secretary  who  shall  be  paid  a 
salary  fixed  by  the  board. 

The  industrial  board  is  vested  with  the  power  of  investigating, 
either  as  a  board  or  as  individuals,  "all  matters  touching  the  enforce- 
ment of  laws,  the  enforcement  of  which  is  entrusted  to  the  department, 


582  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

and  the  rules  and  regulations  of  the  industrial  board  in  connection 
therewith."  Its  power  to  make  rules  and  regulations  is  conferred  in  the 
following  language: 

"All  rooms,  buildings,  and  places  in  this  commonwealth  where 
labor  is  employed,  or  shall  hereafter  be  employed,  shall  be  so  con- 
structed, equipped,  and  arranged,  operated  and  conducted,  in  all  re- 
spects, as  to  provide  reasonable  and  adequate  protection  for  the  life, 
health,  safety,  and  morals  of  all  persons  employed  therein.  For  the 
carrying  into  effect  of  this  provision,  and  the  provisions  of  all  the 
laws  of  this  commonwealth,  the  enforcement  of  which  is  now  or  shall 
hereafter  be  entrusted  to  or  imposed  upon  the  commissioner  or  depart- 
ment of  labor  and  industry,  the  industrial  board  shall  have  power  to 
make,  alter,  amend  and  repeal  general  rules  and  regulations  necessary 
for  applying  such  provisions  to  specific  conditions,  and  to  prescribe 
means,  methods,  and  practices  to  carry  into  effect  and  enforce  such 
provisions." 

Th"e  rules  and  regulations  made  by  the  board  are  to  be  printed 
in  the  newspapers  and  in  the  bulletins  of  the  department. 

Any  person  interested  may  appeal  to  the  commission  for  a  hearing 
upon  any  order  or  regulation.  The  petition  shall  set  out  in  full  the  rea- 
sons why  the  rule  or  regulation  in  question  is  unreasonable.  The  board 
may  either  grant  the  petition  and  set  a  time  and  place  for  a  hearing  or,  if 
"it  believes  the  issues  raised  in  such  petition  have  been  heretofore  ade- 
quately considered"  merely  confirm  its  previous  determination.  The 
act  makes  no  provisions  for  judicial  review  of  the  final  determinations 
of  the  board. 

The  Pennsylvania  law  provides  that  the  attorney  general  may 
appoint  and  may  remove  an  attorney  who  shall  act  as  counsel  for  the 
department.  The  commissioner  may  employ  additional  counsellors  to 
be  designated  by  the  attorney  general.  In  this  particular  the  Pennsyl- 
vania law  differs  from  other  laws  examined. 
Massachusetts. 

By  an  act  of  1907,  amended  in  1909,  Massachusetts  provided  for 
the  appointment  of  a  board  of  boiler  rules,  with  power  "to  formulate 
rules  for  the  construction,  installation  and  inspection  of  steam  boilers." 
This  board  was  required  to  hold  hearings  at  certain  stated  times,  and 
to  hold  additional  hearings  after  notice  should  it  deem  it  advisable  to 
change  rules  which  were  already  in  force.  It  was  further  provided  that 
"the  rules  so  formulated  shall  be  submitted  to  the  governor  for  his 
approval."  ^In  1913  a  board  of  elevator  regulations  was  created  with 
powers  similar  to  those  exercised  by  the  board  of  boiler  rules. 

By  legislation  of  1910  the  state  board  of  health  was  authorized  "to 
determine  whether  or  not  any  particular  trade,  process  of  manufacture 
or  occupation  or  any  particular  method  of  carrying  on  such  trade,  proc- 
ess of  manufacture  or  occupation,  is  sufficiently  injurious  to  the  health 
of  minors  under  eighteen  years  of  age  employed  therein  to  justify  their 
exclusion  therefrom,  and  every  decision  so  rendered  shall  be  conclu- 
sive evidence  of  the  facts  involved  therein,  except  as  the  same  may 
later  be  revoked  or  modified  by  a  subsequent  decision  of  the  board." 

'For  operations  under  this  law,  see  American  Labor  Legislation  Review, 
L  70. 


LABOR   AND    MINING.  583 

An  act  of  1912,  creating  the  board  of  labor  and  industries,  vested 
in  that  board  a  power  "to  maive  rules  not  inconsistent  with  existing  law" 
for  carrying  out  the  provisions  of  the  act.  An  act  of  1913  vested  in 
this  board  also  the  power  previously  exercised  by  the  state  board  of 
health  with  respect  to  minors  in  dangerous  employments. 

By  the  industrial  compensation  act  of  1911  a  Massachusetts' 
Employees'  Insurance  Association  was  provided  for,  and  this  associa- 
tion was  authorized  to  make  and  enforce  reasonable  rules  and  regula- 
tions for  the  prevention  of  injuries  on  the  premises  of  the  subscribers." 
Appeal  from  such  rules  and  regulations  might  be  taken  to  the  indus- 
trial accident  board,  and  that  body  was  granted  power  "to  affirm,  amend 
or  annul  the  rule  or  regulation." 

The  most  important  step  in  the  direction  of  granting  a  rule  making 
power  was  taken  in  1913,  by  an  act  concerning  the  investigation  and 
prevention  of  occupational  diseases  and  the  prevention  of  accidents  in 
factories.  This  act  provides  that  the  state  board  of  labor  and  indus- 
tries and  the  industrial  accident  board,  sitting  jointly,  shall  have  power 
to  investigate  employments  and  places  of  employment  in  the  state  and 
"determine  what  safety  devices  or  other  reasonable  means  or  require- 
ments for  the  prevention  of  accidents  and  for  the  prevention  of  indus- 
trial or  occupational  diseases  shall  be  adopted  or  followed  in  any  or 
all  employments  or  places  of  employment;  and  shall  make  reasonable 
rules,  regulations  or  orders  for  the  prevention  of  accidents  and  the 
prevention  of  industrial  or  occupational  diseases."  Such  rules  may 
apply  to  both  the  employer  and  the  employee.  The  joint  board  may 
appoint  committees  of  employers  and  employees  in  any  industry  to  rec- 
ommend rules  which  are  calculated  to  make  the  employees  in  that  indus- 
try safe.  No  rule  or  recommendation  shall  be  adopted  until  a  hearing 
has  been  held  thereon.  The  joint  boa'rd  is  empowered  to  make  the 
rules  for  such  hearing  and  to  serve  notice  upon  parties  in  interest. 

The  statute  provides  that  any  rule  or  regulation  of  the  Massa- 
chusetts employees'  insurance  association,  approved  by  the  industrial 
accident  commission,  shall  not  prevail  if  it  conflicts  with  any  of  the 
rules  of  the  joint  board.  The  act  also  requires  the  joint  board  to  make 
arrangements  to  prevent  the  duplication  of  effort  between  the  two 
bodies  that  com.pose  it. 

The  power  of  administering  the  labor  laws  of  Massachusetts  is 
distributed  among  various  boards,  bureaus  and  departments.  This  has 
resulted  in  a  duplication  of  eiTort  and  an  overlapping  of  authority,  and 
has  operated  to  defeat  in  part  the  operation  of  the  labor  laws.  An 
attempt  to  remedy  these  faults  by  the  creation  of  a  board  of  labor  and 
industries  in  1912  met  with  little  success.  The  new  board,  so  far  as 
consolidation  of  function  is  concerned,  increased,  rather  than  lessened, 
the  confusion. 

The  following  is  a  brief  summary  of  the  existing  departments  in 
Massachusetts  charged  with  the  execution  of  the  labor  laws :  The 
board  of  conciliation  and  arbitration  is  empowered  to  arbitrate  labor 
disputes  on  application  of  either  pafty.  Parties  to  such  disputes  may, 
however,  select  other  arbitrators  if  they  so  desire.  The  bureau  of  sta- 
tistics is  charged  with  direction  of  free  employment  offices,  as  well  as 
the  collection  and  publication  of  statistics.     The  minimum  wage  board 


584  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

may  recommend  a  minimum  wage  for  women  or  minors  in  any  occupa- 
tion, but  its  power  of  enforcement  is  limited  to  the  publication  of  the 
names  of  employers  who  do  not  adopt  the  minimum  wage  recommended 
by  the  board.  The  industrial  accident  board  (composed  of  five  mem- 
bers) is  charged  with  administration  of  the  workmen's  compensation 
law  and  has  power  to  review  the  rules  of  the  board  of  directors  of  the 
Massachusetts  employees'  insurance  association.  The  board  of  health 
is  charged  with  a  number  of  laws  regarding  industrial  health  condi- 
tions. The  board  of  labor  and  industries  (also  composed  of  five  mem- 
bers) is  charged  with  the  inspection  of  factories,  the  enforcement  of 
various  laws  relating  to  the  employment  of  women  and  children,  the 
inspections  of  buildings  used  for  industrial  purposes,  and  the  investiga- 
tion of  complaints  concerning  labor  conditions.  Some  of  the  former 
powers  of  the  state  board  of  health  as  well  as  those  of  the  inspection 
department  of  the  district  police  were  vested  in  the  board.  Express 
provision  was  made,  however,  for  the  retention  of  the  powers  of  build- 
ing inspection  and  boiler  inspection  by  the  district  police. 

California. 

In  1913  California  adopted  an  act  creating  an  "industrial  welfare 
commission."  This  act  provides  for  a  board  of  three  persons  appointed 
by  the  governor  for  a  term  of  four  years  at  a  salary  of  $5,000  a  year. 
The  act  divides  into  two  parts,  the  first  dealing  with  workmen's  com- 
pensation and  with  the  administration  of  the  "state  compensation 
insurance  fund,"  the  second  dealing  with  the  regulation  of  conditions 
of  labor  in  the  state.  The  administration  of  both  parts  of  the  act  is  in 
the  hands  of  the  commission.  All  other  labor  matters  are  outside  the 
scope  of  the  commission's  authority. 

Full  power  is  given  the  commission  to  appoint  an  attorney,  a  sec- 
retary and  necessary  assistants,  a  manager  of  the  state  compensation 
insurance  fund,  a  superintendtent  of  the  department  of  safety,  and 
whatever  other  assistants,  experts,  statisticians,  referees  and  other 
officers  it  may  consider  necessary  to  carry  out  the  duties  and  exercise 
the  powers  vested  in  it.  All  the  officers  and  employees  of  the  Com- 
mission "shall  receive  such  compensation  for  their  services  as  may 
be  fixed  by  the  Commission,  shall  hold  their  offices  during  the  pleasure 
of  the  board  and  shall  perform  such  duties  as  may  be  imposed  on  them 
by  law  or  by  the  Commission."  The  Commission  has  power  to  appor- 
tion the  money  at  its  command  among  its  several  departments  as  their 
needs  may  demand. 

In  its  capacity  as  administrator  of  the  compensation  law  the  Com- 
mission is  vested  with  authority  to  hear  and  determine  all  cases,  and 
with  all  the  other  powers  necessary  for  the  carrying  into  efTect  of  its 
decisions  and  awards.  The  board  may  grant  rehearings  upon  applica- 
tion in  proper  form  and  in  all  cases  its  final  determination  of  the  ques- 
tions presented  is  subject  to  court  review. 

Under  the  safety  provisions  of  the  act  the  Commission  is  vested 
with  full  power  and  jurisdiction  over  every  employment  and  place  of 
employment  in  the  state,  and  is  charged  with  the  administration  of  all 
laws  rendering  such  employments  or  places  of  employment  safe  for  the 
employees  therein.    To  carry  out  this  duty  the  Commission  is  empow- 


LABOR    AND    MINING.  585 

ered,  after  hearing  upon  its  own  motion  or  upon  complaint,  to  fix  rea- 
sonable standards  of  safety  and  to  enforce  their  adoption,  to  prescribe 
such  safety  devices  as  are  adapted  to  render  employes  in  every  employ- 
ment safe,  to  fix  the  standards  of  construction  and  repair,  and  to  require 
the  performance  of  any  other  act  necessary  to  the  safeguarding  of  the 
employees  in  any  employment.  Furthermore,  the  Commission  has  the 
power,  after  hearing  to  order  the  installation  of  such  repairs  or 
improvements  as  it  may  consider  necessary  in  any  place  of  employment. 
All  orders  of  the  Commission  "in  conformity  with  law  are  prime  facie 
lawful  and  all  its  rules  and  regulations,  decisions,  orders  or  awards  are 
conclusively  presumed  to  be  reasonable  till  set  aside  by  the  commission 
upon  rehearing  or  by  the  courts  upon  review." 

The  Commission  is  given  power  to  establish  museums  of  safety 
and  hygiene,  and  to  cause  bulletins  to  be  printed  and  lectures  to  be 
delivered  dealing  with  prevention  of  accidents,  occupational  diseases, 
and  related  subjects.  It  may  appoint  advisers  who  shall  aid  in  fixing 
standards  of  safety.  Fines  levied  for  failure  to  comply  with  orders  of 
the  Commission  shall  be  paid  into  an  "accident  prevention  fund." 

In  the  matter  of  hearings  the  commission  shall  have  full  power  to 
prescribe  rules  of  procedure,  to  provide  for  the  appearance  of  minors 
and  incompetents,  and  to  appoint  guardians  ad  litem.  The  commission 
is  further  empowered  to  appoint  referees  either  for  the  complete  trial 
of  all  issues,  whether  of  fact  or  of  law,  or  "for  the  ascertaniing  of  a 
particular  fact  necessary  to  the  commission  to  determine  any  proceed- 
ing before  it."  The  findings  of  the  referee  in  such  instances  shall  be 
filed  with  the  commission  within  twenty  days  and  the  commission  may 
then  "adopt,  modify  or  set  aside  the  same  or  any  part  thereof." 

The  grant  of  power  to  the  Commission  closes  with  the  general  pro- 
vision that  "The  commission  is  hereby  vested  with  full  power,  author- 
ity and  jurisdiction  to  do  all  things,  whether  herein  specifically  desig- 
nated or  in  addition  thereto,  which  are  necessary  or  convenient  in  the 
exercise  of  any  power  or  authority  or  jurisdiction  conferred  upon  it  by 
this  act." 

Any  party  aggrieved  by  any  rule,  regulation,  order,  or  decision  of 
the  commission  may  apply  to  it  for  a  rehearing.  The  application  must 
set  forth  in  full  detail  the  grounds  upon  which  the  rehearing  is  sought 
and  the  applicant  is  "deemed  to  have  waived  all  objections,  irregulari- 
ties or  illegalities  concerning  the  matter  upon  which  such  rehearing  is 
sought  other  than  those  set  forth  in  the  application  for  such  rehearing." 
The  application  must  be  filed  within  twenty  days  after  decision  upon 
the  hearing  has  been  rendered  and  must  be  based  on  one  or  more  of  the 
following  grounds :  "  ( 1 )  That  the  Commission  acted  without  or  in 
excess  of  its  authority ;  (2)  that  the  order  or  decision  was  procured  by 
fraud;  (3)  that  the  order,  rule,  regulation  is  unreasonable." 

This  motion  for  rehearing  is  a  condition  precedent  to  review  by  the 
courts.  The  filing  of  an  application  automatically  works  a  ten  days' 
suspension  of  the  order  in  question,  and  this  time  may  be  extended  by 
the  commission  if  it  sees  fit.  Within  thirty  days  after  the  rehearing 
has  been  denied,  or  if  granted  within  thirty  days  after  the  rendering  of 
a  decision  upon  rehearing,  "any  person  affected  thereby  may  apply  to 


586  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

the  supreme  court  or  to  the  district  court  of  appeal  of  the  appellate 
division  in  which  such  person  resides  for  a  writ  of  certiorari  or  review 
for  the  purpose  of  having  the  lawfulness  of  the  order,  decision,  rule  or 
regulation  on  rehearing  examined  into  and  determined." 

Review  by  the  court  is  limited  to  the  investigation  of  the  power  of 
the  commission,  fraud,  the  reasonableness  of  the  order,  rule  or  regula- 
tion in  question,  and,  if  findings  of  fact  are  made,  whether  such  findings 
support  the  decision  or  award  reviewed.  The  pendency  of  a  writ  of 
review  does  not  of  itself  suspend  the  order  of  the  commission,  but  the 
court  has  discretionary  power  "to  suspend  or  stay  the  order,  rule  or 
regulation  in  whole  or  in  part." 

The  California  legislature,  in  1913,  also  passed  an  act  creating  an 
"industrial  welfare  commission."  This  commission  is  composed  of 
five  persons,  one  of  whom  is  a  woman,  appointed  by  the  governor,  for 
a  term  of  four  years.  The  members  receive  no  salary  but  are  allowed 
ten  dollars  a  day  and  expenses  when  in  attendance  at  commission  ses- 
sions. The  board  is  empowered  to  choose  its  own  employes,  who  are 
under  its  direction  and  hold  ofifice  at  its  pleasure. 

It  is  the  duty  of  the  Commission  to  investigate  the  wages  paid,  the 
hours  of  employment,  and  the  health,  safety  and  comfort  of  all  women 
and  minors  in  the  various  trades,  occupations  and  industries,  "whose 
compensation  for  labor  is  measured  by  time,  piece  or  otherwise."  To 
assist  the  Commission  in  such  investigations  all  employers  are  directed 
to  furnish  information,  to  permit  investigation  of  books  and  inspection 
of  plants  and  to  keep  a  register  of  all  women  and  minors  employed. 
Under  the  act  a  minor  is  defined  as  a  person  of  either  sex  under  the 
age  of  eighteen  years. 

If,  after  the  investigation  of  a  particular  industry,  it  is  the  opinion 
of  the  commission  that  the  hours  or  conditions  of  labor  are  unsatisfac- 
tory or  that  the  "wages  paid  to  women  and  minors  are  insufficient  to 
supply  the  cost  of  proper  living,"  the  Commission  may  call  an  equal 
number  of  the  employers  and  of  the  employes  in  the  occupation  under 
discussion  to  pass  upon  the  questions  involved.  This  conference  is 
known  as  the  "wage  board."  The  number,  composition  and  procedure 
of  the  board  is  fixed  by  the  commission,  one  member  of  which  acts  as 
chairman.  The  board,  if  so  directed  by  the  commission,  shall  report : 
(1)  an  estimate  of  the  adequate  minimum  wage,  (2)  the  maximum 
hours  of  labor,  and  (3)  the  conditions  of  labor  in  the  industry  under 
investigation,  consistent  with  the  health,  safety  and  comfort  of  the 
women  and  minors  employed.  The  commission  is  empowered  to  use 
the  record  of  the  proceedings  of  the  wage  board  as  evidence  in  a  hear- 
ing before  it,  and  after  such  hearing  may  accept  or  reject  the  recom- 
mendations of  the  board. 

The  Commission  has  the  power  to  fix  the  time  and  place  of  any 
hearing.  Notice  of  such  hearing  is  made  by  publication  in  one  news- 
paper in  San  Francisco,  Los  Angeles  and  Sacramento  and  by  filing  a 
notice  with  the  recorder  of  each  county  in  the  state. 

After  the  hearing,  the  Commission  has  the  power  to  fix  the  mini- 
mum wage,  the  maximum  hours  and  the  standard  conditions  necessary 
to  "the  health  and  welfare  of  the  women  and  minors  employed  in  any 


LABOR   AND    MINING.  587 

occupation,  trade  or  industry  in  the  state."  Any  such  decision  or  order 
of  the  Commission  becomes  effective  after  sixty  days.  Notice  of  the 
decisions  or  orders  of  the  Commission  is  given  in  the  same  manner  as 
is  notice  of  the  hearing,  with  the  added  requirement  that  a  copy  be 
sent  to  the  commissioner  of  labor.  The  orders  are  under  the  continu- 
ing control  of  the  commission  and  may  be  altered  or  rescinded  by  it  at 
any  time 

Any  party  aggrieved  by  a  decision  or  order  of  the  Commissfon  may 
begin  an  action  in  the  superior  court  of  the  city  and  county  of  San 
Francisco,  or  in  the  superior  courts  in  and  for  the  counties  of  Los 
Angeles  or  Sacramento.  A  complaint  setting  forth  the  grounds  on 
which  court  review  is  sought  is  served,  together  with  the  summons, 
upon  the  Commission.  The  Commission  shal  then  return  to  court  a 
record  of  all  the  testimony  taken  at  the  hearing,  together  with  a  certi- 
fied copy  of  its  findings  and  determinations.  Upon  review_  the  court 
shall  affirm  or  set  aside  the  order  or  decision  of  the  Commission,  but 
the  "same  shall  be  set  aside  only  on  the  following  grounds :  (1)  That 
the  Commission  acted  without  or  in  excess  of  its  authority  ;^  (2)  that  the 
determination  of  the  Commission  was  procured  by  fraud."  The  Com- 
mission or  any  other  party  in  interest  in  the  suit  may  appeal  from  the 
decision  of  the  superior  court. 

The  California  industrial  accident  commission  law  is  notable 
because  of  the  power  of  internal  organization  and  control  which  it 
places  in  the  hands  of  the  commission.  In  matters  of  appointment,  com- 
pensation of  employees,  and  duration  of  their  service  the  commission 
has  been  given  free  rein.  This  flexibility  of  the  law  is  best  illustrated 
by  the  discretion  allowed  the  commission  to  appropriate  the  funds  put 
at  the  disposal  of  one  of  its  departments  to  the  use  of  another  if  it 
appears  necessary.  Another  feature  of  the  California  plan  that  should 
not  be  overlooked  is  that  it  concentrates  the  administration  of  work- 
men's compensation  and  the  regulation  of  the  conditions  of  labor  in  a 
single  board. 

This  union  of  the  compensation  and  the  safety  provisions.  ho\y- 
ever,  marks  the  limit  of  consolidation  accomplished  by  the  California 
law.  There  is  no  complete  centralization  of  labor  control  in  the  hands 
of  the  commission.  In  addition  to  the  industrial  welfare  board,  which 
in  reality  shares  the  field  of  the  industrial  accident  commission,  there 
is  a  board  of  arbitration  and  conciliation,  a  public  employment  bureau, 
and  a  bureau  of  labor  statistics.  The  latter  is  under  the  direction  of  a 
commissioner  of  labor  whose  duties  overlap  those  of  the  commissions  at 
some  points.  This  officer  is  charged  with  overseeing  private  employ- 
ment bureaus,  with  supervision  over  the  payment  of  wages  of  seasonal 
labor,  and  with  certain  powers  of  inspection.  He  is  also  entrusted  with 
the  enforcement  of  labor  regulations  made  directly  by  the  legislature. 
The  want  of  a  combined  power  of  regulation  and  enforcement  m  a 
single  body,  together  with  the  absence  of  a  centralizationof  the  various 
labor  services,  menaces  the  effectiveness  of  the  whole  California  system. 

Another  danger  in  the  California  laws  lies  in  the  wide  power  of 
mandatory  order  and  regulation  residing  in  the  commissions,  coupled 
with  a  limited  scope  for  court  review.     This  is  most  apparent  in  the 


588  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

case  of  the  welfare  commission.  Here  notice  of  hearing  is  given  by 
newspaper  pubHcation,  and  court  review  goes  to  the  method  by  which 
the  determination  is  reached  rather  than  to  the  subject  matter  of  such 
determination. 

The  Oregon  Welfare  Commission. 

The  Oregon  welfare  commission  law,  which  was  adopted  in  1913, 
follows  closely  the  provisions  of  the  California  act  creating  a  similar 
commission.  The  Oregon  commission  consists  of  three  persons, 
appointed  by  the  governor,  for  a  term  of  three  years.  The  governor  is 
directed,  in  selecting  the  commission  to  choose  one  commissioner  who 
shall  represent  the  employing  class  and  one  w^ho  shall  represent  the 
employed  class ;  the  third  commissioner  shall  be  a  representative  of  the 
public  and  shall  be  "fair  and  impartial  between  the  employers  and  the 
employees."  The  commission  shall  elect  its  chairman  and  select  its  sec- 
retary each  year.  "All  expenses  and  expenditures  of  the  commission 
are  to  be  audited  and  paid  as  other  state  expenses  are  audited  and  paid." 

The  commission  is  charged  with  making  rules  and  regulations  for 
the  control  of  the  employment  of  women  and  minors  in  the  state,  and 
is  authorized  to  ascertain  and  declare  standard  hours  of  labor,  standard 
conditions  of  labor  and  standards  of  minimum  wages  for  "all  women 
and  minors  in  any  occupation  within  the  state."  It  is  vested  with  pow- 
ers of  investigation  similar  to  those  of. the  California  welfare  commis- 
sion. 

After  investigation,  if  conditions  in  any  industry  are  found  to  be 
unsatisfactory,  the  commission  may  call  a  "conference"  similar  to  the 
California  "wage  board."  The  Oregon  law  provides,  however,  that 
the  conference  shall  be  composed  of  "not  more  than  three  representa- 
tives of  the  employers  and  of  an  equal  number  of  the  employees  in  said 
occupation,  and  of  not  more  than  three  disinterested  persons  represent- 
ing the  public,  and  of  one  or  more  commissioners."  The  commission 
appoints  one  of  the  members  of  the  conference  to  serve  as  chairman. 
The  conference  may  be  directed  to  report  upon  the  same  questions  as 
the  California  "wage  board."  and  the  recommendations  may  be 
approved  or  disapproved  in  whole  or  in  part  by  the  commission.  The 
conference,  in  addition  to  the  minimum  wage  for  time  work,  may  report 
on  the  minimum  piece  rate  for  work  of  that  character. 

Following  the  adoption  of  the  report  of  the  conference  the  com- 
mission shall  set  a  time  and  place  for  a  hearing  and  give  notice  of  such 
hearing  "by  publication  in  not  less  than  two  newspapers  of  general 
circulation  published  in  Multnomah  county."  After  the  hearing  the 
commission  may  issue  its  decision  in  rules,  regulations  or  orders  as  in 
California.  The  commission  is  empowered  to  make  different  rules  or 
orders  for  the  same  occupation  in  different  sections  of  the  state  if  such 
a  difference  is  justified  by  conditions  existing  in  various  localities.  The 
commission  is  directed,  as  far  as  possible,  to  mail  a  copy  of  its  orders 
to  "all  employers  in  the  occupation  affected  thereby." 

In  the  matter  of  appeal  from  the  decisions  of  the  commission  Ore- 
gon has  allowed  a  wider  judicial  review  than  exists  under  the  Califor- 
nia law.     "All  qustions  of  fact  arising  under  the  foregoing  provisions 


LABOR    AND    MINING.  589 

of  this  act  shall,  except  as  otherwise  herein  provided,  be  determined  by 
said  commission,  and  there  shall  be  no  appeal  from  the  decision  of  said 
commission  on  any  such  question  of  fact:  but  there  shall  be  a  right  of 
appeal  from  said  commission  to  the  circuit  court  of  the  state  of  Ore- 
gon for  Multnomah  County  from  any  ruling  or  holding  on  a  question  of 
law  included  in  or  embodied  in  any  decision  or  order  of  said  commis- 
sion, and,  on  the  same  question  of  law,  from  the  said  circuit  court  to 
the  supreme  court  of  the  state  of  Oregon.  In  all  such  appeals  the 
attorney  general  shall  appear  for  and  represent  said  commission." 

Kansas  Department  of  Labor  and  Industry. 

Previous  to  1913  the  enforcement  of  labor  laws  and  the  regulation 
of  the  conditions  of  labor  in  Kansas  were  entrusted  to  the  State  Soci- 
ety of  Labor  and  to  the  State  Association  of  Miners,  each  composed 
of  local  labor  groups.  The  elected  secretaries  of  these  organizations 
served  respectively  as  ex-officio  commissioner  of  labor  and  as  ex-officio 
state  mine  inspector.  There  was  also  a  free  employment  bureau,  the 
director  of  which  was  appointed  by  the  governor. 

The  functions  exercised  by  these  three  departments  were  consol- 
idated in  1913  by  the  creation  of  a  Department  of  Labor  and  Industry. 
A  commissioner  of  labor  and  industry  was  placed  at  the  head  of  the 
department  with  the  combined  functions  of  state  factory  inspector,  state 
mine  inspector  and  director  of  free  employment.  For  this  office  and 
for  the  principal  subordinate  positions  in  the  department  there  are 
age,  residence  and  experience  qualifications. 

The  commissioner  of  labor  and  industry  is  charged  with  the 
appointment  of  an  assistant  commissioner,  who  shall  be  experienced  in 
mining  affairs ;  two  deputy  state  factory  inspectors,  one  of  whom  shall 
have  had  practical  experience  in  building,  the  other  a  woman  experi- 
enced in  matters  pertaining  to  female  labor ;  a  free  employment  bureau 
clerk ;  and  such  other  assistants,  agents  and  office  help  as  he  may  con- 
sider necessary.  The  salaries  of  all  appointees  are  fixed  by  statute, 
but  all  employees  are  under  the  direction  of  the  commissioner  and  "hold 
their  offices  during  his  pleasure." 

The  duties  of  the  commissioner  are:  (1)  to  make  statistical 
reports  of  labor  and  trade  conditions,  (2)  enforce  the  laws  regulating 
the  employment  of  women  and  minors,  (3)  enforce  all  laws  made  for 
the  promotion  of  health  and  safety  of  laborers.  He  is  invested  with 
the  usual  powers  of  interrogation,  investigation,  inspection  and  of 
examining  witnesses.  When  the  commissioner  finds  that  the  precau- 
tions for  safeguarding  employees  in  any  employment  are  unsatisfactory 
"he  shall  notify,  in  writing,  the  owner,  proprietor,  or  agent  of  such 
workshop  or  factory  to  make,  within  thirty  days,  the  alterations  or  addi- 
tions to  him  deemed  necessary  for  the  safety  and  protection  of  the 
employees." 

In  his  capacity  as  state  mine  inspector  he  may  order  changes  neces- 
sary to  the  safety  of  the  laborers  to  be  made  immediately,  and  in  case 
of  imminent  danger  he  may  order  the  suspension  of  mining  operations 
until  his  demands  have  been  complied  with.  Failure  to  obey  his  instruc- 
tions is  punishable  by  fine  "levied  by  any  court  of  competent  jurisdic- 
tion." 


590  EFFICIENCY  AND  ECONOMY  COMMITTEE, 

Interest  in  the  Kansas  plan  centers  in  the  concentration  of  adminis- 
trative authority  in  the  hands  of  the  commissioner.  The  statute,  how- 
ever, fixes  the  definite  limits  of  his  powers  and  duties  and  beyond  these 
he  cannot  go.  He  has  no  discretionary  power  to  add  offices  other  than 
those  provided  for  in  the  act,  nor  to  reorganize  the  department  with- 
out the  express  authorization  of  the  legislature.  He  has  no  power  to 
make  regulations,  and  must  enforce  the  specific  terms  of  the  law  as  laid 
down  in  the  statute. 


A  REPORT 

ON 

PUBLIC  ADMINISTRATION 

IN  RELATION  TO 

AGRICULTURE  AND  ALLIED 
INTERESTS 

BY 

JAMES  W.  GARNER 

PROFESSOR  OF  POLITICAL  SCIENCE 

UNIVERSITY  OF  ILLINOIS 


CONTENTS. 

Page 

I.      AGRICULTURAL  BOARDS   AND   COMMISSIONS   IN    ILLINOIS 595-608 

Introductory  Note  ^^^ 

A.  State  Agencies   ^^^ 

Illinois  State  Board  of  Agriculture 596 

Illinois  State  Farmers'  Institute 600 

Board  of  Live  Stock  Commissioners 602 

State  Veterinarian  


Board  of  Veterinarian  Examiners. 


.603 
.603 


State   Biological  Laboratory .' 604 

Humane   Agents    ^^^ 

Stallion   Registration   Board 605 

State  Inspector  of  Apiaries 606 

Board  of  Inspectors  of  Commission  Merchants 606 

607 

607 


Associations  receiving  State  Aid..     , 
Illinois  State  Horticultural   Society. 


Illinois  Dairymen's  Association ^ 608 

Milk  Producers'  Association 608 

Illinois  State  Poultry  Association 608 

State  Bee  Keepers'  Association • 608 

11.    AGRICULTURAL  ADMINISTRATION  IN   OTHER   STATES  AND  COUNTIES 609-635 

A.  State  Administration  of  Agricultural  Interests 609 

Tabular  Statement  609 

c-  623 

Summary 

B.  Governmental  Organization  for  Agriculture  in  Foreign  Countries 625 

Canada  625 

Australia 627 

France  ^1° 

-n        ■  629 

Prussia  

Austria  ^^0 

H  u nga  ry   .-.- 631 


Ireland 


.634 


An  Ideal  Department  of  Agriculture 634 

in.    CONCLUSIONS    AND    RECOMMENDATIONS 636-641 

General  Summary 636 

Recommendations    

Outline  of  Proposed  Organization J...640 


A    REPORT    ON   PUBLIC    ADMINISTRATION  IN 

RELATION   TO   AGRICULTURE  AND 

ALLIED   INTERESTS 

By  Professor  James  W.  Garner,  University  of  Illinois. 


I.    AGRICULTURAL  BOARDS  AND  COMMISSIONS  IN 
ILLINOIS. 

Introductory  Note. 

For  the  conservation  and  promotion  of  agriculture  and  related 
interests,  the  State  of  Illinois  maintains  and  supports  an  even  more 
numerous  and  complex  variety  of  organs  than  in  other  fields  of  public 
administration.  Besides  a  number  of  State  offices,  boards  and  com- 
missions organized  according  to  various  methods,  some  of  which  are 
controlled  by  private  associations,  there  are  several  private  associations 
which  receive  some  financial  support  from  the  State,  and  some  of  the 
most  important  services  are  furnished  through  the  State  University  and 
State  bureaus  connected  with  the  University.  The  latter  group  of 
services  will  be  considered  in  connection  with  the  University,  as  part 
of  the  educational  agencies  of  the  State.  In  this  section  of  the  survey 
will  be  noted  the  other  State  bureaus  and  private  associations  receiving 
State  aid  which  have  to  do  with  agricultural,  horticultural,  live  stock 
and  similar  interests. 

A  brief  chronological  outline  of  the  development  of  these  agen- 
cies may  serve  to  explain,  in  part,  the  present  complexity  and  especially 
the  important  part  played  by  private  associations  in  this  field.  The 
first  step  towards  the  present  arrangements  appears  to  have  been  the 
incorporation  in  1853  of  the  Illinois  Agricultural  Society  which  re- 
ceived an  appropriation  of  $1,000,  and  under  whose  auspices  the  first 
State  fair  was  held  in  Springfield  in  the  same  year.  In  1856  the  Illinois 
State  Horticultural  Society  was  organized. 

The  first  State  officer  dealing  distinctly  with  agricultural  interests 
was  the  State  Entomologist,  established  in  1867;  whose  office  is  now 
established  in  Urbana,  and  whose  work  is  largely  educational  in  char- 
acter. 

In  1872  a  department  of  agriculture  was  established,  and  placed 
in  charge  of  a  State  board  of  agriculture,  which  took  the  place  of  agri- 
cultural society  in  control  of  the  State  fair.  The  influence  of  the 
earlier  organization  may  be  seen  in  the  existing  provisions  for  electing 
the  members  of  this  State  Board  of  Agriculture  by  delegates  from 
county  agricultural  societies. 

The  increasing  importance  of  the  live  stock  interests  found  expres- 
sion in  the  organization  of  the  Dairymen's  Association  in  1874,  and  in 
the  creation  of  the  so-called  humane  agents  in  1877  (to  inspect  cattle 
at  the  stock  yards),  the  State  Veterinarian  in  1881,  the  Live  Stock 
Commission  in  1885  and  the  Board  of  Veterinary  Examiners  in  1889, 


596  EFFICIENCY  AND  ECONOMY   COMMITTEE 

More  recently  there  have  been  organized  a  Milk  Producer's  Insti- 
tute, a  Beekeeper's  Association  (in  1891)  and  a  State  Poultry  Asso- 
ciation (in  1896),  all  of  which  have  received  State  aid.  In  1895,  the 
Illinois  Farmers'  Institute  was  established.  In  1909,  a  Stallion  Regis- 
tration Board  was  created,  and  a  biological  laboratory  was  established ; 
and  in  1911  a  State  inspector  of  apiaries  was  provided. 

The  following  is  a  list  of  State  offices,  boards  and  commissions, 
and  private  associations  receiving  State  aid,  which  have  to  do  with 
agriculture  and  related  interests,  with  the  salaries  and  amounts  appro- 
priated in  1913,  for  the  two  years  ending  1915: 

SUMMARY  OF  SALARIES  AND  APPROPRIATIONS   FOR  AGRICULTURAL 
AGENCIES,    1913-15. 

Emergency 
and 
State  Agencies —  Total.       Salaries.  Expenses.  Deficiency. 

State  Board  of  Agriculture $159,000    $  21,400    $  52,600        $85,000 

Illinois  Farmers'  Institute 52,800 

Live  Stock  Commission 80,280 

State  Veterinarian 25,000 

Biological  Laboratory   91,800 

Board  of  Veterinary  Examiners. . .  .       1,600 

Humane  Agents  9,600 

Stallion  Registration  Board 22,460 

Inspector  of   Apiaries 4,000 


Total    $446,540 

Societies  Receiving  State  Aid — 

State  Horticultural  Society 10,000 

Illinois  State  Dairymen's  Assn 5,000 

Live  Stock  Breeders'  Association..  3,000 

Illinois  State  Poultry  Association.  .  2,000 

State  Beekeepers'  Association 2,000 


Total   State  Associations $22,000 

County  Fairs  and  Agric.  Societies.  .   170,000 


Total    $192,000 


9,800 

43,000 

70,280 

10,000 

18,000 

7,000 

12,800 

72,000 

7,000 

1,000 

600 

9,600 

12,560 

9,900 

4,000 

$159,440 

$195,100 

10,000 
5,000 
3,000 
2.000 
2,000 

$  22,000 

$92,000 

170,000 

$192,000 

Grand  total   $638,540    $159,440    $387,100        $92,000 

In  addition  to  the  State  appropriations,  the  State  Board  of  Agri- 
culture has  other  revenues,  mainly  from  the  State  Fair,  amounting  to 
more  than  $150,000  a  year,  which  are  used  for  State  fair  expenses. 
The  total  expenditures  from  this  group  of  agencies  arc  tlfereforc, 
about  $940,000  for  two  years. 

A.       STATE  AGENCIES. 

Illinois  State  Board  of  Agriculture. 

The  State  Board  of  Agriculture  consists  of  a  president,  one  vice- 
president  from  each  congressional  district,  and  of  the  last  ex-president 
of  the  said  board — in  all  twenty-seven  members.  They  are  elected  on 
the  fair  grounds  at  Springfield  at  the  time  of  the  State  fair,  by  delegates 
chosen  by  the  several  county  agricultural  societies  where  such  soci- 
eties exist,  the  number  of  delegates  from  each  county  ranging  from 


AGRICULTURAL  AGEN'CIES.  597 

one  to  three  according  to  the  number  of  societies  in  the  county.  In 
counties  where  there  are  no  such  societies  the  delegates  may  be  ap- 
pointed by  the  board  of  supervisors  or  the  board  of  county  com- 
missioners. 

The  term  of  members  of  the  Board  of  Agriculture  is  two  years 
and  vacancies  may  be  filled  by  the  board  itself.  The  board  is  em- 
powered to  elect  a  secretary  who  shall  not  be  a  member  of  the  board 
and  to  fix  his  compensation  and  he  shall  serve  during  the  term  for 
which  the  members  of  the  board  appointing  him  are  elected.  The 
board  is  also  empowered  to  appoint  a  treasurer,  to  fix  his  compensation 
and  to  prescribe  his  duties.  He  holds  office  for  the  term  of  the  board 
by  whom  he  is  appointed,  unless  he  is  sooner  removed.  He  is  required 
by  law  to  keep  an  itemized  account  of  all  moneys  received  and  paid 
out  by  him  and  to  make  an  annual  report  to  the  State  Board,  which 
report  shall  be  embodied  in  the  report  of  the  board  to  the  Governor. 

The  State  Board  of  Agriculture  is  required  to  keep  an  office  at 
Springfield  for  the  transaction  of  business.  It  is  declared  to  be  a  body 
corporate  with  the  usual  powers  of  such  a  body  and  is  in  addition 
authorized  to  hold  State  fairs  and  fat  stock  shows  at  such  times  and 
places  as  the  board  may  determine.  It  has  control  of  all  the  affairs 
of  the  "department"  of  agriculture  and  of  all  State  fairs  and  fat 
stock  shows  and  may  make  such  by-laws  and  regulations  for  the  man- 
agement of  its  business  and  that  of  the  said  fairs  and  shows  as  it  may 
see  fit.  All  money  appropriated  by  the  State  to  the  "department"  of 
agriculture  shall  be  paid  to  the  Board  of  Agriculture  and  may  be  ex- 
pended by  the  board  in  its  discretion  for  the  advancement  of  the  best 
interests  of  agriculture,  horticulture,  manufacturers  and  the  domestic 
arts.  All  appropriations  made  by  the  board  for  the  benefit  of  county 
fairs  and  agricultural  societies  shall  be  divided  between  such  societies 
and  fairs  as  shall  have  given  satisfactory  evidence  of  having  held  an 
annual  fair  and  made  a  report  thereon  to  the  State  Board  of  Agri- 
culture. The  amount  of  the  grant  to  each  society  or  fair  is  determined 
upon  the  basis  of  the  amount  of  premiums  offered  by  it  during  the 
year,  the  total  allowance  for  any  fair  being  limited  to  $2,500.  A 
sworn  statement  must  be  made  by  the  president  and  secretary  of  each 
fair  before  the  fifteenth  of  November  each  year,  of  the  actual  amount 
of  cash  premiums  paid  by  such  fair  in  order  that  it  may  receive  an 
appropriation  from  the  State  treasury  and  the  statement  must  be 
accompanied  by  an  itemized  list  of  all  premiums  paid.  All  moneys 
appropriated  for  the  benefit  of  any  such  fair  or  society  are  paid  to  its 
treasurer. 

The  State  Board  of  Agriculture  is  require"(i  to  hold  an  annual 
meeting  in  January  of  each  year  and  to  make  a  report  of  its  acts  to 
the  Governor,  which  report  shall  contain  a  detailed  statement  of  the 
attendance,  receipts,  premiums  and  expenses  of  all  fairs  or  fat  stock 
shows  held  during  the  year. 

In  addition  to  the  powers  and  duties  of  the  board  in  connection 
with  the  holding  of  the  State  fair  and  the  apportionment  of  funds 
among  local  societies  and  fairs  it  has  some  control  over  the  sale  of 
commercial  fertilizers.    By  an  Act  of  1885  all  persons  offering  for  sale 


598  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

in  the  State  any  commercial  fertilizer,  the  price  of  which  exceeds  five 
dollars  per  ton,  are  required  to  file  in  the  office  of  the  board  a  duplicate 
certificate  stating  the  weight,  name  of  the  manufacturer,  the  place 
where  manufactured  and  the  results  of  a  chemical  analysis  of  every 
such  package  offered  for  sale,  the  original  certificate  being  required 
to  be  affixed  to  the  said  package.  At  the  same  time  a  sealed  glass 
jar  filled  with  the  fertilizer  so  offered  for  sale  must  be  deposited  with 
the  Secretary  of  the  Board.  A  license  fee  of  $20  per  year  is  required 
to  be  paid  to  the  Treasurer  of  the  Board  by  every  manufacturer,  im- 
porter or  agent  of  every  such  commercial  fertilizer  company.  x\ll 
analyses  of  commercial  fertilizers  sold  within  the  State  shall  be  made 
under  the  direction  of  the  State  Board  of  Agriculture. 

The  Secretary  of  the  State  Board  of  Agriculture  is  required  to 
compile  and  publish  certain  statistical  information  in  regard  to  the 
number  of  acres  of  land  devoted  to  the  raising  of  various  farm  crops 
and  the  amount  produced  per  acre. 

He  is  also  required  by  Act  of  1872  *to  receive  reports  from  the 
town  commissioners  of  Canada  thistles  and  transmit  the  same  to  the 
Governor;  and  by  Act  of  1909,  he  is  required  to  keep  a  list  of  all 
stallions  offered  for  public  use,  together  with  a  description  and  pedigree 
of  the  same. 

The  appropriations  for  the  State  Board  of  Agriculture  in  1913 
were  as  follows: 

Per  Annum. 

:        One  secretary   $    3,500 

One  chief  clerk 2,000 

One  receiving  and  shipping  clerk 1,200 

One  stenographer  1,200 

One  statistical  clerk 1,200 

One  filing  clerk 1,000 

One  janitor   600 

Total  salaries $10,700 

For  traveling  expenses $    2,000 

For  office  expenses,  postage,  etc 1,200 

For  collection  and  publication  of  statistics 600 

Exhibits  at  State  Fair 5,000 

Maintenance  and  repairs.  State  fair  grounds    12,500 

Total  for  ordinary  expenses $  21,300 

Total,  salaries  and  ordinary  expenses 32,000 

Total,  salaries  and  ordinary  expenses  for  two  years $  64,000 

For  notes  for  completion  of  buildings,  etc 85.000 

For  covered  walks 10,000 

Total  for  State  Fair $159,000 

For  County  Fairs,  $85,000  per  annum 17o!o00 

Grand  Total $329,000 

In  addition  to  the  State  appropriations  the  State  Board  of  Agri- 
culture receives  a  large  revenue  from  admissions,  concessions,  fees 
and  other  receipts  from  the  State  Fair ;  and  has  also  some  revenue  from 
fertilizer  licenses  and  other  minor  sources.    These  additional  revenues, 


AGRICULTURAL   AGENCIES  599 

Which  ordinarily  are  much  larger  than  the  State  ^PP;,°P^^^;«"?^^^/;^^^^^^ 
oaid  into  the  State  treasury;  but  are  expended  by  the  State  Board  of 
Agricu  tu  e  afits  discretion.  The  annual  report  of  the  board  shows 
h.  detal  the  receipts  from  various  sources  and  expenditures;  and 
aso  pre  ents  a  trial  balance  and  a  summary  of  receipts  and  expendi- 
?ires'ror"the  operation  of  the  State  Fair.  J^^YlTml 
been  prepared  from  the  annual  reports  for  1912  and  IVl^. 

FINANCIAL  STATEMENT,   STATE  BOARD  OF  AGRICULTURE,    1912-1913 
RECEIPTS.  „      ^       . 

State  Appro- 
priations, 

.    .  1912  1913.  1913. 

State  Appropnat^ons-  ^^    ■  ^^^^^    ^  ^^^^^^, 

Salaries "P     '^r^r.  qq  ^              . .  3,200.00 

Office  and  traveling  expenses '^m        600.00 

Crop  statistics  •        °"^-^"         

State  Fair  (premiums  and  maintenance  ot  ^^  ^^^  ^^  ^^  ^^^  ^i  17.5OO.OO 

statf?aC'?iiidingsV.:.v.v::::::::::::::  62^21^1  ai37.979.00    ........ 

Covering  walks SS'.OOO.OO 

Outstanding  notes . 

^^^^Ig    $88,020.01    $150,098.85  $127,000.00 

State  Fair  Receipts-                                                                     ^^1912^^  ^1913^  ^^ 

Admissions '*'  20,539.50  20,361.99 

Permits  and  privileges 10^06  03  43  579  42 

Other  State  Fair  receipts 39,bi)bM  ^6.:>/^.^^ 

^^^^l5 $148,461.28    $151,523.66 

Other  Income-  22  00 

Live  stock  certificates ^       ^^^^^  3^0  00 

Fertilizer  licenses 85  000.00  11,000.00 

Bils  payable '3^5  ^^  123.22 

Miscellaneous 

Totals $87,533.91    $  13,485.22 

^,,    ,    ..,,  $324,015.20    $315,107.73 

Total  receipts  "P     -j^on  7S        27  423  67 

Balance  January  1 ^'^^""^^        ^7A^±ti/ 

Grand  Totals ..$327,605.98    $342,531.40 

EXPENDITURES. 

state  Fair  pre^iu-ns $  ||83|g    $  g,906  37 

Other  State  fair  expenses HbA^^-^^^        ^°'^^' 

Total  State   fair  expenses $148,276.28    $162,334.15 

State  fair  buildings 98.264.70       116.237.56 

Other  expenditures    53,641.33        4^.90/. l J 

.  Total  expenditures   $300,182.31    $321,538.84 

Balance  December  31  27.423.67        20.992.56 

Grand  Totals   $327,605.98    $342,531.40 


a  From  1911  appropriations. 


600  EFFICIENCY    AND   ECONOMY    COMMITTEE. 

Salaries  and  Personal  Expenses. 

1912  1913 

Office  salaries  $14,714.96  $12,108.33 

Treasurer's  payrolls 22,218.67  19,933.60 

Total  salaries  and  payrolls $36,933.63    $32,041.93 

Members'  expenses  $  2,688.20  $  2,883.62 

Mileage   3,224.40  1,181.46 

Hotel  bills   3,723.40  3,007.09 

Members'  restaurant   770.66  893.00 

Livery  and  automobile  hire 938.55  665.75 

Total  Personal  Expenses $11,345.21    $  8,630.92 

Illinois  State  Farmers'  Institute. 

The  Illinois  State  Farmers'  Institute,  declared  by  law  to  be  a 
public  corporation,  was  created  to  "assist  and  encourage  useful  edu- 
cation among  the  farmers  and  for  developing  the  agricultural  re- 
sources of  the  State."  It  is  composed  of  three  delegates  from  each 
county  in  the  State,  elected  annually  by  the  members  of  the  farmers' 
institute  of  the  county.  Its  affairs  are  managed  by  a  board  of  direc- 
tors, consisting  of  the  State  Superintendent  of  Public  Instruction,  the 
Dean  of  the  College  of  Agriculture  in  the  State  University,  the  Presi- 
dent of  the  State  Horticultural  Society  and  the  President  of  the  State 
Dairymen's  Association  and  one  member  from  each  congressional  dis- 
trict selected  by  the  delegates  therefrom  and  elected  at  the  annual 
meeting  of  the  Institute  one-half  each  year  for  a  two  years'  term, 
making  a  total  of  twenty-nine  members. 

The  board  of  directors  is  authorized  to  elect  its  own  officers  and 
the  law  fixes  the  salary  of  the  secretary  at  $2,000  per  year. 

The  board  of  directors  has  control  of  the  expenditures  of  all 
moneys  appropriated  by  the  State  for  the  support  of  the  work  of  the 
Institute,  which  moneys  are  required  to  be  expended  in  such  manner 
as  in  judgment  of  the  board  will  best  promote  among  farmers  "interest 
in  useful  education"  and  develop  the  agricultural  resources  of  the 
State.  It  is  required  to  make  an  annual  report  to  the  Governor,  50,000 
copies  of  which  shall  be  printed  and  bound  in  cloth.  The  Institute  is 
required  to  hold  an  annual  meeting  of  not  less  than  three  days  dur- 
ation for  the  purpose  of  developing  greater  interest  in  the  cultivation 
of  crops,  the  breeding  of  domestic  animals,  dairy  husbandry,  horti- 
culture, farm  drainage,  improved  highways  and  general  farm  man- 
agement. This  meeting  is  held  in  the  month  of  February.  An  appro- 
priation of  $75.00  is  made  for  a  county  institute  to  be  held  in  each 
county  of  the  State  every  year. 

The  staff  and  appropriations  for  the  Farmers'  Institute  made  in 
1913  were  as  follows: 

Per  Annum.       For  Two  Years. 

Secretary  of  the  Board $  2,000 

Two  Stenographers  at  $1,000 2,000 

One  Messenger  and  Janitor 900 

Total   Salaries $4,900  $9,800 


AGRICULTURAL   AGENCIES  601 

Expenses  of  Board  of  Directors 5,000 

Expenses  for  Judges,  Instructors,  Speakers,  etc 6,000 

Office  Expenses f^^ 

County  Institutes,  estimated ^>^"^  ^•^'""" 

Total    $26,400  $52,800 

The  report  of  the  Secretary  of  State  shows  the  following  expendi- 
tures for  printing,  binding  and  stationery  for  the  Farmers'  Institute 
for  the  two  years  1910-12,  in  addition  to  the  payments  from  appropn- 

For  Printing       $  4,527.81 

Formiding H399.50 

For  Stationery    l-'^^-^Q 

Total $20,410.21 

The  amount  paid  for  binding  is  more  than  four  times  that  of  any 
other  State  office,  and  about  one-fourth  of  the  total  amount  paid  for 
all  State  binding.  r   ,     t^ 

Under  the  arrangements  for  electing  the  directors  of  the  ^-armers 
Institute,  three  delegates  from  Cook  County  select  nine  directors  from 
the  congressional  districts  in  that  county. 

From  the  report  of  the  convention  of  delegates  at  the  annual  meet- 
ing in  1913,  the  committee  on  credentials  reported  a  total  of  148 
delegates  entitled  to  seats  in  the  convention.  This  was  less  than  half 
of  the  total  number  of  delegates  authorized.  It  does  not  appear  how 
many  of  these  delegates  were  present. 

The  annual  report  of  the  Farmers'  Institute  contains  the  papers 
and  addresses  at  the  annual  meeting  and  at  sectional  meetings  (in  1913, 
one  at  Paris  and  one  at  Cairo),  with  a  number  of  miscellaneous  papers 
and  a  variety  of  illustrations.  The  auditor's  report  is  a  numerical  list 
of  vouchers,  with  no  attempt  at  classification,  and  not  even  totalled. 

A  statistical  summary  of  reports  of  county  institutes  for  1912-13, 
shows  the  following  totals  : 

Number  of  days 389 

Number  of  sessions inV^o-r 

Attendance  V.^nn  o  i 

State  payments ,.    $6,709.81 

County  board  appropriations J'  '  .^^a 

Total  Cost $26,416.34 

No  institutes  were  reported  from  eight  counties.  The  number 
of  days  of  such  hieetings  in  each  county  ranged  from  two  to  fifteen ; 
the  number  of  sessions  from  five  to  thirty-six;  and  the  reported  atten- 
dance from  twenty  to  20,000.  The  higher  figures  for  attendance 
appear  to  be  determined  by  multiplying  the  estimated  number  at  one 
time  by  the  number  of  sessions ;  and  thus  the  totals  are  more  than 
the  number  of  persons  present  at  the  meeting. 

From  the  financial  statements,  nearly  a  fourth  of  the  reported  cost 
of  the  county  institutes  was  paid  from  the  State  appropriations,  and 
nearly  a  third  from  county  appropriations.  In  thirty-three  counties, 
the  State  appropriation  was  more  than  a  half  of  the  total  cost  reported; 
and  in  fourteen  counties  the  State  grant  was  practically  the  total  cost 
reported.  Contributions  are,  however,  said  to  be  made  which  are  not 
reported;  but  there  is  no  way  of  determining  tlie  amount  of  these. 


602  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

Board  of  Live  Stock  Commissioners. 

The  Board  of  Live  Stock  Commissioners  consists  of  three  per- 
sons, not  more  than  two  of  whom  shall  belong  to  the  same  political 
party,  appointed  by  the  Governor  for  a  term  of  three  years.  The  mem- 
bers of  the  board  receive  $10  per  day  for  each  day  necessarily  em- 
ployed in  the  discharge  of  their  duties,  in  addition  to  their  traveling 
expenses  and  incidental  expenses.  According  to  the  auditor's  report 
for  1910-12,  the  per  diem  of  the  three  commissioners  aggregated 
$19,310,  and  the  expenses  of  the  commissioners  and  secretary  amounted 
to  $7,156.27  for  the  two  years. 

The  law  makes  it  the  duty  of  the  board  to  cause  to  be  investigated 
any  and  all  communicable  diseases  among  domestic  animals  intended 
for  human  food,  to  employ  proper  means  to  prevent  the  spread  of 
such  diseases,  to  provide  for  the  extirpation  thereof  and  where  any 
such  diseases  are  found  to  be  of  a  dangerously  contagious  character 
to  order  all  animals  infected  with  them,  as  well  as  the  premises  where 
such  diseases  prevail,  to  be  quarantined,  and,  under  certain  conditions 
to  order  infected  animals  to  be  slaughtered  and  infected  barns  and 
stables  to  be  destroyed.  All  claims  against  the  State  on  account  of 
animals  ordered  to  be  slaughtered  must  be  made  to  the  board  under 
such  rules  and  regulations  as  it  may  prescribe.  The  amount  of  the 
indemnity  is  determined  by  the  board  and  payment  is  made  upon 
endorsement  by  the  Governor.  According  to  the  report  of  the  Com- 
mission for  1912,  the  number  of  cattle  inspected  in  the  stock  yards 
of  Chicago,  East  St.  Louis  and  Peoria  was  27,776  of  which  13,676 
were  held  for  slaughter,  and  of  these  2,672  were  condemned  after  a 
post  mortem  examination.  During  the  same  year  360,000  hogs  were 
treated  with  cholera  serum. 

In  addition  to  the  inspectional  and  quarantine  powers  of  the 
board  it  is  authorized  to  recommend  to  the  Governor  the  institution 
by  proclamation  of  the  quarantine  of  municipalities  and  other  political 
districts.  It  is  also  required  to  advise  the  Governor  to  proclaim  a 
quarantine  against  other  states  or  foreign  countries  when  in  its  judg- 
ment such  action  is  advisable.  By  Act  of  1889  it  is  empowered  to 
make  rules  and  regulations,  subject  to  the  approval  of  the  Governor, 
in  regard  to  the  transportation  of  Texas  cattle  into  the  State,  especially 
as  regards  the  cleansing  and  disinfection  of  railroad  cars  in  which 
they  are  imported.  The  board  is  empowered  to  call  upon  sheriffs 
and  deputies,  constables,  police  officers,  mayors  and  town  marshals 
for  assistance  in  the  enforcement  of  the  law  in  regard  to  the  spread 
and  extirpation  of  communicable  diseases  among  live  stock.  The 
board  is  required  to  cooperate  with  the  officers  of  the  United  States 
for  the  suppression  of  contagious  and  infectious  diseases  among  do- 
mestic animals.  The  Act  of  1889  also  imposes  upon  the  board  the 
duty  of  issuing  licenses  to  qualified  practitioners  of  veterinary  medi- 
cine and  surgery  and  dentistry  and  of  appointing  a  board  of  veterinary 
examiners  to  conduct  examinations  of  applicants  seeking  a  license  to 
practice  such  profession.  In  1909  the  State  biological  laboratory  was 
established,  and  placed  under  the  direction  of  the  board  of  Live  Stock 
Commissioners. 


r  "  AGRICULTURAL   AGENCIES  603 

From  time  to  time  the  board  publishes  bulletins  on  such  subjects 
as  diseases  of  sheep,  hog  cholera  and  other  swine  diseases,  tuber- 
culosis in  cattle,  etc. 

In  addition  to  its  main  office  in  Springfield,  the  Live  Stock  Com- 
mission has  offices  at  the  Union  Stock  Yards  in  Chicago,  the  National 
Stock  Yards  in  East  St.  Louis  and  the  Union  Stock  Yards  in  Peoria. 

The  State  Veterinarian  is  the  chief  executive  officer  of  the  Live 
Stock  Commission  in  the  performance  of  its  inspectional  and  quaran- 
tine functions.  He  is  appointed  by  the  Governor  and  acts  under  the 
direction  of  the  board  of  Live  Stock  Commissioners. 

His  office  is  at  the  Union  Stock  Yards  in  Chicago.  He  receives  a 
salary  of  $10  per  day  for  each  day  actually  employed,  in  addition  to  his 
necessary  traveling  and  incidental  expenses'.  There  was  in  1913  also 
eighty-two  assistant  veterinarians  (appointed  by  the  State  Veterinarian 
with  the  consent  of  the  board)  stationed  in  various  parts  of  the  State. 
The  law  fixes  their  compensation  at  $8  per  day  for  time  actually  eni- 
ployed  plus  their  necessary  expenses.  The  State  Veterinarian  and  hi^ 
assistants  are  charged  with  conducting  investigations,  under  the  direc- 
tion of  the  board,  concerning  the  existence  of  communicable  diseases 
among  animals  and  with  advising  the  board  in  regard  to  such  matters 
as  quarantine,  the  slaughter  of  diseased  animals,  the  destruction  of 
infected  barns  and  stables,  etc.  He  is  a  member  of  the  Stallion  Regis- 
tration Board. 

For  the  biennial  period  from  October  1,  1910,  to  September  30, 
1912,  the  per  diem  and  expenses  of  the  State  Veterinarian  and  assis- 
tants amounted  to  $24,431. 

Board  of  Veterinary  Examiners. 

By  Act  of  April  24,  1889,  it  was  made  unlawful  for  any  person 
to  practice  veterinary  medicine  and  surgery,  including  veterinary 
dentistry,  without  a  license  from  the  State  Board  of  Live  Stock  Com- 
missioners. The  same  Act  authorized  the  said  board  to  appoint  a 
board  of  veterinary  examiners,  consisting  of  three  competent  veterinary 
surgeons  who  shall  hold  office  at  the  pleasure  of  the  Board  of  Live 
Stock  Commissioners.  It  is  made  the  duty  of  the  said  board  of  vet- 
erinary examiners  to  meet  at  such  times  and  places  as  may  be  ordered 
by  the  Board  of  Live  Stock  Commissioners  for  the  purpose  of  exam- 
ining diplomas  and  credentials  and  conducting  examinations  of  appli- 
cants for  license  to  practice  veterinary  medicine  and  surgery.  It  is 
required  to  certify  to  the  Board  of  Live  Stock  Commissioners  the 
names  of  the  applicants  entitled  to  receive  a  license  under  the  terms  of 
the  above  Act  and  it  is  made  the  duty  of  the  said  board  to  issue 
at  its  next  meeting  a  license  to  all  such  persons  so  certified,  subject  to 
certain  exceptions  specified  in  the  law.  The  license  fee  for  graduates 
of  recognized  veterinary  colleges  and  for  other  persons  who  have 
been  in  the  practice  of  veterinary  medicine  and  surgery  in  the  State  for 
three  consecutive  years  prior  to  April  24,  1899,  is  fixed  at  five  dollars; 
the  fee  for  other  persons  is  twenty  dollars.^  Each  member  of  the 
board  of  examiners  is  entitled  to  receive  a 'fee  of  five  dollars  per 
day  and  the  necessary  traveling  and  incidental  expenses  incurred  while 


604  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

actually  engaged  in  the  discharge  of  his  duties  under  the  direction 
of  the  State  Board  of  Live  Stock  Commissioners.  The  legislative  ap- 
propriations in  1913  for  the  board  of  examiners  were  $500  per  annum 
for  their  per  diem  and  $300  per  annum  for  their  traveling  and  incidental 
expenses. 

State  Biological  Laboratory. 

By  Act  of  June  30,  1909,  provision  v^as  made  for  the  establishment 
of  a  State  biological  laboratory  for  the  production  and  manufacture 
of  biological  products  to  be  distributed  free  to  live  stock  producers 
in  Illinois.  The  location  of  the  laboratory  and  the  direction  and 
control  of  the  institution  was  vested  in  the  State  Board  of  Live  Stock 
Commissioners.  It  is  located  at  Springfield  and  consists  of  a  two 
s.tory  building  with  research  and  serum  laboratories,  and  with  pens 
capable  of  holding  1,500  hogs.  The  appropriations  for  the  laboratory 
in  1913  amounted  to  $91,800,  most  of  which  was  for  buildings  and  the 
purchase  of  hogs  for  serum. 

The  staff  of  the  Board  of  Live  Stock  Commissioners  and  related 
bureaus  and  salaries  and  appropriations  in  1913  were  as  follows : 

Salaries     Expenses      Totals. 
Per  Two  Two 

Live  Stock  Commissioners.  Annum.        Years.  Years. 

Members  @  $10  per  diem,  est $20,000 

Secretary  $2,000  4,000 

Assistant  Secretary 1,500  3,000 

Stenographer 1,200  2,400 

Messenger  840  1,680 

Chief  Inspector,  U.  S.  Yards 2,000  4,000 

Seven  State  Agents,  U.  S.  Yards 23,800 

Clerk  . 1,800  3,600 

Chief  Inspector,  Nat.  Stock  Yards...  1,500  3,000 

State  Agent,  Nat.  Stock  Yards 1,200  2,400 

State  Agent,  Peoria 1,200  2,400 

Traveling  and  incidental  expenses  of 

Commissioners  and  Secretary....  3,000  $  6,000 

Office   Expenses 2,000  4,000 


Totals  $70,280        $10,000        $80,280 

State  Veterinarian  and  Assistants,  per 

diem,  est 18,000 

Expenses,  estimated 5,000 

Animals,  slaughtered,  estimated 2,000 


Totals    $18,000  $7,000        $25,000 

Biological  Laboratory. 

Bacteriologist  and  Assistant 12,800 

Purchase  of  hogs  for  laboratory  work 60,000 

Purchase  of  hogs,  emergency 7,000 

Buildings  and  equipment 12,000 


Totals $12,800        $79,000  91,800 

Board  of  Veterinary  Examiners. 

Per  diem  and  expenses.- 1,000  600  1,600 


Grand  Totals $102,080       $96,600      $198,680 


AGRICULTURAL   AGENCIES  605 

Humane  Agents. 

By  Act  of  July  1,  1877,  it  was  made  the  duty  of  the  Governor 
to  appoint  an  officer  for  the  town  of  Lake  (in  Cook  County)  two 
for  East  St.  Louis  and  one  for  the  city  *of  Peoria,  for  a  term  of 
two  years,  whose  duty  it  is  to  cause  the  enforcement  of  the  law  for 
the  prevention  of  cruelty  to  animals.  It  is  further  made  their  duty 
to  see  that  all  stock  in  the  stock  yards  of  their  respective  counties,  or 
at  any  brewery,  distillery,  factory  or  other  place  where  stock  are 
confined,  are  properly  fed  and  cared  for.  The  salaries  of  these  officers 
are  paid  out  of  the  State  treasury  and  shall  not  exceed  $1,200  per 
annum  for  each  person.  No  appropriations  are  made  for  office  or 
other  expenses. 

Stallion  Registration  Board. 

An  Act  of  June  10,  1909,  requires  every  person  offering  any 
stallion  for  public  service  to  cause  the  name,  description  and  pedigree 
of  such  stallion  to  be  enrolled  and  verified  in  the  office  of  the  Secre- 
tary of  the  State  Board  of  Agriculture.  To  carry  out  the  provision 
of  the  Act,  a  Stallion  Registration  Board  was  created  consisting  of  five 
members,  to-wit:  the  Secretary  of  the  State  Board  of  Agriculture, 
who  is  ex  officio  the  secretary  of  the  Stallion  Registration  Board,  the 
State  Veterinarian,  the  president  and  the  secretary  of  the  Illinois 
Horse  Breeders'  Association  and  the  president  of  the  Illinois  Farmers' 
Institute. 

It  is  made  the  duty  of  the  board  to  verify  and  register  pedigrees, 
to  pass  upon  certificates  of  veterinary  examination,  to  issue  the  license 
certificates  required  by  the  Act  and  to  make  and  keep  records  of  all 
stallions  enrolled  in  the  State.  A  fee  of  $2  is  required  to  be  paid  to 
the  board  for  the  examination  and  enrollment  of  each  pedigree  and  for 
the  issuance  of  the  certificate  and  a  fee  of  $1  for  each  annual  renewal. 
The  salary  of  the  members  of  the  board  is  fixed  at  $5  per  day  for 
each  day  actually  employed,  together  with  their  traveling  expenses. 
The  salary  of  the  secretary  is  fixed  by  the  board  at  $1,600  per  annum; 
but  the  General  Assembly  in  1913  appropriated  only  $100  per  year. 

From  the  date  of  the  organization  of  the  board  until  November 
1,  1912,  9,677  licenses  were  granted  to  keepers  of  stallions  and  a  con- 
siderable number  of  owners  were  convicted  for  failure  to  secure 
licenses  as  required  by  law.  License  fees  amount  to  about  $18,000  a 
year,  which  is  turned  into  the  State  treasury  quarterly. 

The  staff  of  the  Illinois  Stallion  Registration  Board  and  the 
appropriations  made  in  1913  for  its  work  and  maintenance  were  as 
follows:  Per  Annum. 

Three  Members  of  the  Board  (per  diem) $      500 

One  Secretary 100 

One  Chief  Clerk 1,200 

One  Assistant  Field  Superintendent 1,500 

One  Stenographer  1,000 

One  Janitor  180 

Clerk  Hire '. 1,000 

Veterinary  Services 800 

Total  Salaries  and  Personal  Services $  6,280 


606  EFFICIENCY    AND   ECONOMY    COMMITTEE. 

Expenses  of  Board  Members  and  Superintendents 1,800 

Printing  and  Stationer}' 2,000 

Miscellaneous 400 

Total  $10,480 

For  two  years $20,960 

Postage   1,500 

Total  for  two  years $22,460 

State  Inspector  of  Apiaries. 

By  an  Act  of  June  7,  1911,  the  Governor  was  authorized  to  appoint 
a  State  Inspector  of  Apiaries,  to  serve  for  a  term  of  two  years,  to  be 
paid  four  dollars  per  day  while  actually  engaged  in  the  performance 
of  his  duties.  It  is  made  his  duty  to  inspect,  or  cause  to  be  inspected 
by  an  assistant,  any  apiary  which  he  may  have  reason  to  believe  is 
infected  by  a  foul  brood  or  other  contagious  disease,  and  for  this  pur- 
pose he  or  his  assistants  are  authorized  to  enter  upon  any  farm  or 
premises  or  building  used  for  the  purpose  of  propagating  or  nurturing 
bees.  All  bee  hives  in  which  foul  brood  or  contagious  diseases  are 
found  to  exist  are  declared  by  the  law  to  be  a  nuisance  and  it  is 
made  the  duty  of  the  inspector  of  apiaries  to  notify  the  owner  of 
sucli  bee  hive  and  to  direct  him  how  to  treat  the  same.  If  after  such 
notice  the  owner  refuses  or  neglects  to  abate  the  said  nuisance  the 
inspector  of  apiaries  may  cause  it  to  be  abated  at  the  expense  of  the 
owner.  The  owner  who  may  consider  himself  aggrieved  may  appeal 
from  the  order  of  the  inspector  to  the  County  Court.  The  inspector 
is  required  to  make  an  annual  report  to  the  Governor  and  to  the  Illinois 
Bee  Keepers'  Association  stating  the  number  of  apiaries  visited,  the 
number  treated  and  the  number  destroyed. 

The  per  diem  and  expenses  of  the  Inspector  of  Apiaries  to  Sep- 
tember 30,  1912  amounted  to  $1,702.97.  In  1913  an  appropriation  of 
$2,000  a  year  was  made  for  salary  of  inspector  and  assistants. 

Board  of  Inspectors  of  Commission  Merchants. 

An  Act  of  1899  provided  for  a  board  of  inspectors  to  enforce 
regulations  imposed  on  commission  merchants  and  to  issue  licenses 
to  such  merchants.  The  board  was  to  consist  of  one  member  from 
each  of  the  following  associations:  The  State  Horticultural  Society, 
the  State  Dairymen's  Association,  the  State  Retail  Dealers'  Asso- 
ciation, the  Chicago  Butter  and  Egg  Board  and  the  Chicago  Branch 
of  the  National  League  of  Commission  Merchants.  This  board  was 
organized  and  $3,075  had  been  paid  in  for  licenses,  when  the  provisions 
of  the  Act  for  a  board  of  inspectors  were  declared  invalid  by  the 
Supreme  Court,  on  the  ground  that  the  appointment  of  the  members 
by  private  corporations  constituted  a  special  franchise  in  violation 
of  Section  22  of  Article  IV  of  the  State  Constitution.^ 

The  license  fees  which  had  been  collected  were  repaid  by  an 
appropriation  by  the  General  Assembly. 

1.    Lasher  v.  the  People,  183  111.,  226  (Dec.  1899). 


AGRICULTURAL    AGENCIES  607 

B.       ASSOCIATIONS   RECEIVING   STATE   AID. 

In  addition  to  the  boards  and  offices  definitely  established  as 
organs  of  the  State  government  and  which  exercise  certain  public 
powers,  there  are  a  number  of  voluntary  associations  or  societies  organ- 
ized for  the  advancement  of  agriculture  and  allied  interests,  which  have 
been  recognized  and  aided  in  various  ways  as  public  corporations  by  the 
State  and  are  utilized  lor  the  promotion  of  public  interests.  They  are 
not  governmental  agencies  in  a  strict  sense  (with  public  authority)  ; 
but  they  have  been  granted  certain  electoral  and  other  functions ;  they 
receive  some  appropriations  from  the  State,  to  be  expended  for  the  pro- 
motion of  their  respective  interests ;  and  they  are  required  to  make 
reports  to  the  Governor  or  some  other  official.  , 

This  group  of  associations  include  the  following: 

1 — The  State  Horticultural  Society. 

2 — The  Illinois  Dairymen's  Association. 

3 — The  Illinois  State  Poultry  Association. 

4 — The  Illinois  State  Bee  Keepers'  Association. 

5 — The  Live  Stock  Breeders'  Association. 

6 — The  Illinois  Horse  Breeders'  Association. 

7 — County  Fairs  and  Agricultural  Societies. 

All  of  these  associations  are  recognized  by  the  statutes  for  certain 
purposes;  and  all  of  them  but  one  received  appropriations  from  the 
Legislature  in  1913  for  the  promotion  of  the  particular  interest  for 
which  they  were  organized.  With  the  exception  of  the  State  Horti- 
cultural Society  each  is  incorporated  under  general  laws  and  each  has 
its  own  organization  and  its  meetings  and  activities  are  not  regulated 
by  law.  The  Horticultural  Society,  however,  occupies  a  different  legal 
position.  It  was  chartered  by  the  State  and  its  organization  and  activi- 
ties are  especially  regulated  by  law. 

The  Illinois  State  Horticultural  Society. 

The  Illinois  State  Horticultural  Society  was  organized  in  1856 ; 
and  reorganized  in  1874.  It  is  declared  by  law  to  be  a  public  corpora- 
tion, embracing  three  district  horticultural  societies  known  as  the 
Horticultural  Society  of  Northern  Illinois,  the  Horticultural  Society 
of  Central  Illinois  and  the  Horticultural  Society  of  Southern  Illinois. 
Membership  of  these  societies  consists  of  such  persons  as  are  sufficient- 
ly interested  in  horticulture  to  pay  the  membership  fee.  The  affairs  of 
the  society  are  Vested  by  law  in  an  executive  board  consisting  of  the 
president,  and  secretary  of  the  society  and  the  president  and  one 
vice-president  of  each  of  the  three  district  horticultural  societies.  It 
has  the  custody  and  expenditure  of  all  funds  that  may  be  appropriated 
by  the  legislature  for  the  support  of  the  society,  the  said  funds  to 
be  expended  in  such  manner  as  in  the  judgment  of  the  board  will  best 
promote  the  interests  of  horticulture  and  aboriculture  in  the  State. 
The  board  is  required  to  meet  at  Springfield  biennially  on  the  first 
Monday  in  January  and  to  make  a  report  to  the  Governor  of  all  funds 
received  from  the  State  and  other  sources,  which  report  shall  specify 
the  objects  for  which  its  funds  were  expended.    It  is  further  required 


608  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

to  publish  annually  a  report  of  the  transactions  of  the  society  together 
with  such  other  papers  as  it  may  deem  of  value  to  horticulture  and 
arboriculture.  The  volume  of  proceedings  for  1911  made  a  book  of 
427  pages.  The  appropriation  from  the  State  treasury  in  1913  for  the 
use  of  the  society  was  $5,000. 

Illinois  Dairymen's  Association. 

This  society  was  organized  in  1874  and  incorporated  in  1883. 
Its  officers  are  not  appointed  or  controlled  in  any  way  by  the  State; 
but  it  is  governed  by  a  board  of  directors,  which  elect  a  president 
and  vice-president  from  their  number.  The  association  represents  the 
dairy  interests  of  the  entire  State ;  and  its  work  is  educational,  encour- 
aging the  breeding  of  the  best  cattle  and  the  use  of  improved  methods. 

For  some  years,  the  General  Assembly  has  made  an  appropriation 
for  expenses  incurred  in  printing  and  distributing  the  annual  reports 
of  the  association.  Two  thousand  five  hundred  dollars  per  annum  was 
appropriated  in  1913, 

Milk  Producers'  Institute. 

This  organization  was  incorporated  under  the  laws  of  Illinois,  to 
hold  an  institute  each  year  for  the  discussion  of  problems  connected 
with  the  production  and  distribution  of  milk.  While  the  membership 
was  not  limited  to  any  locality,  it  was  of  most  importance  to  the  city 
of  Chicago  and  the  milk  producing  districts  adjacent  to  that  city.  For 
a  few  years  a  small  appropriation  was  made  to  this  organization;  but 
this  was  not  renewed  in  1913. 

Illinois  State  Poultry  Association. 

This  association  was  incorporated  in  1896,  to  gather  and  dissemi- 
nate information  relating  to  the  poultry  interests  and  to  foster  the 
growth  of  the  poultr}^  industry  of  the  State.  Annual  shows  of  poultry 
are  held  at  different  points  in  the  State. 

In  1897,  an  Act  of  the  General  Assembly  defined  the  powers  ana 
duties  of  the  association,  and  granted  an  appropriation  of  $1,000  per 
annum.    This  appropriation  has  been  renewed  ever>^  two  years. 
State  Bee  Keepers'  Association. 

The  Illinois  State  Bee  Keepers'  Association  was  organized  in 
1891,  to  encourage  the  bee  keeping  industry  in  this  State.  Annual 
meetings  are  held,  and  reports  of  these  meetings  are  published  and 
distributed.  For  some  years  a  State  appropriation  of  $1,000  per  annum 
has  been  made  to  assist  the  association. 


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State   Live  Stock   Sanitary 
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College  of  Agriculture,  in- 
spection of  fertilizers. 

State  Veterinarian. 

State  Live  Stock  Commis- 
sion. 
Fish  and  Game  Warden. 
Dairv   Commissioner. 
State  Entomologist. 

Dairy,  Food  and  Oil  Com- 
missioners. 

Board  of  Horticultural  In- 
spection. 

State  Dairy  Commission. 

Dairy,  Food  and  Oil  Com- 
missioner. 

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domestic  arts. 

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of  adulteration  of  oils. 
Collection  of  labor  statistics. 
Promotion   of  immigration. 
Appoints  Dairy  Commissioner. 
Supervises    State   exhibits    at    State 

Fair  and  audits  accounts  of  State 

Fair  Board. 
Issuance  of  sire  certificates. 

Collection    of  statistics   relating   to 
labor  and   industry,  especially  in 
relation  to  agriculture,  commerce, 
etc. 

Collection    of    information    relating 
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Department  of  Agricul- 
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Created   by   Constitu- 
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Department  of  Agricul- 
ture and  Publicity. 

Bureau  of  Immigration, 
Labor  and   Statistics. 
(Established  by  Con- 
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Fish  Commissioners. 

State  Board  of  Forestry. 

State  Board  of  Horticul- 
ture. 

Board  of  Sheep  Commis- 
sioners. 

State  Board  of  Fish  Com- 
missioners. 

State  Veterinarian. 

State  Forestry. 

Sheep  Inspectors. 

Commission  of  Horticul- 
ture. 

Agricultural  Experiment 
Station,  inspection  of 
fertilizers. 

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State  Dairy  and  Food  Commis- 
sioner, State  Commissioner  of 
Horticulture,  State  Oil  Inspector, 
State  Fair  Commission,  State 
Commissioner  of  Labor  as  to  laws 
relating  to  bakeries.  Department 
of  Animal  Husbandry,  and  Agri- 
cultural Experiment  Station. 

Department  divided  into  four  divi- 
sions, e.  g..  Division  of  Dairy  and 
Live  Stock;  Division  of  Horticul- 
ture; Division  of  Agriculture: 
Division  of  Foods,  Feeds,  Ferti- 
lizers, Drugs  and  Oils. 

Commissioner  is  ex  officio  member 
of  State  Board  of  Health. 

Promotion  of  agriculture. 
Collection  and  dissemination  of  in- 
formation. 
Holding  of  State  Fair. 

Management  of  State  Agricultural 
Societies. 

Holding  of  State  Fair. 

Appointment  of  chemist,  botanist, 
mineralogist,  geologist,  metallur- 
gist, ornithologist  and  entomolo- 
gist. 

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State  Board  of  Agricul- 
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By  Governor. 

State  Board  of  Agricul- 
ture. 

Washington 

Otegon _ 

California . 

AGRICULTURAL   AGENCIES  623 

Summary. 

From  the  data  in  the  foregoing  statement,  it  will  be  seen  that  in 
twenty-two  states  there  are  organized  agricultural  departments,  in 
which  are  united  a  considerable  number  of  services.  In  this  class  are 
New  York,  Pennsylvania,  Ohio,  Maine,  New  Hampshire,  North 
Dakota,  Montana,  Idaho,  Washington  and  nearly  all  of  the  Southern 
states.^  In  most  of  these  states,  the  department  is  under  the  direction 
and  control  of  a  single  salaried  official,  usually  styled  the  Commissioner 
of  Agriculture.  In  many  of  the  Southern  states,  and  in  North  Dakota, 
the  commissioner  is  an  elective  state  officer,  in  some  cases  provided 
for  in  the  state  constitution.  In  the  other  states  this  officer  is 
appointed  by  the  Governor.  Some  of  these  states  with  well  organized 
departments  of  agriculture,  have,  in  addition  to  the  chief  executive,  a 
board  of  agriculture,  usually  small  in  number  and  appointed  by  the 
Governor.  Such  boards  are  provided  in  Pennsylvania,  New  Hamp- 
shire, Virginia,  North  Carolina,  Kentucky,  Alabama  and  Louisiana. 
In  Ohio  there  is  a  comprehensive  department  of  agriculture  under  the 
control  of  an  agricultural  commission  of  four  members,  three  appointed 
by  the  Governor  and  one  by  the  trustees  of  Ohio  State  University, 
at  salaries  of  $5,000,  with  extensive  powers.  In  Oklahoma,  there  is 
a  state  board  of  agriculture  of  eleven  members,  the  president  of 
which  is  an  elective  official. 

In  the  larger  number  of  states,  agricultural  interests  are  looked 
after,  as  in  Illinois,  by  a  number  of  different  authorities,  organized 
in  different  ways  and  with  different  relations  to  the  state  government. 
Most  of  these  states  have  a  state  board  of  agriculture,  which  is  usually 
a  large  body  (from  ten  to  more  than  forty  members,  which  is 
neither  selected  by  nor  responsible  to  the  Governor  or  other  state 
officers.  In  a  few  states,  (Delaware,  West  Virginia,  South  Dakota 
and  Oregon),  there  are  small  boards  of  agriculture  (with  from  three 
to  seven  members)  appointed  by  the  Governor,  with  limited  powers. 
There  are  no  State  Boards  of  Agriculture  in  Wyoming,  Utah,  Nevada, 
New  Mexico  or  Arizona.  But  in  all  of  the  states  of  this  group  there 
are  other  officials  and  boards  ^exercising  functions  relating  to  agri- 
cultural affairs,  such  as  live  stock,  dairy,  fish  and  game  and  forestry 
boards  or  commissioners.  The  state  boards  of  agriculture  are  usually 
limited  to  the  management  of  the  state  fair,  the  collection  of  statistics, 
the  publication  of  bulletins  and  crop  reports,  and  sometimes  super- 
vision of  farmers'  institutes,  the  inspection  of  commercial  fertilizers 
and  some  similar  matters.  In  general  their  functions  are  more  of  an 
educational  character  than  governmental,  since  they  are  rarely  charged 
with  the  enforcement  of  legislation  relating  to  agriculture  and  other 
related  industries. 

The  chief  advantages  claimed  for  the  board  system  are  that  it 
affords  a"  means  of  securing  the  collaboration  of  a  number  of  persons 
who  are  actively  engaged  in  the  pursuits  of  agriculture  and  whose 

2.  In  most  of  these  states  the  department  title  and  functions  include  more  than 
agricultural  interests.  In  Alabama  It  Is  a  department  of  agriculture  and  industries; 
In  Mississippi,  a  department  of  agriculture  and  commerce;  and  in  Arkansas  a  depart- 
ment of  mines,  manufactures  and  agriculture.  In  Iowa  there  is  a  so-called  "depart- 
ment" of  agriculture  under  a  state  board  of  agriculture,  organized  as  In  Illinois  and 
witti  limited  powers. 


624  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

combined  experience  and  knowledge  may  therefore  be  presumed  to  be 
much  greater  than  that  of  a  single  commissioner.  The  chief  disadvan- 
tage, however,  is  that  owing  to  the  large  size  of  most  state  boards  of 
agriculture  they  are  cumbersome  and  unwieldy  and  therefore  not  well 
adapted  for  efficient  administration.  Where  there  are  twenty  (20)  or 
thirty  (30)  members  residing  in  different  parts  of  the  state  they  can 
be  assembled  only  at  rare  intervals  and  then  at  more  or  less  incon- 
venience and  expense.  Finally,  boards  as  administrative  bodies  lack 
responsibility,  since  it  is  obviously  difficult  to  fix  definitely  and  eft'ec- 
tively  responsibility  for  their  acts  upon  any  member. 

It  should  be  said,  however,  that  the  difference  between  the  single 
commissioner  system  and  the  board  system  is  sometimes  more  appar- 
ent than  real.  In  all  the  states  which  have  a  state  board  of  agriculture, 
the  president  or  the  secretary — usually  the  secretary — is  generally  a 
paid  official  who  maintains  an  office  in  the  state  capitol  and  devotes 
most  of  his  time  to  the  discharge  of  his  official  duties.  In  most  states 
he  performs  various  duties  which  in  those  states  having  departments 
of  agriculture  are  performed  by  the  commissioner.  His  office,  there- 
fore, is  often  not  very  unlike  a  department  and  is  in  fact  so  designated 
by  law  in  several  states  (of  which  Illinois  is  one)  where  there  are 
state  boards  of  agriculture.  But  in  such  cases  the  secretary  of  the 
state  board  of  agriculture  is  subject  to  the  control  and  supervision 
of  the  board,  whereas  a  commissioner  of  agriculture  is  directly  re- 
sponsible for  the  conduct  of  his  office. 

It  is  not  to  be  understood  that  there  are  no  other  authorities  in 
these  states  which  have  departments  of  agriculture.  In  a  majority 
of  states  the  control  of  the  live  stock  interests  is  under  a  separate 
board  or  commissioner,  entirely  independent  of  the  commissioner  of 
agriculture  or  the  state  board  of  agriculture,  as  the  case  may  be.  So 
with  regard  to  the  protection  of  game  and  fish,  the  control  of  the  dairy 
industries,  food  inspection,  the  forestry  service,  etc.  In  most  states 
the  board  of  agriculture,  or  the  department  of  agriculture,  is  there- 
fore but  one  of  a  group  of  independent  and  co-ordinate  authorities 
among  which  is  distributed  the  administration  of  a  number  of  related 
services. 

In  many  States  the  number  of  such  boards  or  commissions  has 
been  multiplied  to  such  an  extent  as  to  cause  much  unnecessary  con- 
fusion, overlapping  and  duplication.  In  Utah  and  Washington,  for 
example,  practically  each  service  relating  to  agriculture  and  other 
kindred  industries  has  been  placed  under  a  separate  board  or  com- 
mission, and  to  a  somewhat  less  degree  this  is  the  situation  in  Illinois 
and  many  other  states. 

It  is  the  opinion  of  students  of  administrative  organization  that 
the  board  system  has  been  much  overdone  in  most  of  the  states,  and 
that  considerations  of  economy,  efficiency  and  responsibility  require 
that  the  further  multiplication  of  boards  for  administrative  purposes 
should  be  checked.  In  recent  years  there  have  been  signs  of  a  reaction 
against  this  tendency.  New  York,  Pennsylvania,  Ohio,  Washington, 
and  to  a  less  extent  Florida  and  Georgia  have  gone  farthest  in  the 
direction  of  consolidating  in  a  single  department  the  various  agricul- 


AGRICULTURAL   AGENCIES  625 

tural  services,  which  are  more  or  less  related  in  character,  with  a  view 
to  introducing  simplicity,  securing  greater  economy  and  efficiency  and 
avoiding  unnecessary  overlapping  and  duplication.  In  1913  such  con- 
solidated departments  were  established  in  Ohio,  New  Hampshire  and 
Washington. 

The  New  York  system  represents  the  type  of  organization  most  in 
harmony  with  modern  principles  of  administrative  organization,  and 
the  one  toward  which  the  most  progressive  States  are  gradually  tending. 
The  Commissioner  of  Agriculture  in  that  State  has  been  vested  with 
large  powers  and  in  the  department  of  which  he  is  the  head  have 
been  consolidated  a  large  group  of  important  services  organized  into 
ten  bureaus,  such  as  the  supervision  of  dairying  and  cheese  making, 
the  administration  of  the  laws  relating  to  the  live  stock  industry  includ- 
ing the  control  of  contagious  diseases  among  domestic  animals,  the 
bee  keeping  industry,  the  enforcement  of  pure  food  laws  and  laws 
relating  to  the  sale  of  certain  articles  like  paris  green,  turpentine,  lin- 
seed oil,  etc.,  the  laws  for  the  protection  of  trees,  shrubs  and  plants 
against  disease  and  pests,  the  laws  governing  the  inspection'  and  sale 
of  commercial  fertilizers  and  food  stuffs,  the  inspection  and  condem- 
nation of  meat,  and  other  services  which  in  most  states  are  under  the 
administration  of  separate  boards  or  offices. 

So  too,  in  Pennsylvania,  the  department  of  agriculture  is  charged 
with  the  promotion  of  agriculture,  horticulture,  forestry,  live  stock 
and  poultry  interests,  the  analysis  of  fertilizers,  the  protection  of 
forests,  the  enforcement  of  laws  relating  to  diseases  of  animals,  the 
prevention  of  fraud  in  the  sale  of  foods,  and  supervision  over  the 
Live  Stock  Sanitary  Board,  the  State  Veterinarian,  the  Economic 
Zoologist  and  the  Daiiy  and  Food  Commissioner. 

Even  more  comprehensive  are  the  powers  of  the  recently  estab- 
lished Agricultural  Commission  o"f  Ohio.  These  include  the  powers 
formerly  exercised  by  the  Secretary  and  State  Board  of  Agriculture, 
the  Board  of  Live  .Stock  Commissioners,  the  Board  of  Control  of  the 
State  experiment  station,  the  State  Dairy  and  Food  Commissioner,  the 
Fish  and  Game  Commissioner,  the  State  Board  of  Veterinary 
Examiners,  and  some  powers  of  the  State  Board  of  Pharmacy.  The 
commission  has  authority  to  establish  bureaus,  and  also  has  power  to 
conduct  investigations,  inspections  and  hearings  and  to  make  rules  and 
regulations  relating  thereto.  • 

The  consolidated  department  of  agriculture  under  a  single  official, 
with  subordinate  bureaus  and  divisions,  is  the  system  of  organization 
by  which  the  government  of  the  United  States  administers  the  acts 
of  Congress  for  the  promotion  'of  agriculture.  This  also  is  the  usual 
method  of  administration  for  agricultural  as  for  other  interests  in 
Canada  and  the  other  countries  in  America  and  Europe. 

B.       GOVERNMENTAL    ORGANIZATION    FOR    AGRICULTURE    IN    FOREIGN 

Canada.  <  countries. 

The  prevailing  system  of  organization  in  Canada,  both  for  the 
Dominion  Government  and  the  Provincial  Government,  is  that  of  a 
department  at  the  head  of  which  is  the  Minister  of  Agriculture.    The 


626  EFFICIENCY    AND    ECONOMY    COMMITTEE. 

board  system  so  common  in  the  American  states  is  almost  unknown 
in  Canada.  Nearly  all  the  interests  affecting  agriculti|re  and  the  re- 
lated industries,  besides  certain  others  which  have  no  relation  to  agri- 
culture are  grouped  together  in  one  department  and  are  subject  to 
the  control  and  supervision  of  a  minister  who. is  generally  a  member 
of  the  cabinet  and  responsible  to  the  legislature.  -  He  is  charged  with 
the  administration  of  all  the  laws  relating  to  the  various  interests 
that  are  placed  in  his  department  and  he  has  a  large  power  of  issuing 
regulations  in  regard  to  such  matters  as  quarantine,  cold  storage,  trans- 
portation, inspection  of  the  cutting  of  timber,  etc. 

The  Dominion  department  of  agriculture  has  jurisdiction  of  many 
matters  that  in  the  American  States  are  under  the  control  of  separate 
boards,  commissions  or  offices.  Such  as  the  dairy  industry,  cold  stor- 
age, inspection  of  fruits  and  seed,  the  live  stock  industry,  including 
control  of  contagious  diseases,  chemical  analysis  of  fertilizers  and  other 
commodities,  farm  experiments,  inspection  of  trees,  shrubs  and  plants, 
the  poultry  industry  and  even  such  matters  as  patents,  copyrights,  trade 
marks,  designs,  public  health  and  quarantine  and  the  census  and  sta- 
tistics. For  purposes  of  administration  the  department  is  subdivided 
into  branches  and  divisions.  The  following  outline  of  the  organization 
of  the  department  will  serve  to  give  some  idea  of  the  scope  of  the 
activities  which  are  embraced  within  the  department : 

1.  The  Dairy  and  Cold  Storage  Commissioners  Branch — 

(a)  The  division  of  markets  extension. 

(b)  The  cold  storage  division. 

(c)  The  fruit  division. 

2.  The  Seed  Commissioners  Branch. 

3.  The  Live  Stock  Branch. 

4.  The  Experimental  Farms  Branch — 

(a)  The  agricultural  and  live  stock  division. 

(b)  The  horticultural  division. 

(c)  The  chemistry  division. 

(d)  The  entomologist  and  botanical  division. 

(e)  The'  cereal  division. 

(f)  The  poultry  division. 

(g)  The  division  of  branch  farms. 

5.  The  Health  of  Animals  Branch. 

6.  The  Archives  Branch. 

7.  Patents  and  Inventions. 

8.  Copyrights,    Trade    Marks,    Industrial    Designs   and   Timber 

Works. 

9.  Census  and  Statistics. 

The  organization  of  the  provincial  departments  of  agriculture  is 
similar  to  that  of  the  Dominion  Government. 

In  Nova  Scotia  the  Secretary  of  Agriculture  has  control  of  the 
agricultural  college,  the  entomologist  service,  drainage  surveying,  the 
poultry  industry,  the  dairy  industry,  supervision  of  agricultural  socie- 
ties, the  registration  of  stallions  and  the  registration  of  swine. 

The  Ontario  department  has  control  of  the  college  of  agriculture, 
the  veterinary  college,  the  enforcement  of  the  laws  for  the  protection  of 


AGRICULTURAL   AGENCIES  627 

the  beekeepers'  industry  against  the  ravages  of  foul  brood,  the  eradica- 
tion of  plant  diseases  and  pests,  inspection  of  milk  and  cheese,  the 
supervision  of  all  private  associations  receiving  aid  from  the  provincial 
treasury,  promoti6n  of  colonization  and  immigration,  control  of  con- 
tagious diseases  among  live  stock  and  the  inspection  of  factories.  The 
department  is  sub-divided  into  branches  and  divisions.  The  organiza- 
tion and  activities  of  the  departments  of  agriculture  in  the  other  prov- 
inces are  substantially  the  same  as  those  of  the  department  sketched 
above. 

In  Saskatchewan  the  department  of  agriculture  is  divided  into 
seven  branches  at  the  head  of  each  of  which  is  a  chief  who  is  under 
the  direction  of,  and  responsible  to,  the  Minister  of  Agriculture.^  The 
department  embraces  a  wide  variety  of  activities  many  of  which  in 
the  United  States  are  under  the  management  of  separate  boards.  They 
include,  for  example,  such  matters  as  the  collection  of  statistics,  the 
recording  of  brands,  the  enforcement  of  the  weeds  and  game  laws,  the 
inspection  of  factories,  the  arbitration  of  labor  disputes,  the  inspection 
of  live  stock,  the  enforcement  of  the  stray  animals  act,  the  registra- 
tion of  stallions,  the  administration  of  the  horse  breeders  act,  the 
chemical  and  bacteriological  laboratory,  etc. 

The  Alberta  department  of  agriculture  has  control  of  the  adminis- 
tration of  the  dairy  laws,  the  noxious  weeds  act,  the  game  and  fish 
protection,  the  poultry  industry,  the  recording  of  birds,  the  public 
health  service,  the  office  of  sanitary  engineer  and  the  bacteriological 
laboratory. 

Australia. 

The  same  general  method  of  organization  of  state  agriculture 
which  prevails  in  Canada  is  found  in  Australia.  The  commonwealth 
as  well  as  each  of  the  individual  States  has  a  department  of  agriculture 
at  the  head  of  which  is  a  minister  who  occupies  a  seat  in  the  cabinet 
and  is  responsible  to  the  parliament.  There,  as  in  Canada,  the  minister 
has  large  powers  in  the  administration  of  the  laws  relating  to  agriculture 
and  in  issuing  regulations  of  various  kinds.  Instead  of  providing  a 
separate  board  for  the  management  of  each  service  an  extensive  group 
of  related  services  are  brought  together  in  one  department  and  placed 
under  the  control  and  supervision  of  a  single  responsible  official. 

The  Commonwealth  department  of  agriculture  has  jurisdiction 
over  the  following  matters ;  Agriculture,  forestry,  the  live  stock  indus- 
try, including  the  control  of  contagious  diseases  among  domestic  ani- 
mals, water  conservation  and  irrigation,  farm  demonstration  and 
experimentation,  viticulture  and  nuresries,  the  agricultural  college 
and  farm  schools,  dairying,  plant  diseases  and  pests,  adulteration  of 
food  and  wine,  analysis  of  commercial  fetrilizers,  the  exportation  of 
fruit,  inspection  of  sheep  and  wool,  etc.  Among  the  several  States 
which  compose  the  Commonwealth  the  same  general  method  of  organi- 
zation and  administration  is  found. 

In  Victoria  the  department  of  agriculture  has  control  of  such 
matters  as  the  agricultural  colleges,  and  schools,  the  veterinary  school, 
the  experimental  farms,  orchards  and  vineyards,  milk  and  dairy  super- 
vision, the  exportation  of  butter,  the  diseases  of  live  stock,  soil  investi- 


628  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

gation,  chemical  analysis  of  commercial  fertilizers,  pure  food  and  wine 
inspection,  the  inspection  of  sheep  and  swine,  the  administration  of  the 
poisons  act,  the  adulteration  of  leather  act,  the  eradication  of  plant 
diseases  and  pests,  fish  and  game  protection,  registration  of  stallions, 
inspection  of  fruit  and  tobacco,  quarantine  and  supervision  of  agri- 
cultural societies. 

In  New  South  Wales,  Queensland,  South  Australia  and  Western 
Australia  the  departments  of  agriculture  are  similarly  organized  and 
their  activities  embrace  the  same  wide  variety  of  service. 

On  the  whole  it  is  believed  that  the  methods  of  state  organization 
for  agriculture  in  Canada  and  Australia  afford  instructive  lessons  for 
the  American  states  and  that  their  methods  might  be  followed  to  some 
extent  by  us.  Instead  of  a  multiplicity  of  boards  with  their  inevitable 
overlapping,  duplication  and  want  of  responsibility  the  Canadians  and 
Australians  have  adopted  the  simpler  method  grouping  together  in  one 
department  under  a  single  responsible  authority  all  the  various  serv- 
ices which  relate  directly  or  indirectly  to  the  conservation  and  pro- 
motion of  agriculture  in  the  broadest  sense  of  the  term.  By  this  means 
services  of  a  related  character  are  administered  by  a  common  authority 
so  that  harmony  and  co-ordination  are  secured,  conflict  and  duplication 
avoided  and  a  more  effective  responsibility  and  consequently  greater 
economy  and  efficiency  are  obtained. 

On  the  continent  of  Europe  the  prevailing  form  of  organization 
is  that  of  a  department  at  the  head  of  which  is  a  Minister  of  Agri- 
culture who  is  responsible  to  the  parliament.  As  in  Canada  and  Aus- 
tralia he  has  large  powers  and  the  department  embraces  a  large  group 
of  services  which  in  the  American  states  is  under  the  management  of 
separate  and  independent  boards. 

France. 

In  France  the  ministry  of  agriculture  is  sub-divided  into  "direc- 
tions" or  divisions  at  the  head  of  which  is  a  director-general ;  and  the 
"directions"  are' sub-divided  into  bureaus.  Among  the  services  which 
fall  within  the  ministry  of  agriculture  are  the  following:  Control  of 
the  agricultural  colleges  and  schools  and  agricultural  instruction  gen- 
erally, the  control  of  waters  and  forests,  protection  of  fish  and  game, 
fish  culture,  hydraulic  service,  irrigation  canals,  registration  of  stal- 
lions, encouragement  of  horse  breeding,  control  of  contagious  diseases 
among  live  stock,  agricultural  credit  and  co-operation  and  mutual 
insurance  and  relief  in  cases  of  drought  and  other  calamities.  The 
ministry  also  has  control  of  the  national  agricultural  exhibitions  and 
the  distribution  of  subventions  to  the  local  societies.  It  also  bestows 
prizes,  medals  and  decorations  upon  successful  agriculturists,  horse 
breeders,  gardeners,  etc.  One  of  the  characteristic  features  of  French 
administration  is  the  use  made  of  councils  and  commissions  composed 
of  technical  experts,  for  purposes  of  advice  and  consultation.  There 
is  a  large  number  of  these  for  the  ministry  of  agriculture,  the  most 
important  of  which  is  the  superior  council  of  agriculture.  In  addition 
there  are  councils  for  agricultural  instruction,  for  waters  and  forests, 
for  fisheries,  for  the  registration  of  stallions,  etc.,  so  that  each  adminis- 
trative chief  has  associated  with  him  a  council  for  advice  and  consul- 


AGRICULTURAL   AGENCIES  629 

tation.  In  some  cases  the  minister,  the  director-general  or  other  admin- 
istrative officer  is  required  by  law  to  consult  one  of  the  councils  before 
taking  action,  and  in  all  cases  he  is  at  liberty  to  seek  their  advice, 
although  generally  speaking  the  ultimate  responsibility  is  upon  him  and 
he  is  not  therefore  bound  to  act  in  accordance  with  the  advice  which 
the  council  may  give.  The  chief  merit  of  this  arrangement  is  that  it 
puts  at  the  disposition  of  the  minister  the  benefit  of  the  best  technical 
and  expert  opinion  without  at  the  same  time  dividing  the  responsibility. 

Prussia. 

State  care  and  control  of  the  agricultural  and  allied  interests  in 
Prussia  is  centered  in  the  ministry  of  agriculture,  domains  and  forests. 
The  ministry  is  sub-divided  into  three  divisions :  a  division  which  has 
charge  of  agricultural  and  breeding  matters  including  veterinary  prac- 
tice, credit  and  co-operation,  instruction,  irrigation,  colonization,  fish- 
eries, cultivation  of  marsh  lands,  agricultural  police  and  game  protec- 
tion; a  division  for  the  administration  of  the  public  domain;  and  a 
division  for  the  administration  of  State  forests. 

Connected  with  the  ministry  are  various  commissions,  institutions 
and  services,  such  as  the  royal  agricultural  commission  (a  body  com- 
posed partly  of  members  elected  by  the  Chambers  of  Agriculture  and 
partly  of  members  appointed  by  the  Minister  of  Agriculture,  and  which 
acts  as  a  permanent  advisory  council  to  him  in  all  matters  relating  to 
agriculture  and  forestry),  the  breeding  and  veterinary  stations,  the 
higher  schools  of  agriculture,  the  horticultural  institutes,  the  agricul- 
tural credit  institutes,  the  Central  Moor  Commission,  the  Chambers 
of  Agriculture,  land  boards  and  others. 

In  every  province  is  a  chamber  of  agriculture,  a  quasi  public 
corporation  created  by  law,  its  chief  function  being  the  promotion  of 
the  agricultural  and  forestry  interests  within  the  province.  They  study 
measures  for  improving  existing  conditions  and  assist  the  adminis- 
trative authorities  by  communications  and  reports ;  they  also  lend  their 
assistance  in  matters  of  agricultural  credit  and  co-operation  and  sup- 
ply the  banks  and  markets  with  price  quotations.  They  have  the 
power  to  levy  taxes  and  they  have  their  own  budget  and  treasury. 
Members  of  the  Chambers  are  elected  for  a  term  of  six  years,  one 
half  the  members  retiring  every  three  years.  The  sittings  of  the 
Chambers  are  public,  and  a  record  of  their  proceedings  must  be  com- 
municated to  the  Minister  of  Agriculture.  All  their  acts  are  subject 
to  the  surveillance  of  the  Minister. 

For  the  determination  of  various  disputes  arising  in  connection 
with  the  ownership  or  use  of  land  there  are  provincial  land  boards 
from  whose  decisions  appeal  may  be  taken  to  the  Superior  Court  of 
Agriculture,  which  sits  at  Berlin,  under  the  joint  direction  of  the 
Ministers  of  Agriculture  and  Justice.  This  court  is  composed  partly  of 
trained  judges  and  partly  of  agricultural  experts. 

For  the  study  of  methods  of  improving  marsh  lands  and  the 
reclamation  of  sandy  soils  and  for  advising  the  Minister  in  matters 
relating  to  such  lands  there  is  a  Central  Moor  Commission  which  was 
created  in  1875.     Likewise,  there  is  a  technical  committee  for  vet- 


630  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

erinary  matters  composed  mainly  of  teachers  and  practitioners  of  vet- 
erinary science  created  in  1875,  to  advise  the  Minister  in  matters 
relating  to  veterinary  practice  and  diseases  of  animals. 

Austria. 

The  Austrian  Minister  of  Agriculture  has  a  double  field  of  activity. 
On  the  one  hand  he  is  the  chief  administrative  authority  for  all 
matters  pertaining  to  agriculture,  and  on  the  other  hand,  he  is  the 
chief  administrative  authority  for  the  forests,  domains  and  mines  of 
the  state.  The  Ministry  in  its  present  form  was  established  in  1868 
and  since  that  date  has  had  numerous  functions  added  to  its  sphere 
of  activity.    These  functions  may  be  classified  as  follows : 

1.  The  administration  of  legislative  acts  regarding  the  policing 
of  forests,  hunting  and  fishing ;  acts  relative  to  local  regulation,  breed- 
ing matters,  mining,  reclamation  of  soil  and  its  improvement,  coloniza- 
tion, hydraulics  (these  last  two  in  connection  with  the  Ministry  of 
Interior),  questions  of  assessment  and  taxation,  (in  connection  with 
Ministry  of  Finance)  and  finally  matters  of  expropriation. 

2.  The  Minister  is  the  court  of  final  resort  in  matters  relating  to 
water  regulation  and  forestry  law  except  when  they  concern  the  Min- 
ister of  Interior.  It  is  also  an  administrative  court  for  violation  of 
game  and  hunting  laws,  also  in  all  maters  of  expropriation  and  re- 
distribution. The  latter  matter  is  handled  by  a  special  ministerial 
commission  for  agrarian  operations. 

3.  The  application  of  endowment  funds.    Agricultural  statistics. 

4.  Breeding  of  horses.  The  administration  of  state  breeding  sta- 
tions.   Bounties  for  breeders  and  state  prizes  for  horse  racing. 

5.  Administration  of  State  instruction  in  agriculture,  mining  and 
forestry.  In  certain  matters,  however,  the  Minister  of  Education  must 
be  consulted. 

6.  The  administration  of  agricultural  credit  and  co-operative 
associations,  as  well  as  the  workmen's  insurance  and  ordinary  agri- 
cultural associations.  This  is  done  in  concert  with  the  Minister  of 
Interior  and  the  Minister  of  Finance  when  new  establishments  or  asso- 
ciations are  to  be  formed. 

7.  Administration  of  mining  laws  and  regulations.  The  Min- 
istry is  an  administrative  court  of  appeals  from  the  decisions  of  local 
authorities.  Personnel  of  mine  authorities,  and  finally  mine  associations 
are  also  under  its  control. 

8.  The  administration  of  State  forests  and  domains  as  well  as 
religious  and  educational  funds.  The  Ministry  also  administers  all 
realtv  belonging  to  the  state  and  the  increment  arising  therefrom.  It 
regulates  all  questions  such  as  easements  and  all  legal  disputes  regard- 
ing the  land.  It  also  makes  decisions  in  regard  to  buying  and  selling. 
It  has  control  over  all  schools  of  forestry. 

It  is  important  to  note  that  the  administration  of  mines  includes 
not  only  a  general  control  over  all  technical  and  economic  matters,  but 
also  over  educational  and  religious  matters  in  the  mining  regions. 

The  Ministry  is  divided  into  two  sections,  one  in  charge  of  agri- 
cultural interests,  the  other  administering  the  domains  and  forests  and 
mines. 


AGRICULTURAL   AGENCIES  .631 

The  Chief  Bureau  has  the  general  management  of  the  department, 
the  personnel  of  the  Ministry  and  services  and  matters  of  budget. 
The  accounts  of  the  Ministry  are  taken  care  of  by  four  different  divis- 
ions of  accounts. 

A  Central  Commission  for  Horse  Breeding  advises  the  Ministry 
in  such  matters  which  also  acts  as  a  council  of  administration  for  the 
state  studs.  It  is  composed  of  five  or  seven  members  appointed  by  the 
Minister  for  definite  terms  and  meets  under  his  chairmanship. 

The  Ministerial  Commission  for  Agrarian  Operations  is  composed 
of  the  Minister  or  his  assistant,  the  referees  of  the  Ministry,  three  or 
four  members  of  the  rank  of  judge  appointed  by  the  Minister  of  Jus- 
tice, and  a  representative  of  the  Minister  of  Interior.  The  chairman 
may  summon  agricultural  experts,  farmers  or  other  experts  to  sit  at 
the  meetings.  The  commission  is  in  correspondence  with  all  authorities 
and  keeps  in  touch  with  local  conditions  through  the  agricultural  coun- 
cils in  the  crown  lands. 

There  are  also  local  authorities  of  the  first  instance  and  inter- 
mediate authorities.  In  some  of  the  crown  lands  there  are  Agricultural 
Councils,  who  act  as  intermediaries  between  the  Ministry  and  the  local 
agricultural  associations.  These  may  be  called  upon  by  the  Ministry 
to  give  reports  and  advice  on  matters  pertaining  to  agriculture.  The 
Forestry  Inspectors  are  the  administrative  authorities  of  forestry  law. 

Hungary. 

In  general  the  functions  of  the  Hungarian  Ministry  of  agriculture 
cover  all  matters  of  agriculture  and  forestry.  These  functions  include 
control  over  breeding  matters,  the  veterinary  service,  milk  inspection, 
state  domains,  river  regulations,  general  water  policing,  farm  labor, 
forestry,  agriculture,  horticulture,  wine  growing  and  wineries,  hunting 
and  fisheries,  statistics,  education,  state  spas  and  finally  control  of 
property. 

The  services  of  the  Department  are  as  follows : 

Breeding  service  and  inspection. 

Veterinary  service. 

Instruction  (local  schools  and  academies.    Itinerant  instructors.) 

Agricultural  Senate. 

Experiment  Stations. 

Institute  of  wool  testing. 

Forestry  (schools,  authorities 'and  experiment  station.) 

Royal  River  Engineers. 

District  Agricultural  Engineers. 

Royal  Hydraulic  Survey. 

Societies  for  water  supply,  regulation  and  drainage. 

Senate  for  Hydraulics. 

Royal  Phylloxera  Commission. 

Expert  Wine  Testing  Commission. 

Senate  of  Appeal  in  matters  of  falsification  of  agricultural  prod- 
ucts. 

Agricultural  Referees  in  Administrative  Courts. 

Commission  of  Loans  for  Replanting  Vineyards. 

Reserve  fund  for  laborers  and  insurance. 


632  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

Education  in  horticulture  and  viniculture. 
Foreign  Commissioners. 

Royal  Institutes  of  Geology,  Entomology,  Ornithology,  Meteor- 
ology and  Terrestrial  Magnetism,  and  Royal  Agricultural  Museum. 
Administration  of  State  Domains  and  Spas. 

1.  Agricultural  Policing.  The  central  organ  of  rural  regulation 
are  the  Agricultural  Inspectors.  They  are  named  by  the  Minister  and 
have  cognizance  over  all  administrative  matters  and  are  expected  to 
report  to  the  Minister.  The  Chief  Inspector  is  a  member  of  the  admin- 
istrative council  and  is  the  expert  referee  on  agricultural  questions. 
Besides  the  inspectors,  the  Minister  appoints  honorary  Reporters  in 
each  district  who  are  expected  to  report  to  him  on  the  state  of  agricul- 
ture in  their  respective  districts. 

2.  Agricultural  Credit  is  a  matter  of  private  enterprise  in  Hun- 
gary, and  although  largely  encouraged  by  the  state,  there  is  no  direct 
control  as  in  Prussia.  The  Hungarian  Central  Co-operative  Credit 
Society  is  the  central  organ  and  is  composed  of  a  union  of  three 
independent  organizations. 

3.  Viniculture.  The  devastation  of  the  Phylloxera  has  given  rise 
to  special  state  activity  in  regard  to  the  cultivation  of  grapes  and  wine 
making.  The  state  has  provided  for  certain  Bergemeinde,  which  are 
given  the  right  to  make  regulations  on  all  matters  relating  to  viniculture. 
These  Gemeinden  are  composed  of  a  number  of  wine  growers  own- 
ing a  certain  amount  of  land.  Besides  its  regulatory  functions,  the 
Gemeinde  is  supposed  to  watch  over  the  interests  of  viniculture  and  to 
take  measures  against  destructive  insects,  etc.,  and  to  act  generally  as  a 
sort  of  wine  police.  The  Gemeinden  are  empowered  to  levy  taxes  for 
the  purposes  of  their  functional  activity.  From  decisions  of  these 
bodies  there  is  an  appeal  to  the  administrative  authorities  of  the  first 
instance. 

4.  Soil  Improvement.  The  District  Engineers  are  the  officers  of 
the  Department  of  Agriculture  in  matters  relating  to  the  improvement 
of  soils.  These  engineers  are  expected  to  furnish  to  the  land  owners 
plans  for  improving  their  lands  to  assist  in  the  execution  of  such  plans 
and  to  make  reports. 

In  addition  to  the  corps  of  engineers,  the  State  has  control  over 
the  institutions  which  furnish  loans  for  the  purposes  of  soil  improve- 
ment. The  State  also  has  established  model  farms  in  many  different 
localities  to  aid  the  farmers  in  improving  their  farms. 

5.  Labor.  A  unique  feature  of  the  Hungarian  agricultural  de- 
partment is  the  fact  that  the  control  of  farm  labor  is  in  the  hands  of 
the  Minister.  Stringent  regulations  are  made  in  order  to  enforce  con- 
tractual obligations.  The  employer  or  employee  who  attempts  to  vio- 
late his  contract  is  liable  to  fine  and  sometimes  imprisonment.  A  very 
determined  attempt  has  been  made  to  have  all  contracts  for  labor  in 
the  form  of  a  written  instrument. 

The  State  has  taken  great  interest  in  the  spiritual  and  intellectuat 
welfare  of  the  laborers.  It  provides  them  with  libraries,  lectures, 
cheap  literature,  pamhplets  popularly  written  on  all  manner  of  sub- 
jects and  newspapers  in  all  the  dialects  of  the  country.  Laborers  who 
have  proven  their  worth  are  given  on  recommendation  of  the  local 


AGRICULTURAL   AGENCIES  033 

agricultural  association,  a  diploma  or  an  additional  premium  by  the 
Ministry.    After  forty  years  of  service,  laborers  are  awarded  a  medal. 

In  the  Ministry  proper  there  is  a  division  of  employment.  This 
was  established  in  1899.  As  local  agent,  in  every  municipality  and 
commune  tliere  is  a  local  employment  office. 

Insurance  for  agricultural  laborers  is  also  an  activity  of  the  De- 
partment of  Agriculture.  The  fund  was  first  established  in  1900. 
Any  person  may  be  insured  who  is  a  farm  laborer  or  domestic  between 
the  ages  14-35.  There  are  two  classes  of  insura;ice  for  which  varying 
fees  are  paid. 

The  State  also  gives  pecuniary  aid  in  the  building  of  dwelling 
houses  by  laborers.  The  arbitral  tribunal  in  all  matters  involving  farm 
labor  is  the  Landrat  for  Agricultural  Labor. 

6.  Breeding  Service.  Here  again  the  service  is  divided  into  a 
central  and  a  local  one.  The  municipalities  are  empowered  to  establish 
certain  breeding  districts  to  regulate  the  number  of  stallions,  bullocks, 
etc.,  in  each  district.  This  is  done  only  with  the  consent  of  the  Minister. 
The  local  organ  of  administration  for  each  district  is  the  Special  Dis- 
trict Commission. 

The  Royal  Breeding  stations  are  directly  under  the  authority  of 
the  Minister.  He  exercises  his  function  in  part  through  the  Central 
Horse  Breeding  Commission.  This  body  is  made  up  of  bureau  officials 
members  of  agricultural  associations,  six  private  breeders  appointed  by 
the  Minister,  members  of  the  Hungarian  Jockey  Club,  the  directors, 
veterinarians  and  accountants  of  the  local  breeding  stations,  and  finally 
the  heads  of  the  State  Breeding  Stations. 

Besides  the  large  amount  of  autonomy  which  the  State  has  given 
the  municipalities  it  has  further  encouraged  the  breeding  of  both  horses 
and  cattle  by  free  service  of  all  bullocks  and  stallions  and  by  making 
money  advances  to  purchasers.  It  also  established  premiums  and  in 
many  cases  has  commuted  taxes. 

7.  Veterinary  Service.  The  state  took  general  control  of  the  vet- 
erinary service  in  1900.  Only  those  veterinaries  are  permitted  to  prac- 
tice who  have  received  a  diploma  from  the  Budapest  Academy.  The 
Minister  appoints  a  veterinary  practitioner  for  each  municipality  or 
commune.  The  veterinary  inspectors  are  the  general  overseers  of  all 
matters  connected  with  veterinary  service  and  epizootics.  The  General 
Veterinary  Council  is  an  organ  of  both  Minister  of  Agriculture  and 
the  Minister  of  Interior. 

8.  Forestry.  At  the  head  of  the  forestry  system  is  the  Minister 
of  Agriculture.  The  local  authority  is  the  Administrative  Council  of 
each  municipality,  more  particularly  the  sub-committee  for  matters  of 
forestry.  The  intermediate  authority  is  the  Royal  Forestry  Inspection 
Service,  which  has  general  oversight  over  all  matters  connected  with 
the  service  and  is  also  technical  member  of  the  separate  administrative 
councils.  The  country  is  divided  into  twenty  forestry  districts.  The 
actual  work  of  forestry  is  in  the  hands  of  the  foresters  a  graded  service, 
who  rank  as  public  officers.  The  officers  of  this  service  receive  their 
education  in  the  Royal  Academy  of  Forestry. 


634 


Ireland. 


EFFICIENCY    AND   ECONOMY    COMMITTEE, 


State  aid  to  agriculture  in  Ireland  has  been  liberal,  and  a  very 
efficient  organization  of  the  various  agricultural  services  has  been  devel- 
oped. As  a  result  of  an  elaborate  report  by  a  recess  committee  of 
parliament,  under  the  Chairmanship  of  Sir  Horace  Plunkett  in  1895-96, 
an  act  was  passed  in  1899  establishing  a  department  of  agriculture, 
within  which  was  brought  together  the. various  services  that  had  form- 
erly been  under  the  control  of  separate  and  independent  authorities. 
At  the  head  of  the  department  is  the  chief  secretary  for  Ireland  who 
bears  the  title  of  president,  and  there  is  a  vice-president  appointed 
by  one  of  the  principal  secretaries  to  the  Crown  in  immediate  charge 
of  the  department.  The  services  embraced  within  the  department  re- 
late to  epizootics,  the  destruction  of  injurious  insects,  feed  stuffs, 
fertilizers,  the  collection  of  statistics,  the  publication  of  reports,  the 
administration  of  the  grants  for  science  and  art  in  Ireland  and  for 
technical  instruction,  the  fishery  interests  and  various  other  matters. 
The  law  permits  the  Lord  Lieutenant,  with- the  consent  of  the  treasury 
to  transfer  to  the  department  other  duties  which  may  relate  to  agri- 
cultural matters. 

There  are  three  important  boards  connected  with  the  department, 
namely,  the  council  of  agriculture,  the  agricultural  board  and  the  board 
of  technical  education.  The  council  of  agriculture  is  an  advisory  body 
to  the  department  of  agriculture  and  meets  at  least  once  a  year  to  con- 
sider matters  of  interest  relating  to  the  department;  the  agricultural 
board  advises  the  department  upon  all  questions  especially  submitted  to 
its  consideration ;  and  the  board  of  technical  instruction  advises  the  de- 
partment on  questions  relating  to  technical  instruction.  The  members 
of  all  three  boards  hold  office  for  a  term  of  three  years  and  are  eligible 
to  re-appointment. 

The  department  is  required  to  make  an  annual  report  to  the  Lord 
Lieutenant  and  a  report  to  the  treasury  as  often  as  the  latter  may 
direct,  the  former  being  transmitted  to  Parliament, 

An  Ideal  Department  of  Agriculture. 

M,  Tisserand,  a  distinguished  member  of  the  French  Council  of 
State,  director  of  agriculture  in  France  and  one  of  the  leading  author- 
ities in  Europe  on  agriculture,  some  years  ago  prepared  a  plan  for  a 
model  department  of  agriculture,  at  the  request  of  the  Rt,  Hon,  Horace 
Plunkett,  then  Chairman  of  a  Committee  of  the  English  Parliament 
which  was  engaged  in  considerng  a  proposal  for  the  creation  of  a 
department  of  agriculture  for  Ireland.  After  dwelling  upon  the  neces- 
sity for  organized  state  aid  in  the  interest  of  agriculture  and  the  allied 
industries,  M.  Tisserand  proceeded  to  lay  down  the  fundamental  princi- 
pals which  should  underly  the  organization  of  a  department  of  agricul- 
ture. 

First  of  all,  he  said  the  department  should  not  antagonize  private 
or  collective  initiative,  but  should  rather  awaken  and  develop  it  wher- 
ever possible.  It  ought  to  assist  the  weak,  stimulate  the  indifferent,  and 
encourage  those  who  are  beset  by  difficulties ;  but  it  should  avoid  all 
measures  which  would  tend  to  destroy  the  spirit  of  self  reliance  and 


AGRICULTURAL   AGENCIES  635 

independent  enterprise'  among  the  agricultural  classes.  In  the  second 
place,  it  should  encourage  by  special  inducements  such  as  prizes,  sub- 
sidies, or  grants,  the  organization  of  farmers  into  societies,  consultative 
chambers,  co-operative  associations,  institutions  for  mutual  assistance 
and  the  like ;  and  should  assist  them  in  every  possible  way.  Thirdly, 
it  should  be  an  educational  clearing  house  for  the  collection  and 
dissemination  of  information  concerning  new  and  improved  methods  of 
agriculture,  and  what  crops  are  adopted  to  particular  soils,  how  pro- 
duction may  be  increased,  how  crops  may  be  protected  against  parasites, 
injurious  insects,  etc. 

Again  the  department  of  agriculture  should  in  addition  to  the 
maintenance  of  state  schools  of  agriculture  encourage  the  establish- 
ment of  private  agricultural  schools ;  it  should  maintain  and  conduct 
model  demonstration  farms  in  as  many  communities  as  possible ;  and 
it  should  endeavor  to  attract  into  the  agricultural  service  the  most  emi- 
nent scientists  in  chemistry,  physics,  physiology,  entomology,  etc.,  so 
that  the  industry  may  profit  from  their  studies  and  investigations. 

Turning  to  the  organization  of  the  department  of  agriculture,  M. 
Tisserand  suggested  that  it  should  embrace  the  following  services : 

1.  Agriculture. 

2.  Commerce  and  Industry. 

3.  Rural  Highways,  lines  of  communication,  agricultural  train- 

ways,  light  railways,  mines  and  quarries. 

4.  Forests,  waterways  and  public  lands. 

5.  General  Accounts. 

The  first  of  the  above  mentioned  services  should  be  sub-divided 
into  bureaus  of  agricultural  education,  aids  to  agriculture  and  legis- 
lation, agricultural  hydraulics  (irrigation,  drainage,  reclamation,  land 
improvement  loans,  pisciculture  and  agriculture),  veterinary  police  ad- 
ministration and  statistics.  Likewise  the  division  of  commerce  and 
industry  should  be  sub-divided  into  bureaus  of  commerce,  industry,  and 
industrial  commercial  education  and  the  other  services  should  be  sim- 
ilarly sub-divided  according  to  the  nature  of  their  activities.  While 
the  tenure  of  the  head  of  the  department  will  ordinarily  depend  upon 
the  vicissitudes  of  politics  the  chiefs  of  the  divisions  and  bureaus  ought 
to  be  professional  experts  and  the  tenure  of  their  offices  permanent. 

In  -order  to  insure  responsibility  and  co-ordination  of  services,  the 
head  of  the  department  should  be  vested  with  a  certain  control  over  all 
subordinates.  It  is  most  important  says  M.  Tisserand  that  the  head 
of  the  department,  minister,  commissioner,  whatever  his  title  may  be, 
should  have  beside  him  superior  councils  or  consultative  bodies — ver- 
itable "parliaments"  of  agriculture,  commerce  and  industry — upon 
whom  he  may  call  for  advice  in  regard  to  important  questions  affecting 
the  department.  There  ought,  moreover,  to  exist,  side  by  side  with 
these  greater  consultative  bodies,  advisory  committees  for  each  branch 
of  agriculture  and  Industry,  composed  of  the  most  distinguished  scien- 
tists and  specialists  and  whom  the  head  of  the  department  may  consult 
from  time  to  time  upon  the  various  questions  of  a  technical  character 
which  arise  in  his  department. 


III.     CONCLUSIONS  AND  RECOMMENDATIONS. 

General  Summary. 

In  studying  the  organization  in  Illinois  for  the  conservation 
and  promotion  of  the  agricultural,  live  stock  and  other  related  indus- 
tries, one  cannot  fail  to  be  struck  by  the  fact  that  the  number  of  boards, 
commissions  and  offices  created  for  this  purpose  is  unnecessarily  large. 
For  nearly  every  interest,  however,  unimportant  and,  however,  closely 
related  it  may  be  in  its  nature  to  some  other  interest,  a  separate  board 
has  been  created,  each  having  its  own  staff  of  officials  and  employees, 
its  own  separate  offices  and  its  own  administrative  machinery.  Each 
is  independent  of  the  others ;  there  is  an  almost  entire  absence  of  any 
attempt  to  correlate  groups  of  services  that  in  their  nature  are  closely 
related;  and  there  is  no  authority  to  which  any  one  is  in  any  real  or 
effective  sense  responsible.  The  system  lacks  unity;  it  is  complex 
and  top  heavy  with  cumbersome  and  unwieldy  boards,  which  are  ill 
fitted  for  the  exercise  of  administrative  functions,  and  it  is  wasteful 
in  its  results. 

The  State  Board  of  Agriculture  is  so  large  that  it  has  more  of  the 
character  of  an  assembly  than  a  board, — twenty-seven  members 
divided  into  seventeen  committees.  Its  members  are  chosen  by  the  dele- 
gates of  unofficial  bodies,  which  may  or  may  not  have  any  real  exis- 
tence ;  it  holds  two  or  three  meetings  a  year,  which  are  more  or  less 
irregularly  attended;  and  it  has  only  one  important  function,  namely, 
the  making  of  arrangements  for  the  annual  state  fair.  The  annual 
expense  of  assembling  this  body  is  more  than  enough  to  pay  the  salary 
of  a  permanent  Commissioner  all  of  whose  time  could  be  devoted  to 
the  duties  of  his  office. 

It  maintains  an  office  staff  whose  annual  salaries  amount  to 
$12,000,  to  which  should  be  added  $8,000  for  the  traveling  and  other 
expenses  of  the  members  of  the  board  and  $1,200  for  postage  and 
office  expenses,  making  a  total  of  $21,200  for  the  maintenance  of  the 
board  and  its  staff. 

The  only  important  duty  of  the  board  is  the  management  of  the 
State  fair,  which  involves  the  erection  of  buildings,  the  allotment  of 
space  to  exhibitors  and  the  offering  of  premiums  for  exhibits.  One 
other  duty  is  imposed  upon  the  board,  namely,  the  apportionment  among 
local  fairs  of  sums  appropriated  for  their  aid  by  the  State  Legislature ; 
but  as  the  law  prescribes  that  the  distribution  of  these  grants  shall 
be^  made  upon  the  basis  of  the  amount  of  premiums  offered  by  each 
fair,  the  task  of  apportionment  is  a  simple  clerical  matter  that  requires 
neither  deliberation  nor  discretion. 


AGRICULTURAL   AGENCIES  637 

The  other  duties  nominally  under  the  control  of  the  board  are  in 
fact  imposed  by  law  upon  the  secretary  of  the  board,  and  the  board 
as  such  has  little  or  nothing  to  do  with  them.  These  are:  The  issuing 
of  licenses  for  the  sale  of  commercial  fertilizers  and  the  collection  of 
fees  therefor  (it  is  to  be  noted  that  the  secretary  is  not  required  to  make 
an  analysis  himself  of  fertilizers  but,  merely  to  receive  certificates  of 
analysis  made  elsewhere),  the  publication  of  crop  statistics,  receiving 
reports  from  town  commissioners  of  Canada  thistles,  and  keeping  lists 
of  stallions  offered  for  public  hire — all  of  which  are  duties  mainly  of 
a  clerical  character  and  of  no  great  consequence. 

Aside  from  the  holding  of  the  State  fair,  therefore,  the  duties  of 
the  State  Board  of  Agriculture  are  few  and  of  a  comparatively  minor 
importance.  This  is  evident  from  a  reading  of  its  annual  reports.  It 
is  only  in  a  very  limited  sense  a  board  of  agriculture ;  it  is  rather  a 
State  fair  commission,  and  if  its  name  were  changed  to  that  it  would 
more  accurately  indicate  its  real  functions. 

The  holding  of  the  farmers  institutes  is  likewise  under  the  super; 
vision  of  a  large  and  unwieldly  board  of  twenty-nine  members,  for  the 
payment  of  whose  expenses  the  General  Assembly  in  1913  appropriated 
$5,000  per  annum.  Like  the  board  of  agriculture,  it  too  has  a  staff  of 
employees,  for  the  payment  of  whose  salaries  and  for  office  expenses 
the  General  Assembly  of  1913  appropriated  $7,900  per  annum.  Other 
expenses  for  state  and  county  institutes  and  for  printing  and  binding 
leports  amount  to  $28,000  a  year,  or  a  total  of  $36,000  a  year. 

The  principal  duties  of  the  board  are  to  arrange  for  an  annual 
meeting  of  the  institute,  to  publish  the  papers  and  addresses  delivered 
before  it,  to  arrange  for  the  holding  of  county  institutes  and  to  select 
speakers  therefor.  On  the  face  of  it,  there  seems  to  be  no  reason  why 
a  superintendent  of  institutes,  or  some  official  with  a  different  title, 
could  not  perform  these  duties  without  the  necessity  of  employing  a 
board  of  twenty-nine  members  and  other  cumbersome  machinery.  To 
insure  a  wise  expenditure  of  the  funds  appropriated  by  the  Legislature 
for  the  expenses  of  county  institutes  and  to  guard  against  the  possible 
abuses  of  entrusting  the  expenditures  of  these  funds  to  a  single  official 
fthey  aggregated  only  $13,500  for  the  year  1913).  the  law  might  pre- 
scribe more  definitely  the  purposes  for  which  such  moneys  are  to  be 
expended,  instead  of  leaving  it  entirely  to  the  judgment  of  the  super- 
intendent of  institutes,  or  it  might  fix  the  basis  of  apportionment  among 
the  county  institutes,  as  is  now  done  in  the  case  of  appropriations  for 
county  fairs,  or  it  might  require  the  apportionment  to  be  made  with 
the  co-operation  of  a  small  advisory  board  representing  those  interested 
in  the  Institute  work.  In  either  case  the  danger  of  arbitrary  action 
on  the  part  of  the  officer  having  control  of  the  expenditure  of  funds 
appropriated  for  the  county  institutes  would  be  removed.  It  may  be 
remarked  in  this  connection  that  it  has  not  been  found  necessary  to 
provide  anv  such  cumbersome  machinerv  for  the  administration  of  the 
educational  affairs  of  the  state,  although  in  many  respects  they  are 
similar  to  those  relating  to  agriculture  and  allied  interests. 


638  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

For  the  control  and  eradication  of  contagious  diseases  among  live 
stock,  including  the  making  of  quarantine  regulations,  the  inspection 
and  condemnation  of  diseased  animals,  the  veterinary  service  and  the 
publication  of  bulletins  relating  to  diseases  of  live  stock,  a  third  board 
has  been  created,  the  per  diem  and  expenses  of  its  members  amounting 
to  $13,000  per  annum.  It  has  a  staff  of  employees  for  the  payment  of 
whose  salaries  the  last  Legislature  appropriated  $25,140  per  annum, 
which  with  the  appropriations  for  the  expenses  of  commissioners  and 
for  office  expenses  made  a  total  of  $40,000  per  annum.  Many  of  the 
duties  imposed  upon  the  board  are  discharged  by  the  state  veterinarian 
and  his  assistants.  The  others  could  be  performed  by  a  single  com- 
missioner as  well  as  by  three,  though  it  might  be  wise  to  provide  for 
an  approval  of  the  secretary  of  agriculture  in  such  matters  as  the 
framing  of  regulations  for  establishing  quarantine  and  governing  the 
transportation  of  live  stock,  the  slaughtering  of  diseased  animals  and 
the  destruction  of  infected  barns  and  stables.  With  such  safeguards 
the  live  stock  board  could  be  abolished,  and  in  its  place  the  office  of 
live  stock  commissioner  created  and  placed  in  the  department  of  agri- 
culture, as  is  the  case  in  a  number  of  other  American  states,  in  Aus- 
tralia, Canada  and  in  most  of  the  countries  of  Europe. 

A  fifth  board  is  maintained  for  the  registration  of  stallions  for 
public  hire,  the  members  of  which  are  paid  $5.00  per  day  for  each 
day  actually  employed,  together  with  their  necessary  traveling  expenses. 
Like  the  other  boards  described  above,  it  maintains  a  regular  staff  of 
employees,  the  number  of  which  seems  out  of  all  proportion  to  the 
amount  and  importance  of  the  duties  which  it  performs.  The  appro- 
priations made  by  the  Legislature  in  1913  for  the  payment  of  the  sal- 
aries and  other  expenses  of  the  board  and  its  staff  aggregated  $22,460, 
a  sum  which  is  far  in  excess  of  the  cost  of  registering  stallions  in 
some  of  tlie  other  states  where  there  is  no  such  board,  and  in  Canada, 
Australia  and  the  countries  of  Europe  where  the  duties  are  centralized 
in  the  department  of  argriculture.     . 

The  duties  of  the  board  are  mainly  clerical,  consisting  as  they  do 
of  verifying  pedigrees  and  enrolling  the  names  of  stallions  and  their 
owners.  It  seems  unnecessary  to  employ  a  board  to  perform  such 
duties.  In  a  number  of  other  states  such  duties  are  performed  by  the 
commissioner  of  agriculture  or  some  other  official,  like  the  state  vet- 
erinarian or  the  secretary  of  the  board  of  agriculture.  It  is  therefore, 
recommended  that  the  stallion  registration  board  be  abolished  and  its 
duties  imposed  upon  the  secretary  of  agriculture  to  be  actually  per- 
formed by  the  live  stock  commissioner  or  a  registrar  of  stallion  pedi- 
grees. 

It  is  something  of  a  relief  to  find  that  a  board  has  not  been 
regarded  as  necessary  for  the  inspection  of  bee  hives,  but  that  a  single 
official  hap  been  found  sufficient  to  perform  those  duties.  The  work 
of  inspecting  bee  hives  should,  however,  be  consolidated  with  the  work 
of  inspecting  nurseries,  trees  and  shrubs.  The  two  classes  of  duties 
are  similar;  and  there  is  no  reason  why  the  same  persons  who  are 
charged  with  nursery  inspection  cannot  at  the  same  time  conduct  the 


AGRICULTURAL   AGENCIES 


639 


inspection  of  apiaries.  It  is  recommended  therefore,  that  the  mspec- 
tional  work  of  the  state  entomologist's  office  be  consohdated  with  the 
work  of  apiary  inspection  and  entrusted  to  an  mspector  of  apiaries 
and  nurseries,  whose  office  shall  be  in  the  department  of  agriculture. 

Summarising,  we  find  that  the  State  now  maintains  five  boards  for 
the  promotion  and  protection  of  the  interests  of  agriculture  and  animal 
husbandry  each  with  an  independent  organization,  subject  to  no  com- 
mon superior  and  each  with  a  more  or  less  elaborate  and  expensive 
clerical  staff  The  aggregate  cost  of  maintaining  these  five  boards  with 
their  staffs  of  employees  amounts  to  nearly  $125,000  per  year  (this 
amount  includes  only  the  cost  of  salaries,  traveling  and  office  expenses 
—that  is  the  office  personnel  and  not  the  expenses  of  field 
agents  such  as  inspectors  and  the  like).  There  seems  to  be  little  doubt 
that  all  or  nearly  all  of  these  services,  closely  related  as  they  are  in 
their  nature,  might  be  consolidated  in  a  single  department,  each  under 
the  management  of  a  single  official  and  these  officials  to  be  under  the 
supervision  of,  and  made  responsible  to,  the  secretary  of  agriculture. 
This  is  the  method  of  organization  for  the  United  States  Department 
of  Agriculture,  and  is  followed  also  in  many  American  states  and  in 
most  foreign  countries. 
Recommendations. 

The  following  recommendations  are  oflfered  for  consideration: 

1.  That  the  State  Board  of  Agriculture,  the  Board  of  Directors 
of  the  Farmers'  Institute  (but  not  the  Institute  itself),  the  Board  of 
Live  Stock  Commissioners,  and  the   Stallion  Registration  Board  be 

abolished.  ,  ^  ,      ,      j     r 

2.  That  a  department  of  agriculture  be  created,  at  the  head  ot 
which  shall  be  a  secretary  of  agriculture  to  be  appointed  by  the  Gov- 
ernor, with  the  advice  and  consent  of  the  Senate. 

3.  That  the  services  now  performed  by  the  above  mentioned 
boards,  also  those  performed  by  the  State  veterinarian,  the  biological 
laboratory,  the  board  of  veterinary  examiners,  the  State  inspector  of 
apiaries,  and  those  of  the  State  entomologist  office  which  have  to  do 
with  the  inspection  of  trees,  plants  and  shrubs  be  transferred  to  the 
said  department  and  placed  under  the  supervision  of  the  Secretary  of 
Agriculture. 

4.  That  the  following  offices  be  created  in  the  department  of 
agriculture  the  incumbents  of  which  shall  be  appointed  by  the  Gov- 
ernor, or  the  secretary  of  agriculture,  each  of  whom  shall  be  subject 
within  certain  limits,  to  the  supervision  and  direction  of  the  secretary 
of  agriculture  and  who  shall  be  required  to  report  to  him:- 

(a)  A  Superintendent  of  the  State  Fair  who  shall  arrange  for 
the  holding  of  the  fair  subject  to  the  provision  that  the  award  of  con- 
tracts for  the  erection  of  buildings,  and  rules  and  regulations  determin- 
ing the  amount  of  premiums  to  be  offered  for  exhibits  and  the  granting 
of  space  concessions  shall  be  made  by  a  board  consisting  of  the  super- 
intendent of  the  State  fair,  the  secretary  of  agriculture  and  not  more 
than  three  other  members  appointed  by  the  Governor  with  the  consent 
of  the  Senate. 


640  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

(b)  A  Superintendent  of  Farmers'  histitutes  who  shall  be 
charged  with  making  arrangements  for  the  annual  meeting  of  the  State 
Farmers'  Institute,  the  publication  of  its  proceedings,  the  arrange- 
ments for  local  institutes,  the  selection  of  speakers,  instructor,  etc. 
An  advisory  board  or  committee  should  be  provided  to  co-operate  with 
the  superintendent  of  the  Farmers'  Institute. 

(c)  A  Live  Stock  Commissioner  who  shall  be  charged  with 
the  enforcement  of  the  laws  enacted  for  the  promotion  of  the  live 
stock  interests  and  for  the  eradication  and  control  of  contagious  dis- 
eases among  animals.  The  power  of  establishing  quarantine,  of  fram- 
ing regulations  in  regard  to  the  transportation  of  live  stock,  the  con- 
demnation of  diseased  animals  and  the  destruction  of  infected  barns 
and  stables  shall  be  subject  to  the  approval  of  the  Secretary  of 
Agriculture  or  in  some  cases  of  the  Governor. 

The  board  of  veterinary  examiners,  the  state  veterinarian  and  the 
biological  laboratory  should  be  under  the  Live  Stock  Bureau ;  the  regis- 
tration of  stallions  should  be  carried  on  in  the  office  of  the  Live  Stock 
Commissioner  by  a  registrar  of  stallion  pedigrees;  and  the  humane 
agents  should  be  under  the  supervision  of  the  Live  Stock  Commissioner. 

(d)  An  Inspector  of  Apiaries  and  Nurseries  who  shall  be  charged 
with  the  enforcement  of  the  laws  relating  to  the  inspection  of  bee 
hives,  trees,  plants  and  shrubs. 

(e)  Finally,  all  private  associations  dealing  with  agricultural  and 
related  interests  receiving  State  aid  should  be  subject  to  the  supervision 
of  the  Secretary  of  Agriculture,  their  requests  for  appropriations  should 
be  approved  by  him  and  incorporated  in  his  biennial  budget  of  esti- 
mates ;  and  they  should  be  required  to  report  to  him  in  regard  to  the 
purposes  for  which  all  appropriations  made  for  their  use  have  been 
expended. 

OUTLINE  OF  PROPOSED  ORGANIZATION. 

Department  of  Agriculture. 
Head  of  the  Department : 

The  Secretary  of  Agriculture. 
Bureau  and  Offices :      , 

1.  The  Superintendent  of  the  State  Fair. 

State  Fair  Commission. 

2.  The  Superintendent  of  Farmers'  Institutes. 
Advisory  Committee. 

3.  The  Live  Stock  Commissioner. 

(a)  The  State  Veterinarian. 

(b)  The  Registrar  of  Stallion  Pedigrees. 

(c)  The  Humane  Agents. 

(d)  The  Director  of  the  State  Biological  Laboratory. 

(e)  The  Board  of  Veterinary  Examiners. 

4.  The  Inspection  of  Apiaries  and  Nurseries. 

The  following  comparative  statement  of  the  expense  for  salaries 
per  diem  and  personal  expenses  of  the  present  list  of  agricultural 


AGRICULTURAL   AGENCIES  641 

authorities  and  for  salaries  of  the  proposed  department  of  agriculture 
shows  that  there  will  be  a  direct  reduction  in  administrative  expenses 
under  the  plan  presented : 

PRESENT  AUTHORITIES. 

Per  Annum. 

Board  of  Agriculture  (Expenses  of  Members) $  8,000 

Secretary   3,500 

Board  of  Directors  of  Farmers'  Institutes  (Expenses)..     5,000 

Secretary   2,000 

Live  Stock  Commission  (Per  diem  and  Expenses) 12,500 

State  Veterinarian    (Per  diem) 3,000 

Stallion  Registration  Board 6,000 

Humane  Agents 4,800 

Inspector  of  Apiaries 2,000 

Total    $46,800 

PROPOSED    DEPARTMENT. 

Secretary  of  Agriculture $  5,000 

Superintendent  of  State  Fair 3,500        • 

Superintendent  of  Farmers'  Institute 2,500 

Advisory  Boards   (Expenses) 2,000 

Live  Stock  Commissioner 4,000 

State   Veterinarian .  . . ' 3,000 

Stallion   Registrar ; 2,500 

Humane  Agents 4,800 

Inspector  of  Apiaries  and  Nurseries  2,500 

Total $29,800 

Reduction  $17,000 

Of  much  more  importance  than  the  direct  saving  in  administrative 
salaries,  is  the  increased  efficiency  and  economy  to  be  secured  through 
a  better  organization.  With  competent  officials  giving  full  time  to  their 
public  duties,  much  more  efficient  results  could  be  secured  at  a  con- 
siderable reduction  in  the  expense  now  incurred. 


A  REPORT 

ON 

PUBLIC  HEALTH  ADMINISTRATION 

BY 

JOHN  M.  MATHEWS 

ASSOCIATE  IN  POLITICAL  SCIENCE 
UNIVERSITY  OF  ILLINOIS 


CONTENTS 

Page 

I.      PUBLIC    HEALTH    ADMINISTRATION    IN    ILLINOIS 647-659 


1. 


State  Board  of  Health ^2 


Organization 


.647 


Relations  to  other  State  Agencies ^48 

Relations  to  Local  Authorities    ^^ 

Powers   and   Duties ^^ 

Licensing ■ 

)issemination  of  Information ■ 

650 


3. 


Examining  and  Licensing "^^ 

Collection  and  Dissemination  of  Information ^50 


Vital  Statistics 
Investigations  . 
Publications 


.651 
.652 


Measures  for  the  Prevention  or  Eradication  of  Disease 652 


.652 

Financial    Summary    "^^ 

654 


Methods    of    Enforcement 
Financial    Summary    

State   Food    Commissioner 
Introduction 


.654 


State  Food  Commissioner  and  Food  Standard  Commission 655 


Powers   and   Duties. 


.656 


General  Provisions  ^^^ 

Rules  and  Regulations 657 

Licenses   657 

Inspections    • 

Analyses    ^58 

Hearings  —  Prosecutions "-"^ 

Educational  Work   ^^^ 

Reports    and    PubHcations 659 

Relations  to  Other  Officials 659 

Food    Commissioners    in   other    States 659 

660 
Recommendations     ^" 

State  Board  of   Pharmacy - ^^ 

Organization °^ 

Powers  and  Duties ^^ 

Examining  and  Licensing 662 

Enforcement  of  certain  Acts 662 

State  Board  of  Dental  Examiners 663 

663 
Organization     

Powers  and  Duties   663 


Page 

5.  State  Barbers  Examining  Board 664 

Organization    654 

Powers  and  Duties 664 

Examinations    664 

Enforcing  Sanitary  Rules 664 

Revoking   Certificates    664 

6.  State  Board  of  Nurse  Examiners 665 

Organization     665 

Powers  and   Duties 665 

Operations    666 

Finances     •  666 

Registration  of  Nurses  in  other  States 666 

Complaints  and  Suggestions 667 

7.  Summary  and  Recommendations 668 

Financial   Summary   668 

Recommendations     668 

STATE    PUBLIC    HEALTH    ADMINISTRATION 670-689 

Historical    670 

Organization  of  State  Health  Authorities 671 

State  Boards  of  Health i 672 

The   Executive  Officer    674 

Other  Ofificers  and  Employees 676 

Divisions  and  Bureaus 677 

Powers  and   Duties 678 

Methods   of   Classification 678 

Information  and   Research 680 

Examining  and  Licensing  Functions 681 

Prevention   of   Disease 682 

Relations  between  State  and  Local  Authorities 683 

State  Health  Administration  in  New  York  and  Wisconsin... 687 

New   York   687 

Wisconsin    688 

REORGANIZATION    AND   COORDINATION   OF    HEALTH    AGEN  ;iES 690-696 

Plan  Submitted  bv  the  State  Board  of  Health 690 


A  REPORT  ON  PUBLIC  HEALTH  ADMINISTRATION 

By  John  M.  Mathews,  University  of  Illinois. 

I.     PUBLIC  HEALTH  ADMINISTRATION  IN  ILLINOIS. 

Economy  in  public  health  administration  in  Illinois  can  probably 
be  brought  about  in  part  by  a  reorganization  and  combination  of  vari- 
ous boards  and  by  the  adoption  of  more  efficient  methods,  but,  in  order 
that  the  health  of  the  people  of  Illinois  shall  be  adequately  safeguarded, 
additional  expenditures  will  probably  be  necessary.  If,  through  such 
increased  appropriations,  the  percentage  of  deaths  per  1,000  inhabitants 
in  the  State  can  be  reduced  by  only  a  few  points,  the  result  will  be  the 
saving  of  thousands  of  lives  annually  to  the  State,  and  the  productive 
value  to  the  State  of  the  lives  thus  saved  can  scarcely  be  estimated. 
It  may,  therefore,  in  the  long  run,  be  more  economical  to  make  larger 
appropriations  than  at  present  for  the  administration  of  public  health. 
The  immediate  object  in  improving  the  pubHc  health  service  of  the 
State,  therefore,  should  be  efficiency  rather  than  economy. 

The  principal  agencies  provided  for  carrying  on  public  health 
administration  in  Illinois  are  the  following: 

1.  State  Board  of  Health 

2.  State  Food  Commissioner  and  Food  Standard  Commission. 

3.  State  Board  of  Pharmacy 

4.  State  Board  of  Dental  Examiners 

5.  Barbers'  Examining  Board 

6.  State  Board  of  Nurse  Examiners 

Some  functions  related  to  public  health  are  performed  by  the  State 
department  of  Factory  Inspection,  the  State  Water  Survey  'and  the 
Rivers  and  Lakes  Commission,  which  are  considered  in  other  reports. 

In  addition  to  these  State  agencies,  much  of  the  work  of  public 
health  administration  is  in  the  hands  of  local  agencies,  such  as  county 
and  municipal  boards  of  health,  and  boards  of  trustees  of  sanitary, 
water,  and  drainage  districts. 

1.   THE  STATE  BOARD  OF  HEALTH. 

Organisation. 

This  board  was  created  by  an  Act  of  May  28,  1877,  and  consists 
of  seven  persons,  appointed  by  the  Governor,  by  and  with  the  advice 
and  consent  of  the  Senate.  They  hold  office  for  seven  years,  and  the 
terms  are  so  arranged  that  one  expires  annually.  Thus  a  Governor, 
during  a  single  term,  ordinarily  appoints  barely  a  majority  of  the 
board.  It  is  not  required  by  law  that  the  members  of  the  board  shall 
be  physicians  or  sanitarians,  or  that  they  shall  have  any  special  quaU- 
fications.  Meetings  of  the  board  are  required  to  be  held  at  least  twice 
a  year.    A  president  of  the  board  is  chosen  from  among  its  members. 


548  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  board  also  elects  a  secre'tary,  who  acts  as  the  executive  officer 
of  the  board  and  is  charged  with  such  duties  as  may  be  prescribed  by 
the  board.  No  special  qualifications  are  required  of  the  secretary,  and 
he  may  or  may  not  be  a  member  of  the  board. 

The  members  of  the  board  receive  a  compensation  of  ten  dollars 
per  day  for  each  day  actually  spent  in  attending  to  the  business  of  the 
board.  The  salary  of  the  secretary  is  fixed  by  the  board.  The  other 
principal  officers  serving  under  the  board  are  the  registrar  of  vital 
statistics,  attorney,  bacteriologist,  chief  sanitary  inspector  and  chief 
inspector  of  lodging  houses. 

The  present  stafif  of  employes  under  the  board,  with  their  annual 
salaries,  are  as  follows : 

Secretary    $  3,600 

Bacteriologist     \>^ 

Registrar    of    vital   statistics j-^ 

Chief    sanitary    inspector l.oO^ 

Attorney    ^,oUU 

Chief  inspector  of  lodging  houses 2,000 

Chief    clerk 2.400 

Qerk - 1-200 

Two  clerks  "at  $1,000 2,000 

Stenographer    and    clerk...- 1.200 

Janitor  and   messenger °40 

Stenographer    -. o'Son 

Three  stenographers  at  $900 2,700 

Clerk    1.600 

Clerk    1.500 

Clerk 1.080 

Messenger     900 

Law    clerk 900 

Five  (5)  assistant  inspectors  of  lodging  houses  at  $1,200 6,000 

Stenographer   and   clerk 1,200 

Total    salaries $37,720 

Relation  to  Other  State  Agencies. 

The  State  Board  of  Health  is  required  by  law  to  make  a  report 
to  the  Governor  by  January  1  of  each  year,  outlining  its  activities  dur- 
ing the  previous  year.  With  regard  to  other  State  boards  having  to 
do  with  the  public  health,  the  State  Board  of  Health  is  empowered 
to  approve  the  rules  providing  for  the  sanitary  regulation  of  barber 
shops  adopted  by  the  Barbers'  Examining  Board.  The  State  Board 
of  Health  may  submit  to  the  State  Food  Commissioner  samples  of 
food  or  drink  for  analysis,  and  receive  special  reports  thereon  from  him. 

The  State  Board  of  Health  has  relations  with  the  State  Department 
of  Factory  Inspection  in  connection  with  the  matter  of  occupational 
diseases.  Under  the  Occupational  Disease.  Act  of  May  26,  1911, 
monthly  physical  examinations  are  to  be  made  by  licensed  phy-sicians 
of  employees  in  certain  occupations,  and  reports  of  the  results  of  such 
examination  are  to  be  sent  by  the  physicians  to  the  State  Board  of 
Health,  upon  blanks  furnished  by  the  board  for  that  purpose.  A  copy 
of  the  reports  thus  received  is  to  be  transmitted  by  the  secretary  of  the 
State  Board  of  Flealth  to  the  State  Department  of  Factory  Inspection. 


PUBLIC    HEALTH    ADMINISTRATION.  649 

Relations  to  Local  Authorities. 

Whenever  local  boards  of  health  or  local  authorities  fail  to  enforce 
efficient  measures  for  the  suppression  of  contagious  diseases,  the  State 
Board  of  Health  may  take  such  measures  as  seem  necessary,  and  the 
expenses  so  incurred  shall  be  paid  by  the  city  or  village  for  which  the 
services  are  rendered.  When  local  authorities  have  established  quar- 
antine, the  State  board  may  modify  or  relax  it,  and,  on  the  other  hand, 
where  the  local  authorities  fail  to  establish  quarantine,  the  State  board 
may  do  so.  The  State  board  is  dependent  on  the  State's  attorneys  to 
prosecute  persons  who  violate  the  rules  and  regulations  of  the  State 
board,  in  the  absence  of  special  appropriation  to  employ  private  attor- 
neys for  the  purpose.  The  State  board  issues  to  the  county  clerks 
prescribed  forms  for  reporting  vital  statistics. 

Poivers  and  Duties. 

The  work  of  the  State  Board  of  Health  may  be  classified  under 
the  following  heads : 

Examining  and  Licensing  function. 
Collection  and  dissemination  of  information. 
Measures  for  the  prevention  or  eradication  of  disease. 

Examining  and  Licensing: 

For  the  purpose  of  regulating  the  practice  of  medicine,  three  early 
Acts  were  passed  in  quick  succession.  An  Act  of  1817  provided  for 
the  incorporation  of  medical  societies  for  this  purpose.  By  an  Act  of 
1819,  the  State  was  divided  into  four  districts,  and  all  practicing  physi- 
cians in  each  district  were  constituted  bodies  corporate  with  power  to 
examine  all  applicants  for  licenses.  Persons  producing  diplomas  from 
any  "respectable  university"  in  the  United  States  were  not  subject  to 
examination.  Any  person,  however,  had  the  right  to  practice  medicine, 
but,  unless  he  held  a  medical  license  from  the  medical  society  in  his 
district,  he  was  barred  from  suing  for  fees  for  professional  services. 
This  Act  was  superseded  by  the  Act  of  1820,  according  to  which  the 
State  was  divided  into  five  districts  and  the  practicing  physicians  in  each 
district  were  authorized  to  meet  and  elect  a  censor.  The  five  censors 
thus  elected  constituted  the  State  Examining  Board. 

Under  the  Act  of  1877  creating  the  State  Board  of  Health,  that 
body  was  given  power  to  license  practitioners  of  medicine  and  surgery. 
But  those  who  had  been  practicing  for  ten  years,  and  holders  of 
diplomas  from  medical  schools  were  entitled  to  licenses  from  the  board 
without  examination.  Others  could  procure  a  license  only  by  passing 
an  examination  given  by  the  board.  Licenses  were  subject  to  revoca- 
tion by  the  board  for  unprofessional  or  dishonorable  conduct. 

By  various  amendments  passed  since  the  original  Act  and  its 
revision  of  1899,  the  State  Board  of  Health  has  been  given  wider  powers 
over  the  admission  to  the  practice  of  medicine  and  surgery,  and  the 
powers  of  the  board  have  been  extended  to  include  the  admission  to 
practice  of  persons  who  treat  diseases  by  methods  other  than  those 
of  medicine  and  surgery. 


650  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

By  an  amendment  of  1907  the  board  is  empowered  to  establish 
standards  of  preliminary  education  deemed  requisite  to  admission  to  a 
medical  college  in  good  standing  and  to  require  satisfactory  proof  of  the 
enforcement  of  this  standard  by  medical  colleges.  Every  applicant  for 
a  license  must  produce  satisfactory  proof  to  the  board  that  he  is  a 
graduate  of  a  medical  college  in  good  standing,  as  may  be  determined 
by  the  board,  and  must  pass  before  the  board  an  examination  in  those 
subjects  a  knowledge  of  which  is  commonly  required  of  candidates  for 
the  degree  of  doctor  of  medicine  by  reputable  medical  colleges  in  the 
United  States. 

The  board  may  confer  licenses  without  examination,  however,  upon 
physicians  licensed  in  other  States  in  which  the  requirements  of  medical 
registration  are  deemed  by  the  board  to  have  been  practically  equivalent 
to  those  in  force  in  Illinois,  and  upon  physicians  who  have  graduated 
from  medical  colleges  in  good  standing  and  have  passed  examination 
before  the  United  States  Army  or  Navy,  or  the  United  States  Public 
Health  and  ]\Iarine  Hospital  service.  All  licenses  granted  by  the  board 
must  be  recorded  by  the  holder  in  the  office  of  the  county  clerk  in  the 
county  in  which  he  resides  or  practices  within  three  months  from  the 
date  of  the  license. 

Under  the  Act  of  1899,  the  State  Board  of  Health  is  empowered 
to  refuse  to  issue  licenses  to  persons  guilty  of  criminal  practice  or  who 
advertise  under  names  other  than  their  own  or  for  other  unprofessional 
or  dishonorable  conduct,  and  may  revoke  licenses  for  like  causes.  But 
before  a  license  can  be  refused  or  revoked,  the  applicant  or  holder  is 
entitled  to  a  hearing  before  the  board.  This  Act,  however,  has  been 
construed  by  the  Supreme  Court  as  having  no  retroactive  effect  upon 
licenses  issued  before  its  passage,  with  the  result  that  the  power  of  the 
board  to  revoke  licenses  is  limited  to  those  physicians  who  were  licensed 
subsequent  to  'July  1,  1899.  Bills  to  remedy  this  defect  have  been 
introduced  in  the  Forty-fifth,  Forty-sixth  and  Forty-seventh  General 
Assemblies,  but  failed  to  become  laws  in  spite  of  the  recommendation 
of  Governor  Deneen  that  such  a  bill  be  passed.  (See  his  biennial 
message  of  1911,  p.  19.) 

The  State  Board  of  Health  holds  examinations  for  the  licensure 
of  physicians,  mid-wives,  "other  practitioners,"  and  embalmers.  The 
examinations  are  conducted  by  the  secretary  of  the  board.  The  mem- 
bers of  the  board  who  prepare  questions  and  rate  answers  do  not,  as  a 
rule,  attend  the  examinations. 

Collection  and  Dissemination  of  Information: 

Vital  Statistics — An  Act  of  1843  provided  for  a  voluntary  mode  of 
registration  of  births  and  deaths  with  the  county  clerk,  but  this  method  of 
collecting  vital  and  mortuary  statistics  was  naturally  far  from  effective. 
Under  the  Act  of  1877,  creating  the  State  Board  of  Health,  that  body 
is  given  general  supervision  of  the  State  system  of  registration  of  births 
and  deaths.  The  clerical  services  and  safe-keeping  of  the  bureau  of 
vital  statistics  are  provided  by  the  Secretary  of  State. 

By  Act  of  Afay  6,  1903,  it  is  made  the  duty  of  every  physician  and 
midwife  who  attends  the  birth  of  a  child,  to  make,  within*  "thirty  days 


PUBLIC    HEALTH    ADMINISTRATION.  651 

thereafter,  a  report  of  the  occurrence,  with  such  other  information  as 
may  be  required  by  the  State  Board  of  Health,  in  writing,  to  the  county 
clerk  of  the  county  in  which  the  birth  takes  place.  In  cities  of  50,000 
population,  such  reports  may  be  made  to  the  city  commissioner  of  health, 
who  delivers  them  to  the  county  clerk,  who  in  turn  delivers  all  reports 
to  the  State  Board  of  Health.  Likewise,  reports  of  deaths  are  required 
to  be  made  by  physicians,  midwives,  and  coroners  to  the  State  Board 
of  Health,  unless  such  deaths  occur  in  the  corporate  limits  of  a  city 
where  permits  must  be  secured  before  the  body  may  be  removed  or 
buried.  In  such  cases  reports  are  made  to  the  permit  issuing  officer,  who 
later  forwards  them  to  the  State  Board  of  Health.  In  order  to  secure 
uniformity  in  the  information  obtained,  it  is  required  that  all  such 
reports  of  births  and  deaths  shall  be  made  in  strict  accordance  with 
forms  prescribed  by  the  State  Board  of  Health.  Blank  reports  in  the 
prescribed  form  are  to  be  printed  by  the  county  clerk  and  distributed 
free  to  physicians,  midwives  and  coroners. 

Previous  to  1903,  no  compensation  was  paid  to  persons  making  the 
required  reports  of  births  and  deaths,  and,  partly  in  consequence  of  this 
omission,  the  law  was  a  dead  letter.  Under  the  law  of  1903,  however, 
a  fee  of  twenty-five  cents  is  allowed  for  each  report  of  a  birth  or  death ; 
and  such  fees,  together  with  the  cost  of  printing  blank  reports,  con- 
stitute a  charge  upon  the  counties.  Many  counties  fail  to  make  appro- 
priation for  such  expenses,  and  in  many  localities  the  reports  are  frag- 
mentary and  lacking  in  accuracy. 

The  object  of  collecting  vital  statistics  has  been  described  as  being 
"to  give  warning  of  the  undue  increase  of  disease  or  death  that  is 
presumed  to  be  due  to  preventable  cause,  and  also  to  indicate  the  locali- 
ties in  which  sanitary  efifort  is  most  desirable  and  most  likely  to  be  of 
use."  This  object  cannot  be  attained  without  full  and  accurate  statis- 
tics running  continuously  over  a  considerable  period  of  time,  and  such 
statistics  cannot  be  even  approximately  obtained  when  the  collection  is 
dependent  in  certain  essential  particulars  upon  the  voluntary  action  of 
counties. 

Reports  of  deaths  are  fairly  complete  from  cities  and  villages 
requiring  the  issuance  of  burial  permits,  but  deaths  in  other  parts  of  the 
State  and  births  nearly  everywhere  are  very  inadequately  reported. 
There  would  seem  to  be  a  need  for  a  new  birth  and  death  Act,  preferably 
one  meeting  the  requirements  of  the  United  States  Census  Bureau. 

Investigations — In  addition  to  collecting  vital  and  mortuary  statis- 
tics the  State  Board  of  Health  also  conducts  investigations  into  health 
conditions  in  various  parts  of  the  State  in  order  to  discover  the  causes 
of  communicable  diseases  and  to  collect  the  necessary  information  as  a 
basis  for  taking  measures  for  the  suppression  of  epidemics.  The  board 
maintains  at  Springfield  a  laboratory  for  the  diagnosis  of  diseases  and 
for  the  examination  of  specimens  of  various  substances  involved  in  the 
detection  of  disease.  By  special  arrangement,  the  State  Water  Survey 
at  Urbana  takes  care  of  the  examination  of  the  sources  of  water  sup- 
plies and  the  study  of  the  proper  disposition  of  sewage.  It  makes 
chemical  analyses  of  samples  of  drinking  water  sent  to  it  for  that 
purpose.     The  State  Board  of  Health  distributes  diphtheria  antitoxin 


652  EFflCIENCY  AND  ECONOMY   COMMITTEE. 

free  of  charge  to  those  who  may  be  in  need  of  it,  and  unable  to  pay 
therefor.  The  board  is  empowered  to  appoint  one  or  more  agents  in 
each  county  for  the  sale  or  distribution  of  the  antitoxin. 

Publications — The  State  Board  of  Health  issues  a  number  of  pub- 
lications. P>om  time  to  time  official  registers  of  physicians  and  mid- 
wives  are  prepared  and  issued,  together  with  lists  of  medical  institutions 
represented  in  the  official  register  of  physicians,  a  schedule  of  require- 
ments for  medical  schools  in  good  standing,  list  of  certificates  revoked, 
etc.  The  board  has  also  issued  a  number  of  special  bulletins  from  time 
to  time,  giving  information  of  a  popular  character  concerning  the  proper 
precautions  to  be  taken  against  certain  diseases.  In  1913  the  board 
issued  a  model  health  ordinance  for  adoption  by  cities  and  villages. 
In  1903  the  board  began  the  issuance  of  monthly  bulletins  in  which 
topics  of  general  health  interest  were  discussed.  They  were  soon  dis- 
continued, but  the  series  was  again  taken  up  in  1906,  but  none  has  been 
issued  since  November,  1912.  The  monthly  bulletin  for  December  of 
each  year  contains  the  annual  report  of  the  board  to  the  Governor. 

Measures  for  the  Prevention  or  Eradication  of  Disease: 

Under  this  head  would  be  included  such  matters  as  the  establish- 
ment and  maintenance  of  quarantine,  the  abatement  of  nuisances,  the 
control  of  epidemics  in  cities,  villages,  and  townships  when  local  authori- 
ties fail  to  take  proper  steps,  the  issuance  of  rules  and  regulations  for 
carrying  into  efifect  the  provisions  of  various  Acts  for  the  protection  of 
the  public  health,  and  the  supervision  of  sanitary  conditions  in  lodging 
houses  and  hotels  in  cities  of  100,000  population  and  over. 

Among  the  rules  and  regulations  issued  by  the  board  may  be  men- 
tioned those  dealing  with  the  embalming  and  transportation  of  dead 
bodies  and  with  the  draining,  construction  and  plumbing  of  hotels  and 
lodging  houses. 

By  Act  of  1899,  amended  in  1901,  the  State  Board  of  Health  is 
given  supervision  over  lodging  houses  in  Chicago,  and  the  duty  was 
imposed  upon  it  to  have  such  houses  inspected  so  as  to  see  that  the 
provisions  of  the  Act  are  complied  with. .  The  Act  deals  with  ventila- 
tion, size  of  rooms  in  which  persons  are  to  be  allowed  to  sleep,  arrange- 
ment of  beds,  etc.  The  proprietor  or  manager  of  every  such  lodging 
house  is  required  to  file  annually  with  the  county  clerk  a  statement 
of  various  pertinent  facts  concerning  the  house  upon  blanks  furnished 
to  the  county  clerk  for  that  purpose  by  the  State  Board  of  Health. 

An  Act  of  June  25,  1913,  gives  the  State  Board  of  Health  authority 
to  make  rules  and  regulations  concerning  the  drainage,  construction  and 
plumbing  of  all  lodging  houses,  having  as  many  as  ten  rooms  for  the 
accommodation  of  guests,  not  only  in  Chicago,  but  in  all  cities,  villages 
and  incorporated  towns  in  the  State. 

Methods  of  Enforcement. 

To  a  large  extent  the  State  Board  of  Health  is  dependent  upon 
loc"al  authorities  and  boards  for  the  enforcement  of  its  rules  and  regula- 
tions. It  is  made  the  duty  of  all  local  boards  of  health,  health  authori- 
ties and  police  officers,  sherifi's,  constables  and  all  other  officers  and 


PUBLIC    HEALTH    ADMINISTRATION.  653 

employees  of  the  State  or  of  any  county,  village,  city  or  township,  to 
enforce  the  rules  and  regulations  that  may  be  adopted  by  the  board. 
More  specifically  it  is  provided  that  persons  guilty  of  violating  any  rule 
or  regulation  of  the  board  shall  be  liable  to  a  fine  not  exceeding  $200 
for  each  offense  and  to  imprisonment  in  the  county  jail  not  exceeding 
six  months,  or  both.  At  the  instance  of  the  board  or  its  executive  officer, 
it  is  made  the  duty  of  the  State's  attorney  in  each  county  to  prosecute 
all  persons  in  the  county  refusing  to  obey  the  rules  and  regulations  of 
the  board. 

In  the  Act  of  1905  for  the  regulation  of  the  embalming  and  dis- 
posal of  dead  bodies,  it  is  not  only  made  the  duty  of  the  State's  attor- 
neys to  see  that  the  provisions  of  the  Act  are  enforced  in  their  respective 
counties,  but  it  is  also  made  the  duty  of  all  sheriffs,  deputy  sheriffs,  con- 
stables, and  police  officers  to  inform  against  and  prosecutrall  persons 
whom  there  is  reasonable  cause  to  believe  are  guilty  of  the  violation 
of  any  of  the  provisions  of  the  Act. 

The  very  considerable  dependence  which  the  State  Board  of  Health 
must  place  upon  local  officers,  and  particularly  upon  the  State's  attor- 
neys, for  the  enforcement  of  its  rules  and  regulations  is  undoubtedly  a 
handicap  of  a  serious  character  upon  their  efficient  enforcement.  There 
is  much  complaint  by  the  State  board  regarding  the  inactivity  of  State's 
attorneys,  and  it  is  well  known  that  it  is  sometimes  difficult  to  get 
State's  attorneys  to  bring  prosecutions  against  persons  who  have  local 
political  influence.  Formerly  the  board  was  able  to  employ  special 
attorneys  to  prosecute  violators  of  the  medical  practice  Act  out  of  the 
proceeds  of  the  fines  collected  from  such  violators,  but  under  existing 
law  all  moneys  received  from  fees,  charges,  fines,  and  penalties  are  to 
be  paid  into  the  State  Treasury  and  cannot  be  used  for  the  employment 
of  special  attorneys  in  the  counties.  The  board  has  an  attorney,  but 
his  time  is  occupied  in  prosecuting  offenders  in  Chicago,  and,  in  the 
counties,  whenever  the  State's  attorneys  fail  to  bring  suit  against  viola- 
tors of  the  law  reported  to  him  the  board  is  powerless  to  act.  The 
prosecution  of  quacks  in  Chicago,  as  well  as  in  the  rest  of  the  State, 
is  also  seriously  interfered  with  by  the  defect  in  the  law,  mentioned 
above,  whereby  the  State  board  is  unable  to  revoke  the  licenses  of  per- 
sons who  received  their  licenses  prior  to  1899. 

The  inactivity  of  the  State's  attorneys  in  cooperating  with  the 
State  Board  of  Health  by  prosecuting  violations  of  the  IMedical  Practice 
Act  causes  the  board  to  rely  principally  upon  its  special  attorney  to 
prosecute  such  violations.  The  employment  of  special  attorneys  by 
State  boards,  however,  tends  to  split  up  the  legal  business  of  the  State 
in  such  a  way  as  to  cause  conflict  or  friction  between  attorneys  of 
different  boards.  A  solution  of  this  difficulty  might  be  worked  out  by 
having  the  xA.ttorney-General  assign  an  attorney  to  the  State  Board  of 
Health.  Such  an  attorney  would  be  attached  to  the  Attorney-General's 
office  and  subject  to  central  supervision,  though  under  the  immediate 
direction  of  the  State  Board  of  Plealth.  It  is  probable  that  the  State's 
attorney  would  co-operate  more  readily  with  an  attorney  attached  to 
the  Attorney-General's  office  than  with  a  special  attorney  under  the 
State  Board  of  Health. 


654  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  decisions  of  the  board,  in  revoking  or  refusing  to  grant  licenses, 
in  refusing  to  recognize  medical  colleges  as  being  in  good  standing  and 
in  other  instances,  are  subject  to  judicial  review,  and  a  number  of  cases 
have  arisen  in  the  courts  by  way  of  appeal  from  the  decisions  of  the 
State  Board  of  Health.  ' 

Financial  Summary. 

The  State  Board  of  Health  receives  from  the  Legislature  annual 
appropriations  and  pays  out  by  way  of  salaries  of  employees  the  sum 
of  %Z7,720.    Other  expenses  are  met  from  appropriations  as  follows : 

Salaries  of  employees $  ^7,72-^ 

Farm  and  dairy  investigations $  5,000 

Office  and  traveling  expenses 5,500 

Laboratory  expenses 4,400 

Epidemic  fund 8,000 

Emergency  contingent  fund 6,000 

Purchase  and  distribution  of  antitoxin 29,000 

Purchase  and  distribution  of  antitoxin  (emergency) 7,000 

Treatment  of  rabies  in  indigent 3.000 

Expenses  of  State  Board  examinations 16,500 

Expenses  State  Board  examinations  (emergency) 4.500 

Distribution  of  typhoid  vaccine 6,000 

Prevention  of  blindness  in  children 3,000 

Expenses  of  lodging  house  inspectors 1,700 

99,600 

Total   annual   appropriations $137,320 

The  State  board  collects  fees  varying  in  amiount  from^  $1  to  $10 
for  various  services  performed,  such  as  admission  to  examination  and 
issuance  of  licenses.  Under  the  Act  of  1901  it  was  provided  that  the 
per  diem  of  members  of  the  board  should  be  paid  out  of  such  fees,  and 
not  out  of  the  State  Treasury,  but  by  Act  of  1911,  as  already  noted, 
all  such  fees  must  be  paid  into  the  State  Treasury,  and  it  is  therefore 
provided  that  the  compensation  of  members  of  the  board  may  be  paid 
out  of  the  State  Treasury,  upon  appropriation  being  made  ^therefor. 
The  board  is  required  to  make  an  annual  report  on  September  30,  show- 
ing all  items  of  receipts  from  all  sources  and  disbursements  for  all 
purposes. 

Receipts  and  disbursements  from  October  1,  1912,  to  September 
30,  1914,  were  as  follows  : 

Receipts,  October  1,  1912,  to  September  30,  1913 $  25,187.35 

Receipts,  October  1,  1913,  to  September  30,  1914 29.722.20 

Total    receipts $  54,909.55 

Disbursements     216,212.54 

2.      STATE  FOOD  COiSrMISSIONER. 

Introduction. 

As  early  as  the  Revised  Laws  of  1827,  the  Criminal  Code  of  Illi- 
nois contained  a  provision  that: 

If  any  person  or  persons  shall  knowingly  sell  any  flesh  of  any  diseased 
animal,  or  other  unwholesome  provisions,  or  any  pernicious  or  adulterated  drink 
or  liquors,  every  person  so  offending  shall  be  fined  not  exceeding  one  hundred 
dollars,  or  imprisoned  not  exceeding  three  months. 


PUBLIC    HEALTH    ADMINISTRATION.  655 

This  section  of  the  Criminal  Law  was  re-enacted  in  the  Revised 
Statutes  of  1845,  and  from  time  to  time  additional  and  more  specific 
legislation  has  been  enacted  regulating  and  prohibiting  the  sale  of  adul- 
terated and  dangerous  foods  and  drugs,  as  follows : 

1869_To  prohibit  making  and   selling  poisonous   candies;    and   to  prohibit  the 
supply  and  use  of  diluted,  adulterated  or  stripped  milk  for  the  manufac- 
ture of  cheese. 
1871— To  regulate  the  sale  of  abortifacient  drugs. 

1874-1877 Sections  7,  8,  9  and  10  of  the  Criminal  Law  to  prevent  fraud  in  the 

coloring  of  grain.  ,  .      ,  ,  , 

1879— To  regulate  the  sale  of  milk ;  and  to  prevent  fraud  m  the  manufacture  and 

sale  of  butter  and  cheese. 
1881— To  prevent  the  adulteration  of  butter  and  cheese. 

To  prevent  the  adulteration  of  food,  drink  and  medicine. 
1883 — To  prevent  the  adulteration  of  vinegar. 
1885 — To  regulate  the  sale  of  canned  or  preserved  food. 
1887 — To  regulate  the  sale  of  veal;   and  to   regulate  the  manufacture  and  sale 

of  substitutes  for  butter. 
1889— To  prevent  fraud  in  the  sale  of  lard;  and  to  fix  the  standard  of  analysis 

for  milk. 
1897— To  regulate  the  manufacture  and  sale  of  substitutes  for  butter;  and  to  fix 

the  standard  of  analysis  for  milk. 
1889 — To   prevent   the   adulteration   of   vinegar;   and   the    State   Food   Commis- 
sioner's Act. 
1901— To  prevent  fraud  in  the  branding  and  sale  of  process  and  renovated  butter. 
1905_To  regulate  the  sale  of  commercial  food  stufifs. 
1907 — Revised  Food  and  Drugs  Act. 

1911_Sanitary  regulation  of  food  supplies;  and  amendments  to  Food  and  Drugs 
Act  and  Stock  Food  Law. 

Until  the  Act  of  1899,  these  laws  were  classified  as  part  of  the 
criminal  code,  and  enforced  through  local  officials,  State's  attorneys 
and  boards  of  health.  The  Act  of  1899  was  of  much  broader  scope, 
and  also  established  the  office  of  State  Food  Commissioner  for  its  en- 
forcement; but  was  not  a  revision  of  all  the  laws  on  the  subject  of  pure 
food.  The  Food  and  Drugs  Act  of  1907  is  a  general  revision  of  the 
laws  pertaining  to  foods  and  food  products,  which  were  brought  into 
harmony  with  the  United  States  Foods  and  Drugs  Act.  But  some 
provisions  of  the  earlier  laws  not  incorporated  in  the  Act  of  1907  appear 
to  be  still  in  force:  the  Act  of  1897  to  regulate  the  manufacture  and 
sale  of  substitutes  for  butter  is  specifically  exempted  in  the  clause 
repealing  inconsistent  legislation ;  and  the  stock  food  law  and  sanitary 
regulation  law  are  separate  Acts.  The  pharmacy  law  is  also  a  separate 
xA-ct  enforced  by  the  Board  of  Pharmacy.  Under  the  Weights  and 
Measures  Act  (revised  in  1913)  the  Secretary  of  State  is  ex-officio 
State  Sealer  of  Weights  and  Measures. 

State  Food  Commissioner  and  Food  Standard  Commission. 
The  present  law  provides  for  a  State  Food  Commissioner,  to  be 
appointed  by  the  Governor,  for  a  term  of  four  years,  at  a  salary  of 
$3,600  per  annum.  This  officer  is  charged  with  the  enforcement,  of 
all  laws  regarding  the  production,  manufacture,  sale,  and  labeling  of 
food,  and  with  the  prosecution  of  any  one  violating  any  of  such  laws. 

A.  Food  Standard  Commission  is  also  provided  for  the  purpose  of 
determining  and  adopting  standards  of  quality,  purity  or  strength  for 
food  products.    This  consists  of  three  members,  one  of  whom  shall  be 


656  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

the  State  Food  Commissioner,  or  his  representative,  one  shall  be  a 
representative  of  the  Illinois  food  manufacturing-  industries,  and  one 
shall  be  an  expert  chemist.  The  two  members  other  than  the  Food 
Commissioner  or  his  representative,  each  receive  $15  per  day,  for  not 
more  than  thirty  days  in  any  one  year,  and  necessary  expenses. 

The  Act  of  1907  further  provides  for  the  following  staff — to  be 
appointed  by  the  commissioner,  with  the  advice  and  consent  of  the 
Governor : 

1  Assistant    commissioner $3,000 

1  State    analyst 2,500 

1  Attorney    1.800 

1  Chief    clerk 1,800 

1  Assistant    clerk    1,200 

3  Stenographers    at    $1,000 3,000 

12  Inspectors  at,  each $1,200  to  1,800 

To  be  appointed  by  tlie  Commissioner: 

1  Bacteriologist    ^ 1,800 

7  Analytical    chemists,    each $1,200  to  1,800 

1  Janitor    720 

The  General  Assembly  in  1913  made  the  following  appropriations 
for  the  Food  Commissioner : 

,      •  Per  annum. 

Salaries  of  six   stock  food  inspectors $  7,200 

Salaries  of  two  chemists    2,400 

Expenses  of  Food    Commission 4,000 

Expenses  of  analysts    4,200 

Expenses  of  inspectors 12,000 

Expenses  of  laboratory    ". 3,000 

For  rent  5,000 

For  postage    2,000 

Expenses  of  State    food    inspectors 7,200 

Expenses  of  chemists    2,400 

Expenses  of  attorney 500 

Expenses,  Food  Standard  Commission 1,500 

Office   expenses    2,500 

Total $53,900 

The  above  salaries  and  appropriations  amount  to  over  $100,000  per 
year.  The  expenses  of  the  office  for  the  two  years  ending  September 
30,  1912,  amounted  to  $164,098.38;  and  for  the  two  years  ending  Sep- 
tember 30,  1914,  were  $163,469.45.  Some  revenue  is  received  from 
licenses  and  fines,  the  receipts  paid  into  the  State  Treasury  for  the  two 
years  ending  September  30,  1914,  amounting  to  $34,610.65. 

Poivers  and  Duties. 
General  Provisions: 

The  food  and  drugs  Act  makes  it  unlawful  to  manufacture  for 
sale  within  the  State  of  Illinois  any  article  of  food  or  drink  which  is 
adulterated  or  misbranded ;  defines  the  terms  "adulterated"  and  "mis- 
branded"  ;  and  provides  for  the  condemnation  and  confiscation  of  adul- 
terated or  misbranded  foods  or  drink.  It  also  contains  specific  provi- 
sions in  regard  to  branding  vinegar,  labeling  extracts  and  baking  pow- 
der, adulterated  liquors,  unclean  or  unwholesome  milk,  the  sale  of  pre- 
servatives, lard  substitutes,  and  process  butter.     Other  Acts  regulate 


PUBLIC    HEALTH    ADMINISTRATION.  657 

the  sale  of  commercial  food  stuffs,  and  require  premises  used  for  the 
manufacture,  sale  or  distribution  of  foods  to  be  adequately  lighted, 
drained  and  ventilated  and  kept  in  a  sanitary  condition. 

Standards  of  purity  and  strength  are  specified  in  the  law  for  certain 
articles,  such  as  milk,  pepper,  extracts,  olive  oil  and  vinegars.  All 
articles  not  defined  in  the  Act  must  conform  to  the  definition  and  analyti- 
cal requirements  adopted  and  promulgated  from  time  to  time  by  the 
Food  Standard  Commission. 
Rules  dnd  Regulations: 

The  State  Food  Commissioner  shall  make  rules  and  regulations  for 
carrying  out  the  provisions  of  the  food  and  drugs  Act,  and  for  analyzing 
and  reporting  the  results  thereof  of  articles  submitted  by  the  State  Board 
of  Health,  or  furnished  under  any  law  of  the  United  States  relative  to 
adulterated,  misbranded  or  deleterious  foods,  etc. 

Licenses: 

By  an  amendment  of  1911  no  person  may  operate  a  milk  or  cream 
testing  apparatus  to  determine  the  percentage  of  butter  fat  in  milk  or 
cream  without  first  securing  a  license  from  the  food  commissioner,  on 
application  and  passing  a  satisfactory  examination  that  he  is  competent 
and  qualified  to  properly  use  such  tester.  Licenses  are  issued  for  two 
years ;  and  a  fee  of  one  dollar  must  be  paid.  The  food  commissioner 
has  authority  for  just  cause  to  revoke  any  such  license. 

During  the  year  1911,  the  department  issued  205  licenses  to  manu- 
facturers, jobbers  or  dealers  in  concentrated  commercial  feeding  stuffs. 
For  these,  the  amount  received  by  the  State  Treasurer  in  fees  was 
$11,212.50.  Receipts  from  such  licenses  for  the  two  years  ending  Sep- 
tember 30,  1914,  amounted  to  $33,938.65. 

Inspections:  ' 

The  State  Food  Commissioner  and  authorized  inspectors  are  re- 
quired to  examine  the  raw  materials  used  in  the  manufacture  of  food 
products;  and  are  authorized  and  required  to  examine  and  inspect  all 
premises  where  food  is  manufactured,  transported,  stored  or  sold ;  and 
to  report  any  violations  of  the  law  or  conditions  detrimental  to  the 
health  of  the  employees  or  the  quality  of  the  food. 

In  the  printed  reports  of  the  food  commissioner  for  1911  and 
1912,  examinations  and  inspections  are  reported  to  have  been  made 
in  several  hundred  places  throughout  the  State.  No  data  is  shown  as 
to  the  time  spent  in  each  place  or  the  number  of  premises  inspected. 
The  reports  describe  more  fully  certain  special  investigations  made  on 
complaint.  At  the  time  covered  by  these  reports,  the  inspectors  were 
not  assigned  to  permanent  districts ;  but  different  inspectors  visited 
some  of  the  same  places  at  different  times. 

The  State  has  now  been  divided  into  eleven  inspection  districts. 
Two  inspectors  are  in  Chicago ;  and  there  is  one  for  each  of  the  other 
districts,  with  headquarters  at  Chicago,  Rockford.  Champaign,  Peoria, 
Galesburg,  Jacksonville,  Springfield,  East  St.  Louis,  Centralia  and  Mt. 
Carniel.  Inspectors  are  required  to  spend  eight  hours  a  day;  but  there 
seems  to  be  no  method  for  checking  their  activity,  except  by  the  reports 


658  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

submitted.  A  sanitary  inspection  report  is  made  for  each  establishment 
visited;  a  hst  of  places  inspected  each  day  is  reported,  and  a  general 
report  on  conditions  in  a  city  or  town  is  made  when  the  inspection  has 
been  completed.  About  one-tenth  of  the  time  of  inspectors  is  estimated 
to  be  spent  on  investigating  complaints. 

No  inspection  of  stock  yards  or  wholesale  houses  is  made  by  the 
food  inspectors. 
Analyses: 

When  the  food  commissioner  or  his  agents  have  grounds  for  sus- 
picion that  any  article  of  food  is  adulterated  or  misbranded,  he  may 
seize  such  article,  and  shall  forthwith  cause  a  sample  to  be  examined 
and  analyzed.  Samples  taken  by  the  agents  of  the  food  commissioner 
must  be  taken  to  the  State  analyst,  or  other  competent  person  appointed 
for  the  purpose  of  making  examinations  and  analyses. 

The  State  Board  of  Health  may  submit  to  the  State  Food  Com- 
missioner or  any  of  his  assistants  samples  of  food  or  drink  for  examina- 
tion or  analysis  and  receives  special  reports  showing  the  results  of  such 
examination  or  analyses.  The  food  commissioner  is  also  required  to 
make  analyses  and  examinations  for  the  State  charitable  institutions  of 
foods,  drugs  and  such  other  supplies  as  the  laboratory  is  equipped  and 
prepared  to  examine  and  analyze. 

It  is  unlawful  for  the  State  analyst  or  any  assistant  State  analyst 
to  furnish  to  any  person,  firm  or  corporation,  any  certificate  as  to  the 
purity  or  excellence  of  any  article  manufactured  or  sold  by  them  to  be 
used  as  food  or  in  the  preparation  of  food. 

A  summary  of  the  analysis  work  of  the  department  for  the  years 
1911  and  1912  is  shown  below: 

1911  1912 

Samples  taken  3,673  6,500 

Number  found  to  be  adulterated  or  misbranded 1,123  2,091 

Suits  filed  239  236 

In  the  latter  part  of  1913  and  early  months  of  1914  most  of  the 
inspectors  were  engaged  in  sanitary  inspections,  and  less  attention  was 
being  given  to  taking  samples  for  analysis. 

Hearings — ^Prosecutions: 

When  it  appears  from  examination  or  analysis  that  the  provisions 
of  the  food  and  drug  Act  have  been  violated,  the  food  commissioner 
is  required  to  send  notices  of  such  fact,  with  a  copy  of  the  findings, 
to  the  party  from  whom  the  sample  was  obtained,  and  to  the  manufac- 
turer, packer  or  other  dealer,  if  any,  whose  name  appears  on  the  label. 
Such  party  or  parties  shall  be  given  an  opportunity  to  be  heard,  under 
rules  and  regulations,  the  date,  hour  and  place  of  hearing  to  be  named 
in  the  notices.  The  hearing  shall  be  private,  and  parties  interested  may 
appear  in  person  or  by  attorney. 

If,  after  such  hearing,  the  commissioner  believes  that  the  Act  has 
been  violated,  he  shall  cause  the  party  or  parties  wdiom  he  believes  to 
be  guilty,  to  be  prosecuted  forthwith  under  the  provisions  of  the  Act. 
No  action  or  prosecution  shall  be  instituted  for  a  violation  of  the  pro- 
visions of  the  Act,  unless  commenced  within  six  months  after  taking 
the  sample. 


PUBLIC    HEALTH    ADMINISTRATION.  659 

Hearings  are  usually  held  by  the  commissioner  or  the,  assistant 
commissioner ;  and  in  most  cases  the  proceedings  are  informal.  Many 
violations  of  the  law  are  of  a  minor  and  technical  character,  and  in 
such  cases  and  also  in  other  cases  of  first  instance,  prosecutions  are  not 
begun  if  the  parties  agree  to  comply  with  the  law  in  the  future. 

The  department  attorney  prepares  the  papers  for  prosecuting  cases, 
and  sends  them  to  the  State's  attorney  of  the  proper  county.  If  neces- 
sary the  department  attorney  attends  court  when  the  case  is  tried.  The 
Attorney-General  is  sometimes  asked  for  a  legal  opinion  as  to  the 
rights  of  the  department. 

Educational  Methods: 

The  food  commissioner's  department  is  giving  attention  to  a  cam- 
paign of  public  education  on  the  importance  of  pure  foods  and  drinks. 
In  this  it  is  working  in  co-operation  with  women's  clubs,  traveling 
men's  associations  and  other  private  organizations.  Bulletins  are  issued 
and  distributed ;  and  a  moving  picture  show  is  furnished,  for  example, 
to  illustrate  the  dangers  from  dirty  drains. 

Reports  and  Publications: 

The  food  commissioner  is  required  to  make  annual  reports  to  the 
Governor  of  his  work  and  proceedings,  and  to  report  in  detail  the  num- 
ber of  inspectors,  with  their  salary,  expenses  and  disbursements;  and 
he  may  from  time  to  time  issue  bulletins  of  information. 

In  the  annual  repoft  for  1911  there  are  reports  from  the  food  com- 
missioner, assistant  commissioner,  state  analyst,  attorney  and  the  sev- 
eral inspectors,  with  tables  in  regard  to  samples  analyzed,  a  statement 
of  Supreme  Court  decisions,  copies  of  bulletins  issued  since  July  1,  1907, 
instructions  to  inspectors,  tentative  food  standards,  and  copies  of  the 
Food  and  Drug  Act  as  amended  to  1911,  the  Oleomargarine  and  Stock 
Food  Law  and  the  United  States  Food  and  Drug  Act  of  1906. 

Relations  to  Other  Officials. 

The  sanitary  inspections  by  the  State  food  inspectors  should  be 
closely  related  to  the  work  of  the  State  Board  of  Health,  and  it  also 
involves  an  inspection  of  establishments  which  are  subject  to  the  visits 
of  the  State  factory  inspectors.  No  arrangement  for  systematic  co- 
operation between  these  departments  appears  to  have  been  made ; 
though  occasionally  an  inquiry  or  report  is  sent  from  one  of  these 
offices  to  another.  The  State  Board  of  Health  does  not  seem  to  have 
sent  any  samples  to  the  food  commissioner  for  analyses.  Analyses  of 
foods  and  other  supplies  for  the  State  charitable  institutions  have  been 
made. 

Some  efifort  is  made  by  the  food  inspectors  to  secure  the  assistance 
and  co-operation  of  local  health  officials — especially  in  the  enforcement 
of  the  orders  of  the  food  inspectors.  The  department  has  also  prepared 
a  model  milk  ordinance  which  is  recommended  for  adoption  by  cities 
and  villages.         „      .  ^  .    .  .     ^  , 

tood  Commissioners  m  Other  States. 

In  most  states  a  food  and  dairy  commission  is  charged  with  the 
administration  of  the  laws  to  prevent  the  adulteration  and  misbranding 


660  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

of  foods ;  and  in  about  half  of  the  States  this  officer  is  at  the  head  of 
an  independent  bureau  or  department.  In  sixteen  States,  however, 
such  laws  are  enforced  through  the  health  authorities — Massachusetts, 
Vermont,  New  Hampshire,  New  Jersey,  Delaware,  Maryland,  South 
Carolina,  Tennessee,  Louisiana,  Indiana,  Kansas,  Oklahoma,  Colorado, 
Montana,  Idaho  and  California — also  in  the  territories  of  Hawaii  and 
Porto  Rico.  In  Maryland,  the  State  food  and  drug  commissioner  is  in 
charge  of  the  division  of  food  and  drugs  in  the  State  department  of 
health;  and  analyses  are  made  by  the  bureau  of  chemistry  in  the  same 
department ;  but  the  sanitation  of  dairies  is  in  charge  of  the  State  live 
stock  sanitary  board.  In  Louisiana,  the  food  and  dairy  commissioner  is 
appointed  by  the  State  board  of  health. 

The  enforcement  of  the  pure  food  laws  is  in  the  hands  of  a  divi- 
sion or  bureau  of  the  department  of  agriculture  in  a  number  of 
states,  including  New  York,  Pennsylvania,  Ohio,  Virginia,  North  Car- 
olina, Georgia,  and  Washington;  in  North  Dakota  the  department  of 
agriculture  administers  the  dairy  laws ;  and  in  several  other  states  the 
department  of  agriculture  has  supervision  over  the  sale  of  commercial 
fertilizers. 

Recommendations. 

In  his  biennial  message  to  the  General  Assembly  on  January  1, 
1913,  Governor  Deneen  recommended  the  passage  of  a  law  regulating 
the  cold  storage  of  food  products ;  and  revision  of  the  State  Pharmacy 
Law,  transferring  to  the  food  commissioner  the  administration  of  the 
law  regulating  the  sale  of  drugs,  with  power  to  inspect  drug  stores ; 
and  also  the  amendment  of  the  law  relating  to  commercial  fertilizers 
so  as  to  place  its  enforcement  in  the  hands  of  the  food  commissioner. 

The  inspection  service  under  the  State  Food  Commissioner  should 
also  be  authorized  to  inspect  and  test  weights  and  measures ;  and  the 
State  Food  Commissioner  should  be  made  State  Sealer  of  Weights 
and  Measures. 

The  State  Food  Commissioner's  department  should  probably  be 
combined  with  other  health  authorities  in  a  department  of  health,  and 
the  inspection  work  of  the  food  inspectors  should  be  consolidated  with 
that  of  the  State  Board  of  Health.  The  fact,  however,  that  a  consid- 
erable portion  of  the  work  of  the  State  Food  Commissioner  does  not 
relate  primarily  to  the  matter  of  public  health  indicates  the  feasibility 
of  combining  this  officer  with  some  other  department,  such  as  the 
Department  of  Agriculture,  as  is  done  in  a  number  of  other  states  and 
in  the  United  States  government. 

3.       STATE    BOARD   OF    PHARMACY. 

Orgam::ation. 

This  board  was  established  in  1881,  and  consists  of  five  members 
appointed  by  the  Governor  with  the  advice  and  consent  of  the  Senate 
for  five  year  terms,  so  arranged  that  the  term  of  one  member  expires 
annually  on  the  thirty-first  of  December.  The  members  so  appointed 
shall  be  competent  registered  pharmacists  in  the  State  and  shall  have 
had   ten   year's   practical   experience   in   the   dispensing  of   phvsicians' 


PUBLIC    HEALTH    ADMINISTRATION.  661 

prescriptions.  The  Illinois  Pharmaceutical  Association  is  authorized 
to  report  annually  directly  to  the  Governor,  recommending  the  names 
of  at  least  three  persons  whom  the  association  deems  best  qualified  to 
till  any  vacancies  which  may  occur  in  the  board.  The  board  elects  a 
president  from  among  its  own  members,  and  also  a  secretary,  who  shall 
not  be  a  member  of  the  board. 

The  members  of  the  board  receive  no  salaries,  but  receive  a  per 
diem  of  eight  dollars  for  each  day  actually  engaged  in  the  business  of 
the  board.  The  members  of  the  board  are  also  entitled  to  traveling 
and  other  expenses  incurred  in  the  performance  of  official  duties.  The 
secretary  receives  a  salary  fixed  at  $3,000  per  annum.  The  other 
employees  of  the  board  are  a  bookkeeper,  an  inspector,  a  clerk,  a  sten- 
ographer, and  janitor. 

The  expenses  of  the  board  for  salaries  and  other  items  are  as 
follows : 

Secretary    $  3,000 

Bookkeeper    1,800 

Inspector    1,800 

Clerk   1,200 

Stenographer    1,200 

Janitor    300 

Per  diem  of  members 4,500 

Expenses  of  members 3,000 

Office  expenses  2,000 

Rent  and  Light,  Chicago  office 1,500 

Total  expenses $20,300 

The  board  receives  fees  charged  for  admission  to  examination,  for 
issuance  and  renewal  of  certificates  and  from  fines  collected.  Prior  to 
July  1,  1911,  the  board  paid  its  expenses  from  fees  received;  but  by 
Act  of  that  year  all  moneys  received  by  the  board  from  whatever  source 
must  be  paid  into  the  State  Treasury,  and  the  board,  therefore,  is  now 
supported  out  of  appropriations  made  by  the  General  Assembly.  For 
the  two  years  ending  July  1,  1913,  those  fees  and  fines  amounted  to 
$46,048.  For  the  two  years  ending  September  30,  1914,  the  receipts 
paid  to  the  State  Treasury  from  the  State  Board  of  Pharmacy  were 
$45,506.20.    The  disbursements  for  the  same  period  were  $38,513.20. 

The  board  is  required  to  make  an  annual  report  to  the  Governor 
and  to  the  Illinois  Pharmaceutical  Association.  This  report  shall  con- 
tain a  statement  of  all  moneys  received  and  disbursed,  and  the  names 
of  all  persons  to  whom  certificates  as  pharmacists  were  granted  during 
the  time  covered  by  the  report.  The  board  is  required  to  hold  meetings 
at  least  twice  a  year,  and  shall  give  public  notice  of  the  time  and  place 
of  such  meeting.    Three  members  of  the  board  constitute  a  quorum. 

Powers  and  Duties. 

The  fimctions  of  the  State  Board  of  Pharmacy  may  be  classified 
as  follows : 

Examining  and  licensing  function. 

Enforcement  of  the  Acts  against  the  sale  and  use  of  certain 
drugs  and  chemicals. 


662  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

Examining  and  Licensing: 

No  person,  not  a  registered  pharmacist,  may  compound  medicines 
for  sale  or  directly  conduct  a  pharmacy.  The  board  is  required  to  hold 
examinations  for  the  admission  of  applicants  to  registfation  as  licensed 
pharmacists.  The  board  issues,  to  persons  passing  satisfactory  exam- 
inations, four  grades  of  certificates — namely,  apprentice,  assistant 
pharmacist,  registered  pharmacist  and  local  registered  pharmacist.  In 
taking  an  examination  the  applicants'  attendance  at  a  reputable  school 
or  college  of  pharmacy  may  receive  credit  in  lieu  of  the  required  service 
under  the  supervision  of  a  registered  pharmacist.  The  board  is  em- 
powered to  make  rules  to  establish  a  uniform  and  reasonable  stand- 
ard of  educational  requirements  to  be  observed  by  schools  and  colleges 
of  pharmacy,  and  the  board  may  determine  the  reputability  of  such 
schools  and^ colleges  by  reference  to  their  compliance  with  such  rules. 
All  certificates  of  registration  as  licensed  pharmacists  issued  by  the 
board  expire  on  the  thirty-first  of  December  following  the  date  of 
issuance.  It  then  becomes  necessary  for  pharmacists  who  wish  to  con- 
tinue in  the  profession  to  secure  a  renewal  of  their  certificates,  which 
may  be  done  upon  payment  to  the  board  of  a  renewal  fee.  The  board 
may  refuse  registration  or  renewal  of  certificates  to,  or  may  suspend 
the  certificates  of,  registered  pharmacists  who  are  proved  to  be  not  of 
good  moral  character  or  so  addicted  to  the  use  of  stimulants  as  to 
render  them  unsafe  to  handle  or  sell  drugs. 

Enforcement  of  Certain  Acts: 

Acts  have  been  passed  requiring  that  all  drugs  sold  at  retail  shall 
bear  a  label  distinctly  indicating  the  name  of  the  article  sold.  Any 
person  failing  to  comply  with  this  requirement  is  liable  to  a  fine.  By 
an  Act  of  1907  the  adulteration  of  any  drug  or  chemical  sold  or 
ofifered  for  sale  is  prohibited,  and  the  State  Board  of  Pharmacy  is 
empowered  to  employ  a  chemical  expert  to  examine  into  any  such 
claimed  adulteration  or  substitution,  and  report  to  the  board  upon  the 
result  of  his  examination.  If  the  report  justify  such  action,  the  board 
shall  cause  the  offender  to  be  prosecuted.  By  an  Act  of  1908,  it  is 
unlawful  for  any  person  to  sell  or  give  away  cocaine  or  substances  with 
similar  properties,  under  penalty  of  fine  and  imprisonment.  If  the 
person  so  oft'ending  shall  have  a  license  as  a  physician,  dentist,  or 
pharmacist,  such  license  shall  be  revoked,  where  the  sale  or  gift  was 
to  a  person  addicted  to  the  habitual  use  of  cocaine  or  similar  substances. 
Prosecutions  of  persons  suspected  of  being  guilty  of  violation  of  any 
of  the  above  .A,cts  are  entrusted  to  the  State's  attorneys  of  the  counties 
where  the  ofl'ense  is  committed.  The  same  objection  to  this  method  of 
enforcement  is  pertinent  here  as  in  the  case  of  the  State  Board  of 
Health.  That  the  enforcement  by  the  State's  attorneys  of  the  law 
against  the  sale  of  cocaine  is  not  satisfactory  is  indicated  by  the  request 
of  the  State  P>oard  of  Pharmacy  of  a  special  appropriation  to  enable  it 
to  enforce  the  law  more  efficiently. 


PUBLIC    HEALTH    ADMINISTRATION.  663 

4.       STATE   BOARD   OF    DENTAL    EXAMINERS. 

Organisation. 

This  board  was  established  in  1881.  At  present  it  Consists  of  five 
members,  appointed  by  the  Governor  for  five  year  terms.  They  must 
be  legally  licensed  dentists,  residents  of  the  State  for  five  years  or  more 
and  must  not  be  in  any  way  connected  with  a  dental  college  or  dental 
department  of  any  institution  of  learning.  The  board  chooses  one  of 
its  members  president  and  one  secretary.  It  must  hold  at  least  one 
meeting  annually.  A  majority  of  the  members  constitute  a  quorum. 
Each  member  of  the  board  receives  a  per  diem  of  ten  dollars  for  each 
day  actually  engaged  in  the  duties  of  the  office,  except  the  secretary, 
who  receives  a  salary  fixed  by  the  board.  At  present  he  receives  a 
salary  of  $1,200  and  there  is  a  stenographer  employed  at  a  salary  of 
$900.  The  per  diem  and  expenses  of  members  and  office  expenses 
bring  the  total  annual  appropriations  of  the  board  to  $7,025.  The  dis- 
bursements for  1912-14  were  $13,588.62.  The  receipts  from  the  board 
to  the  State  Treasury,  from  license,  examination  and  other  fees  for 
the  two  years  ending  September  30,  1914,  were  $17,457.20.  The  board 
makes  an  annual  report  to  the  Governor  for  the  year  ending  Decem- 

Pozuers  and  Duties.  , 

The  board  holds  examinations  to  test  the  qualifications  of  persons 
desiring  to  obtain  licenses  as  dentists.  Application  for  a  license  must 
be  made  to  the  board  in  writing,  with  proof  that  the  applicant  is  of  good 
moral  character,  that  he  is  a  dentist  in  good  standing  in  another  State, 
or  that  he  is  a  graduate  of  a  reputable  dental  or  medical  school.  In 
order  to  determine  which  are  reputable  dental  schools,  the  board  i.<! 
empowered  to  establish  a  uniform  and  reasonable  standard  of  educa- 
tional requirements  to  be  observed  by  dental  schools  coming  within  the 
reputable  class. 

Licenses  granted  by  the  board  must  be  registered  with  the  county 
clerks  of  the  counties  in  which  the  licensee  desires  to  practice.  Failure 
to  register  the  license  within  ninety  days  works  its  forfeiture,  but  it 
may  be  renewed  upon  the  payment  of  a  fee.  The  board  keeps  a  list  of 
the  legal  practitioners  of  dentistry  in  the  State,  and  for  the  purpose 
of  revising  such  list,  all  licensed  dentists  are  required  to  secure  annually 
from  the  secretary  of  the  board  a  certificate  of  registration  and  pay  a 
fee  therefor. 

The  board  may  refuse  to  issue  a  license,  or  may  revoke  a  license 
already  issued  to  individuals  guilty  of  dishonorable  or  unprofessional 
conduct.  Before  taking  this  action,  the  board  must  give  the  person  so 
charged  written  notice  of  the  charges  and  accord  him  a  hearing  not 
less  than  twenty  days  after  the  notice.  Any  person  who  shall  practice 
dentistry  without  a  license  is  subject  to  prosecution,  and,  upon  convic- 
tion, to  the  payment  of  a  fine.  Any  manager  or  association  operating 
dental  parlors  must,  upon  demand  of  the  secretary  of  the  board  furnish 
him  with  a  sworn  statement  showing  the  names  of  all  persons  prac- 
ticing or  assisting  in  such  parlors,  under  penalty  of  fine  upon  convic- 
tion of  failure  to  do  so. 


664  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

5.      STATE    BARBERS    EXAMINING    BOARD. 

Organisation. 

This  board  was  established  in  1909  and  consists  of  three  members 
appointed  by  the  Governor  for  two  year  terms.  They  must  be  prac- 
tical barbers,  who  have  been  for  at  least  five  years  .prior  to  their  appoint- 
ment, engaged  in  the  occupation  of  barber  in  the  State.  The  board 
elects  a  president,  secretary  and  treasurer  from  its  own  membership. 
Each  member  receives  a  salary  of  $1,200  yearly,  and  the  board 
employs  a  stenographer  and  a  clerk  at  $1,000  each.  The  annual 
expenses  for  salaries  are  thus  $5,600.  The  total  disbursements  for  the 
two  years  ending  September  30,  1914,  were  $25,579.07.  The  receipts 
paid  into  the  State  Treasury  for  this  period  were  $38,423.42.  The 
board  files  with  the  Governor  on  July  1  of  each  year  an  itemized  state- 
ment of  its  receipts  and  expenditures  for  the  year. 

Examinations:  Powers  and  Duties. 

The  board  is  required  to  hold  examinations  four  times  a  year  in 
different  parts  of  the  State  of  applicants  for  certificates  of  registration 
as  licensed  barbers.  The  applicant  must  have  studied  and  practiced 
as  an  apprentice  for  three  years  under  a  licensed  barber  or  in  a  properly 
conducted  l)arber  school.  All  students  or  apprentices  must  apply  to 
the  board  to  have  their  names  registered  in  a  book  kept  by  the  board 
for  that  purpose.  Those  who  successfully  pass  the  examination  given 
by  the  board  are  granted  certificates  of  registration,  which  must  be 
annually  renewed  on  payment  of  a  small  fee.  Certificates  may  be 
revoked  by  the  board  for  failure  to  apply  for  a  renewal  as  required, 
but  only  after  a  hearing  by  the  board. 

Enforcing  Sanitary  Rules: 

The  board  is  authorized  to  adopt  reasonable  rules  for  the  sanitary 
regulation  of  barber  shops,  subject  to  the  approval  of  the  State  Board 
of  Health,  and  may  enter  any  barber  shop  during  business  hours  for 
the  purpose  of  inspecting  such  shops  and  seeing  that  they  are  kept 
in  sanitary  condition.  If  any  shop  be  found  in  an  unsanitary  condition, 
or  if  any  barber  working  therein  be  charged  with  imparting  any  com- 
municable disease,  the  board  shall  immediately  notify  the  health  officer, 
and  such  shop  shall  be  quarantined,  and  the  barber  so  charged  shall 
not  practice  his  occupation  until  such  quarantine  shall  be  removed  by 
the  health  officers. 

Revoking  Certificates: 

The  board  may  revoke  the  certificate  of  registration  of  any  barber 
for  conviction  of  crime,  habitual  drunkenness,  gross  incompetency, 
failure  to  comply  with  the  sanitary  rules  duly  issued  by  the  board,  or 
for  having  imparted  any  communicable  disease.  But  before  any  cer- 
tificate can  be  revoked  the  holder  must  be  given  notice  in  writing  of 
the  charges  against  him  and  a  public  hearing  before  the  board  at  a 
date  not  less  than  five  days  after  the  service  of  notice.  The  board 
may  regrant  a  certificate  after  ninety  days  subsequent  to  the  revoca- 


PUBLIC    HEALTH    ADMINISTRATION.  665 

tion,  upon  receiving  satisfactory  proof  that  the  disqualification  has 
ceased  to  exist.  Persons  guilty  of  practicing  as  a  barber  without  a  cer- 
tificate or  of  wilfully  employing  a  barber  without  a  certificate  are 
guilty  of  misdemeanors,  and  subject,  upon  conviction,  to  fine  and 
imprisonment. 

The  board  was  formerly  allowed  six  deputy  inspectors  whose  busi- 
ness it  was  to  visit  barber  shops  and  inspect  sanitary  conditions.  No 
appropriation  for  these  inspectors  was,  however,  made  in  1913. 

6.      STATE    BOARD    OF    NURSE    EXAMINERS. 

Organisation. 

An  Act  of  1907  provided  for  the  registration  of  nurses  and  estab- 
lished the  Illinois  State  Board  of  Examiners  of  Registered  Nurses. 
In  1913  a  new  law  was  passed  repealing  the  former  Act  and  changing 
the  name  of  the  board  to  the  Illinois  State  Board  of  Nurse  Examiners. 
The  board  consists  of  five  registered  nurses  appointed  by  the  Governor, 
with  the  advice  and  consent  of  the  Senate,  for  three  year  terms.  They 
must  be  residents  of  the  State,  actively  engaged  in  nursing,  graduates 
of  at  least  five  years  standing  from  a  reputable  training  school,  have 
served  for  two  years  in  a  general  hospital,  and  be  registered  as  nurses 
under  the  State  law. 

The  board  elects  from  its  number  a  president,  secretary  and 
treasurer.  The  members  receive  $10  per  diem  and  traveling  expenses 
for  actual  service.  The  secretary-treasurer  receives  a  salary,  fixed  by 
the  board  at  $1,400  per  annum.  A  stenographer  is  employed  at  $900 
a  year.  The  total  annual  appropriation  for  salaries,  ofiice,  traveling 
and  other  expenses  amounts  to  $5,130. 

Until  December  13,  1913,  the  ofifice  of  this  board  was  in  Chicago. 
Since  that  date  the  office  has  been  in  the  State  capitol  at  Springfield. 

Pozvcrs  and  Duties. 

Provision  is  made  in  the  law  for  the  registration  of  nurses,  (a) 
under  a  temporary  waiver  clause,  (&)  by  regular  examination,  (c)  by 
restoration  of  revoked  licenses,  and  (d)  by  reciprocal  arrangements 
with  other  States. 

The  board  holds  examinations  at  least  twice  a  year  for  certificates 
of  registration  as  licensed  nurses.  Certificates  must  be  registered  with 
the  county  clerk  within  ninety  days  from  date  of  issuance ;  and  failure 
to  have  a  certificate  registered  works  a  revocation.  Applicants  must 
have  been  graduated  from  a  training  school  for  nurses  connected  with 
a  hospital  in  good  standing,  with  a  three  years'  course  accredited  by 
the  board ;  or  have  been  graduated  from  a  training  school  with  a  two 
years'  course,  who  have  taken  a  year's  additional  training  in  a  reputable 
hospital. 

Under  the  law,  the  board  is  authorized  to  adopt  rules,  to  outline 
and  establish  a  course  of  training  for  accredited  schools  for  nurses, 
and  to  inspect  accredited  schools. 


666  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Any  person  practicing  as  a  registered  nurse  without  a  certificate 
from  the  board  is  guilty  of  a  misdemeanor.^  Any  certificate  granted 
may  be  revoked  by  unanimous  vote  of  the  board  for  gross  incompetency 
or  recklessness  in  the  discharge  of  duty,  or  for  dishonest  practices. 
But  before  any  certificate  can  be  revoked,  the  holder  is  entitled  to  a 
thirty  days'  notice  of  the  charges  against  her,  and  a  hearing  before 
the  board. 

Any  person  whose  certificate  as  a  nurse  shall  be  revoked  or  to 
whom  a  renewal  of  such  certificate  shall  be  denied,  or  any  training 
school  for  nurses  whose  application  to  be  placed  upon  the  list  of 
accredited  training  schools  for  nurses  shall  be  denied  or  whose  name 
is  stricken  from  such  list,  by  ruling  of  the  board,  may  file  a  petition  in 
the  circuit  court  of  the  county  praying  for  a  reversal  of  such  ruling. 
The  burden  of  proof  in  such  proceedings  rests  with  the  petitioner. 
The  decision  of  the  court  is  final,  but  does  not  bar  a  new  application  to 
the  board  for  renewal  of  the  revoked  certificate,  or  for  reinstatement  or 
the  list  of  accredited  schools. 

Operations. 

The  number,  of  nurses  registered  under  the  Acts  of  1907  and  1913 


IS  snown  oeiow. 

Under  Waiver  Clause 

By  regular  examination 

Restored   

By  reciprocity 

Under  Act 
of  1907 

3,094 

342 

.     .      13 

Under  Act 
of  1913a 

167 

457 
4 

628 

Total 

3,261 

799 

4 

13 

Total 

Approximate  number  of  Training 

Schools 
1914. . 

3^49 

>  for  Nurses 

4,077 
..     97 

Number  on  accredited  list  July  10, 
Number  not  accredited. . .- 

. . . .      70 
. . . .     27 

9 

Number  schools  inspected 

. . . .      32 

a.    To  July  1,  1914. 

Finances. 
A  fee  of  $10  is  collected  from  each  applicant  for  a  registered 
nurse's  certificate.  Since  July  1,  1911,  these  fees  have  been  paid  into 
the  State  Treasury,  and  the  expenses  of  the  board  are  paid  from  appro- 
..riations  made  by  the  General  Assembly.  Below  is  a  summary  of  the 
tmanciaj  operations  from  July  1  ,  1911,  to  July  1,  1914: 

Receipts 

paid  into  Appropria-  Expend- 

State  Treasury      tions  itures 

July  1,  1911 $24,276.86  

July  1,  1911,  to  June  30,  1912 918.88  $5,020.00  $3,124.70 

July  1,  1912,  to  June  30,  1913 2,540.00  5,020.00  4,271.39 

July  1,  1913,  to  June  30,  1914 7,220.01  5,130.00  4,313.54 

Registration  of  Nurses  in  Other  States. 
Thirty-nine  States  have  laws  governing  the  registration  of  nurses. 
Eight  of  these  have  mandatory  laws — Virginia,  Indiana,  Iowa,  Okla- 

1  This   does   not   prevent   other   persons    from   acting   as   "practical   nurses,"   if  they   do 
not  claim  to  be  a  "registered  nurse." 


PUBLIC    HEALTH    ADMINISTRATION.  667 

hoina,  Texas,  Colorado,  Wyominj?  and  Montana.  Reciprocal  arrange- 
ments have  been  made  between  Illinois  and  Indiana,  Minnesota  and 
(after  September  1,  1914)  Wisconsin,  whose  laws  impose  standards 
equal  to  or  higher  than  in  Illinois.  The  Illinois  board  considers  the 
laws  of  the  following  States  as  not  imposing  standards  equal  to  or 
higher  than  those  of  "this  State:  New  York,  New  Jersey,  Michigan, 
Kentucky,  Missouri,  Nebraska,  Kansas,  Oklahoma,  Texas,  Colorado, 
Wyoming,  and  Montana.  Two  years'  training  is  required  in  the  above 
States. 

There  are  no  laws  for  the  registration  of  nurses  in  Ohio,  Maine, 
South  Carolina,  Mississippi,  North  Dakota,  South  Dakota,  Utah,  New 
Mexico  and  Nevada. 

Complaints  and  Suggestions. 

Complaints  have  been  made  to  the  Efficiency  and  Economy  Com- 
mittee, both  in  regard  to  the  substantive  provisions  of  the  nurses'  law 
and  to  the  administrative  arrangements.  It  has  been  urged  that  the 
requirement  of  a  three  years'  course  of  training  is  too  restrictive,  as 
tending  to  limit  the  number  of  available  registered  nurses  and  to  enable 
them  to  maintain  unduly  high  rates  for  their  services,  and  as  hamper- 
ing hospitals  which  maintain  only  a  two  years'  course.  Objection  has 
also  been  made  to  placing  the  administration  of  this  law  in  an  inde- 
pendent board  of  nurses ;  and  it  is  stated  that  this  permits  a  nurse 
on  this  board  to  exercise  an  official  power  of  supervision  over  the 
management  of  a  hospital  in  which  she  occupies  a  subordinate  posi- 
tion. It  has  been  urged  that  the  administration  of  such  a  law  should 
be  placed  directly  under  the  State  Board  of  Health. 

While  it  is  not  considered  to  be  within  the  province  of  the  Effi- 
ciency and  Economy  Committee  to  recommend  important  changes  in 
the»substantive  law.  it  may  be  noted  that  the  ihree  year  course  of  train- 
ing required  in  Illinois  is  more  than  in  most  other  States,  and  only 
four  States  are  recognized  by  the  Illinois  board  as  having  similar 
requirements  which  justify  a  reciprocal  arrangement  in  recognizing 
certificates  of  registration  from  such  States.  At  the  same  time,  four- 
fifths  of  the  nurses  registered  in  Illinois  have  been  licensed  under  the 
waiver  clauses,  without  complying  with  the  requirements  now  imposed. 
On  the  other  hand,  the  number  of  nurses  registered  on  examination 
during  the  past  year  indicates  that  the  restrictions  are  not  so  severe  as 
to  prevent  a  considerable  addition  to  the  supply  of  registered  nurses. 

The  purpose  of  the  law  has  been  to  raise  the  standards  of  train- 
ing for  nurses.  Whether  the  standard  established  unduly  restricts  the 
.supply  under  present  conditions  is  a  problem  which  concerns  others 
than  the  nurses  now  registered.  Without  passing  judgment  on  the 
merits  of  the  complaints  against  the  present  law,  it  can  fairly  be  said 
that  the  independent  status  of  the  Board  of  Nurse  Examiners  prevents 
the  General  Assembly  from  receiving  competent  and  unbiased  recom- 
mendations on  such  matters.  Other  considerations  strengthen  the 
opinion  that  the  present  independent  position  of  this  board  is  unsatis- 
factory. It  seems  clear  that  this  work  should  be  organized — either  as 
a  sub-division  of  the  department  of  health,  or  as  part  of  a  general 
examination  and  licensing  system. 


668  EFFICIENCY  AND  ECONOMY  COMMITTEE, 

7.      SUMMARY    AND    RECOMMENDATIONS. 

Fittcmcial  Summary. 

The  receipts  paid  into  the  State  Treasury  and  the  disbursements 
from  the  several  State  health  agencies,  included  in  this  report,  for  the 
two  years  ending  September  30,  1914,  were  as  follows : 

Receipts  Disbursements 

State  Board  of  Health $54,909.55  $216,212.54 

State  Food  Commissioners 34,610.65  163,469.45 

State  Board  of  Pharmacy 45,506.20  38,513.20 

State  Board  of  Dental  Examiners 17.457.20  13,588.62 

State  Barbers'  Examining  Board 38,423.42  25,579.07 

State  Board  of  Nurse  Examiners 8,804.01  9,423.96 

Total $199,711.03  $466,786.84 

Recommendations. 

(1)  There  seems  to  be  a  useless  multiplication  of  boards  having 
to  do  with  health  matters,  and  some  scheme  should  be  adopted  of  com- 
bining these  independent  and  co-ordinate  bodies  into  a  single  executive 
department.  It  is  suggested  that  this  reorganization  should  take  some- 
what the  following  form :  All  the  functions  now  performed  by  the 
various  State  health  agencies  should  be  concentrated  in  the  hands  of 
a  State  Health  Department.  To  this  department  should  be  entrusted 
all  police  powers  now  exercised  by  State  health  agencies,  including 
power  of  inspection  of  food,  drugs,  milk,  water  supplies,  and  of  all 
public  places  liable  to  breed  disease,  together  with  the  collection  and 
dissemination  of  information  on  public  health  matters  and,  in  general, 
taking  measures  for  the  protection  of  the  public  health. 

(2)  There  should  be  a  State  Board  of  Health,  composed  of  five 
or  seven  members,  appointed  by  the  Governor,  for  overlapping  terifis. 
At  least  four  of  the  members  should  be  reputable  physicians  of  at  least 
ten  years'  active  practice ;  but  it  is  also  advisable  to  have  on  the  board 
an  expert  sanitarian  and  a  man  of  business  experience. 

(3)  There  should  be  an  expert  sanitarian  as  the  executive  officer 
of  the  department,  who  should  be  paid  a  salary  of  not  less  than  $5,000 
a  year.  He  should  not  be  required  to  be  a  resident  of  the  State,  in 
order  that  the  best  man  in  the  country  available  for  this  position  may 
be  secured. 

(4)  The  system  of  inspection  of  lodging  houses  in  Chicago  by 
the  State  should  be  abandoned,  and  this  matter  turned  over  to  the  city 
health  commissioner. 

(5)  The  State  Board  of  Health  should  be  given  larger  powers 
of  supervision  over  local  health  authorities  for  the  sake  of  uniformity 
and  efficiency.  Where  no  local  health  authority  is  provided  or  where 
the  local  health  authority  is  lax  in  the  enforcement  of  sanitary  regula- 
tions, the  State  board  .should  be  authorized  to  exercise  the  powers  of 
health  officers  in  that  locality,  the  expense  so  incurred  by  the  State 
board  being  a  charge  upon  the  locality. 

(6)  The  State  Health  Department  should  be  organized  into  two 
main  divisions,  viz :  a  division  of  Public  Health  and  a  division   of 


PUBLIC    HEALTH    ADMINISTRATION.  669 

Registration.  The  division  of  Public  Health  should  have  charge  of  the 
functions  now  performed  by  the  State  Board  of  Health,  the  State  Food 
Commissioner,  the  Food  Standard  Commission  and  such  other  police 
powers  relating  to  public  health  as  may  be  assigned  or  transferrec^  to 
it  by  law.  This  division  should  have  its  work  divided  into  bureaus, 
such  as  the  bureaus  of  medical  inspection,  vital  statistics,  sanitary 
enoineering,  food  and  drug  inspection,  laboratories  and  research,  and 
publicity.  *The  division  of  Registration  should  have  charge  of  the 
examining  functions  now  performed  by  the  State  Board  of  Health,  the 
State  Board  of  Nurse  Examiners,  the  State  Board  of  Dental  Examiners, 
and  the  State  Board  of  Pharmacy. 

(7)  The  State  should  be  divided  into  a  dozen  or  more  sanitary 
districts,  and  in  each  district  there  should  be  a  sanitary  supervisor, 
appointed  by  the  board,  who  should  have  power  to  enforce  sanitary 
regulations  and  promote  public  health  in  his  district. 

(8)  There  should  be  State  boards  or  committees  of  exammers— 
one  for  physicians,  one  for  pharmacists,  and  one  for  dentists,  connected 
with  the  d'ivision  of  Registration.  They  should  be  appointed  by  the 
Governor.  They  should  have  power  to  hold  examinations  for  entrance 
into  their-respective  professions  and  to  issue  and  revoke  licenses.  Any 
action  of  these  boards,  however,  in  revoking  licanses  should  be  subject 
to  review  by  the  State  Board  of  Health.  The  power  to  revoke  licenses 
should  extend  to  all  licenses  in  force,  and  not  merely  to  those  issued 
since  a  certain  date. 

(9)  There  should  be  certain  changes  in  the  substantive  law. 
There  should  be  a  State  sanitary  code,  a  new  vital  statistics  law :  the 
pharmacy  law  should  be  revised,  and  a  law  should  be  passed  regulating 
the  cold  storage  of  food  products. 


570  EFFICIENCY  AND  ECONOMY  COMMITTEE. 


II.     STATE  PUBLIC  HE.\LTH  ADMINISTRATION.^ 

Historical. 

Measures  for  the  protection  of  the  pubHc  health  in  this  country 
were  at  first  taken  primarily  for  the  purpose  of  preventing  the  intro- 
duction of  disease  from  foreign  countries  and  took  the  form  of  the 
establishment  of  quarantine  against  vessels  hailing  from  ports  at 
which  contagious  diseases  were  prevalent.  On  this  account,  public 
health  administration  in  this  country  developed  first  in  those  States 
having  important  seaports,  such,  as  Massachusetts,  New  York,  Penn- 
sylvania, Maryland  and  Louisiana.  Such  measures  as  were  taken  at 
the  earliest  times  were  in  the  hands  of  the  regularly  constituted  authori- 
ties at  the  several  ports  of  entry  acting  under  the  general  governmental 
power,  and  not  in  those'  of  officers  specially  created  for  the  purpose. 

3  BIBLIOGRAPHY: 

Oreanization,  Powers  and  Duties  of  Health  Authorities,  by  J.  W.  Kerr  and  A.  A.  Mall. 
U.    S.    PubHc   Health   Service.      Public  Health    Bulletin,   No.   54,   August,    1912. 

Historical  Studv  of  Legislation  regarding  Public  Health  in  New  York  and  Massa- 
chusetts,   by    Susan    W.    Peabody,    1909. 

Vaccination,  by  J.  W.  Kerr.  U.  S.  Public  Health  Service.  Bulletin  No.  52,  Janu- 
ary,   1912. 

Communicable  Disease?,  bv  J.  W.  Kerr  and  A.  A.  Mall.  U.  S.  Public  Health  Service. 
Bulletin  No.   62,  July,   1913. 

Public  Administration  in  Massachusetts,  bv  R.  H.  Whitten,  Columbia  University 
Studies,  Vol.   VIII,   No.  4,  Chap.  V,   1898. 

The  Centralization  of  Administration  in  New  "^^ork  State,  by  J.  A.  Fairlie.  Columbia 
University   Studies,   Vol.    IX,   No.   3,   Chap.   IV,    1898. 

State  Administration  in  New  York,  by  J.  A.  Fairlie.  Political  Science  Quarterlv, 
XV,   48  fF.  ^  . 

The  Centralization  of  Administration  in  Ohio,  by  S.  P.  Orth.  Columbia  University 
Studies,   1903,  Chap.  IV. 

Centralizing  Tendencies  in  the  Administration  of  Indiana,  by  ^V.  A.  Rawles.  Columbia 
University   Studies,    1903,    Chap.    IV. 

The  Administration  of  Iowa,  by  H.  M.  Bowman.  Columbia  University  Studies,  1903, 
Chap   IV. 

Recent  Administration  in  Virginia,  bv  F.  A.  Magruder.  John  Hopkins  Studies,  Vol. 
XXX,    No.    1,    Chap.    IV,    1912. 

Public  Health  and   Safety,  by   L.   Parker  and   R.   H.   Worthington,   1892. 

State  Boards  of  Health,  by  C.  V.  Chapin.  Proceedings  of  the  American  Political 
Science  Association,  Vol.   T,   1904,  page   143. 

The  State  Board  of  Health  of  Massachusetts.  A  Brief  History  of  its  Organization 
and  Work,    1912. 

City  and  State  Boards  of  Health  and  the  Proposed  Federal  Department  of  Health, 
by  M.  N.  Baker.     Conference  for  Good   City  Government,   1910,  page  446. 

Protecting  Public  Health  in  Pennsvlvania,  by  S.  G.  Dixon.  Annals  of  the  American 
.\cademy  of  Political  and  Social  Science,  XXXVII,  339,  1911. 

The  Organization  of  the  Pennsylvania  State  Department  of  Health,  Bulletin  of  the 
Pennsylvania   State  Department  of  Health,  August,  1911. 

Public  Health  Administration  in  Maryland,  by  Carroll  Fox.  U.  S.  Public  Health 
Service    Reports,   January    30,    1914. 

The  Legal  Side  of  the  .Administration  of  the  Health  Laws,  by  H.  B.  Shaw.  Bulletin 
of   the   Vermont   State    Board   of   Health,   Vol.    XI,   No.   4,    1911,   page   35. 

Report  of  the  Sulzer  Special  Public  Health  Commission  to  the  (N.  Y.)  Legislature, 
February    19,    1913. 

Annual  and   Biennial  Reports  of  the  Several  State  Boards  of  Health. 

State   Public   Health  Statutes   and   Regulations. 

Message  of  Governor  Fielder  transmitting  to  the  (N.  J.)  Legislature  the  Second  Report 
of  the  Commission  upon  the  Reorganization  and  Consolidation  of  the  DiflFerent  Departments 
of  the  State  Government,  page  19. 


PUBLIC    HEALTH    ADMINISTRATION.  671 

Such  early  attempts  at  the  estabhshment  of  quarantine,  however, 
were  evidently  ineffective,  as  numerous  epidemics  of  various  communi- 
cable diseases  periodically  visited  the  principal  seaports  and  spread  into 
the  interior.  Some  of  these  epidemics  doubtless  driginated  as  well  from 
conditions  in  the  cities  favorable  to  the  propagation  of  diseases,  and 
others  were  increased  in  virulence  thereby. 

The  growth  of  the  leading  cities  on  the  Atlantic  coast  in  size  and 
density  of  population  increased  both  the  danger  of  disease  and  the 
importance  of  public  health  measures.  The  need  of  special  machinery 
for  combatting  disease  in  the  seacoast  cities  was  apparent,  this  machin- 
ery was  at  first  for  the  most  part  purely  local  in  character,  and  all  over 
the  country,  the  establishment  of  local  health  authorities  has,  as  a 
general  rule,  preceded  the  organization  of  State  health  authorities. 
Local  health  authorities  were  organized  in  Baltimore  and  Philadelphia 
in  1793  and  1794,  respectively,  and  before  the  end  of  the  eighteenth 
century  New  York  City  and  Boston  were  similarly  supplied. 

Among  the  States,  Massachusettsjed  the  way  by  making  provision, 
as  early  as  1787,  for  a  State-wide  system  of  town  boards  of  health, 
followed  by  Connecticut  in  1805.  To  such  an  extent  was  health  admin- 
istration considered  a  purely  local  function,  that  it  was  not  until  after 
the  middle  of  the  nineteenth  century  that  a  State  administrative  body 
Was  established.  The  first  State  Board  of  Health  was  established  in 
Louisiana  in  1865.  This  board  was  at  first,  however,  merely  a  body 
for  the  enforcement  of  quarantine  regulations  at  the  port  of  New 
Orleans. 

Already,  in  1849,  a  commission  had  been  appointed  in  Massachu- 
setts to  report  to  the  Legislature  a  plan  for  a  sanitary-  survey  of  the 
State.  Among  other  important  and  far-sighted  recommendations  of 
this  commission  was  one  for  the  creation  of  a  State  Board  of  Health, 
charged  with  the  duty  of  enforcing  the  public  health  laws  of  the  State. 
The  recommendations  of  the  commission  finally  bore  fruit  in  1869  when 
the  first  State  body  was  established  in  Massachusetts  having  functions 
similar  to  modern  boards  of  health. 

The  movement  towards  the  establishment  of  State  boards  of  health 
has  been  general  and  continuous,  so  that,  at  the  present  time,  such 
boards  are  found  in  all  the  States  and  in  the  more  important  insular 
possessions.  In  California,  Delaware,  Florida,  Louisiana,  Oklahoma 
and  Washington,  the  legislature  is  required  by  the  State  Constitution 
to  establish  a  State  board  of  health  and  in  Texas  that  body  is  author- 
ized to  do  so.  The  Constitution  of  Oklahoma  requires  the  establish- 
ment not  only  of  a  State  board  of  health,  but  also  of  a  board  of  den- 
tistry, board  of  pharmacy  and  a  pure  food  commission.  In  the  other 
States  the  authority  for  the  establishment  of  State  boards  of  health 
rests  upon  legislative  enactment,  without  specific  constitutional  author- 
ization. 

ORGANIZATION  OF  STATE  HEALTH  AUTHORITIES. 

The  principal  central  authority  entrusted  in  each  State  with  the 
administration  of  the  public  health  laws  is  that  known  usually  as  the 
State  Board  of  Health,  but  occasionally  as  the  State  Board  of  Health 
and  Vital  Statistics,  or  the  State  Board  of  Health  and  Medical  Ex- 


672  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

aminers.  In  addilion  to  this  board,  there  are  also  in  many  States  other 
central  boards  charged,  not  with  general  supervision  over  matters 
relating  to  the  public  health,  but  with  a  certain  special  function  or 
functions  more  or  leJ^s  closely  connected  therewith.  One  class  of  these 
special  central  boards  have  direct  supervision  over  some  particular 
matter  connected  with  the  public  health,  such  as  pollution  of  water 
supplies,  sewage  disposal,  and  food  and  drug  inspection.  Their  func- 
tions tend  to  approach  in  character  those  performed  by  bodies  having 
primarily  to  do  with  public  safety  or  public  works.  In  Illinois,  for 
example,  there  is  a  State  Water  Survey  and  a  State  Food  Commis- 
sioner and  Food  Standard  Commission,  which  are  not  under  the 
control  of  the  State  Board  of  Health,  but  to  which  are  assigned  special 
functions  relating  more  or  less  closely  to  the  public  health. 

The  second  class  of  these  special  central  boards  is  that  composed 
of  bodies  charged  v^'ith  the  functions  of  examining  candidates  for 
entrance  into  particular  professions.  Among  such  boards  may  be  men- 
tioned those  entrusted  with  the  examination  and  admission  of  qualified 
persons  to  practice  as  physician^,  dentists,  pharmacists,  nurses,  barbers, 
midwives,  embalmers,  opticians,  chiropodists  and  osteopaths.  It  should 
be  noted,  hov/ever,  that  in  a  number  of  States  the  function  of  examin- 
ing and  licensing  some  of  these  practitioners  is  in  the  hands  of  the 
State  Board  of  Health.  Occasionally  we  find  that  these  special  central 
boards  are  subject  to  a  measure  of  control  by  the  State  Board  of 
Health,  as,  for  example,  the  regulations  of  the  State  Board  of  Barber 
Examiners  in  Illinois  must  be  approved  by  the  State  Board  of  Health 
before  going  into  effect.  As  a  general  rule,  however,  these  boards  are 
entirely  separate  and  independent  bodies. 

Working  in  conjunction  with  the  State  Board  of  Health  we  find 
also  an  executive  officer,  variously  known  as  the  State  Health  Commis- 
sioner, Superintendent  of  Health,  or  Secretary  of  the  State  Board  of 
Health.  He  may  or  may  not  be  a  member  of  the  board.  If  a  member, 
which  is  usually  the  case,  he  is  apt  to  be  either  secretary  or  the  presid- 
ing officer  of  the  board,  though  this  is  not  always  true.  His  power 
varies  from  almost  absolute  control  over  the  public  health  activities 
of  the  State  to  that  of  a  mere  clerical  officer,  exercising  almost  no  dis- 
cretionary authority. 

State  Boards  of  Health. 

The  number  of  members  of  the  State  boards  of  health  varies  from 
one  in  Oklahoma*  to  thirteen  in  Alississippi.  The  average  number 
is  about  seven.  In  the  large  majority  of  States,  they  are  appointed 
by  the  Governor,  usually  with  the  consent  of  the  Senate.  In  a  number 
of  States,  however,  a  portion  of  the  members  serve  on  the  board  by 
virtue  of  incumbency  in  other  offices,  such  as  the  Governor  himself,  the 
Attorney-General  and  the  State  Veterinarian. 

With  respect  to  some  or  all  of  those  members  who  do  not  serve 
upon  the  board  cx-offlcio,  most  of  the  States  require  qualifications  of 
various  kinds.     The  most  frequent  requirement  is  that  the  board  shall 

4  Although  the  Constitution  of  Oklahoma  required  the  creation  of  a  State  "board"  of 
health,  the  legislature  provided  for  the  establishment  of  a  State  department  of  health  in 
charge  of  one  commissioner. 


PUBLIC    HEALTH    ADMINISTRATION. 


673 


be  composed  in  part  or  wholly  of  physicians.  In  aliout  fifteen  States 
an  attempt  to  secure  local  representation  is  made  by  requiring  the 
geographical  apportionment  of  the  members  among  districts,  counties, 
or  sections  of  the  State.  In  about  a  dozen  States  it  is  either  customary 
or  required  by  law  that  an  engineer  shall  be  appointed  on  the  board. 

A  more  recent  tendency  is  toward  the  requirement  that  the  mem- 
bership of  the  board  shall  include  one  or  more  sanitarians.  _  The 
increased  attention  being  given  to  means  of  preventing  disease  is  an 
assistance  in  accelerating  this  tendency.  The  New  York  Act  of  1913 
requires,  for  example,  that  the  public  health  council  shall  consist,  besides 
the  commissioner  of  health,  of  six  members,  "of  whom  at  least  three 
shall  be  physicians  who  shall  have  had  training  or  experience  in  sani- 
■  tary  science,  and  one  shall  be  a  sanitary  engineer." 

The  terms  of  the  members  of  State  boards  of  health  vary  from 
two  to  seven  years,  the  average  being  about  four  years.  The  members, 
other  than  the  executive  officer,  are  not  expected  to  devote  their  whole 
time  to  the  work,  and  are  not  usually,  therefore,  paid  a  salary.  How- 
ever, they  are  generally  allowed  a  per  diem  and  expenses  for  actual 
work.  The  principal  facts  connected  with  the  organization  of  State 
boards  of  health  in  the  various  States  may  be  seen  from  the  follow- 
ing table : 

STATE  BOARDS  OF  HEALTH 


Oiialifi- 

Minimum 

cations  (S 

No.  of 

Date 

No.  of 

How 

for  some 

Meetings 

State 

Est. 

Members 

Chosen 

Members) 

Terms  Annually 

Alabama 

1875 

Yes 

Arizona 

1903 

3 

Ex.  Off.  &  Gov. 

Yes(S) 

2 

2 

Arkansas 

1881 

6 

Gov.  &  Sen. 

Yes(S) 

2 

4 

California 

1870 

7 

Gov.  &  Sen. 

Yes 

4 

4 

Colorado 

1893 

9 

Gov.  &  Sen. 

6 

2 

Connecticut 

1878 

7 

Gov.  &  Sen. 

Yes(S) 

6 

4 

Delaware 

1879 

7 

Gov.  &  Sen. 

Yes 

2 

2 

Florida 

1889 

3 

■  Gov.  &  Sen. 

4 

1 

Georgia 

1903 

13 

Gov.  &  Sen. 

Yes(S) 

6 

2 

Idaho 

1907 

5 

Ex.  Off.  &  Gov. 

Yes(S) 

4 

1 

Illinois 

1877 

7 

Gov.  &  Sen. 

7 

2 

Indiana 

1881 

5 

By  Ex.  Off.  Board  Yes(S) 

4 

4 

Iowa 

1880 

10 

Ex.  Off.  &  Gov, 

Yes(S) 

7 

2 

Kansas 

1885 

10 

Gov.  &  Sen. 

Yes(S) 

3 

4 

Kentucky 

1878 

8 

Gov.  &  Sen. 

Yes 

6 

2 

Louisiana 

1855 

7 

Gov.  &  Sen. 

Yes 

7 

4 

Maine 

1885 

7 

Governor 

6 

4 

Maryland 

1874 

7 

Ex.  Off.  &  Gov. 

Yes(S) 

4 

4 

Massachusetts 

1869 

7 

Gov.  &  Com. 

7 

12 

Michigan 

1873 

7 

Gov.  &  Sen. 

6 

4 

Minnesoto 

1872 

9 

Gov.  &  Sen. 

3 

4 

Mississippi 

1877 

13 

Yes 

4 

Missouri 

1883 

7 

Gov.  &  Sen. 

Yes(S) 

4 

2 

Montana 

1901 

7 

Ex.  Off.  &  Gov. 

Yes(S) 

4 

2 

Nebraska 

1891 

7 

Ex.  Off.  &  Gov. 

4 

Nevada 

1893 

3 

Gov.  &  Sen. 

Yes 

4 

2 

New  Hampshire 

1881 

6 

Ex.  Off.  &  Gov. 

Yes(S) 

4 

4 

New  lersey 

1877 

6 

Gov.  &  Sen. 

Yes(S) 

6 

4 

New  Mexico 

1903 

7 

Gov.  &  Sen. 

Yes 

4 

4 

New  York 

1880 

7 

Governor 

Yes 

6 

2 

North  Carolina 

1877 

9 

Yes(S) 

6 

1 

North  Dakota 

1885 

3 

Ex.  Off.  &  Gov. 

Yes(S) 

2 

2 

674 


EFFICIENCY  AND   ECONOMY   COMMITTEE. 


Qualifi- 

Minimum 

cations  (S 

No.  of 

Date 

No.  of 

How 

for  some 

Meetings 

State 

Est. 

Members 

Chosen 

Members) 

Terms  Annually 

Ohio 

1886 

8       . 

Exoff.  &  Gov. 

7 

1 

Oklahoma 

1890 

1 

Gov.  &  Sen. 

4 

Oregon 
Pennsylvania 

1903 

7 

Gov.  &  Sen. 

Yes 

4 

1 

1885 

7 

Gov.  &  Sen. 

Yes(S) 

4 

Rhode  Island 

1878 

7 

Gov.  &  Sen. 

Yes(S) 

6 

4 

South  Carolina 

1878 

9 

Yes(S) 

7 

1 

South  Dakota 

1895 

5 

Gov.  &  Sen. 

Yes 

5 

2 

Tennessee 

1877 

4 

Exoff.  &  Gov. 

Yes(S) 

6 

4 

Texas 

1909 

7 

Gov.  &  Sen. 

Yes 

2 

4 

Utah 

1898 

7 

Gov.  &  Sen. 

Yes(S) 

7 

4 

Vermont 

1886 

3 

Gov.  &  Com. 

6 

V2 

Virginia 

1872 

12 

Gov.  &  Sen. 

Yes 

4 

2 

Washington 

1891 

6 

Exoff.  &  Gov. 

5 

2 

West  Virginia 

1881 

10 

Gov.  &  Sen. 

Yes 

4 

Wisconsin 

1876 

7 

Gov.  &  Sen. 

7 

2 

Wyoming 

1901 

3 

Gov.  &  Sen. 

Yes(S) 

4 

2 

r/zi^  Executive  Officer: 

The  executive  officer,  who  is  usually  the  Secretary  of  the  State 
Board  of  Health,  is,  "in  the  majority  of  the'  States,  appointed  by  the 
board  itself.  In  others  he  is  appointed  by  the  Governor,  with  the  con- 
sent of  the  Senate.  He  serves  for  a  definite  term  in  about  half  the. 
States.  This  varies  from  one  to  six  years.  In  the  others,  he  serves  for 
an  indefinite  term,  which  may  be  during  good  behavior,  or  during  the 
pleasure  of  the  board. 

The  salaries  received  by  the  executive  officer  vary  from  $200  per 
annum  in  Wyoming  to  $10,000  per  annum  in  Pennsylvania.  In  the 
States  where  small  salaries  are  paid  he,  of  course,  is  not  expected  to 
devote  his  entire  time  to  his  official  duties.  In  only  three  States, 
however,  California,  Indiana  and  North  Carolina,  is  he  required  by 
law  to  give  all  his  time  to  the  duties  of  his  office,  and  in  New  York 
he  is  forbidden  to  engage  in  any  occupation  which  would  conflict  with 
the  performance  of  his  official  duties. 

In  all  but  nine  States,  qualifications  of  some  sort  are  required  of 
the  executive  officer.  In  many  States,  the  executive  officer  is  himself  a 
member  of  the  State  Board  of  Health,  in  which  case  he  is,  of  course, 
subject  to  the  same  requirements  of  qualifications  which  rest  upon  the 
other  members  of  the  board,  but  usually  additional  qualifications  are 
required  of  him.  The  most  frequent  qualification  found  is  that  he 
shall  be  a  physician.  In  a  number  of  States  this  qualification  is  ampli- 
fied into  the  requirement  that  he  shall  be  an  experienced  physician. 

The  States  which  are  furthest  advanced  in  public  health  matters, 
however,  are  not  content  merely  with  the  requirement  that  the  executive 
officer  shall  be  versed  in  medical  science.  The  New  York  la\y,  for 
example,  provides  that  he  shall  be  "a  physician,  a  graduate  of  an  incor- 
porated medical  college,  of  at  lea.st  ten  years'  experience  in  the  actual 
practice  of  his  profession,  and  of  skill  and  experience  in  public  health 
duties  and  sanitary  science."  Some  of  the  principal  facts  connected 
with  the  position  of  the  executive  officer  in  the  several  States  may  be 
presented  in  tabular  form  as  follows: 


PUBLIC    HEALTH    ADMINISTRATION. 


675 


STATE  HEALTH  OFFICERS 


State 

How  Chosen 

Term                   Salary 

Qualifications 

Alabama 

Board 

5                       $5,000 

Physician 

Arizona 

Governor 

2                       $2,000 

Physician 

Arkansas 

Board 

2 

Sanitarian 

California 

Board 

Indefinite                $3,600 

Physician 

Colorado 

Board 

2                       $1,500 

Connecticut 

Board 

Good  Behavior       $3,000 

Physician 

Delaware 

Board 

Pleasure  of  Board 

Florida 

Board 

4                       $3,000 

Phy.  and  Sanitarian 

Georgia 

Board 

6                       $2,000 

Physician 

Idaho 

Board 

Good   Behavior       $1,800 

Exp.  Physician 

Illinois 

Board 

Indefinite                 $3,600 

None 

Indiana 

Board 

4         ■              $3,000 

Exp.  Phy.  &  Sanit'n. 

Iowa 

Board 

Indefinite                 $3,000 

Physician 

Kansas 

Board 

Good  Behavior       $2,500 

None 

Kentucky 

Board 

4                       $1,200 

None 

Louisiana 

Governor 

4                       $5,000 

Physician 

Maine 

Board 

Good  Behavior 

None 

Maryland 

Board 

Good  Behavior       $2,500 

Phy.  and  Sanitarian 

Massachusetts 

Board 

Pleasure  of  Board  $5,000 

Michigan 

Gov.  &  Sen. 

6                       $2,500 

Minnesota 

Board 

Pleasure  of  Board  $4,000 

None 

Mississippi 

Board 

Indefinite                    $500 

Physician 

Missouri 

Board 

Indefinite                $2,400 

None 

Montana 

Board 

4                       $3,000 

Phy.  and  Sanitarian 

Nebraska 

Governor 

1                       $1,800 

Nevada 

Governor 

4                       $1,500 

Physician 

New  Hampshire 

Board 

Pleasure  of  Board  $2,500 

Physician 

New  Jersey 

Gov.  &  Sen. 

6                      $2,500 

Physician  _ 

New  Mexico 

Indefinite     per  day  $5.00 

Exp.  Physician 

North  Carolina 

Boa«d 

6                       $3,000 

Exp.  Physician 

New  York 

Gov.  &  Sen. 

4                       $8,000 

Exp.  Phy.  &  Sanit'n. 

North  Dakota 

Governor 

2                       $1,200 

Physician 

Ohio 

Board 

Indefinite                $3,500 

None 

Oklahoma 

Governor 

4                       $1,800 

None 

Oregon 

Board 

Good  Behavior       $4,000 

Pennsylvania 

Gov.  &  Sen. 

4                     $10,000 

Exp.  Physician 

Rhode  Island 

Board 

Pleasure  of  Board  $2,700 

Physician 

South  Carolina 

Gov.  &  Board 

Pleasure  of  Board  $2,500 

Phy.  and  Sanitarian 

South  Dakota 

Board 

Indefinite                  $5.00a  Exp.  Physician 

Tennessee 

Board 

5                     $3,500 

Physician 

Texas 

Governor 

2                      $2,500 

Exp.  Physician 

Utah 

Board 

Pleasure  of  Board  $2,750 

Physician 

Vermont 

Board 

Pleasure  of  Board 

Physician 

Virginia 

Governor 

4                        $3,500 

Sanitarian 

Washington 

Board 

5                       $3,600 

Exp.  Phy.  &  Sanit'n. 

West  Virginia 

Board 

4                          $500 

Physician 

Wisconsin 

Board 

Pleasure  of  Board 

None 

Wyoming 

Governor 

4                          $200 

Physician 

The  question  of  the  relation  between  the  executive  officer  and  the 
State  Board  of  Heahh,  and  the  amount  and  kind  of  power  entrusted  to 
each,  is  an  important  one.  In  general  the  working-  and  action  of  the 
State  Department  of  Health  is  apt  to  be  less  efficient  in  proportion  to 
the  extent  to  which  the  executive  officer  is  subject  to  the  control  of  the 
board  in  the  performance  of  executive  duties.  The  executive  officer 
is  more  in  touch  with  public  health  matters  than'  the  board,  and  has 
less  difficulty  in  making  up  his  mind  in  the  face  of  an  emergency  as  to 
what  action  should  be  taken,  and  is  therefore  able  to  take  action  more 

a  Per  day. 


676  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

promptly  than  the  board  would,  or  than  he  himself  would  if  subject  to 
the  control  of  the  board.  For  these  reasons  the  executive  officer  should 
be  entrusted  with  entire  control  of  executive  matters  connected  with 
public  health  administration  by  the  State  department,  subject  only  to 
the  possibility  of  removal  from  office  by  the  board  for  good  and  suffi- 
cient cause. 

On  the  other  hand,  in  the  drawino^  up  of  sanitary  regulations  and 
the  adoption  of  general  rules,  which  is  in  reality  a  legislative  function, 
the  participation,  if  not  control  of  the  board,  is  desirable.  In  such 
matters  several  heads  are  generally  better  than  one.  Even  in  such 
matters,  however,  it  might  be  better  to  confine  the  board  to  advice 
and  counsel,  leaving  the  final  decision  to  the  executive  officer.  The 
moral  support  and  aid  through  advice  and  encouragement  which  an 
able  and  progressive  but  not  meddlesome  or  overbearing  board  may 
give  to  the  executive  officer  cannot  wisely  be  dispensed  with.  But  the 
actual  management  and  direction  of  public  health  administration  in 
the  State  should  be  largely  in  the  hands  of  the  executive  officer. 

Actual  conditions  in  the  various  States  do  not  correspond,  however, 
exactly  to  what  may  seem  to  be  theoretically  desirable.  In  many 
States  the  board  is  possessed  of  powers  which  it  is  not  as  well  qualified 
to  exercise  as  the  executive  officer :  and  in  most  States  the  board  under- 
takes to  exercise  too  great  a  supervisory  power  over  the  executive 
officer.  The  tendency,  however,  in  the  more  advanced  States,  is 
undoubtedly  in  the  direction  of  the  increase  of  the  power  and  influence 
of  the  executive  officer. 

In  Oklahoma,  as  has  been  noted,  the  so-callfd  State  Board  of 
Health  consists  in  reality  merely  of  a  single  commissioner.  In  New 
York,  also,  the  board  was  so  far  eclipsed  by  the  executive  officer  that, 
from  1901  to  1913,  the  former  was  dispensed  with  entirely.  It  is  true, 
a  public  health  council  "has  now  been  established  in  that  State,  but  its 
duties  are  confined  mainly  to  advice  and  the  enactment  of  a  sanitary 
code  for  the  State.  It  is  expressly  forbidden  to  perform  any  "executive, 
administrative,  or  appointive  duties."  In  Pennsylvania,  also,  in  1903, 
legislation  was  passed  which  had  the  effect  of  centralizing  authority 
in  the  hands  of  the  executive  officer.  A  board  was  retained,  but  it  is 
almost  wholly  advisory  in  character. 

In  this  connection,  it  should  be  mentioned  further  that  in  those 
States  where  the  executive  officer  is  also  a  member  of  the  board  and 
where  the  other  members  of  the  board  are  wholly  or  partly  ex  officio 
in  character,  the  tendencv  in  such  States  is  to  centralize  power  in  the 
hands  of  the  executive  officer. 

Other  Officers  and  Employees: 

Below  the  executive  officer  there  are  a  number  of  other  officials 
employed  at  the  central  office  of  the  State  Department  of  Health.  In 
addition  to  the  necessary  clerical  force  and  office  assistants,  many  States 
employ  also  a  number  of  experts  to  attend  to  special  phases  of  public 
health  work.  Among  such  experts  are  sanitary  engineers  to  supervise 
the  construction  of  public  works  designed  to  promote  the  public  health, 
chemists  to  analyze  samples  of  water,  food  and  drugs,  and  bacteriolo- 


PUBLIC    HEALTH    ADMINISTRATION.  677 

gists  for  work  in  hygienic  laboratories.  Provision  is  also  made  in  a 
number  of  States,  including  Illinois,  Maryland,  Louisiana  and  Califor- 
nia for  the  employment  of  special  attorneys,  whose  business  it  is  to 
furnish  the  State  board  advice  as  to  legal  matters,  file  complaints  with 
the  State's  attorneys,  and  assist  in  prosecuting  offenders  against  the 
public  health  laws'  In  the  majority  of  States,  however,  no  special 
attorneys  are  employed,  but  the  Attorney-General  is  depended  upon  to 
perform  these  functions,  and  in  those  States  where  special  attorneys 
are  employed,  the  appropriations  are  sometimes  insufficient  to  secure 
an  adequate  amount  of  legal  services. 

The  executive  officer  and  the  other  employees  attached  to  the 
central  office  do  not  constitute  the  whole  personnel  of  the  State  depart- 
ment of  health.  The  department  must  further  be  supplied  with 
antennae  which  reach  into  every  corner  of  the  State  in  order  that  it 
may  adequately  safeguard  the  health  of  the  people  of  the  whole  State. 
With  the  object  of  maintaining  an  efficient  field  force  in  all  parts  of 
the  State,  a  number  of  the  more  advanced  States  have  been  divided 
into  sanitary  districts,  with  a  State  inspector  in  charge  of  State  public 
health  work  in  each  district. 

In  New  York  the  Commissioner  of  Health  is  required  to  divide 
the  whole  State,  except  cities  of  the  first  class,  into  twenty  or  more 
sanitary  districts,  and  to  appoint  for  each  district  a  sanitary  supervisor, 
who  must  be  a  physician.  In  Pennsylvania  the  State  health  commis- 
sioner divides  the  State  into  ten  districts  and  appoints  a  health  officer 
for  each  district  at  an  annual  salary  of  $2,500.  Massachusetts  is  divided 
into  a  number  of  health  districts  which  may  be,  in  the  discretion  of  the 
State  Board  of  Health,  as  high  as  fifteen.  In  each  district  the  State 
board  appoints,  with  the  consent  of  the  Governor  and  Council,  a  State 
inspector  of  health,  who  must  be  "a  practical  and  discreet  person, 
learned  in  the  science  of  medicine  and  hygiene."  Though  appointed 
for  five  year  terms,  the  State  inspectors  are  liable  to  removal  from 
office  at  any  time  by  the  State  board.  The  inspectors  perform  impor- 
tant functions  in  enforcing  public  health  laws  regarding  the  abatement 
of  nuisances,  the  sanitation  of  tenement  houses,  etc.,  and  in  acting  as 
intermediaries  between  the  State  Board  of  Health  and  the  local  health 
authorities. 

From  1907  to  1912  the  Massachusetts  inspectors  also  performed 
important  functions  in  safeguarding  the  health  of  employees  in  indus- 
trial establishments ;  but,  by  an  Act  of  1912,  these  functions  were  trans- 
ferred to  the  newly  created  State  Boara  ot  La'bor  and  Industries.  In 
New  York  the  State  health  commissioner  is  authorized  to  employ  public 
health  nurses  and  assign  them  from  time  to  time  to  the  sanitary  dis- 
tricts to  aid  in  the  control  of  communicable  diseases.  Many  other 
States  also  have  a  number  of  inspectors  in  the  field,  assigned  to  special 
work  in  any  part  of  the  State  where  they  may  be  needed.  Usually, 
however,  appropriations  are  insufficient  to  maintain  an  adequate  field 
force. 
Divisions  and  Bureaus: 

The  tendency  is  towards  a  more  elaborate  interior  organization 
of  the  State  department  of  health.    Recent  advances  in  preventive  medi- 


678  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

cine  are  opening  up  new  lines  of  public  health  work.  This  fact,  com- 
bined with  increased  appropriations,  greater  general  interest  in  public 
health  matters  and  the  growing  need  for  greater  State  control  over 
such  matters,  has  led  to  an  extension  of  the  work  of  the  State  depart- 
ment into  new  fields,  and  the  resulting  necessity  of  organizing  the 
work  into  divisions  and  bureaus. 

The  recent  New  York  law  creates  in  the  State  department  the 
following  divisions: 

1.  Division  of  Administration 

2.  Division  of  Sanitary  Engineering 

3.  Division  of  Laboratories  and  Research 

4.  Division  of  Communicable  Diseases 

5.  Division  of  Vital  Statistics 

6.  Division  of  Publicity  and  Education 

7.  Division  of  Child  Hygiene 

8.  Division  of  Public  Health  Nursing 

9.  Division  of  Tuberculosis 

Each  division  is  under  the  management  of  a  director  appointed  by 
the  State  commissioner.  The  commissioner  may  also  create  other  divi- 
sions from  time  to  time. 

Similarly,  the  Pennsylvania  State  department  is  organized  into  a 
bureau  of  vital  statistics,  and  divisions  of  sanitary  engineering,  labora- 
tories, biological  products,  tuberculosis  sanitoria  and  dispensaries.  In 
addition,  there  are  divisions  for  the  distribution  of  supplies,  and  for 
purchasing,  auditing  and  accounting.  Each  of  these  divisions  is  in 
charge  of  a  chief,  and  some  of  them  are  still  further  subdivided.  Like- 
wise, in  Maryland,  there  are  the  following  bureaus :  communicable  dis- 
eases, vital  statistics,  sanitary  engineering,  bacteriology,  and  chemistry, 
and  a  division  of  food  and  drugs. 

POWERS  AND  DUTIES. 

Methods  of  Classification: 

The  powers  and  duties  of  State  boards  of  health  may  be  classified 
in  different  ways,  according  to  several  different  standards  of  classifica- 
tion. In  the  first  place,  they  may  be  classified  as  indirect  or  supervisory 
and  direct.  Until  the  middle  of  the  'nineteenth  century,  public  health 
administration  was  largely  decentralized.  All  measures  connected  with 
public  health  administration  were  carried  out  by  local  authorities,  either 
general  or  special,  and  at  present  many  important  powers  and  duties 
of  this  character  are  still  in  the  hands  of  the  local  authorities.  The 
gradual  increase  in  the  powers  of  the  State  boards  has  been  brought 
about  in  part  by  the  supervision  of  the  State  boards  over  the  per- 
formance by  local  authorities  of  the  duties  imposed  upon  them.  Thus 
with  regard  to  the  abatement  of  nuisances  of  a  local  character,  the 
local  authorities  are  usually  competent  to  act,  subject  to  the  supervision 
of  the  State  board.  Indirect  administration  by  the  State  board  may, 
however,  develop  into  direct,  as  where,  if  the  local  authority  fails  to 
act  or  performs  its  duties  in  a  negligent  manner,  the  State  board  may 
step  in  and  carry  out  directly  measures  for  the  promotion  of  the  public 
health.     On  the  other  hand,  where  the  function  is  one  which  local 


PUBLIC    HEALTH    ADMINISTRATION.  679 

authorities  are  not  competent  to   perform,  the   State  board   may  act 
directly  in  the  first  place,  without  waiting  for  local  action. 

Another  classification  of  the  powers  and  duties  of  State  boards 
of  health  may  be  made  in  accordance  with  the  method  or  character  of 
the  action  taken  into  legislative,  judicial  and  executive  or  administra- 
tive. Of  these  three  classes  of  powers,  the  first  and  second  are  more 
generally  lodged  in  the  board  itself,  while  the  third  is  usually  placed 
in  the  hands  of  the  executive  officer  of  the  board.  The  legislative 
power  consists  in  the  adoption  of  sanitary  regulations.  Such  regula- 
tions must  not,  of  course,  be  in  conflict  with  the  Constitution  or  stat- 
utes. Even  where  there  is  no  conflict,  the  exercise  of  this  power  by 
administrative  bodies  has  sometimes  been  declared  unconstitutional  by 
the  courts  on  the  grounds  that  it  is  a  delegation  of  legislative  power 
and  violates  the  principle  of  separation  of  powers.  These  decisions, 
however,  have  not  seemingly  checked  the  practice  of  legislatures  to 
confer  such  powers  upon  boards  of  health.  In  some  States  practically 
all  public  health  regulations  are  issued  by  the  boards,  but  there  is 
apparently  a  tendency  toward  the  embodiment  in  statutes  of  most  of 
the  regulations  issued  by  the  boards.  The  power  of  issuing  regula- 
tions, where  it  exists,  may  be  either  special  or  general,  that  is,  they 
may  relate  to  certain  special  matters,  such  as  quarantine  or  the  pro- 
tection of  water  supplies,  or  they  may  relate  to  the  general  protection 
of  the  public  health.  The  public  health  council  of  New  York  State, 
for  example,  is  empowered,  "by  the  affirmative  vote  of  a  majority  of 
its  members  to  establish  and  from  time  to  time  amend  a  sanitary  code." 
This  code  "may  deal  with  any  matter  affecting  the  security  of  life  or 
health  or  the  preservation  and  improvement  of  public  health  in  the 
State  of  New  York." 

Powers  somewhat  analogous  to  those  exercised  by  the  regular 
courts  also  sometimes  devolve  upon  State  boards.  The  determination 
as  to  whqther  particular  conditions  constitute  a  prohibited  menace  to 
the_  public  health,  or  the  interpretation  of  a  given  provision  of  the 
sanitary  code  are  matters  which  may  come  for  settlement  either  before 
the  State  board  or  its  executive  officer.  In  arriving  at  a  decision  in 
such  matters  the  board  may  issue  warrants  of  arrest,  summon  wit- 
nesses, take  testimony  under  oath,  and  perform  other  judicial  func- 
tions. The  New  York  Act  provides  that  the  "actions,  proceedings  and 
authority  of  the  State  health  department  in  enforcing  the  provisions 
of  the  public  health  law  and  sanitary  code,  applying  them  to  specific 
cases,  shall  at  all  times  be  regarded  as  in  their  nature  judicial,  and 
shall  be  treated  as  prima  facie  just  and  legal." 

The  bulk  of  the  powers  of  State  departments  of  health  are,  how- 
ever, of  an  executive  or  administrative  character.  They  may  be  called 
the  residuary  powers,  including  all  powers  that  cannot  be  classed  as 
either  legislative  or  judicial.  They  embrace  most  of  the  important 
special  measures  taken  for  the  promotion  of  the  public  health,  such  as 
the  establishment  of  quarantine;  the  abatement  of  nuisances  and  the 
inspection  of  public  buildings  and  other  places  liable  to  breed  disease. 

A  third  method  of  classifying  the  powers  and  duties  of  State 
health  departments  may  be  made  in  accordance  with  the  nature  of  the 


680  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

power  exercised  or  the  character  of  the  objects  affected  by  such  exer- 
cise rather  than  with  the  method  of  its  exercise.  From  this  standpoint, 
the  powers  and  duties  of  the  State  health  authorities  may  be  classed 
as  relating  to:  (1)  the  collection  and  dissemination  of  information  on 
public  health  matters,  (2)  the  examination  and  licensing  of  certain 
classes  of  practitioners,  and  (3)  taking  measures  directly  for  the  pre- 
vention or  eraddcation  of  disease. 

Imformation  and  Research: 

The  collection  and  dissemination  of  information  was  originally  the 
primary  and  almost  sole  function  for  which  State  boards  of  health  were 
established.  In  order  that  the  information  given  out  might  be  as 
authentic  and  accurate  as  possible  it  was  necessary  that  vital  statistics 
should  be  collected  and  that  various  works  of  investigation  and  research 
should  be  carried  on. 

The  object  of  collecting  vital  statistics  has  been  described  as 
being  "to  give  warning  of  the  undue  increase  of  disease  or  death  that 
is  presumed  to  be  due  to  preventable  cause,  and  also  to  indicate  the 
localities  in  which  sanitary  effort  is  most  desirable  and  most  likely  to 
be  of  use."  This  object  cannot  be  attained  without  fuh  and  accurate 
statistics,  uniform  with  respect  to  different  localities  and  running  con- 
tinuously over  a  considerable  period  of  time.  In  order  that  such  statis- 
tics may  be  even  approximately  obtained,  the  efforts  of  local  authorities 
have  proved  almost  invariably  ineffective,  and  State  action  is  therefore 
necessary.  In  some  respects  even  national  control  seems  preferable. 
In  view  of  the  ineffectiveness  of  local  action,  practically  all  the  States 
have  established  some  degree  of  central  control.  This  has  taken  two 
main  forms.  The  earlier  and  more  usual  form  has  been  the  collection 
of  such  statistics  through  the  co-operation  of  State  with  local  officials. 
The  executive  officer  of  the  State  board  is  usually  designated  State 
Registrar  of  Vital  Statistics,  though  sometimes  a  special  State  officer 
is  appointed  for  that  purpose,  while  the  local  health  officers  are  ex  officio 
local  registrars  of  vital  statistics.  Physicians,  midwives,  and  under- 
takers are  required  to  report  cases  to  the  local  registrars,  who  transmit 
them  to  the  State  registrar.  In  order  to  secure  unifomity,  the  forms 
upon  which  reports  are  to  be  made  are  usually  prescribed  by  the  State 
board.  Local  registrars  who  neglect  properly  to  perform  their  duties 
are  sometimes,  as  in  IMaryland,  subject  to  removal  by  the  State  Regis- 
trar. The  second  form  of  control  by  the  State  over  the  collection  of 
vital  statistics  is  more  centralized.  In  this  form,  which  may  be  found 
in  Pennsylvania,  the  services  of  locally  selected  officers  are  dispensed 
with,  and  the  so-called  local  registrars  are  appointed  by  the  central 
authority.  Centralized  control  has  undoubtedly  had  the  effect  of  increas- 
ing the  fullness,  accuracy  and  uniformity  of  the  vital  statistics  collected, 
but  the  tendency  has  not  yet  gone  far  enough,  so  that  as  yet  many  States 
are  not  included  in  the  registration  area  of  the  United  States  Census 
Bureau. 

Another  important  class  of  information  collected  is  that  regarding 
the  causes  of  diseases  and  the  means  of  their  prevention.  For  this 
purpose,  various  States  have  established  chemical  and  bacteriological 


PUBLIC    HEALTH    ADMINIFTRATION.  681 

laboratories.  The  work  of  the  Massachusetts  State  Board  along  these 
lines  has  been  especially  noteworthy.  Laboratories  arc  also  established 
for  the  preparation  for  free  distribution  of  diphtheria  antitoxin,  small- 
110X  and  anti-typhoid  vaccine  and  other  prophylactic  agents. 

Since  the  successful  application  of  sanitary  measures  depends  in 
laro-e  degree  upon  the  cooperation  of  the  mass  of  the  people,  the  educa- 
tion of  the  people  in  health  matters  should  be  one  of  the  essential  objects 
of  the  activity  of  State  boards  of  health.  The  importance  of  this  was 
recognized  in  New  York,  as  has  been  seen,  through  the  creation  in  the 
State  department  of  health  of  a  special  division  of  publicity  and  educa- 
tion. In  only  a  few  States  are  the  appropriations  sufficiently  large  to 
enable  the  State  department  of  health  to  reach  the  people  in  an  ade- 
quate manner.  In  most  States,  however,  the  amount  of  money  spent 
on  publications  might  be  used  to  better  advantage  than  at  present.  _  In 
addition  to  the  annual  or  biennial  reports  to  the  Governor  or  legisla- 
ture, many  State  departments  of  health  also  issue  bulletins  at  stated 
intervals,  which  are  distributed  among  local  health  ofiFicers,  physicians, 
and  others  who  may  apply  for  them.  Too  frequently  they  are  composed 
for  the  most  part  of  undigested  statistics,  which  even  health  officers 
cannot  find  very  serviceable.  They  fail  utterly  in  even  reaching  the 
general  public.  Some  of  the  more  advanced  States,  however,  have 
JDegun  to  issue  bulletins  of  a  popular  character  and  have  endeavored  to 
distribute  them  among  the  people  as  widely  as  the  funds  at  their  dis- 
posal may  permit.  The  difificulty  is  that  the  very  people  who  are  most 
in  need  of  the  information  contained  in  such  bulletins  are  the  hardest 
to  reach  and  the  least  likely  to  avail  themselves  voluntarily  of  these 
means  of  educaCion.  In  order  to  meet  this  difficulty,  beginnings  have 
been  made  in  some  States  towards  educating  school  children  in  public 
health  matters  by  definite  instruction  and  placing  suitable  literature  in 
their  hands.  Older  persons  as  well  are  being  reached  by  public  health 
exhibits  and  widespread  newspaper  campaigns. 

Examiiiing  and  Licensing  Functions: 

The  second  division  of  powers  and  duties  of  State  boards  of  health 
is  that  connected  with  the  examination  and  licensing  of  various  classes 
of  practitioners.  Among  such  practitioners  whose  work  has  more  or 
less  to  do  with  the  public  health  are  physicians,  osteopaths,  dentists, 
optometrists,  pharmacists,  nurses,  embalmers,  barbers,  midwives, 
and  plumbers.  In  some  States  the  examination  and  licensing  of 
these  practitioners  are  entrusted  entirely  to  special  State  examining 
boards  which  are  usually  quite  separate  and  distinct  from  the  State 
Board  of  Health.  These  special  boards  are  in  New  York  appointed 
by  the  State  Board  of  Regents,  but  in  other  States  are  usually  appointed 
by  the  Governor  and  Senate.  The  State  Board  of  Health  is  in  a  number 
of  States  charged  with  the  examination  and  admission  of  persons  to 
some  professions.  In  Illinois,  for  example,  the  State  Board  of  Health 
examines  and  licenses  physicians,  midwives,  and  embalmers,  while  the 
last  named  class  of  practitioners  are  examined  by  the  State  Board  of 
Health  in  Wisconsin,  Michigan,  Minnesota  and  a  few  other  States. 
In  about  a  dozen  States,  the  State  Board  of  Health  is  authorized  to 


682  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

examine  and  license  persons  desiring  to  practice  medicine,  while  in  a 
number  of  States  the  State  Board  of  Health  has  similar  authority  with 
respect  to  one  or  two  others  of  the  classes  of  practitioners  mentioned. 
The  functions  of  examining  and  licensing  frequently  involve  the 
exercise  of  other  powers,  such  as  that  of  setting  up  standards  of  in- 
struction and  reputability  for  schools  and  colleges  which  undertake  to 
prepare  persons  for  entrance  into  the  professions.  Furthermore,  the 
power  to  examine  and  license  sometimes  carries  with  it  the  function 
of  regulating  the  practice  of  the  profession  in  question.  Regulations 
issued  for  this  purpose  by  special  State  boards,  such  as  the  Barbers 
Examining  Board,  are  occasionally  subject  to  approval  by  the  State 
Board  of  Health.  Licenses  to  practice,  granted  either  by  the  State 
Board  of  Health  or  by  the  special  examining  boards,  are  usually  liable 
to  be  revoked  for  cause  by  the  granting  authority,  subject  to  an  appeal 
to  the  courts  from  tlie  decision  of  the  board.  It  would  seem  that  the 
functions  of  examining  and  licensing  are  not  sufficiently  closely  related 
to  the  ordinary  work  of  the  State  Board  of  Health  to  include  them 
within  its  active  functions.  The  exercise  of  these  functions  with 
respect  to  professions  closely  related  to  the  public  health  might  be 
better  placed  in  the  hands  of  a  single  examining  board ;  or,  as  is  now 
the  practice  in  some  States,  the  examinations  might  be  conducted  by 
a  special  board  or  boards,  while  the  licenses  are  issued  by  the  State 
Health  Commissioner.^  The  multiplication  of  independent  boards  for 
each  class  of  practitioners  or  trade  should  be  discouraged. 

Prevention  of  Disease : 

The  third  division  of  powers  and  duties  of  State  departments  of 
health  is  that  of  taking  measures  directly  for  the  prevention  or  eradi- 
cation of  disease,  especially  in  epidemic  form,  and,  in  general,  for  the 
promotion  of  the  public  health.  In  as  far  as  these  objects  are  secured, 
the  effect  is  brought  about  through  the  control  of  communicable  dis- 
eases. With  respect  to  any  particular  State  or  community,  such  dis- 
eases may  arise  in  two  ways :  either  through  introduction  from  other 
States  or  communities,  or  through  the  existence  of  unsanitary  condi- 
tions within  the  State  or  community.  Hence,  in  order  to  control  com- 
municable diseases,  action  must  be  taken  both  to  prevent  their  intro- 
duction from  outside  and  to  eradicate  disease  breeding  conditions  within. 
To  secure  the  first  of  these  objects  the  most  usual  measure  is  the 
establishment  of  quarantine.  This  was  earliest  developed,  of  course, 
in  the  seaboard  States,  but  in  some  of  these  States,  the  control  of  mari- 
time quarantine  has  now  been  taken  over  by  the  United  States  Gov- 
ernment. The  power  of  establishing  quarantine  was  at  first  freely 
exercised  by  local  units  within  a  State  against  each  other,  but  the  abuses 
which  arose  from  this  practice  have  brought  about  an  increasing  de- 
gree of  State  control,  either  through  direct  administration  by  State 
officers  or  through  efifective  State  supervision  over  local  quarantine 
authorities. 

The  second  method  of  controlling  communicable  diseases,  viz., 
through  the  suppression  of  unsanitary  conditions  within  the  State  has 

5  This  plan  is  similar  to  that  recomijiended  by  the  Minnesota  Commission  on  Efficiency 
and  Economy, 


PUBLIC    HEALTH    ADMINISTRATION.  683 

now  become  the  more  important  of  the  two  and  now  requires  the 
greater  part  of  the  energy  of  State  health  departments.  Among  the 
measures  taken  with  this  object  in  view  are  many  which  have  already 
been  mentioned  and  also  a  number  of  others  such  as  the  abatement 
of  nuisances,  the  inspection  of  food,  drugs,  milk  and  water  supplies, 
and  supervision  of  sanitary  conditions  in  hotels,  tenements,  lodging 
houses,  slaughter  houses  and  other  places  liable  to  breed  disease.  Here, 
also,  many  of  these  measures  were  formerly  left  for  the  most  part  to  be 
attended  to.  if  at  all,  by  the  local  authorities,  but  an  increasing  degree 
of  State  control  is  manifest.  Some  of  these  functions,  such  as  the 
control  of  milk  and  water  supplies,  are  of  such  a.  character  that  local 
authorities  do  not  have  sufficient  jurisdiction  to  exercise  them  ade- 
quately, and  in  such  cases,  the  tendency  towards  State  control  is  even 
more  evident.  Some  of  these  matters  are  attended  to,  not  by  the  State 
Board  of  Health,  but  by  some  special  State  agency,  such  as  the  Illinois 
State  Water  Survey  and  the  Iowa  State  Board  of  Dairy  Commis- 
sioners. In  some  States  the  State  Board  of  Health  is  authorized  to 
inspect  factories,  but  in  most  States  this  function  is  placed  in  the  hands 
of  a  special  State  officer  or  department.  The  division  of  authority 
between  the  State  Board  of  Health  and  such  special  agencies  is  not 
always  clearly  defined,  and  conflicts  sometimes  arise  between  them,  as 
well  as  between  the  State  and  local  authorities.  For  the  performance 
of  these  important  functions,  numerous  inspectors  are  of  course  nec- 
essary, but  in  most  States  the  funds  at  the  disposal  of  the  State  health 
authorities  are  not  sufficient  to  maintain  a  sufficient  force  of  inspectors 
in  the  field. 

RELATIONS    BETWEEN    STATE    AND    LOCAL    AUTHORITIES. 

Previous  to  the  middle  of  the  nineteenth  century,  public  health 
administration  was  considered  a  matter  for  the  most  part  properly  left 
to  the  control  of  the  local  authorities.  So  long  as  this  system  proved 
fairly  satisfactory  there  was  no  considerable  demand  for  State  action, 
except,  perhaps,  in  the  matter  of  maritime  quarantine.  The  growth 
of  population  in  congested  centers,  however,  combined  with  the  ineffi- 
ciency of  local  authorities  in  meeting  the  needs  of  new  conditions 
seemed  to  call  for  some  form  of  centralized  control.  This  was  espe- 
cially true  during  the  outbreak  of  epidemics,  which  occasionally  brought 
about  some  form  of  State  control.  State  action  under  these  circum- 
stances was,  however,  naturally  spasmodic  in  character.  When  the 
danger  became  less  apparent,  the  laxness  of  local  -autonomy  ensued. 
Gradually,  however,  the  realization  of  the  need  for  continuous  control 
of  public  health  regulations  by  the  authority  best  qualified  to  exercise 
such  control  in  an  efficient  manner  has  led  to  various  fornis  of  State 
interference.  Legislative  interference  in  matters  of  local  concern  has 
often  been  very  extensive,  but  State  administrative  supervision  is  tend- 
ing gradually  to  displace  direct  legislative  interference. 

The  first  form  of  central  administrative  control  was  based  on 
Mill's  idea  of  the  centralization  of  information.  Research  and  investi- 
gational work  of  a  scientific  character,  when  conducted  on  a  consider- 
able scale,  can  usually  be  better  carried  on  by  the  central  authorities 


684  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

than  by  the  local  units  of  government.  When  thus  carried  on,  the 
results  of  such  work  can  also  be  made  available  more  economically  to 
scattered  health  officers  in  the  localities.  Wc  find,  therefore,  that  the 
first  State  boards  of  health  were  originally  established  primarily  for 
the  purpose  of  collecting  the  best  available  information  on  health 
matters  and  of  acting  as  a  center  for  the  distribution  to  the  localities  of 
advice  based  upon  such  information.  For  example,  the  Massachusetts 
and  New  York  State  Boards  of  Health,  when  first  established  were,  with 
regard  to  local  authorities,  purely  advisory  bodies.  Bringing  pressure 
to  bear  upon  local  bodies  by  means  of  publicly  given  advice  is,  in  fact, 
even  yet  an  important  function  and  in  some  cases  the  most  important 
function  of  many  State  boards  with  regard  to  the  local  bodies.  In 
most  instances,  the  advice  thus  given  is  not  directly  enforceable,  and 
undoubtedly  often  ignored  by  the  local  authorities,  but  it  nevertheless 
has  considerable  influence.  The  information  and  advice  issued  consist 
in  giving  instructions  to  local  health  officers  as  to  their  duties,  distribut- 
ing compilations  of  public  health  laws,  and  recommending  model  sani- 
tary ordinances  and  regulations  for  adoption  by  local  bodies. 

In  addition  to  the  dififusion  of  information  and  advice  by  the  State 
authorities  other  ways  in  which  the  State  and  local  authorities  come 
into  relation  with  each  other  may  be  summarized  as  follows : 

Reports  by  local  officers. 
State  aid  to  local  bodies. 
Division   of   State  into  districts  and  appointment  by  State  authority 

of  district  inspectors  of  local  health  matters. 
Appointment  of  local  health  officers. 
Removal  of  local  health  officers. 
Approval    by   State   authorities    necessary  to   validate    local    action    or 

reversal  of  local  action  by  State  authorities. 
Assumption   of   local   health   administration  by   State   authorities   upon 

failure  of  local  authorities  to  act. 
Issuance    by    State    authorities    of    rules    and    regulations    controlling 

local  authorities. 
Decision    by    State    authorities    of   questions    of   disputed    jurisdiction 

between  local  authorities. 
Requirement  for  the  holding  of  State-wide  conferences  by  local  health 

officers. 

Examples  of  these  various  relations  may  be  briefly  indicated.^ 
In  addition  to  the  reports  of  vital  statistics,  which,  as  has  been 
shown,  must  be  sent  by  the  local  health  officers  to  the  State  Registrar 
of  Vital  Statistics,  it  is  also  required  in  a  number  of  States  that  the 
State  Board  of  Health  be  notified  immediately  of  the  appointment, 
name  and  address  of  local  health  officers.  In  the  large  majority  of 
States,  periodical  or  special  reports  regarding  local  health  conditions 
are  also  required  to  be  made  by  the  local  health  authorities  to  the  State 
Board  of  Health. 

The  method  very  much  in  vogue  in  England  of  granting  financial 
aid  by  the  State  to  local  units  of  government  in  return  for  a  measure 
of  central  control  has  not  yet  developed  to  any  considerable  extent  in 
this  country.  In  Minnesota  State  aid  has  been  granted  to  at  least  one 
locality  by  the  State  Board  of  Health,  in  return  for  the  privilege  of 
nominating  its  health  officer. 


6  Kerr  and  Moll;    Organization,  Powers  and   Duties  of  Health  Authorities,  page  48. 


PUBLIC    HEALTH    ADMINISTRATION.  685 

The  recent  development  in  some  of  the  more  advanced  States, 
such  as  Massachusetts,  New  York  and  Pennsylvania,  of  dividing  the 
State  into  sanitary  districts  and  appointing  State'  health  inspectors  in 
such  districts  has  naturally  had  the  effect  of  strengthening  the  central 
control  over  local  health  authorities.  The  State  inspectors  are  paid 
sufficiently  large  salaries  so  that  they  can  afford  to  devote  their  whole 
time  to  public  health  work,  which  is  not  the  case  with  most  local  health 
officers.  The  local  unit  of  health  administration  is  usually  too  small 
to  enable  it  financially  to  employ  an  expert,  full  time  health  officer, 
and  the  State  sanitary  inspectors  therefore  are  valuable  in  supplement- 
ing the  eft'orts  of  the  local  officers  and  in  exercising  an  efficient  super- 
vision over  them. 

A  more  radical  step  than  the  appointment  of  State  inspectors  for 
sanitary  districts  is  the  appointment  by  central  authority  of  the  local 
health  officers  themselves.  In  Vermont,  the  State  Board  appoints  all 
of  the  local  health  officers.  In  Florida,  where  there  is  little  purely  local 
sanitary  organization,  local  health  matters  are  attended  to  by  centrally 
appointed  agents.  In  a  number  of  States,  a  majority  of  the  members 
of  local  boards  of  health  are  subject  to  appointment  by  the  State  board. 
A  qualified  control  over  local  appointments  is  sometimes  found.  In 
New  Jersey,  the  State  Board  of  Health  establishes  qualifications  of 
eligibility  and  conditions  for  appointment  of  health  officers  by  local 
boards.  In  more  than  a  dozen  States  the  State  board  may  appoint 
local  health  officers  upon  the  failure  of  the  proper  authorities  to  do  so. 
The  power  of  removal  of  local  health  officers  is  vested  in  the 
State  board  in  more  than  a  dozen  States.  The  power  is  usually  hedged 
about,  however,  with  limitations.  Some  cause  of  removal  must  gener- 
ally be  specified,  and,  in  some  cases,  the  power  of  the  State  board  is 
limited  to  the  filing  of  charges  against  local  officers.  A  power  tanta- 
mount to  that  of  removal  is  found  in  Alabama,  where  the  State  Medical 
Association  may  revoke  for  cause  the  charter  of  a  county  medical 
society  (which  acts  as  a  county  board  of  health). 

The  regulations  adopted  by  local  boards  and  officers  must,  in  a 
number  of  States,  including  Connecticut  ( Washington  and  Ohio  in  the 
case  of  villages),  be  approved  by  the  State  board  before  going  into 
eft'ect.  In  general  any  regulations  made  by  local  boards,  even  where 
not  subject  "explicitly  to  approval  by  the  State  board  must  not  conflict 
with  those  of  the  State  Board.  In  some  States,  the  approval  of  the 
State  board  is  necessary  to  validate  the  action  of  the  local  authorities 
with  regard  to  special  matters,  such  as  the  adoption  of  methods  of 
sewage  disposal.  We  find  also  that  in  a  few  States,  the  power  of  the 
State  board  extends  beyond  the  auxiliary  function  of  approving  regula- 
tions of  the  local  authorities,  and  includes  the  power  of  modifying  or 
reversing  such  regulations.  The  power  of  the  State  Board  of  Health 
to  prescribe  uniform  blanks  for  reporting  vital  statistics  is  another 
form  of  local  action  subject  to  central  approval",  the  only  dift'erenoe 
being  that  indication  as  to  what  the  central  authority  will  approve  is  in 
this  case  made  before  local  action  takes  place. 

The  demand  in  many  localities  for  home  rule  even  in  ])ublic  health 
matters  is  often  strong  enough  to  prevent  the  assumption  by  the  State 


686  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

of  direct  coercive  authority  over  the  local  authorities.  But  the  lack  of 
central  control  frequently  leads  to  such  laxness  on  the  part  of  the 
local  authorities  as  to  constitute  a  serious  menace  to  the  maintenance 
of  the  public  health.  In  such  instances  the  demands  for  home  rule  on 
the  one  hand  and  for  State  control  on  the  other  are,  in  many  States, 
harmonized  by  allowing  the  local  authorities  to  act  unmolested  so  long 
as  they  perform  their  duties  in  an  efficient  manner,  but  providing  for 
the  assumption  of  such  duties  by  State  authorities  in  case  the  local - 
bodies  fail  to  perform  them  or  perform  them  in  an  inefficient  manner. 

In  more  than  a  dozen  States,  if  local  health  officers  are  not 
appointed  or  neglect  to  perform  their  duties  when  appointed,  the  State 
board  may  proceed  to  exercise  the  necessary  functions.  The  New 
York  law,  for  example,  provides  that  "if  any  local  board  of  health 
shall  fail  to  appoint  a  health  officer,  the  State  Commissioner  of  Health 
may,  in  such  municipality,  exercise  the  powers  of  a  health  officer 
thereof."  In  Illinois,  whenever  local  boards  of  health  or  local  authorities 
fail  to  enforce  efficient  measures  for  the  suppression  of  contagious  dis- 
eases, the  State  Board  of  Health  may  take  such  measures  as  seem 
necessar3^  and  when  local  health  authorities  have  established  quaran- 
tine, the  State  Board  may  modify  or  relax  it,  and,  on  the  other  hand, 
where  the  local  authorities  fail  to  establish  quarantine,  the  State  Board 
may  do  so.  In  Illinois,  and  several  other  States,  the  State  Board  may 
enforce  its  own  rules  in  the  localities  when  the  local  boards  fail  to  do  so. 

When  the  State  Board  of  Health  finds  occasion,  through  the  lax- 
ness of  local  authorities,  to  take  charge  of  public  health  administration 
in  the  localities,  it  is  generally  provided  that  the  expenses  incurred  by 
the  State  board  in  so  doing  shall  be  a  charge  upon  the  locality.  A 
peculiar  provision  is  found  in  Maryland,  where  it  is  provided  that  if  the 
State  Board  of  Health  has  reason  to  doubt  the  accuracy  of  the  reports 
of  any  local  registrar,  it  may  take  over  the  work  of  the  local  registrar 
for  a  period  of  three  months.  If,  at  the  expiration  of  that  time,  the 
registration  exceed  by  ten  per  cent  the  registration  by  the  local  registrar 
during  corresponding  months,  then  the  expenses  incurred  become  a 
charge  upon  the  locality ;  otherwise  they  are  borne  by  the  State. 

In  these  various  \vays  public  health  administration  in  the  localities 
has  been  brought  under  the  administrative  supervision  of  State  authori- 
ties. The  increase  of  central  supervision  has  generally  resulted  in 
increased  efficiency  of  public  health  administration,  and  has  redounded 
to  the  advantage  both  of  the  localities  and  of  the  State  as  a  whole. 
In  Massachusetts,  "while  the  powers  of  the  State  Board  have-  been 
enormously  increased,  it  has  not  been  at  the  expense  of  the  importance 
of  the  local  boards.  The  work  of  the  State  Board  has  resulted  in 
increased  local  activity ;  separate  boards  of  health  have  been  established 
where  none  previously  existed,  and  inactive  boards  have  become  more 
efficient."^  In  New 'York  there  were  "in  1880  less  than ^  fifty  local 
boards  of  health  in  the  entire  State  and  they  were  inactive *and  ineffi- 
cient. Within  two  years,  as  a  result  of  the  work  of  the  State  Board 
of  Health  a  thousand  local  boards  had  been  organized."^ 


7  R.  H.  Whitten,  Public  Administration  in  Massachusetts,  page  TZ. 

8  J.  A.   Fairlie,  The  Centralization  of  Administration  in  New   York  State,  page   141. 


PUBLIC    HEALTH    ADMINISTRATION.  687 

STATE    HEALTH    ADMINISTRATION    IN    NEW    YORK    AND    WISCONSIN. 

New  York: 

The  administration  of  public  health  in  New  York  was  reorganized 
as  a  result  of  the  report  of  Governor  Sulzer's  commission  on  the  sub- 
ject, appointed  early  in  1913,  and  a  new  comprehensive  law  on  the 
subject  was  enacted  as  a  result  of  the  report  of  the  commission,  which 
went  into  effect  on  January  1,  1914. 

A  public  health  council  is  created,  consisting  of  the  commissioner 
of  health  and  six  members  appointed  by  the  Governor,  of  whom  at 
least  three  shall  be  physicians  and  one  a  sanitary  expert.  The  council 
has  no  executive,  administrative,  or  appointive  powers  but  may  enact 
and  from  time  to  time  amend  a  sanitary  code  to  apply  to  the  whole 
State,  with  the  exception  of  New  York  City.  The  Department  of 
Health  is  divided  in  ten  divisions  or  bureaus,  each  in  charge  of  a 
director.  These  bureaus  are  :  (1)  administration,  (2)  sanitary  engineer- 
ing, (3)  laboratories  and  research,  (4)  communicable  diseases,  (5) 
vital  statistics,  (6)  publicity  and  education,  (7)  child  hygiene,  (8) 
public  health  nursing,  and  (9)  tuberculosis. 

The  Commissioner  of  Health  is  charged  with  the  enforcement  of 
the  public  health  law  and  the  sanitary  code,  and  exercises  general  super- 
vision over  local  health  authorities.  He  is  further  authorized  to  divide 
the  State  from  time  to  time  into  twenty  or  more  sanitary  districts,  and 
to  appoint  for  each  district  a  sanitary  inspector  or  supervisor,  who 
must  be  a  physician.  These  sanitary  supervisors  are  charged  with  the 
duties  of  conducting  annual  sanitary  surveys  of  their  districts,  organiz- 
ing district  conferences  of  health  officers,  adjusting  questions  of  juris- 
diction arising  between  local  health  officers,  studying  causes  of  excessive 
mortality  from  any  disease,  promoting  the  registration  of  births  and 
deaths,  and  enforcing  the  sanitary  code. 

The  Commissioner  of  Health  is  given  authority  to  employ  public 
health  nurses  and  to  assign  them  from  time  to  time  to  sanitary  districts 
to  assist  the  district  supervisors  and  local  health  officers  in  the  control 
of  communicable  diseases.  He  is  also  directed  to  submit  to  city  authori- 
ties recommendations  for  the  establishment  of  hospitals  for  contagious 
diseases,  and  to  inspect  all  such  hospitals.  If  any  town  board  or  village 
board  of  trustees  fails  to  appoint  a  health  officer,  the  State  Commis- 
sioner of  Health  may  exercise  the  powers  of  a  health  officer  in  that 
locality,  the  expense  incurred  by  the  commissioner  being  a  charge  upon 
the  locality.  The  commissioner  is  further  given  power  to  investigate 
the  enforcement  of  the  tenement  house  law  in  all  cities  of  the  State. 

The  Tuberculosis  Registration  Law  passed  permits  the  reporting 
of  cases  of  tuberculosis  by  telephone  or  in  person,  as  well  as  in  writing, 
and  the  form  for  the  report  is  simplified  so  as  to  make  the  reporting 
of  such  cases  easier.  Any  physician  may  now  report  to  the  local  health 
officer  the' name  and  address  of  any  person  coming  under  his  observa- 
tions who  appears  to  be  suffering  from  tuberculosis.  The  health  officer 
is  required  to  take  such  steps  in  the  handling  of  such  cases  as  are 
required  by  the  sanitary  code. 


688  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

Wisconsin : 

The  State  agencies  entrusted  with  the  administration  of  pubHc 
heahh  in  Wisconsin  are  as  follows: 

State  Board  of  Health 

Committee  of  Examiners  of  Nurses 

State  Board  of  Pharmacy 

State  Dairy  and  Food  Commission 

State  Board  of  Dental  Examiners 

State  Board  of  Medical  Examiners 

State  Board  of  Barbers  Examiners 

State  Tuberculosis  Sanatorium 
The  State  Board  of  Health  consists  of  seven  members,  appointed 
for  seven  year  terms  by  the  Governor  with  the  consent  of  the  Senate. 
The  board  elects  a  secretary,  either  from  their  own  number  or  other- 
wise, and  fixes  his  salary.  The  secretary  is  the  executive  officer  of 
the  board,  and  supervises  the  collection  and  study  of  vital  statistics. 
The  board  also  appoints  a  State  sanitary  inspector,  who  acts  under 
the  direction  of  the  board  in  investigating  nuisances,  etc.  The  board  is 
charged  generally  with  the  protection  of  the  public  health  and,  more 
specifically,  has  charge  of  the  matters  of  sewage  disposal  and  water 
supply  contamination,  and  publishes  information  and  issues  and  enforces 
rules  to  prevent  blindness  of  infants.  The  State  Board  of  Health  also 
licenses  embalmers,  and  holds  examinations  of  applicants  for  em- 
balmers'  licenses.  The  board  has  the  power  to  establish  quarantine  and 
take  precautions  against  the  spread  of  communicable  diseases. 

The  Committee  of  Examiners  of  Nurses  is  composed  of  five 
graduate  nurses,  who  are  appointed  by  the  State  Board  of  Health  to 
serve  for  three  year  terms.  They  must  be  engaged  in  the  active  work 
of  nursing  and  must  be  graduates  of  three  years'  standing  from  a 
reputable  training  school.  The  committee  holds  examinations  of  appli- 
cants for  registration  as  nurses,  but  all  written  questions  for  the 
examination  of  nurses  must  be  approved  by  the  executive  committee 
of  the  State  Board  of  Health  and  the  license  to  practice  nursing  is  issued 
by  the  secretary  of  the  State  Board  of  Health  and  countersigned  by 
president  and  secretary  of  the  Committee  of  Nurse  examiners.  The 
State  Board  of  Health  may  revoke  the  license  of  any  nurse  guilty  of 
unprofessional  or  dishonorable  conduct,  but  only  after  written  notice 
of  the  charges  and  a  hearing. 

The  State  Board  of  Pharmacy  is  composed  of  five  members,  serv- 
ing for  five  year  terms.  The  members  must  be  resident  pharmacists, 
actively  engaged  in  the  practice  of  pharmacy  at  the  time  of  their 
appointment.  The  Wisconsin  Pharmaceutical  Association  annually 
elects  three  pharmacists,  whose  election  shall  be  certified  to  the  Gov- 
ernor by  the  president  and  secretary  of  the  association,  from  which 
number  or  from  the  persons  previously  so  elected  and  certified  the 
Governor  shall  fill  any  vacancy  in  the  Board  of  Pharmacy,  whether 
occurring  by  the  expiration  of  a  term  or  otherwise. 

The  State  Board  of  Pharmacy  examines  applicants  for  certificates 
as  registered  pharmacists  and  grants  certificates  to  persons  fulfilling 


PUBLIC    HEALTH    ADMINISTRATION.  689 

the  requirements.  It  also  prosecutes  persons  guilty  of  violation  of  the 
pure  drugs  Act,  and  institutes  actions  for  the  violation  of  the  law 
regulating  the  sale  of  poisons.  It  is  also  the  duty  of  the  district  attor- 
ney of  the  county  where  any  such  violation  may  occur'  to  prosecute 
persons  guilty  thereof  upon  receiving  notice  from  the  board  or  from 
any  other  source. 

The  State  Dairy  and  Food  Commissioner  is  appointed  by  the 
Governor,  with  the  consent  of  the  Senate,  for  a  two  year  term.  The 
commissioner,  with  the  advice  and  consent  of  the  Governor,  appoints 
a  secretary,  an  assistant  chemist,  a  cheese  factory  inspector,  dairy  and 
food  inspector,  and  a  creamery,  dairy  and  food  commissioner,  who 
assist  in  the  enforcement  oif  the  dairy  and  food  law. 

The  State  Board  of  Dental  Examiners  is  composed  of  five  prac- 
ticing dentists  at  least  three  of  whom  shall  be  members  of  the  Wis- 
consin State  Dental  Society.  They  are  appointed  by  the  Governor  for 
five  year  terms  and  may  be  selected  by  the  Governor  from  among  such 
persons  as  may  be  recommended  to  him  therefor  by  the  Wisconsin 
State  Dental  Society.  No  person  is  eligible  to  appointment  on  the 
board  who  is  connected  with  or  interested  in  any  dental  college  or 
dental  department  of  any  institution  of  learning.  The  board  examines 
and  licenses  persons  to  practice  dentistry  in  the  State. 

The  State  Board  of  Medical  Examiners  consists  of  eight- members 
appointed  by  the  Governor.  Such  appointments  shall  be  made  from 
separate  list's  presented  to  him  every  second  year,  one  list  of  ten  names 
presented  by  the  Wisconsin  State  Medical  Society,  one  list  of  ten  names 
presented  by  the  State  Homeopathic  Medical  Society,  one  list  of  ten 
names  presented  by  the  State  Eclectic  Medical  Society,  and  one  list 
of  five  names  presented  by  the  Wisconsin  State  Osteopathic  Associa- 
tion. Three  members  of  the  board  shall  be  allopathic,  two  homeo- 
pathic, two  eclectic  and  one  osteopathic.  No  person  connected  with 
or  interested  in  any  medical  school  or  college  is  eligible  to  membership 
on  the  board.  The  board  is  empowered  to  establish  standards  of  admis- 
sion to  the  medical  profession,  to  grant  licenses  to  practice  and  to 
determine  the  reputability  of  schools  of  medicine. 

The  State  Board  of  Barber  Examiners  consists  of  three  persons 
appointed  by  the  Governor  for  two  year  terms.  They  must  be  prac- 
tical barbers,  who  must  have  been  for  at  least  five  years  prior  to 
appointment  engaged  in  the  occupation  of  barbers  in  the  State.  Their 
duties  are  to  examine  applicants  for  licenses  as  barbers  and  grant  cer- 
tificates. They  are  also  charged  with  the  sanitary  regulation  of  barber 
shops,  subject  to  the  approval  of  the  State  Board  of  Health. 


690  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

III.     REORGANIZATION  AND  CO-ORDINATION  OF 
HEALTH  AGENCIES  OF  THE  STATE. 

PLAN   SUBMITTED  BY  THE   COMMITTEE  OF  THE  STATE  BOARD  OF   HEALTH. 

In  time  past,  Illinois  has  done  little  in  constructive  public  health 
work.  The  various  State  departments,  having  more  or  less  to  do  with 
sanitary  and  health  matters  have  carried  out  a  considerable  volume  of 
work  in  their  own  individual  lines ;  but  this  has  not  been  coordinated  and 
there  has  consequently  been  no  effective  attack  upon  those  agencies  en- 
dangering the  lives  and  health  of  the  people. 

With  several  departments,  all  with  the  same  general  aim,  but  all 
pursuing  different  lines  and  methods,  there  has  necessarily  been  much 
over-lapping,  the  complete  neglect  of  some  important  matters,  some 
friction  and  an  enormous  amount  of  lost  motion. 

At  the  present  time  there  appears  to  be  an  unusual  opportunity  to 
approach  the  basic  public  health  problem  of  the  State — an  opportunity 
to  make  amends  for  the  shortcomings  of  the  past  and  to  place  Illinois 
in  the  front  rank  with  those  States  which  have  been  particularly  active 
in  safeguarding  the  lives  and  health  of  their  people. 

In  taking  advantage  of  such  an  opportunity,  all  departments  and 
all  persons  concerned  should  be  willing  to  entirely  forget  personal 
preferences  and  considerations.  The  one  aim  should  be  to  seek  out 
the  means  whereby  the  ends  may  be  reached  most  efficiently,  most  simply 
and  most  economically. 

It  is  in  this  spirit  that  the  State  Board  of  Health  presents  this 
scheme  of  coordination  of  those  forces  having  to  do  more  or  less 
directly  with  the  public  health  and  sanitation  of  the  State  and  it  is 
assumed  that  all  of  the  agencies,  departments  and  individuals  concerned 
will  take  up*  the  consideration  of  the  matter  in  like  manner. 

It  is  unnecessary  to  say  that  this  plan  of  co-ordination  of  the  State 
health  agencies  does  not  have  its  inception  in  the  State  Board  of  Health,, 
but  that  it  was  prepared  and  is  submitted  in  compliance  with  the  wishes 
of  the  Efficiency  and  Economy  Committee  of  the  General  Assembly. 

In  the  accompanying  plan  of  the  reorganization  of  the  health 
agencies  of  the  State,  there  is  contemplated  a  division  of  the  functions 
and  departments  of  the  State  Board  of  Health  into  two  major  divisions; 
One  the  Department  of  Public  Health,  .and,  second,  the  Department  of 
Medical  Registration. 

The  province  of  the  Department  of  Health  would  incorporate  all 
of  the  functions  now  performed  or  contemplated  by  the  State  Board 
of  Health  directly  pertaining  to  the  public  health,  and  also  certain 
functions  now  undertaken  by  other  bureaus  and  departments. 

This  would  include  the  Bureau  of  Medical  Inspection  with  Di- 
visions of  Contagious  Disease  Control,  of  Tuberculosis,  of  Child 
Hygiene  and  School  Inspection  and  including  laboratories  now  con- 
ducted for  the  diagnosis  of  diseases ;  a  Bureau  of  Vital  Statistics  with 
Divisions  of  Birth  and  Death  Registration  and  also  charged  with  the 
control  of  the  transportation  and  disposal  of  the  dead. 

In  addition  to  these  functions  performed  wholly  or  by  already 
existing  departments  of  the  State  Board  of  Health,  there  is  contem- 
plated a  Bureau  of  Sanitary  Engineering  with  a  Division  of  Water 


PUBLIC    HEALTH    ADMINISTRATION.  691 

Supplies  and  Wastes  Disposal,  for  the  examination  of  water  supplies, 
the  prevention  of  the  pollution  of  water  supplies  and  to  afford  advice 
and  counsel  in  regard  to  sewage  disposal,  garbage  disposal  and  the 
proper  handling  of  other  wastes ;  a  Division  of  Engineering  and  Re- 
search Laboratories ;  a  Division  of  Building  Sanitation,  to  control  ven- 
tilation, light,  plumbing,  drainage  and  general  sanitary  conditions;  and 
a  Division  of  General  Sanitary  Investigation. 

There  is  also  provided  a  Bureau  of  Food  and  Drug  Inspection, 
with  Divisions  of  Dairy  Inspection,  of  General  Food  and  Drug  Inspec- 
tion, of  Food  Standards  and  of  Food  and  Drug  Laboratories. 

The  Bureau  of  Sanitary  Engineering  includes  the  functions  now 
performed  by  the  State  Water  Survey,  while  the  Bureau  of  Food  and 
Drug  Inspections  embraces  those  now  undertaken  by  the  State  Food 
Commissioner  and  the  Food  Standard  Commission. 

The  Department  of  Medical  Registration  is  divided  into  two  Bu- 
reaus, one  a  Bureau  of  Records,  having  to  do  with  the  examination 
and  issuance  of  documents  and  with  correspondence  and  accounts,  and 
the  other  a  Bureau  of  Licensure. 

The  Bureau  of  Licensure  would  be  charged  with  the  examination 
and  licensure  of  physicians  and  other  practitioners  and  the  examination 
and  licensure  of  embalmers,  now  the  functions  of  the  State  Board  of 
Health,  and  it  would  also  include  the  Board  of  Examiners  of  Nurses, 
the  Board  of  Examiners  of  Barbers,  and  if  deemed  advisable,  the 
Boards  of  Examiners  of  Pharmacists  and  of  Dentists. 

There  is  no  discussion,  of  course,  as  to  the  re-arrangement  or  re- 
grouping of  the  existing  departments  of  the  State  Board  of  Health. 
The  interest  in  the  plan  centers  about  the  three  Bureaus,  of  Sanitary 
Engineering,  of  Food  and  Drug  Inspection  and  of  Examiners,  inasmuch 
as  the  creation  of  these  bureaus  contemplates  the  co-operation  of  other 
existing  State  departments. 

It  should  be  stated  primarily  that  this  plan  does  not  propose  the 
disturbance  or  disruption  of  any  of  the  departments  concerned  in  it; 
but  rather  the  bringing  together  of  these  now  widely  distributed  public 
health  agencies  into  a  working  unit  in  which  they  naturally  belong. 
The  lines  of  demarcation  between  the  various  proposed  bureaus  remain 
relatively  distinct  and  yet  the  entire  organization  is  brought  into  com- 
pact form  for  coordinate  work. 

Bureau  of  Sanitary  Engineering. — The  control  of  water  sup- 
plies and  the  prevention  of  their  pollution ;  the  disposal  of  garbage  and 
other  city  waste ;  the  supervision  of  ventilation,  plumbing  and  sanita- 
tion of  schools  and  of  public  buildings,  are  so  essential  to  any  plan  of 
public  health  that  a  State  health  organization  operating  without  these 
functions  would  be  practically  useless.  The  effort  to  control  epidemic 
disease  and  preventable  illness  without  the  employment  of  these  func- 
tions, would  be  futile. 

In  fact,  it  was  only  because  the  State  Board  of  Health  failed  to 
make  provision  for  this  vitally  necessary  work  that  sanitary  engineering 
problems  have  been  forced  upon  other  Bureaus — notably  the  State 
Water  Survey  and  the  Rivers  and  Lakes  Commission — which  were  not 
originally  created  with  sanitary  engineering  activities  in  view. 

At  present  these  activities  are  divided  principally  among  the  State 


692  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

Board  of  Health,  the  Rivers  and  Lakes  Commission  and  the  State 
Water  Snrvey,  though  the  Fish  and  Game  Commission  and  the  Natural 
History  Survey  occasionally  feel  called  upon  to  deal  with  matters  re- 
lating to  stream,  pollution  and  the  Geological  Survey  to  make  studies 
of  potable  water  resources. 

The  activities  of  the  last  three  bureaus  in  public  health  matters  are 
so  slight  that  they  may  be  ignored ;  but  the  sanitary  engineering  work 
of  the  State  Board  of  Health,  the  Rivers  and  Lakes  Commission  and 
the  State  Water  Survey  are  so  closely  related  that  constant  and  intimate 
cooperation  is  necessary  and  the  losses  in  efficiency  and  the  dangers  of 
friction  due  to  decentralization  of  authority  are  so  great  that  some  ad- 
justment must  sooner  or  later  be  made. 

It  is  contemplated  in  this  plan  of  organization  that  there  will  be 
constantly  growing  need  for  counsel  and  advice  of  the  rapidly  growing 
cities  and  towns  of  Illinois  that  they  may  intelligently  solve  their  sani- 
tary engineering  problems  and  the  present  difficulty  encountered  by  the 
public  official  or  the  private  citizen  in  finding  any  State  agency  ready 
or  competent  to  consider  sanitary  problems  in  their  entirety  is  not  only 
very  real,  but  is  a  decided  impediment  to  the  sanitary  development  of 
the  State. 

Were  the-  State  Water  Survey  a  purely  scientific  organization,  like 
the  State  Geological  Survey,  it  might  properly  be  assigned  to  the  Com- 
mission of  Natural  Resources.  As  stated,  however,  the  failure  of  the 
State  Board  of. Health  to  give  proper  attention  to  matters  of  sanitary 
engineering  has  already  forced  upon  the  Water  Survey  certain  adminis- 
trative functions  with  reference  to  water  supplies  and  stream  sanitation 
for  which  it  was  not  fully  prepared.  Primarily  the  Water  Survey  has 
been  handicapped  in  the  performance  of  its  sanitary  functions  in  that 
it  has  only  advisory  power. 

In  fact,  at  the  present  time,  .the  Water  Survey  has  the  facilities 
for  sanitary  investigation  without  the  power  to  enforce  its  recommenda- 
tions ;  while  the  State  Board  of  Health  has  the  power  to  enforce  its 
mandates  but  has  not  the  facilities  for  water  supply  investigation  so 
essential  to  proper  health  protection. 

If  the  Water  Survey  is  to  be  made  a  part  of  any  of  the  proposed 
major  divisions  of  the  State  Government,  it  would  naturally  become 
merged  with  the  proposed  Commission  of  Natural  Resources,  with  the 
Rivers  and  Lakes  Commission,  or  with  the  State  Board  of  Health. 

Whatever  its  association,  to  become  effective  from  a  sanitary  stand- 
point, the  Water  Survey  must  be  backed  by  mandatory  power.  From 
its  proposed  composition,  the  Commission  of  Natural  Resources  will 
be  a  loosely  woven  confederation  for  scientific  purposes  of  widely 
diiifering  character. 

The  Rivers  and  Lakes  Commission  has,  among  its  manifold  powers, 
most  of  which  have  no  bearing  upon  the  public  health,  some  control 
over  the  pollution  of  streams.  As  the  law  now  exists,  this  section  is 
said  to  be  very  difficult  to  enforce. 

In  fact,  it  has  been  proposed  that  this  purely  sanitary  function  of 
the  Rivers  and  Lakes  Commission  be  transferred  to  the  State  Board 
of  Health  and  that  there  be  added  to  it  control  over  the  installation 
of  public  water  supplies. 


PUBLIC    HEALTH    ADMINISTRATION.  693 

In  such  an  event,  which  seems  highly  desirable,  the  State  Water 
Survey  would  be  called  upon  to  make  all  of  the  water  investigations 
required  by  the  State  Board  of  Health  in  the  enforcement  of  the  law 
and  it  is  hardly  to  be  assumed  that  the  State  Board  of  Health  would 
care  to  undertake  the  sweeping  enforcement  of  so  important  an  act 
relying  entirely  for  the  scientific  data  upon  which  its  action  would  be 
based,  upon  an  organization  over  which  it  would  have  not  the  slightest 
control  and  whose  services  would  be  extended  as  merely  a  courtesy 
from  one  department  to  another.  The  possibilities  of  friction  and  in- 
efficiency are  so  obvious  as  to  require  no  discussion. 

While  it  is  contended  that  it  would  make  for  efficiency  to  bring 
together  under  the  Rivers  and  Lakes  Commission  all  of  the  agencies 
having  to  do  with  water  supplies,  with  the  exception  of  fish  life,  the 
importance  of  the  combination  is  of  less  practical  importance  than  it 
might  appear.  The  chief  point  of  contact  between  the  State  Water 
Survey  and  the  Rivers  and  Lakes  Commission  is  in  the  measurement 
of  streams,  a  work  which  is  already  carried  out  by  the  U.  S.  Geological 
Survey,  the  Commission  merely  meeting  part  of  the  expense. 

Then  too,  the  sanitary  part  of  the  supervision  of  water  supplies 
and  stream  pollution,  which  is  the  important  part  to  the  people  of  the 
State,  must  be  carried  on  quite  independently  of  water  power  develop- 
ment and  illegal  encroachment  of  water  ways.  In  Pennsylvania,  where 
there  is  a  highly  developed  water  supply  commission,  the  control 
of  the  sanitary  quality  of  the  water  supplies  and  the  control  of  stream 
pollution  are  placed  in  the  hands  of  the  Department  of  Health. 

Whatever  may  be  the  ultimate  position  of  the  State  Water  Survey, 
the  State  Board  of  Health  to  keep  pace  with  the  growing  requirements 
of  health  protection,  will  be  compelled  to  establish  a  department  of  sani- 
tary engineering  prepared  to  solve  not  only  the  problems  of  water 
supplies,  but  other  problems  equally  essential.  Such  a  department  will 
require  expert  skill  and  laboratory  equipment.  The  division  of  the 
sanitary  engineering  force  of  the  State,  the  placing  of  that  part  of  the 
organization  which  would  have  to  do  with  water  supplies  in  one  place 
and  the  other  departments  in  another, — would  gain  little  promise  of 
either  economical  or  efficient  service. 

It  is  obvious  that  if  all  of  the  laboratories  contemplated  in  this 
plan  could  be  united,  there  would  be  not  only  the  utmost  economy  of 
operation  but  there  would  also  be  a  co-operative  activity  which  would 
be  of  benefit  to  all  concerned. 

The  benefit  which  the  State  Water  Survey  may  or  may  not  be  to 
the  University  of  Illinois,  is  not  open  for  discussion  at  this  time.  These 
remarks  and  this  plan  are  devoted  solely  to  the  betterment  of  the  public 
health  service  of  the  State. 

The  Bureau  of  Food  and  Drug  Inspection. — The  inspection  of 
food  and  drugs  is  so  essentially  a  matter  of  public  health  that,  in  at 
least  sixteen  States,  the  laws  designed  to  prevent  adulteration  and  mis- 
branding are  enforced  through  the  agency  of  the  State  health  authori- 
ties, while  the  sale  of  tainted,  polluted  or  dangerously  contaminated 
foods  must  be  a  matter  of  decided  concern  to  the  health  authorities 
whether  charged  specifically  with  the  enforcement  of  food  laws  or  not. 

While  it  is  recognized  that  certain  forms  of  adulteration  and  mis- 


694  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

branding  may  not  materially  affect  the  health  of  the  consumer  and  are 
important  only  as  a  matter  of  honest  merchandising,  the  basic  reason 
for  the  establishment  of  food  inspection  was  that  impure  foods  were, 
on  the  whole,  prejudicial  to  the  lives  and  health  of  the  people. 

That  part  of  food  inspection  which  is  purely  commercial  is  of  so 
little  importance  as  compared  to  the  public  health  features  of  the  service 
that,  but  for  the  latter,  the  service  will  not  have  attained  much  greater 
importance  than  is  usually  given  to  the  supervision  of  weights  and 
measures. 

Under  existing  conditions,  constant  overlapping  of  the  food  inspec- 
tion service  and  the  public  health  service  is  unavoidable.  While  the 
State  food  inspectors  have  been  engaged  in  the  supervision  of  the  milk 
supply,  the  State  Board  of  Health  has  had  inspectors  covering  the  same 
ground  investigating  the  sanitary  condition  of  dairies  and  of  the 
handling  of  the  milk  supply.  In  certain  instances,  where  it  was  pre- 
sumed that  milk  or  some  other  article  of  food  was  a  means  of  trans- 
mission, the  State  food  inspectors  have  felt  called  upon  to  investigate 
the  prevalence  of  infectious  and  epidemic  diseases. 

In  most  of  the  towns  and  cities  of  Illinois,  the  control  of  the  milk 
supply,  of  slaughter  houses  and  the  sanitary  phases  of  food  production 
constitute  most  important  duties  of  the  local  health  department,  and, 
under  existing  conditions  in  Illinois,  there  is  considerable  confusion  on 
the  part  of  local  authorities  in  determining  to  which  of  the  State  de- 
partments to  turn  for  advice  and  guidance  in  the  solution  of  local  prob- 
lems. For  the  purpose  of  increasing  the  efficiency  of  the  local  health 
organizations  throughout  the  State,  if  for  no  other  reason,  it  is  ex- 
ceedingly desirable  that  one  State  department,  and  that  the  health  de- 
partment, be  made  the  source  of  information,  counsel  and  advice  on 
all  things,  with  which  the  health  officers  are  charged  in  their  own 
communities. 

Board  of  Examiners. — As  previously  stated,  the  second  major 
division  of  the  State  health  organization  as  proposed  in  this  plan  is  the 
Department  of  Medical  Registration.  In  this  department  are  incor- 
porated the  examining  and  licensing  functions  now  performed  by  the 
State  Board  of  Health  applying  to  physicians  and  other  practitioners 
and  to  embalmers,  and  there  is  also  included  the  examination  and  li- 
censure of  applicants  in  other  professions  closely  allied  to  medicine  and 
to  public  health  and  sanitation. 

It  is  proposed  that  the  examining  and  licensing  functions  shall  he 
performed  by  individual  examining  boards,  the  executive  and  adminis- 
trative features  of  such  examination  being  imposed  upon  the  depart- 
ment as  a  whole  so  far  as  purposes  of  economy  and  efficiencv  shall 
dictate.  The  Bureau  of  Records,  constituting  an  important  division 
of  the  Department,  would  centralize  the  records  of  the  various  examin- 
ing boards  and  would  minimize  the  demand  for  clerical  service  as  well 
as  affording  to  the  public  one  definite  bureau  of  information  relative 
to  the  licensure  of  all  persons  pr^acticing  medicine  or  any  of  the  allied 
branches. 

1.  Board  of  Examiners  of  Nurses. — There  was  an  understanding 
at  the  time  the  Bill  for  an  Act  to  provide  for  the  Registration  of  Nurses 
was  pending  in  the  General  Assembly,  that  the  Board  of  Examiners  of 


PUBLIC    HEALTH    ADMINISTRATION.  695 

Nurses,  if  created,  should  be  affiliated  with  some  then  existing  depart- 
ment of  the  State  <  Government. 

Whether  such  an  understanding  existed  or  not,  it  is  quite  gener- 
ally concede>l  that,  if  it  is  deemed  wise  that  the  Nurses  Board  shall 
have  such  affiliation,  its  natural  association  is  with  the  State  Board  of 
Health. 

It  is  difficult  to  conceive  two  professions  more  definitely  inter- 
dependent than  that  of  nurses  and  physicians.  In  fact,  the  existence 
of  nursing  as  a  profession  independent  of  the  physician  would  be  quite 
out  of  the  question,  while  the  trained  nurse  is  becoming  more  and  rnore 
essential  to  the  successful  practice  of  medicine.  Under  these  conditions, 
the  administration  of  the  affairs  of  the  two  professions  by  the  same 
general  department  of  the  State  Government  would  be  accepted  as  al- 
most a  matter  of  course. 

Further,  it  must  be  borne  in  mind  that  the  nurse,  in  the  practice 
of  her  profession  becomes  a  factor  in  her  relationship  to  communicable 
diseases.  She  is  usually  accorded  privileges  in  quarantine  allowed  to 
none  other  save  the  physician.  In  the  proper  performance  of  her  duties 
she  becomes  a  potent  force  in  the  control  of  contagious  or  infectious 
disease  and  yet,  her  carelessness  may  become  a  not  unimportant  source 
of  danger.  From  a  purely  public  health  standpoint,  the  nurse  as  well 
as  the  physician  should  have  her  affiliation  with  the  State  through  the 
State  health  organization. 

Within  recent  years,  however,  the  trained  nurse  has  come  to  as- 
sume a  relationship  to  public  health  of  a  most  important  character.  She 
has  become  an  educator  and,  as  the  public  health  or  social  service  nurse, 
she  comes  more  intimately  in  contact  with  the  homes  of  the  people  and 
consequently  more  closely  to  the  root  of  hygienic  and.  sanitary  problems 
than  any  other  agency. 

With  the  development  of  public  health  nursing,  which  must  be 
reckoned  with  as  an  important  factor  in  future  operations  of  any  public 
health  organization,  it  will  be  especially  desirable  that  the  sanitary  and 
nursing  forces  shall  be  as  intimately  brought  together  as  possible. 

2.  Boai^d  of  Examiners  of  Barbers. — The  chief  object  for  the 
creation  of  the  Board  of  Examiners  of  Barbers,  was  the  control  of 
barbers  and  barber  shops  for  the  prevention  of  communicable  diseases. 
In  fact,  the  interest  of  the  people  of  the  State  in  such  a  board  rests 
upon  this  one  point. 

It  would  seem  that  there  can  be  no  argument  but  that  this  Board, 
in  the  performance  of  its  functions,  can  be  infinitely  more  efifective 
through  association  with  the  State  Board  of  Health. 

3.  Board  of  Dental  Examiners  and  Board  of  Pharmacy. — While 
in  some  w^ays  the  professions  of  dentistry  and  of  pharmacy  are  in  close 
association  with  the  medical  profession,  the  relationship  to  the  province 
of  public  health  is  not  so  definite  as  in  those  previously  considered,  and, 
in  many  ways,  the  operations  of  these  two  boards  of  examiners  could 
remain  quite  independent  without  impairing  in  any  way  the  efficiency 
and  economy  of  operation  of  the  health  department  of  the  State 
Government. 

If  it  is  deemed  wise  that  these  two  boards  shall  be  incorporated  in 
the  Department  of  Registration  of  the  State  Board  of  Health,  such  plan 


696  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

can  be  carried  out  without  difficulty  and  would  be  quite  acceptable  to 

the  Board. 

*     *     *     * 

Under  existing  conditions,,  public  health  administration  in  Illinois 
has  lagged  twenty  years  behind  the  times.  With  such  an  organization 
as  that  outlined  in  the  accompanying  plan,  all  of  the  constantly  increas- 
ing sanitary  and  public  health  problems  of  the  State  can  be  successfully 
met  by  a  single  department.  The  plan  is  sufficiently  elastic  that  it  may 
be  readily  adjusted  to  meet  the  requirements  of  many  years  to  come. 

Several  essential  factors  have  been  kept  constantly  in  mind  in  the 
preparation  of  this  plan.  Increased  efficiency  has  been  the  chief  aim, 
and  it  is  believed  that  this  may  be  attained  with  a  like  increase  in 
economy  of  operation.  A  studied  effort  has  been  made  to  develop  the 
plan  with  as  little  change  in  the  existing  laws  as  possible,  and  with 
the  minimum  of  disturbance  of  the  various  State  departments  now  in 
active  operation. 


A  REPORT 

ON 

SUPERVISION  OF  CORPORATIONS 
AND  RELATED  BUSINESS 

BY 
MAURICE  H.  ROBINSON,  PH.  D. 

PROFESSOR    OF  INDUSTRY  AND  TRANSPORTATION 
UNIVERSITY  OF  ILLINOIS 


CONTENTS 

Page 

■INTRODUCTION 701-703 

I.  SUPKRVISION  BY  THE   SECRETARY   OF   STATE • 704-716 

Historical   Summary 704 

Supervision  under  the  Present  Law 705 

The   Certification  of  Domestic  Corporations 705 

The  Admission  of  Foreign  Corporations 709 

Supervision  of  Corporations  after  Incorporation 711 

Annual  Reports.   .  ' 711 

Anti-trust   Affidavits 713 

Interrogatories 714 

Financial   Summary 715 

II.  INSURANCE   DEPARTMENT 717-727 

From  1885  to  1893.  .   ' 717 

Supplementary  Legislation 7  8 

Supervision  by  Insurance  Superintendent 719 

New   Companies 720 

Companies  from  other  jurisdictions 720 

Annual   Reports 721 

Examinations " 721 

Publications 721 

Official  Staff 723 

Financial   Summary 723 

725 

726 

Proposed  Building  Commissioner   726 

728-734 

The  Regulation  of  Banks   ''^S 

Incorporation    ' 

729 
Examinations    

730 
Trust    Companies    

Examinations  and  Reports   '^'■ 


State  Fire   Marshal 

Financial   Statement 
Proposed  Building  < 

III.    SUPERVISION  BY  THE   AUDITOR  OF  PUBLIC  ACCOUNTS 


Pawners'  Societies  and  Wage  Loan  Corporations 


.731 


731 
Building  and  Loan  Associations   '^ 

Incorporation    

Annual  Report  "! 

Examinations    

73? 
Custodian   " 

Foreign  Building  and  Loan  Associations  ^^ 

Title  Guarantee  Companies  ^'^^ 

Financial   Summary    ^^"^ 


IV.    STATE   PUBLIC    UTILITIES    COMMISSION    735-744 

Introduction   735 

Constitution  of  1870    735 

Railroad  and  Warehouse  Commission   735 

Local  Utilities  before  1913   736 

Public  Utilities  Law  of  1913 736 

Public  Utilities  Defined   737 

Incorporation,  franchises  and  licenses  737 

Reports  and  Accounts  738 

Capitalization  and  Intercorporate  Relations   738 

Control  over  rates  and  service  739 

Alethods  of  Procedure   739 

Appeals  and  Penalties  740 

Staff  and  Organization   740 

Grain   inspection    742 

V.  CORPORATION  COMMISSIONS  IN  OTHER  STATES 745-745 

Virginia  Corporation  Commission 745 

North  Carolina  Corporation  Commission  746 

VI.  SUMMARY   AND   RECOMMENDATIONS 747-752 

Recommendations   747 


STATE  SUPERVISION  OF  CORPORATIONS 
'  By  Professor  Maurice  H.  Robinson,  University  of  Illinois. 

INTRODUCTION. 

Business  corporations  and  businesses  often  conducted  by  corpora- 
tions are  under  the  jurisdiction  of  four  separate  State  officials,  namely, 
the  Secretary  of  State,  the  Auditor  of  Public  Accounts,  the  Insurance 
Superintendent,  and  the  State  Public  Utilities  Commission. 

The  Secretary  of  State  has  general  supervision  over  the  incor- 
poration of  all  corporations  not  otherwise  provided  for.  His  authority 
is  contained  in  the  general  law  and  a  series  of  supplementary  laws 
relating  to  special  classes  of  corporations. 

(a)  Corporations  under  the  general  law: 

The  general  law  provides  for  the  incorporation  of  two  classes 
based  upon  whether  the  corporations  formed  are  for  pecuniary  profit 
or  not. 

(1)  Corporations  for  pecuniary  profit: 

Under  this  law  all  corporations  that  issue  stock  and  divide  profits 
in  the  form  of  dividends  are  included  except  banking,  insurance,  real 
estate  brokerage,  the  operation  of  railroads  and  the  business  of  loan- 
ing money.  In  this  class  are  included  horse  and  dummy  railroads  and 
organizations  for  the  purchase  and  sale  of  real  estate  for  burial  pur- 
poses only,  title  guarantee  companies  and  trust  companies.  The  gen- 
eral provision  is  that  they  must  be  formed  for  some  lawful  purpose. 

(2)  Corporations  not  for  pecuniary  profit : 

Under  this  section  of  the  Act  are  included  all  societies,  associa- 
tions and  corporations  formed  for  any  lawful  purpose  where  the  object 
is  not  to  make  a  pecuniary  profit  to  be  divided  among  the  members. 
Corporations  under  this  section  of  the  Act  issue  no  capital  stock  and 
are  exempted  from  making  annual  or  other  reports  to  State  officers. 

(b)  Corporations  under  separate  Acts: 

(1)  Cemetery  associations :  Any  six  or  more  persons  may  organ- 
ize as  a  cemetery  association  by  filing  with  the  Secretary  of  State  a 
certificate  of  organization.  Such  organizations  are  required  to  make 
a  financial  report  to  the  county  court  once  in  every  three  years. 

(2)  Co-operative  associations  are  formed  in  the  same  general  way 
as  corporations  for  pecuniary  profit.  No  individual  may  subscribe  to 
more  than  one  share  and  no  one  except  subscribers  may  work  for  the 
association.    No  annual  or  other  reports  are  required. 

(3)  Educational  institutions  and  free  public  libraries  are  incor- 
porated by  filing  a  statement  with  the  Secretary  of  State.  If  the 
statement  is  found  satisfactory  a  certificate  of  incorporation  is  issued 
which  must  be  recorded  in  the  usual  way.    Such  corporations  are 


702  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

required  to  make  annual  reports  to  the  Governor,  showing  their  assets 
and  investments  in  detail.  Changes  in  the  organization  of  such  cor- 
porations are  made  by  filing  a  statement  of  the  changes  desired  when 
the  proper  certificate  is  issued  authorizing  the  same.  Private  educa- 
tional institutions,  whether  incorporated  or  unincorporated,  make 
reports  to  the  Superintendent  of  Public  Instruction. 

(4)  Pawners'  societies  and  wage  loan  corporations  are  incor- 
porated by  the  Secretary  of  State  under  the  general  law.  Such 
corporations  report  annually  to  the  Auditor  of  Public  Accounts. 

(5)  Railroads  are  incorporated  by  the  Secretary  of  State  on  the 
filing  of  a  statement  of  articles  of  association  containing  the  details  of 
the  organization,  including  name,  purpose,  officers,  location,  capital 
stock,  etc.  If  the  organization  is  found  to  be  in  accordance  with  the 
law  a  certificate  of  incorporation  is  issued  which  is  filed  with  the  county 
recorder.  Railroad  corporations  report  annually  to  the  Auditor  of 
Public  Accounts,  and  also  to  the  Public  Utilities  Commission. 

The  Auditor  of  Public  Accounts  has  general  supervision  over 
banks  and  banking  institutions,  trust  companies,  title  guarantee  com- 
panies and  building  and  loan  associations ;  and  receives  reports  from 
pawners'  societies.  He  also  receives  reports  from  corporations  and 
railroads  for  purposes  of  assessment. 

(a)  Banks  receive  their  charter  from  the  Auditor  of  Public 
Accounts  directly.  The  procedure  follow^s  that  of  the  general  corpor- 
ation lav.-.  They  are  required  to  make  quarterly  reports  to  the  Auditor 
and  are  subject  to  periodic  examinations. 

(b)  Building  and  loan  associations:  The  procedure  is  similar  to 
that  provided  for  general  corporations.  The  authority  for  soliciting 
subscriptions  must  first  be  obtained  and  when  the  organization  is  com- 
plete a  report  is  submitted  and  the  certificate  of  complete  organization 
issued.  Foreign  building  and  loan  associations  are  required  to  obtain 
a  license  from  the  Auditor.  They  are  required  to  make  annual  reports 
to  the  Auditor  and  are  subject  to  periodic  examinations. 

(c)  Trust  companies  are  incorporated  by  the  Secretary  of  Slnt 
but  report  regularly  to  the  Auditor  under  the  same  general  rules  which 
apply  to  banking  corporations. 

(d)  Pawners'  societies  and  wage  loan  corporations  are  incor- 
porated by  the  Secretary. of  State  but  make  their  reports  to  the 
Auditor  of  Public  Accounts  annually. 

All  insurance  companies,  except  assessment  life  and  accident  and 
title  guarantee  companies,  are  chartered  by  the  Insurance  Superin- 
tendent. Corporations  for  furnishing  life  or  accident  insurance  on 
the  assessment  plan  must  submit  their  plan  of  organization,  first  to 
the  Insurance  Superintendent;  if  he  approves  of  the  plan  he 
forwards  it  to  the  Secretary  of  State  who  then  issues  a  certificate  of 
incorporation.  The  same  process  is  followed  in  making  changes  in  the 
corporation.  All  insurance  companies,  except  title  guarantee  com- 
panies, are  supervised  by  the  Insurance  Superintendent. 

The  State  Public  Utilities  Commission  established  by  an  Act  of 
1913  is  authorized  and  required  to  approve  all  issues  of  capital  stock, 
bonds  and  other  securities  issued  by  public  utility  companies.     A  cor- 


SUPERVISION    OF   CORPORATIONS.  703 

poration  desiring  to  operate  a  public  utility  obtains  its  charter  from 
the  Secretary  of  State,  but  must  secure  the  approval  of  the  Public 
Utilities  Commission  before  issuing  securities.  Annual  reports  in  the 
form  prescribed  by  the  Public  Utilities  Commission  are  made  directly 
to  the  said  commission.  The  work  of  the  Public  Utilities  Commission 
in  supervising  the  particular  class  of  corporations  under  their  juris- 
diction will  be  described  in  detail  in  another  section  of  the  report. 

The  Attorney  General  as  the  legal  branch  of  the  State  govern- 
ment may  be  called  upon  by  the  various  State  officers  to  give  his  opin- 
ion upon  points  of  law  involved  in  the  incorporation  and  supervision 
of  various  classes  of  corporations.  In  the  case  of  insurance  corpora- 
tions, however,  it  is  held  that  as  a  result  of  Paragraph  5'  of  Section  3 
of  the  Insurance  Act  that  the  Attorney  General  has  no  direct  super- 
vision over  the  legal  work  of  the  insurance  department.  Accordingly 
a  direct  appropriation  is  made  to  th«  insurance  department  and  the 
insurance  department  has  a  legal  department  of  its  own. 

The  Board  of  Administration  has  jurisdiction  over  the  licensing, 
incorporation  and  supervision  of  associations  for  dependent,  defec- 
tive and  delinquent  children. 


I.  SUPERVISION  BY  THE  SECRETARY  OF  STATE. 

Historical  Summary. 

Before  the  Constitution  of  1848  was  adopted  corporations  were 
formed  by  special  Act  of  the  Legislature.  The  Constitution  of  1848, 
Article  X,  provides  that  corporations  not  possessing  banking  powers  or 
privileges  may  be  formed  under  general  laws  except  in  cases  where 
in  the  judgment  of  the  Assembly  the  objects  of  the  corporation  can- 
not be  formed  except  by  a  special  Act.  The  constitution  also  provides 
that  the  General  Assembly  shall  encourage  internal  improvements  by 
passing  liberal  general  laws  for  the  incorporation  of  companies  for 
such  purposes. 

The  first  general  corporations  Act  in  Illinois  was  passed  in  1849.^ 
This  Act  followed  the  general  method  in  vogue  in  other  states  at  that 
time.  It  provided  that  any  three  or  more  persons  desiring  to  form  a 
corporation  for  manufacturing,  agricultural,  mining  or  mechanical 
purposes  must  file  a  certificate  duly  acknowledged  in  the  office  of  the 
county  clerk  and  a  duplicate  in  the  office  of  the  Secretary  of  State. 
The  certificate  must  contain  the  usual  details  in  regard  to  the  name 
of  the  business,  amount  of  capital  stock,  term,  shares,  names  of  direc- 
tors and  the  location  where  its  principal  business  was  to  be  carried  on. 
When  the  certificate  was  filed  the  persons  signing  the  certificate  and 
other  subscribers  became  a  body  corporate  with  all  the  usual  rights  and 
privileges.  Immediately  after  filing  the  certificate  the  trustees  were 
authorized  to  call  in  subscriptions  to  the  capital  stock.  Payments  for 
capital  stock  were  required  to  be  made  in  money,  and  no  loan  on  the 
capital  stock  certificates  was  permitted  without  thereby  making  the 
directors  personally  liable  for  the  debts  of  the  corporation  to  the  extent 
of  such  loans ;  and  when  the  total  amount  of  subscriptions  was  paid 
in,  the  president  and  a  majority  of  the  trustees  were  required  to  file 
with  the  county  clerk  a  statement  to  that  efl:"ect. 

Corporations  imder  the  Act  of  1849  were  not  required  to  report 
to  the  Secretary  of  State.  Instead  it  was  provided  that  "each  company 
shall  annually  within  twenty  (20)  days  from  the  first  of  April  make 
a  report  which  shall  be  published  in  a  newspaper  published  nearest 
the  place  where  the  business  of  said  company  is  carried  on,  which 
shall  state  the  amount  of  the  capital  stock  and  the  proportion  actually 
paid  and  the  amount  of  existing  debts."  This  report  was  required  to 
be  signed  by  the  president  and  a  majority  of  the  trustees,  verified 
under  oath  of  the  president  and  secretary  and  filed  in  the  office  of 
the  clerk  of  the  county.  For  failure  to  conform  to  this  requirement 
the  trustees  were  jointly  and  separately  liable  for  all  its  debts  then 
existing  or  contracted  before  such  report  was  made. 

^Session   Laws.   1S49,   p-   87. 


SUPERVISION    OF   CORPORATIONS.  705 

Several  additional  acts  supplementary  to  the  general  corporation 
act  were  passed  during  the  period  from  1849  to  1872,  when  the  pres- 
ent corporation  act  was  enacted.     The  important  acts  are  as  follows: 
An  Act  to  authorize  the  formation  of  corporate  companies,  for  the  pur- 
pose of  mining  and  transportation  by  a  general  law;  passed  June  22,  1852. 

An  Act  to  authorize  the  formation  of  corporations  for  the  purpose  of 
manufacturing,  mining,  mechanical  or  chemical  businesses;  passed  Februar>- 
18,  1857. 

Amendments  to  the  above  acts  were  passed  in   1857,   1865,  and   1867. 
The  first  amendment  related  to  the  collection  of  unpaid  subscriptions  and 
the  other  amendments  extended  the  acts  to  permit  the  formation  of  corpora- 
tions for  the  making  of  beet  sugar  and  the  mining  and  refining  of  oils. 
In  all  of  the  additional  acts  and  the  amendments  thereto  the  same 
general  method  of  incorporation  and  supervision  established  in   1849 
was  rnanitained  without  any  important  change. 
Suf^eriisio)!   Under  the  Present  Law. 

Notwithstanding  the  fact  that  the  Constitution  of  1848  provided 
that  corporations  must  be  formed  under  the  general  law,  except  where 
the  purposes  desired  could  not  be  obtained  under  such  an  act,  the 
Legislature  still  continued  to  grant  special  charters  to  corporations 
in  considerable  numbers  and  in  connection  with  the  legislative  grant- 
ing of  charters  charges  of  corruption  became  so  pronounced  and  so 
frequent  and  in  some  cases  the  charges  were  so  substantially  sustained 
that  the  Constitution  of  1870,  Article  XI,  provided  as  follows : 
"No  corporation  shall  be  created  by  special  laws  or  its  charter  ex- 
tended, changed  or  amended,  except  for  charitable,  educational, 
penal  or  reformatory  purposes  which  are  to  be  and  remain  under  the 
patronage  and  control  of  the  State,  but  the  General  Assembly  shall 
provide  by  general  laws  for  the  organization  of  all  corporations  here- 
after to  be  created."  The  Constitution  also  provided  that  all  existing 
corporations  were  to  cease  their  existence  if  not  in  operation  within 
ten  (10)  days  from  the  date  that  the  Constitution  should  go  into 
effect.  It  also  provided  for  the  establishment  of  the  cumulative  voting 
system  and  that  no  street  railway  company  might  be  given  authority 
tu  operate  a  railway  without  the  consent  of  the  town  wherein  it  was 
operated. 

Immediately  after  the  adoption  of  the  present  Constitution  the 
corporation  law  of  the  State  was  revised  and  the  present  method  of 
certification  and  control  of  corporatiorts  was  enacted  into  law.  As 
previously  stated  the  general  office  for  the  certification  of  corporations 
is  that  of  the  Secretary  of  State.  For  purposes  of  administration  there 
is  established  in  the  Secretar}^  of  State's  office  a  departmeiyit  of  cor- 
porations and  the  department  of  corporations  is  divided  into  two  divis- 
ions : 

The  certification  of  domestic  corporations; 

Licensing  of   foreign   corporations,   the  supervision  of  the  anti- 
trust law   through   affidavits   and   the   securing   and   filing   of   annual 
reports. 
The  Certification  of  Domestic  Corporations. 

Domestic  corporations  are  divided  into  two  classes,  those  for 
pecuniary  profit  and  those  not  for  pecuniary  profit.    The  great  majority 


706  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

of  all  our  corporations  are  included  in  the  first  class.  Consequently 
the  chief  attention  will  be  given  to  the  work  of  the  Secretary  of  State's 
office  in  their  supervision. 

Whenever  any  group  of  persons  desire  to  form  a  corporation 
under  the  general  law  a  statement  is  made  to  the  Secretar\'  of  State 
on  a  blank  which  is  furnished  by  that  office  for  the  purpose  of  facili- 
tating conformity  to  the  law.  The  statement  must  be  made  by  at  least 
three  persons  and  not  more  than  seven,  stating  that  they  desire  to 
form  a  corporation  unde  rthe  Act  concerning  corporations  approved 
April  18,  1872,  and  all  acts  amendatory.  Tlie  statement  must  include 
the  following  information: 

The  name  of  the  corporation; 
The  object  for  which  it  is  formed; 
-The  capital  stock; 
The  number  of  shares  ; 

The  location  of  the  principal  office  in  Illinois ; 
The  duration  of  the  corporation. 

This  application  is  signed  and  acknowledged  before  some  officer 
in  the  manner  provided  for  the  acknowledgement  of  deeds  and  then 
submitted  to  the  Secretary  of  State.  Upon  its  receipt  it  is  sent  to 
the  department  for  the  certification  of  domestic  corporations  and 
there  examined  to  see  whether  it  conforms  to  the  law.  In  the  exam- 
ination the  important  points  are  the  following: 

Are  the  fees  correct? 

Is  the  corporation  formed  for  a  lawful  object?  If  the  object  stated  is 
not  lawful  then  the  application  will  be  returned  with  a  statement  calling 
attention  to  the  fact.  The  statement  then  may  be  revised,  returned  and  the 
process  of  examination  continued. 

Is  the  name  available?     In  this  connection  attention  should  be  called  to 
the  fact  that  corporations  may  go  out  of  business  without  sending  the  proper 
information  to  the  Secretary-  of  State's  office  and  thus  a  name  which  might 
have  been  available    for  a  new   corporation   may  not   be   approved  by   the 
department  although  the  original  has  long  been  out  of  business. 
If  the  statement  is  found  to  be  in  conformity  with  the  law  the 
Secretary  of  State  issues  a  license  to  the  subscribers  authorizing  them 
to  solicit  subscriptions  to  the  capital  stock.     When  the  subscriptions 
have  been  secured  to  the  entire  amount  of  the  capital  stock  authorized 
a  meeting  of  tlie  subscribers  is  held;  directors  are  elected  and  the  sub- 
scriptions are  called  in  to  the  extent  of  at  least  fifty  per  cent.     After 
this  the  commissioners  make  out  a  report  containing : 
The  subscription  list. 
The  record  of  the  meeting. 

A  list  of  the  officers  and  a  statement  showing  to  what  extent  the  stock 
has  been  collected  and  how  the  stock  v.as  paid  for. 

The  report  is  examined  by  the  department  of  corporations  in  the 
Secretary  of  State's  office  and  if  found  to  be  in  conformity  to  the  law 
a  certificate  is  issued.  The  certificate  must  be  filed  in  the  county 
recorder's  office  and  operations  begun  within  two  years  or  the  license 
issued  by  the  Secretary  of  State  is  deemed  to  be  revoked  and  all  pro- 
ceedings in  connection  therewith  are  void. 

It  will  be  noticed  that  the  Act  of  1872  provided  an  entirely  new 
method  of  procedure  in  the  formation  of  corporations  under  the 
State  law.     Persons  desiring  to   form   such   organizations  must  first 


SUPERVISION    OF    CORPORATIONS.  707 

obtain  permission  from  the  Secretary  of  State  before  they  could  solicit 
subscriptions  to  the  capital  stock.  The  object  of  this  provision,  vvhich 
at  the  present  time  is  in  force  in  only  one  other  state,  namely,  South 
Carolina,  is  to  safe-guard  the  investor  by  supervising  the  work  ot 
the  incorporators  during  the  period  of  promotion.  The  Secretary  of 
State  is  required  under  the  law  to  examine  the  statement  submitted 

to  see : 

Whether  it  is  for  a  lawful  purpose. 
Whether  the  name  is  distinctive. 

In  this  connection  he  has  authority  to  propound  interrogatories 
to  ascertain  the  true  object.  Although  he  is  not  specifically  authorized 
to  refuse  a  license  to  promoters  who  are  desirous  of  soliciting  sub- 
scriptions for  a  corporation  with  a  lawful  purpose  on  the  face,  but 
whose  real  object  is  a  fraudulent  one,  the  law  is  sufficiently  broad  to 
give  the  Secretary  of  State  wide  discretiohary  powers.  Under  the 
laws  of  the  State  monopolies  are  prohibited;  hence  the  Secretary  of 
State  would  be  exceeding  his  powers  if  he  should  knowingly  approve 
of  a  project  in  the  corporate  form  whose  purpose  was  to  form  a  monop- 
oly in  the  manufacture  of  a  single  line  of  goods.  Corporations  are  not 
authorized  to  own  shares  of  stock  in  other  corporations.  Consequently 
any  project  of  this  sort  would  be  refused  a  license  by  the  Secretary  of 
State.  Corporations  for  the  purpose  of  the  purchase  and  sale  of  real 
estate  are  not  authorized  under  the  Illinois  law ;  hence  the  Secretary 
of  State  would  refuse  a  license  to  a  corporation  organized  for  such 
a  purpose. 

The  provision  of  the  law  requiring  a  license  to  solicit  subscrip- 
tions in  order  to  safe-guard  the  investor  is  supplemented  by  further 
provisions  relating  to  the  issuance  of  the  capital  stock.  After  the 
promoters  receive  the  license  they  proceed  to  solicit  subscriptions  to 
the  capital  stock  to  the  entire  amount  authorized  by  law.  W  hen  the 
entire  amount  is  subscribed  they  call  a  meeting  of  the  subscribers, 
organize  and  elect  directors,  and  collect  at  least  one-half  of  the  sub- 
scriptions and  send  in  a  report  to  the  Secretary  of  State  as  above 
outlined.  The  Secretary  of  State  then  makes  an  examination  of 
the  report  to  determine  whether  the  commissioners  have  conformed 
to  the  law.  Under  the  Act  of  1849,  capital  stock  must  be  paid  for 
in  money.  Under  the  Act  of  1872,  capital  stock  may  be  paid  for 
either  in  cash  or  property.  If  the  latter  method  is  followed  the 
property  must  be  appraised  by  the  commissioners  and  the  fair  cash 
value  of  the  same  given  in  the  report.  The  purpose  of  this  provision 
of  the  law  is  evidently  to  secure  full  value  for  stock ;  that  is  to  prevent 
stock  watering  by  the  distribution  of  stock  for  overvalued  property. 
The  authority  of  the  Secretary  of  State  to  refuse  a  license  to  corpora- 
tions that  have  issued  stock  for  overvalued  property  seems  never  to 
have  been  tested  by  the  courts.  It  is  evident  from  an  examination  of 
the  law  that  the  Secretary  of  State  is  not  only  authorized  to  refuse 
charters  to  such  corporations  but,  moreover,  he  is  under  obligations 
€ven  to  refuse  to  issue  certificates  to  such  corporations.  Nevertheless 
no  attempts  seem  to  have  been  made  in  the  past  either  to  prevent  stock 
watering  under  the  Illinois  law  or  to  test  the  authority  of  the  Secre- 


708  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

tary  of  State  in  this  particular.  In  other  words  no  attempt  is  made 
to  go  beyond  the  returns  and  if  the  record  is  in  conformity  with  the 
law  on  its  face  the  certificate  is  issued  as  a  matter  of  course. 

The  corporation  law  of  Illinois  in  the  points  above  stated  is  almost 
unique  in  this  country.  With  only  slight  modifications  it  would  rank 
with  those  in  England  and  Germany  in  the  protection  of  legitimate 
investors.  The  enforcement  of  the  law  in  this  respect  would  of  course 
add  considerable  to  the  expense.  It  would  require  a  force  of  experts 
who  would  necessarily  make  direct  examinations  as  in  the  case  of 
the  examinations  of  banks  and  insurance  companies.  The  results,  how- 
ever, of  such  an  administration  of  the  law  in  the  development  of 
sound  investment  and  increased  business  prosperity  would  undoubted- 
ly more  than  justify  the  additional  expense. 

While  the  law  relating  to  the  formation  and  certification  of  cor- 
porations is  admirably  adapted  to  protect  legitimate  investors,  there 
are  ways  of  escape  for  the  shrewd  corporation  official  which  practically 
annul  the  evident  purpose  of  the  law.  It  will  be  noticed  that  the  pro- 
visions above  cited  apply  only  to  original  incorporations.  There 
are  no  similar  safeguards  for  the  increase  of  capital  stock.  Con- 
sequently any  group  of  incorporators  desirous  of  evading  the  spirit  of 
the  law  will  provide  in  the  first  instance  for  a  corporation  with  a 
nominal  capital  of  say  $2,500,  all  of  which  is  subscribed  and  one-half 
paid  in  cash.  The  certificate  is  then  obtained.  The  corporation  then 
applies  for  authority  to  increase  the  capital  stock  to  any  amount,  say 
$10,000,000.  A  meeting  of  the  stockholders  is  called  with  proper 
notice,  the  project  submitted  to  a  vote  and  if  two-thirds  of  all  the 
stock  authorized  votes  in  favor,  a  certificate  verified  by  the  aflfadavit 
of  the  president  and  secretary  under  the  corporate  seal  is  filed  with 
the  Secretary  of  State,  a  copy  in  the  office  'of  the  county  recorder  and 
notice  of  same  is  published  in  local  newspapers.  The  changes  then 
are  in  legal  effect.  The  Secretary  of  State  apparently  has  no  super- 
visory powers  over  the  issuance  of  the  capital  stock  after  the  corpora- 
tion has  once  been  formed.  The  corporation  now  has  $10,000,000 
fully  paid  capital  stock  of  which  $9,997,500  is  authorized  under  the 
amended  charter  and  may  be  issued  by  authority  of  the  stockholders 
and  directors  for  any  property  necessary  to  the  business  or  for  services 
at  any  price.  The  only  provision  in  the  law  which  might  in  any  way 
interfere  is  that  limiting  the  amount  of  indebtedness  to  the  amount  of 
capital  stock — capital  stock  in  this  sense  meaning  corporate  assets — ,but 
even  in  this  case  the  Secretary  of  State  has  no  authority  to  interfere. 
Since  the  law  provides  an  easy  legal  escape  from  the  provisions  re- 
lating to  formation  by  incorporating  for  a  small  amount  and  after- 
wards increasing  the  capital  stock,  the  strict  enforcement  of  the  Act 
during  the  period  of  promotion  would  have  the  effect  of  forcing  cor- 
porations desiring  to  issue  inflated  capital  stock  to  provide  for  a 
minimum  capitalization  and  later  take  advantage  of  the  liberal  laws 
for  the  increase  of  the  capital  stock. 

The  law  should  be  amended  by  throwing  the  same  safeguards 
around  an  increase  in  capital  stock  that  are  provided  for  original 
issues. 


SUPERVISION    OF    CORPORATIONS.  709 

Corporations  not  for  pecuniary  profit  are  authorized  by  the  Secre- 
tary of  State;  but  apparently  the  law  does  not  intend  that  he  shall 
exercise  supervisory  functions  over  their  formation  except  to  see  that 
they  conform  to  the  general  law.  As  no  reports  are  required  there 
is  no  record  of  the  organizations  of  this  kind  that  are  actually  in 
existence  except  the  record  published  in  the  annual  report  of  the 
Secretary  of  State  at  the  time  of  their  authorization. 
The  Admission  of  Foreign  Corporations. 

Until  1897  there  were  no  administrative  regulations  governing 
the  admission  and  operation  of  foreign  corporations  in  the  State  except 
an  Act  of  1875  authorizing  foreign  corporations  to  invest  and  loan 
money  in  Illinois  provided  it  was  so  authorized  by  its  charter.^  If  any 
such  corporation  should  acquire  real  estate  as  a  result  of  such  loans  it 
must  offer  the  same  at  auction  annually  and  sell  whenever  the  price 
realized  was  equal  to  the  claim  held  by  the  said  corporation. 

Administrative  control  of  foreign  corporations  dates  from  May 
26,  1897,  when  the  first  Act  governing  foreign  corporations  in  Illinois 
was  passed.  The  Act  of  1897  required  foreign  corporations  to  obtain 
a  license  from  the  Secretary  of  State  as  a  prerequisite  to  doing  busi- 
ness in  Illinois.  Corporations  desiring  to  do  business  in  the  State 
were  required  to  file  an  application  with  the  Secretary  of  State  stating : 

The  kind  of  business ; 

The  amount  of  capital  stock; 

What  other  states  the  corporation  operates  in ; 

The  proportion  of  capital  stock  represented  in  Illinois  by  its  property 
located  in  this  State  and  its  business  transacted  herein ; 

Amount  paid  on  its  capital  stock; 

The  property  and  assets  and  the  value  thereof  that  will  be  employed  in 
Illinois ; 

The  disposition  of  capital  stock  subscribed  and  not  paid  for; 

Names  and  residences  of  all  its  stock  holders; 

The  names  of  officers  and  directors; 

Principal  office  in  Illinois; 

Name  of  its  attorney  in  fact  who  will  accept  services  for  the  corporation 
in  all  suits  brought  against  the  corporation  in  this  State. 

The  Secretary  of  State  is  authorized  to  prescribe  the  form  of 
the  application  and  propound  such  interrogatories  in  regard  to  the 
character  of  the  business,  etc.,  as  he  deems  necessary. 

This  application  together  with  a  certified  copy  of  the  corporate 
charter  and  the  answers  to  the  interrogatories,  if  any,  is  filed  in  the  of- 
fice of  the  Secretary  of  State.  The  Secretary  of  State  then  examines 
the  papers  and  if  acceptable  he  issues  a  certified  copy  of  all  the  papers 
as  a  certificate  of  authority  to  do  business  in  this  State.  Foreign 
corporations  thus  admitted  may  not,  however,  exercise  any  powers  not 
given  to  domestic  corporations. 

As  a  license  fee  such  corporations  are  required  to  pay  to  the 
Secretary  of  State  for  the  use  of  the  State  such  fees  as  are  exacted 
of  domestic  corporations,  upon  the  proportion  of  stock  represented  in 
Illinois. 


^Kurd's  Revised  Statutes.  ]J)13.  p.    585 


710  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

This  Act  governing  the  admission  of  foreign  corporations  into  the 
State  of  llhnois  has  a  double  purpose: 

To  secure  a  record  of  all  foreign  corporations  doing  business  in  the 
State  and  the  name  of  the  proper  officer  to  serve  process  upon  in  case  of 
violation  of  the  State  law. 

To  collect  from  all  foreign  corporations  the  same  franchise  fees  as  are 
assessed  upon  domestic  corporations. 

In  neither  of  these  two  Acts  is  the  regulation  of  foreign  cor- 
porations entirely  satisfactory.  There  seems  to  be  no  adequate  method 
of  determining  whether  all  foreign  corporations  actually  doing  busi- 
ness in  the  State  tile  applications  and  secure  licenses  as  provided  by 
law;  and  of  those  corporations  that  do  apply,  the  process  of  determin- 
ing the  amount  of  capital  stock  upon  which  the  franchise  tax  is  to  be 
paid  is  untrustworthy  and  inefficient. 

The  law  is  partly  at  fault  for  this  difficulty.  It  states  that  the  fee 
shall  be  paid  upon  the  proportion  of  capital  stock  represented  by  the 
corporation's  property  and  business  in  the  State.  It  is  of  course  evi- 
dent that  a  foreign  corporation  may  have  a  small  investment  and  a 
large  business  or  a  large  investment  and  a  small  business  in  the  State, 
depending  partly  upon  the  meaning  given  to  the  word  "business"  and 
partly  upon  the  meaning  given  to  the  nature  of  the  particular  business 
actually  carried  on.  The  word  "business"  may  mean  either  the  value 
of  goods  manufactured  or  it  may  mean  the  total  gross  sales  or  the 
net  revenue  or  some  variation  of  either  one  of  these  items.  The  prop- 
erty invested  in  this  State  is  small  with  relation  to  the  sales  where 
office  space  is  rented  or  leased  and  sales  are  made  on  commission 
or  where  goods  are  bought  outright  and  the  period  of  turn-over  is 
short.  The  Secretary  of  State  has  attempted  to  solve  this  problem  of 
determining  the  proportion,  of  stock  represented  in  the  State  by  a 
method  that  aims  to  combine  the  two  criteria,  namely  business  and 
property,  by  the  following  method : 

The  sum  of  the  property  plus  the  business  in  Illinois  is  used  as  a 
numerator  and  the  sum  of  the  same  items  in  all  states  is  used  as  a 
denominator.  The  reduction  of  this  fraction  to  a  per  cent  gives  the 
proportion  of  the  capital  stock  represented  in  this  State.  Thus,,  a 
company  incorporated  under  the  New  Jersey  law  with  $250,000  capital 
stock  invests  $5,000  in  lUinois  and  does  a  business  of  $75,000,  pre- 
sumably in  gross  sales  from  its  Illinois  business.  Its  entire  property 
is  valued  at  $10,000  and  its  total  business  at  $150,000,  presumably 
again  gross  sales.  Tlun  $5,000  plus  $75,000  divided  by  $10,000  plus 
$150,000  equals  one-half  or  tifty  per  cent.  Fifty  per  cent  of 
$250,000  equals  $125,000,  the  amount  upon  which  the  fee  must  be 
paid.  It  is  evident  from  an  examination  of  this  method  that  it  must 
lead,  in  many  cases,  to  gross  absurdities  and  in  a  number  of  cases  it 
is  not  a  fair  criterion  of  the  amount  of  capital  stock  upon  which  a 
foreign  corporation  should  pay  a  franchise  tax  for  the  privilege  of 
doing  business  within  this  State. 


SUPERVISION    OF    CORPORATIONS.  711 

SUPERVISION    OF    CORPORATIONS    AFTER    INCORPORATION. 

After  incorporation,  State  supervision  over  corporations  chartered 
under  the  general  law,  where  the  supervision  is  under  the  Secretary 
of  State,  is  effected  by  means  of  annual  reports,  anti-trust  affidavits 
and  interrogatories. 
Annual  Reports. 

The  general  law  governing  annual  reports  was  passed  in  1901.  It 
provides  that  "every  incorporated  company  other  than  railroad,  bank- 
ing, building  and  loan  and  insurance  companies,  religious  corporations 
and  corporations  not  organized  for  pecuniary  profit  existing  by  virtue 
of  any  general  or  special  law  or  hereafter  organized  by  virtue  of  any 
law  of  this  S'tate  shall  annually  report  to  the  Secretary  of  State  between 
the  first  day  of  February  and  the  first  day  of  March  on  the  following 
points : 

The  location  of  its  principal  office; 

The  names  of  its  officers ; 

The  expiration  of  their  terms  of  office; 

The  kind  of  business  engaged  in,  if  any; 

Whether  it  is  pursuing  an  active  business  under  its  charter. 

Similar  reports  are  required  of  foreign  corporations  admitted 
to  do  business  in  this  State  (under  section  3  of  the  Act  concerning 
foreign  corporations). 

The  Secretary  of  State  in  conformity  to  the  statutes  sends  to 
each  corporation  "liable  under  the  Act  on  or  before  January  15  in 
each  year  a  blank  form  properly  arranged  for  collecting  the  required 
information.  This  blank  is  accompanied  by  a  notice  calling  attention 
to  the  statute  and  giving  the  necessary  information  in  regard  to  the 
penalties  for  non-compliance.  Where  for  any  reason  the  records  of 
the  Secretary  of  State  do  not  disclose  the  street  and  number  of  the 
corporations  located  in  the  larger  cities,  or  their  address  at  all,  without 
reference  to  location,  notice  of  such  report  may  be  given  by  advertising 
in  certain  newspapers  specified  in  the  law. 

The  reports  received  in  answer  to  the  above  inquiry  are  filed  and 
preserved  in  the  office  indefinitely.  On  or  after  July  1,  annually,  a 
certified  list  of  those  corporations  that  have  complied  with  the  law  is 
arranged  in  printed  form  and  sent  to  each  recorder  of  deeds  in  the 
several  counties  of  the  State,  and  to  a  certain  extent  are  distributed 
to  interested  parties  upon  request.  This  list  of  certified  corporations 
.  shows  the  four  following  groups  all  alphabetically  arranged : 

All  Illinois  corporations  that  have  complied  with  the  requirements  of  the 

law  and  at  the  time  of  publication  are  in  good  and  regular  standing. 

All  Illinois  corporations  that  have  failed  to  file  their  annual  report  at 

the  proper  time  and  whose  charters  have  been  cancelled  as  of  March  31  of 

the  current  vear. 

All   foreign  corporations  which  have  authority  to  transact  busmess  m 

the  State  andhave  filed  an  annual  report  for  the  current  year. 

All   foreign  corporations  previously  authorized  to  transact  busmess  m 

the  State  that  have  failed  to  file  an  annual  report  and  whose  authority  to 

do  business  has  therefore  been  cancelled.  ^ 

The  annual  report  of  all  corporations,  whether  domestic  or  for- 
eign, has  a  two-fold  purpose. 


712  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

To  furnish  a  list  of  those  corporations  that  are  actually  engaged 
in  active  business  under  their  respective  charters  and 

To  facilitate  the  taxation  of  corporations  by  providing  informa- 
tion to  the  tax  officers  as  to  their  existence  and  location.  The  object 
of  this  provision  of  the  corporation  Act  has  been  nullified  to  a  large 
extent  by  certain  decisions  of  the  Supreme  Court.  The  Act  provided 
that  failure  to  make  the  annual  report  and  pay  the  fee  for  the  filing 
of  the  same  should  be  prima  facie  evidence  that  the  corporations  fail- 
ing to  do  so  were  out  of  business  and  should  work  a  forfeiture  of  their 
respective  charters.  In  Spreyne  vs.  Garfield  Lodge  (117  111.  App. 
253),  the  Court  held  that  the  failureof  a  corporation  to  file  an  annual 
report  did  not  of  itself  work  a  forfeiture  of  its  charter  but  was  simply 
prima  facie  evidence  of  non-user,  which  might  be  the  basis  of  a  suit 
to  forfeit  the  charter.  Later  in  People  vs.  Rose  (207  111.  p.  352,  69 
N.  E.  762),  the  court  held,  explaining  its  position  more  fully,  as  fol- 
lows :  "The  thing  that  works  forfeiture  of  the  corporation  is  the  fact 
of  non-user  which  can  be  finally  determined  by  a  court  of  competent 
iurisdiction — Bruffet  vs.  Great  Western  Railway  Company  (25  111. 
353),  Baker  vs.  Administrator  of  Backus  (32  111.  79),  Board  of  Edu- 
cation vs.  Bakewell  (122  111.  339,  1  N.  E.  378),  and  the  cancellation 
which  the  Secretary  of  State  is  required  to  enter  upon  the  records  of 
his  office  would  in  such  proceedings  make  a  prima  facie  case  for  the 
people.  If  the  corporation  is  in  fact  engaged  in  active  business  and 
fails  to  make  the  report  it  is  not  by  reason  of  that  failure  deprived 
of  its  charter  but  may  in  a  suit  brought  against  it  show  the  fact  and 

thereby  defeat  the  proceedings "     The  efifect  of  the  Act  is 

simply  to  make  a  failure  to  report  as  required  prima  facie  evidence 
and  the  clause  providing  that  failure  to  report  and  pay  the  fee  there- 
for shall  be  prima  facie  evidence  that  said  corporation  is  out  of  busi- 
ness and  shall  work  a  forfeiture  of  the  charter  of  such  corporation 
was  merely  intended  to  be  a  statement  of  the  effect  of  a  condition, 
namely,  non-user,  of  which  condition  the  failure  is  made  prima  facie 
evidence.  This  statute  did  not  authorize  the  Secretary  of  State  to 
declare  absolute  forfeiture  of  charters  of  defaulting  corporations  but 
merely  established  a  rule  of  .evidence  and  is  a  lawful  exercise  of  legis- 
lative powers.  As  a  result  of  this  ruling  of  the  Supreme  Court  cor- 
porations regularly  chartered  under  the  Act  still  continue  in  active 
business  for  years.  The  law  provides  that  such  corporations  may  be 
re-instated  at  any  time  within  one  year  from  their  default  on  payment 
of  a  fee  of  $20  and  filing  a  statement  sliowing:  (1)  That  they  are 
still  engaged  in  active  business  under  their  charter,  and  (2)  the  facts 
called  for  in  sect-on  2  of  the  Act.  In  the  case  of  the  People  vs.  Rose, 
already  referred  to,  the  courts  in  discussing  the  status  of  corporations 
failing  to  report  at  the  required  date  held  that  while  every  corporation 
thus  situated  had  the  right  of  re-instatement  within  one  year  it  was 
in  that  case  not  necessary  to  discuss  their  rights  to  be  re-instated  after 
the  period  named  in  the  law  had  lapsed. 


SUPERVISION    OF   CORPORATIONS.  713 

As  a  matter  of  fact  the  Secretary  of  State  re-instates  corporations 
no  matter  how  long  a  period  has  elapsed  since  the  corporation  ren- 
dered its  annual  report,  on  payment  of  all  past  due  fees  and  the  penalty 
of  twenty  dollars  required  in  the  Act. 

This  practice  is  justified  by  the  department  of  state  on  the  ground 
that  since  the  failure  to  report  does  not  work  a  forfeiture  of  the  char- 
ter, as  held  by  the  Supreme  Court,  but  is  merely  prima  facie  evidence 
of  non-user,  it  is  proper  to  re-instate  after  presenting  satisfactory  evi- 
dence of  being  active  under  their  charter. 

Anti-trust  Affidavits:  By  an  Act  of  June  11,  1891,  corporations 
operating  in  Illinois,  whether  domestic  or  foreign,  are  prohibited  from 
entering  into,  or  becoming  a  part  of,  any  trust,  pool,  combination,  fed- 
eration, etc.,  with  any  other  corporation  or  any  person  or  associa- 
tion of  persons  for  the  purpose  of  fixing  prices,  limiting  production, 
etc.  In  the  cases  arising  under  this  act  the  courts  have  held  uni- 
formly that  "Any  corporation  doing  business  in  Illinois  is  amenable  to 
the  terms  of  the  Act  of  1891  wherever  it  was  organized  and  whether 
or  not  it  has  been  authorized  to  do  business  in  Illinois."  (Chicago,  W. 
and  V.  Coal  Company  vs.  People,  214  Illinois."  421,  73  N.  E.  770, 
affirming  114  111.  App.  76.)  "Citizens  of  Illinois  can  not  evade  the 
laws  of  Illinois  passed  against  trusts  and  combines  and  defeat  the 
public  policy  of  the  state  by  going  into  a  foreign  state  and  chartering 
a  corporation  to  do  business  in  this  State  in  violation  of  its  laws. 
\Miere  these  foreign  companies  come  into  the  State  to  do  business  they 
must  conform  to  the  laws  and  public  policy  of  this  State."  (Harding 
vs.  American  Glucose  Company,  182  111.  551,  55  N.  E.  577.) 

While  in  general  the  enforcement  of  the  anti-trust  Act  of  Illinois 
is  entrusted  to  the  Attorney-General  and  the  State's  attorneys  in  the 
several  jurisdictions  the  Legislature  seems  to  have  acted  upon  the 
supposition  that  the  Secretary  of  State  might  be  of  assistance  in  gath- 
ering information  on  this  subject;  and  to  this  end  it  is  made  the  duty 
of  the  Secretary  of  State:  (1)  to  send  out  a  letter  of  inquiry  annually 
on  or  before  the  first  day  of  September,  addressed  to  the  president,  sec- 
retary, or  treasurer  of  every  incorporated  company  doing  business  in 
the  state,  for  the  purpose  of  ascertaining  whether  such  corporations 
are  conforming  to  the  anti-trust  law.  W  ith  this  letter  of  inquiry  is  a 
blank  form  in  the  form  of  an  affidavit  which  the  proper  officer  is  ex- 
pected to  fill  out  under  oath  stating  that  the  said  corporation  is  not  at 
the  given  date  and  has  not  been  since  the  passage  of  the  Act  a  member 
of  any  pool,  trust  or  combine  as  specified  in  the  Act;  (2)  to  send  out 
a  similar  inquiry  at  any  time  to  any  particular  corporation  upon 
specific  evidence  that  such  corporation  has  entered  into  any  trust  or 
combination  in  violation  of  the  Act.  Wherever  any  corporation  fails 
to  answer  the  inquiry  within  30  days  from  date  when  same  was  mailed, 
the  Secretary  of  State  is  required  to  certify  the  said  corporation  to 
the  Attorney-General  who  shall  then  direct  the  State's  Attorney  in 
the  county  wherein  said  corporation  is  located  who  shall  proceed 
against  the  said  corporation  to  recover  a  fine  of  fifty  dollars  per  day 
imposed  by  the  Act ;  or  the  Attorney-General  may  proceed  in  any 
court  of  law  or  chancerv  to  forfeit  the  charter  of  any  Illinois  cor- 


714  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

poration  or  revoke  the  right  to  do  business  in  the  State  of  any  foreign 
corporation.  For  filing  the  -affidavit  the  Secretary  of  State  is  autlior- 
ized  to  impose  a  fee  of  one  dollar  and  the  law  provides  a  special  fund 
of  Six  thousand  Dollars  per  annum  to  assist  in  its  enforcement. 

As  a  part  of  the  machinery  of  the  State  government  for  regulating 
corporations,  the  anti-trust  affidavit  is  as  near  an  absolute  failure  as  it 
is  possible  to  find.  Indeed  it  is  regarded  by  the  department  of  state 
as  a  source  of  revenue  pure  and  simple  rather  than  a  regulative  meas- 
ure. It  is  probable  that  the  fee  of  one  dollar  pays  a  little  more  than 
the  cost  of  collecting  the  same.  The  amount,  however,  is  too  small 
to  be  of  any  significance  in  the  tax  scheme.  This  part  of  the  law 
should  be  repealed.  If,  however,  it  is  to  be  retained  it  should  be,  as 
suggested  by  members  of  the  department,  consolidated  with  and  made 
a  part  of  the  annual  report  of  corporations,  thus  saving  both  the  cor- 
porations and  the  State  the  unnecessary  expense  of  two  returns  each 
year. 

Interrogatories:  The  use  of  the  interrogatory  letter  is  authorized 
for  both  domestic  corporations  and  foreign  corporations.  In  the  case 
of  domestic  corporations  the  Secretary  of  State  may  propound  such 
interrogatories  as  he  shall  deem  necessary  to  ascertain  the  true  objects 
for  which  the  said  corporation  is  seeking  a  charter.  The  Secretary  of 
State  makes  use  of  his  authority  in  this  particular  whenever  the  object 
is  not  clearly  stated  or  where  it  is  evident  that  the  true  object  is  not 
clearly  disclosed  in  the  statement  made  by  the  applicant ;  and  since  the 
courts  have  generally  held  that  the  articles  of  incorporation  them- 
selves are  the  criterion  by  which  to  ascertain  the  purpose  for  which 
any  corporation  is  formed,  the  powers  of  the  Secretary  of  State  in  this 
particular  is  of  great  practical  value. 

In  the  case  of  foreign  corporations  interrogatories  may  be  used  at 
any  time  in  the  discretion  of  the  Secretary  of  State.  He  is  authorized 
by  section  5  of  the  Act  concerning  foreign  corporations  to  pro- 
pound such  interrogatories  as  he  may  think  best  in  order  to  ascertain : 
(1)  the  character  of  the  business  which  the  said  corporat*on  is  trans- 
acting; (2)  the  location  of  the  business;  (3)  the  names  and  residence 
of  its  officers  and  directors;  (4)  the  amount  of  capital  paid  in  and 
what  disposition  has  been  made  of  the  capital  stock  subscribed  for  not 
paid  in. 

If  such  interrogatories  arc  not  answered  within  ten  days  of  the 
receipt  thereof  the  Secretary  of  State  may  revoke  the  charter  of  the 
said  corporation  by  filing  with  the  charter  of  the  corporation  a  cer- 
tificate of  revocation  and  publishing  a  notice  in  a  newspaper  of  a 
general  circulation.  If  the  interrogatories  when  answered  disclose 
any  violation  of  the  law  the  Secretary  of  State  is  required  to  notify  the 
Attorney-General  of  the  fact. 

The  principal  object  of  the  interrogatory  letter  seems  to  be  to 
secure  information  as  to  the  proportion  of  the  property  and  business 
which  the  foreign  corporation  has  in  the  State  of  Illinois  in  order  that 
the  fee  may  be  properly  assessed. 


SUPERVISION    OF   CORPORATIONS.  715 

Financial  Summary. 

Revenue.  The  revenue  "  from  the  corporation  department  con- 
nected with  the  Secretary  of  State's  office  may  be  found  in  the 
report  of  that  officer.  For  the  two  years  October  1,  1910  to  September 
30,  1912  the  revenue  coUected  and  turned  over  to  the  State  treasury 
was  as  follows : 

Domestic   corporations    ^^^^'^9^  n^ 


Foreign  corporations 


99.413.97 


Annual  reports  of  corporations i  Hc^'on 

Reinstatements  of  corporations   ic  1 90  ao 

Anti-trust  affidavits    35,129.40 

Total  $911,863.22 

Refund — charters  not  granted  and  overpayments 17,857.19 

Receipts  less   refunds $894,006.03 

The  revenue  from  annual  reports  and  anti-trust  affidavits  is  not 
shown  separately  for  domestic  and  foreign  corporations;  hence  it  is 
impossible  to  determine  the  relative  proportion  paid  by  each  class.  Re- 
funds are  made  to  corporations  authorized  to  solicit  subscriptions 
wherever  the  project  fails  and  it  is  shown  satisfactorily  to  the  Secre- 
tary of  State  that  there  was  a  reasonable  excuse  for  the  failure.  There 
is  no  authorization  for  this  practice  under  the  law  and  its  legality  has 
never  been  passed  upon  by  the  courts. 

For  the  two  years  from  October  1,  1912  to  September  30,  1914, 
the  receipts  paid  into  the  general  revenue  fund  of  the  State  treasury 
from  the  Secretary  of  State  were  as  follows: 

1912-13  $512,586.42 

1913-14  613,246.42 

Total    $1,125,832.84 

Expenditures.  It  is  impossible  to  ascertain  definitely  the  annual 
expense  connected  with  the  supervision  of  corporations  by  the  Secre- 
tary of  State.  The  appropriation  contains  certain  items  for  services 
distinctly  connected  with  the  office  for  each  of  the  two  years  beginning 
July  1,  1913,  as  follows: 

Salary  Chief  Corporation  Clerk $2,400 

Salary  Corporation  Clerk   J,800 

Salary  Corporation  Clerk   1.500 

Salary  Corporation  Clerk  1.500 

Salary  Anti-trust  Clerk   2,100 

Salary  Anti-trust  Clerk   1.200 

Salary  Anti-trust  Clerk 1,800 

Two  (2)  Anti-trust  Clerks  @  $1,100 2,200 

Salary  Stenographer  ' 1.200 

Salary  Stenographers,  2  @  $840.00 l.gO 

Expenses  Corporation  Department   1.500 

Expenses  Foreign  Corporation  Department 1,000 

In  addition  to  the  above  the  law  provides  for  an  annual  appropria- 
tion of  six  thousand  dollars  ($6,000)  for  the  enforcement  of  the  anti- 
trust Act  for  the  two  years  ending  June,  1913.  The  appropriations  in 
1911  for  the  corporation  department  were  as  follows: 

Domestic  Corporation  Department    $  5,000 

Enforcing  Foreign  Corporations  Act 10,000 


716  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  expense  of  printing  and  binding  the  Hst  of  corporations,  the 
report  of  the  Secretary  of  State  so  far  as  it  relates  to  corporations, 
and  for  stationery  and  suppHes  is  included  under  the  general  contract 
and  not  being  shown  separately  the  total  amount  is  impossible  even  to 
approximate. 

From  the  above  summary  it  would  appear  that  the  total  expense 
incurred  by  the  Secretary  of  State's  office  is  somewhat  over  $25,000  a 
year.     It  is  impossible  to  tell  how  much  more  than  this. 


II.  THE  INSURANCE  DEPARTMENT. 

State  control  over  insurance  in  Illinois  dates  from  1855  and  may 
be  divided  into  two  periods:  (1)  the  period  1855-1893;  supervision 
under  the  Auditor  of  Public  Accounts;  (2)  the  period  1893 — date; 
supervision  by  the  Insurance  Superintendent. 

FROM  1855  TO  1893. 

The  first  insurance  law  passed  February  14,  1855,  applied  only  to 
foreign  insurance  companies.  In  brief  it  provided  that  before  under- 
taking risks  or  transacting  the  business  of  insurance  in  the  State  a 
certificate  of  authority  must  be  obtained  from  the  Auditor  of  State  as 
the  Auditor  of  Public  Accounts  was  then  designated.  The  process 
of  obtaining  the  certificate  was  as  follows:  Any  agent  of  a  foreign 
insurance  company  desiring  to  write  insurance  was  required  to  file  a 
statement  with  the  Auditor  of  State  showing: 

the  name  and  location  of  company; 

its  capital  stock ; 

its  assets  in  some  detail ; 

its  liabilities  and  losses ; 

the  greatest  amount  permitted  to  be  insured  in  any  locality; 

the  greatest  amount  actually  placed  in  any  one  block; 

the   Act  under  which  it  was  incorporated. 

It  was  also  provided  that  the  company  for  which  the  agent  was 
applying  must  by  written  document  consent  to  the  service  of  process 
upon  the  agent  of  the  company  instead  of  upon  the  company  itself. 
In  order  to  be  eligible  to  a  certificate  a  company  incorporated  in  an- 
other state  must  have  a  capital  of  at  least  one  hundred  thousand 
dollars  ($100,000)  invested  in  certain  specified  classes  of  securities 
and  where  the  company  was  incorporated  under  a  foreign  government 
the  investments  must  be  located  within  the  United  States.  After  the 
certificate  was  granted  a  copy  thereof  together  with  a  copy  of  the 
statement  filed  with  the  Auditor  of  State,  must  be  published  in  some 
newspaper  of  general  circulation  in  the  cities  of  Chicago,  Peoria  and 
Springfield  and  a  copy  also  filed  in  the  office  of  the  clerk  of  the  court 
in  the  county  in  which  the  agent  desired  to  write  insurance.  The  cer- 
tificate was  good  for  one  year  only  and  might  be  renewed  by  showing 
that  the  capital,  securities  and  investments  were  secure. 

In  addition  to  the  above  requirements  the  Act  of  1855  attempted 
to  protect  policy  holders  in  foreign  insurance  companies  who  sustained 
losses  by  requiring  that  the  agents  retain  all  moneys  in  their  respective 
offices  pending  the  adjustment  of  claims.  The  first  general  Act  cover- 
ing the  great  fields  of  fire,  marine,  inland  navigation  and  life  insurance 
was  enacted  in  March,  1869.  Bills  for  the  above  purpose  were  intro- 
duced early  in  the  session  and  seem  to  have  been  given  serious  atten- 


718  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

tion  by  the  committees  in  the  Legislature.  As  a  result  of  their  de- 
liberations two  acts  were  passed.  (1)  An  Act  to  incorporate  and 
govern  fire,  marine  and  inland  navigation  insurance  companies  doing 
business  in  the  State  of  Illinois.  This  Act  was  approved  and  in  force 
March  11,  1869.  (2)  An  Act  to  organize  and  regulate  the  business 
of  life  insurance  was  approved  March  25,  1869  and  was  in  force  July 
1,  1869. 

The  Act  relating  to  fire,  marine  and  inland  navigation  provided 
that  any  thirteen  or  more  persons  desiring  to  form  an  insurance 
company  must  file  with  the  Auditor  of  Public  Accounts  a  declaration 
and  publish  the  same  in  a  local  newspaper.  After  filing  the  declara- 
tion the  company  might,  if  a  stock  company,  open  subscription  books 
or,  if  a  mutual  company,  receive  propositions  for  underwriting  risks 
and  after  securing  the  capital  stock  or  the  requisite  number  of  applica- 
tions, but  before  beginning  business,  however,  a  copy  of  the  proposed 
charter  and  a  statem.ent  showing  the  exact  financial  condition  must  be 
submitted  for  approval.  The  charter  was  first  submitted  to  the  At- 
torney-General who  passed  upon  its  legality  of  form.  If  he  approved 
the  company  was  then  examined  by  the  Auditor  or  by  his  representa- 
tives and  if  the  report  was  satisfactory  a  certificate  was  issued  entitling 
the  company  to  enter  the  insurance  business. 

As  a  necessary  condition  to  continuing  in  business  each  company 
thus  certified  must  first  submit  an  annual  statement  showing  in  detail 
its  assets  and  liabilities  and  its  receipts  and  disbursements  in  such  form 
as  may  be  prescribed  by  the  Auditor ;  and,  second,  must  submit  to  such 
occasional  examination  as  the  Auditor  might  prescribe.  Foreign  com- 
panies were  required  to  have  the  same  qualifications  and  to  submit  the 
same  statements  as  domestic  insurance  companies.  The  Auditor  was 
authorized  to  issue  certificates  to  those  properly  qualified  to  do  busi- 
ness under  the  law.  The  fees  as  provided  in  the  Act  of  1869  were  as 
follows : 

Filing  declaration    $30,00 

Filing  annual  statement    10.00 

Furnishing  certificates  to  agents  of  foreign  companies. 2.00 

Furnishing  certificates  to  agents  of  local  companies 50 

The  official  seal  1.00 

The  requirements  of  the  Act  of  1869  relating  to  life  insurance 
companies  were  in  their  general  principles  similar  to  those  regulating 
property  insurance.  The  same  procedure  was  provided  for  the  forma- 
tion of  companies.  The  examinations  were  of  the  same  general  nature 
except  in  one  particular,  namely,  in  the  case  of  life  insurance  com- 
panies the  Auditor  wa^  required  to  make  a  valuation  of  policies 
provided  such  policies  were  not  valued  by  other  states.  The  Auditor 
was  allowed  certain  fees  for  the  examination  and  the  certificate,  and 
he  was  required  to  publish  an  annual  report.  As  a  result  of  this 
legislation  the  annual  reports  of  life  insurance  companies  in  Illinois 
date  from  1869. 

Supplementary  legislation/. 

Supplementary  laws  extending  the  scope  of  the  business  of  insur- 
ance and  of  the  work  of  the  Auditor  of  Public  Accounts  in  regulating 
companies  have  been  as  follows : 


SUPERVISION    OF    CORPORATIONS.  719 

Act  of  Mav  19,  1872;  foreign  fiirc  insurance  companies  must  deposit 
Two  Hundred 'Thousand  Dollars  ($200,000)  with  the  insurance  depart- 
ment unless  a  similar  amount  is  deposited  in  some  other  one  of  the  United 
States. 

Act  of  May  24,  1874;  authorizes  the  formation  of  township  fire  insur- 
ance companies ;  fomiation  and  regulation  similar  to  general  fire  insurance 
companies. 

Act  of  June  2,  1877;  county  fire  insurance  companies  may  be  author- 
ized by  the  Auditor  to  engage  in  writing  insurance  against  fire  and  lightning. 

Act  of  June  4,  1879;  foreign  companies  to  have  licenses  upon  condition 
that  they  agree  not  to  remove  cases  to  United  States  courts  when  the 
transaction  arose  in  this  State. 

Act  of  July  1,  1879;  foreign  property  insurance  companies  must  com- 
ply with  the  general  insurance  law. 

Act  of  May  31,  1881 ;  contiguous  townships  may  join  together  to  form 
insurance  companies;  not  more  than  twelve  (12)  townships  in  all. 

Act  of  June  18,  1883;  fire  insurance  companies  must  have  a  deposit  of 
two  hundred  thousand  dollars  ($200,000)  in  some  states  and  an  agent  in 
this  State'  upon  whom  process  can  be  served ;  agent  must  have  a  certifi- 
cate of  authority  from  the  Auditor. 

Act  of  July  16,  1887;  farmers  county  mutual  live  stock  insurance  com- 
panies authorized  ;  regulation  similar  to  general  insurance  companies. 

Act  of  June  4,  1889 ;  county  mutual  wind  storm  insurance  companies 
authorized. 

Act  of  June  7,  1889 ;  accident  insurance  companies  authorized ;  forma- 
tion and  regulation  similar  to  general  life  insurance  companies. 

Act  of  June  16,  1889;  insurance  companies  may  be  formed  to  furnish 
indemnity  to  widows,  etc. 

Act  of  June  22,  1891 ;  companies  other  than  mutual  and  stock  companies 
already  authorized  must  have  a  surplus  of  two  hundred  thousand  dollars 
($200,000)  in  order  to  do  business  in  Illinois. 

SUPERVISION  BY  THE  INSURANCE  SUPERINTENDENT. 

By  an  Act  of  the  J^egislature  of  June  20,  1893,  a  separate  and  dis- 
tinct department  of  the  State  administration  was  created  entitled  the 
Insurance  Department  of  the  State  of  Illinois.  This  department  was 
placed  under  the  control  of  an  officer  called  the  Insurance  Super- 
intendent. To  this  new  office  was  intrusted  the  execution  of  all  laws 
relating  to  insurance  and  insurance  companies  organized  and  doing 
business  in  the  State. 

The  Insurance  Superintendent  is  appointed  by  the  Governor  by 
and  with  the  advice  and  consent  of  the  Senate  and  holds  office  for  four 
years.  The  appointee  is  required  to  be  "a  person  experienced  in  the 
matter  of  insurance."  The  salary  is  fixed  in  the  Act  at  five  thousand 
dollars  per  annum.  The  superintendent  is  authorized  to  appoint  an 
actuary  and  such  assistants  as  may  be  necessary  for  the  conduct  of 
the  business. 

The  Insurance  Superintendent  succeeded  to  all  the  powers  over 
insurance  formerly  exercised  by  the  Auditor  of  Public  Accounts  and 
Attorney-General.  He  was  authorized  to  have  an  official  seal  and  to 
affix  the  same  to  documents  and  papers  examined  by  his  department. 
The  duties  of  the  Insurance  Superintendent  were  those  formerly  placed 
upon  the  Auditor  of  Public  Accounts  so  far  as  insurance  business  in 
the  State  was  concerned.  In  general  the  duties  of  the  Insurance  Super- 
intendent are  as  follows : 


720  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

New  Companies. 

The  Insurance  Superintendent  is  authorized  to  supervise  the  for- 
mation of  new  companies  and  to  examine  (a)  the  legality  of  their 
corporate  organization;  (b)  the  financial  responsibility  of  the  individ- 
ual companies.  The  law  at  present  provides  for  the  formation  of 
insurance  companies  in  each  of  the  following  fields : 

Fire,  marine  and  inland  navigation. 

Life  insurance. 

Accident  and  health  insurance. 

Fraternal  beneficiary-  societies. 

Casualty,  health,  employers  liability,  credit,  burglary,  steam  boilers, 
plate  glass  and  other  lawful  risks. 

Wind,  cyclone  and  tornado. 

Surety. 

Live  stock. 
The  process  of  formation  is  generally  the  same  for  all  varieties  of 
insurance.  Persons  desiring  to  form  a  company  must  first  file  a  dec- 
laration in  the  ofttce  of  the  Superintendent  of  Insurance  signed  by  all 
the  corporators  stating  the  purpose  and  accompanying  the  declaration 
with  a  copy  of  the  charter,  the  terms  of  which  are  to  a  certain  extent 
prescribed  by  law.  After  the  charter  has  been  filed  and  the  title  of 
the  company  approved  by  the  Superintendent  of  Insurance  the  cor- 
porators may  proceed  to  solicit  subscriptions  to  the  capital  stock,  or  if 
a  mutual  company,  propositions  for  insurance.  \\'hen  the  prescribed 
amount  of  capital  stock  has  been  subscribed  or  the  required  amount 
of  business  secured  the  charter  and  proof  of  publication  must  be  exam- 
ined and  if  approved,  the  same  shall  be  certified  by  the  Superintendent. 
The  Superintendent  then  must  make  an  examination  of  the  company 
to  ascertain  whether  the  required  amount  of  capital  has  been  paid  or 
the  required  amount  of  business  secured.  When  satisfied  that  all  the 
requirements  of  the  law  have  been  complied  with  the  charter  is  cer- 
tified and  the  same  when  filed  in  the  office  of  the  county  clerk  is  the 
authority  of  the  company  for  the  writing  of  insurance. 
Admission  of  Companies  from  other  Jurisdictions. 

The  State  insurance  law  has  always  favored  the  admission  of 
foreign  companies  for  the  purpose  of  writing  insurance  in  this  State. 
Indeed  the  Honorable  Fred  W.  Potter,  ex-superintendent  of  insur- 
ance, in  his  annual  report  for  1913,  part  I,  p.  17,  congratulates  the 
people  of  the  State  upon  the  favorable  record  of  our  Legislature 
in  this  respect.  As  early  as  1855  when  the  first  Act  was  passed  regu- 
lating the  admission  of  foreign  insurance  companies  to  do  business  in 
this  State,  no  conditions  were  imposed  that  would  work  any  hardship 
upon  any  legitimate  insurance  company.  At  that  time  the  fees 
required  were  merely  nominal.  At  the  present  time  the  law  requires 
that  in  order  to  be  admitted  to  the  State  the  following  conditions  must 
be  complied  with : 

There  must  be  a  resident  attorney  upon  whom  process  may  be  served. 

Securities  to  the  same  amount  and  character  as  required  of  State 
companies  must  be  deposited  with  the  State  Insurance  Superintendent  or 
proof  furnished  that  a  like  amount  is  deposited  with  the  proper  officer  in 
some  other  state  of  the  federal  union. 

Foreign  companies  must  have  available  cash  assets  at  least  equal  to 
that  required  of  domestic  corporations. 


SUPERVISION   OF   CORPORATIONS. 


721 


Annual  Reports. 

All  companies  doing  an  insurance  business  in  this  State  whether 
domestic  or  foreign  are  required  to  make  an  annual  report  to  the 
Insurance  Superintendent  in  such  form  as  he  may  prescribe  and  to 
deposit  the  same  in  the  office  of  the  Insurance  Superintendent  some 
time  during  the  month  of  January.  The  form  as  prescribed  at  the 
present  time  demands  satisfactory  information  both  as  to  the  char- 
acter of  the  assets  and  of  the  liabilities  and  also  of  the  sources  of 
income  and  the  specific  disbursements.  In  general  the  schedule  of 
questions  in  use  at  the  present  time  contain  approximately  thirty 
specific  inquiries  which  must  be  answered  in  detail  and  without  quali- 
fication. By  an  amendment  of  1903  the  Insurance  Superintendent  may 
add  to  the  specific  inquiries  made  by  law. 

Examinations. 

The  most  difficult  and  the  most  important  duty  of  the  Insurance 
Superintendent  after  the  chartering  of  domestic  companies  is  that  of 
making  examinations  of  insurance  companies  doing  business  in  the 
State  whenever  he  deems  it  expedient  to  do  so.  For  this  purpose  the 
Insurance  Superintendent  is  authorized  to  appoint  examiners  when- 
ever he  finds  it  impracticable  to  make  examinations  himself.  In  such 
examinations  the  Superintendent  is  authorized  to  inspect  books  and 
records  and  documents,  to  examine  under  oath  the  officers  and  agents. 
If  after  such  examination  he  finds  the  assets  are  not  sufficient  to 
justify  the  continuance  of  the  company  he  may  direct  that  any 
deficiency  in  assets  be  made  good  within  a  designated  time  or  he  may 
apply  to  the  circuit  court  for  an  order  requiring  such  company  to  show 
cause  why  the  business  of  the  company  should  not  be  discontinued.  If 
the  case  warrants,  the  court  may  decree  a  dissolution  of  the  company 
or  provision  may  be  made  for  an  assessment  upon  the  stockholders  of 
a  stock  company  or  the  members  of  a  mutual  company.  In  the  case 
of  foreign  companies  the  Insurance  Superintendent  is  authorized  to 
revoke  the  certificate  granted  its  agents  and  to  see  that  no  further 
business  is  written  in  the  State. 

Publications. 

By  Section  9  of  the  Act  of  1893  creating  the  department  of 
insurance  the  superintendent  is  required  to  report  annually  not  later 
than  May  first  to  the  Governor  concerning  the  affairs  of  the  office. 
In  this  report  the  superintendent  is  required  to  include  tabulated 
statements  and  a  synopsis  of  the  annual  statements  of  the  insurance 
companies  doing  business  in  the  State  and  such  other  matters  as  in 
his  opinion  may  be  for  the  benefit  of  the  public.  In  accordance  with 
the  above  provisions  the  Superintendent  of  Insurance  publishes  an- 
nually three  volumes— part  1,  fire;  part  2,  life;  part  3,  casualty,  surety 
and  fraternal  associations.  For  the  year  1913  these  reports  show  that 
the  department  exercised  supervision  over  the  following  companies : 

Fire,  marine,  etc ^ 

Illinois  joint  stock  fire  insurance  companies 7 

Illinois  mutual  fire  insurance  companies _ 13 

Other  states  joint  stock  fire  and  marine  insurance  companies 138 


722  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Foreign  government  fire  and  marine  insurance  companies 66 

Other  states  mutual  fire  insurance  companies 28 

Total 253 

Local  mutual  companies : — 

District   mutual   fire   insurance   companies 12 

Count}-  mutual  fire  insurance  companies 63 

Township   mutual  fire  insurance  companies 143 

District   mutual   wind-storm   and   lightning   insurance   companies 8 

County   mutual   wind-storm   and   lightning   insurance   companies 4 

Total 230 

Grand  Total    483 

In  addition  to  the  above  there  were  operating  in  the  State  21  inter 

insurers,  and  8  Lloyds, 

Life  : — Legal  reserve  companies  : — 

Illinois    conapanies    • 21 

Other  states'  companies    55 

Foreign  government  companies   4 

Total    80 

Casualty,  assessment  and  f  raternals  : — 

Casualty : — 

Illinois  casualty  companies  13 

Other  states'  casualty  companies 67 

Foreign  government  casualty  companies 9 

Total  89 

Assessment  life : — 

Illinois  assessment  companies   13 

Other  states  assessment  companies 7 

Total    20 

Assessment  accident : — 

Illinois  assessment  accident  companies 10 

Other  states'  assessment  accident  companies 5 

Total    15 

Fraternal : — 

Illinois  fraternal  insurance  companies  68 

Other  states'  fraternal  insurance  companies 74 

Foreign  government  fraternal  insurance  companies 1 

Total    143 

Grand  Total    267 

Tlie  above  may  be  summarized  as  follows : 

Companies  doing  a  general  fire  and  marine  insurance 252 

Companies  doing  a  local  fire  windstorm  and  cyclone  insurance 230 

Lloyds  and  inter-insurers  29 

Legal  reserve  life  insurance  companies 80 

Casualty,  surety,  plate  glass,  etc 89 


SUPERVISION    OF    CORPORATIONS.  723 

Assessment  life  insurance  companies 20 

Assessment  accident  insurance  companies 1^ 

Fraternal   societies    '^^■^ 

Grand  Total   ^ 

In  addition  to  the  above  it  should  be  remembered  that  the  depart- 
ment of  insurance  exercises  supervision  over  companies  winding  up 
their  afifairs,  either  when  insolvent  or  for  any  other  cause. 

Official  Staff. 

The   official   staff   of   the   Insurance    Superintendent   consists    of 

twenty-five  persons  classified  as  follows : 

Insurance   Superintendent    | 

Actuary  J 

Examiners    ^ 

Clerks  ^ 


Stenographers 
Bookkeeper  .  . 
Messenger  .  . . 


Janitor    ^ 

25 

All  of  the  appointees  of  the  Insurance  Superintendent  are  at  the 
present  time  in  the  classified  Civil  Service. 
Financial  Summary. 

The  insurance  department  collects  fees  and  taxes  as  prescribed 
in  the  various  Acts,  on  domestic  and  foreign  insurance  companies,  the 
amount  for  1912  being  shown  below: 

Fees. 

Annual    statements    $     o'cnocn 

Agents   licenses    ^^'^XV'^X 

Charters    1.095.00 

Assessment  companies  and   fraternals 1,140.00 

Township  companies  and  district  mutuals 230.00 

Miscellaneous  fees  ^v'^Iq'qt ^ 

Special   agents — surplus   lines ^a^  1 1 

Examinations   ^  1 7n  nn 

Inter-insurerers  and  Lloyds  179.00 

Total '. $145,716.66 

Taxes. 

Insurance  companies    $425,031.88 

Fire  Marshal    59,887.80 

Total $484,919.68 

Grand  Total    $630,636.34 

The  Auditor's  report  of  November  1,  1912,  shows  that  for  the 
biennium  1910-12,  the  Insurance  Superintendent  turned  over  to  the 
State  treasury  from  fees  collected  the  sum  of  $1,178,695.41  and  that 
in  addition  to  this  there  was  the  sum  of  $3,972.12  from  the  same 
officer  under  an  Act  of  June  9,  1911,  relating  to  the  payment  of  public 
money  of  the  State  into  the  State  treasury. 


724  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  Auditor's  report  for  the  two  years  ending  September  30, 
1914,  shows  the  following  receipts  of  the  State  treasury  from  the 
Insurance  Superintendent: 

1912-1913 $   735,918.05 

1913-1914  ;  •  •      618,602.82 

Total $1,354,520.87 

The  authorized  expenditures  of  the  department,  under  the  appro- 
priations for  the  two  years  from  July  1,  1913,  to  June  30,  1915,  are 
as  follows : 

Salary  Insurance  Superintendent $  5,000 

Actuary  and  Assistant  6,400 

Chief  Clerk  and  Assistant 5,400 

Cashier  and  Bookkeeper 2,200 

Securities  Clerk  2,200 

Five  Valuation  Clerks  @  $1,500 7,500 

Abstract  Clerk 2,200 

Policy  Examiner  and  Stenographer  1,500 

Three  Certificate  Clerks  3,900 

Index  Clerk   1,500 

Chief  Examinfer 3,500 

Two  Assistant  Examiners   5,000 

Two  Stenographers    2,400 

Messenger  and  Janitor  1,700 

Extra  Clerk  Hire   1,000 

Total  Salaries   $51,400 

Office  Expenses   $  8,000 

Examination  and  Investigation 10,000 

Prosecution  of  Violations   3,000 

Legal   Services   4,000 

Printing  Reports , 2,000 

Attending  National  Convention   125        27,125 

Total  Per  Annum $  78,525 

For  Two  Years   $157,050 

For  Office  Equipment 1,450 

Grand  Total,   1913-15 $158,500 

Appropriations,   1911-13    * .   154,450 


Expenditures  as  shown  by  the  reports  of  the  Auditor  of  Public 
Accounts  for  the  two  last  biennial  periods  have  been  as  follows : 
October  1,  1910,  to  September  30,  1912 : 

Salaries    $119,852.26 

Expenses   ■ 23,187.95 

Total    $143,040.21 

October  1,  1912,  to  September  30,  1914 154,735.17 

The  report  of  the  Insurance  Superintendent  is  published  in  three 
parts : 

Part       I — Fire,  Marine,  etc. 
Part     II — Life   legal   reserve. 

Part  III— Casualt}-,  surety,  steam  boiler,  plate  glass  and  fraternal  and 
assessment  sureties. 


SUPERVISION    OF   CORPORATIONS,  725 

Each  volume  contains,  first  a  general  summary  of  the  work  of 
the  department  with  reference  to  the  branch  of  insurance  therein  con- 
tained; second,  a  series  of  general  tables  and  the  reports  of  the 
financial  condition  of  each  of  the  separate  companies.  The  three  vol- 
umes at  the  present  time  embrace  approximately  2,500  pages.  The  law 
requires  that  an  edition  of  at  least  one  thousand  be  published. 

In  addition  to  the  regular  report,  the  legislature  has  authorized 
the  publication  of  a  fourth  volume  containing  the  report  of  the  farmers' 
mutual  companies  authorized  under  the  State  law.  For  printing  and 
distributing  the  latter  a  special  appropriation  is  made.  In  the  case 
of  the  regular  report,  the  expense  is  included  in  the  general  contract 
and  some  details  may  be  learned  from  the  report  of  the  Secretary  of 
State,  especially  that  portion  devoted  to  the  work  of  the  State  Printer 
Expert,    From  these  sources  we  summarize  as  follows : 

Publication  Expenditures. 
1910-12. 

Printing  and  distributing  farmers'  mutual  ins.  companies  reports $  2,112.33 

Printing  fire  reports 2,215.68 

Printing  life  reports  ., 1,721.10 

Printing  casualty,  etc 2,132.80 

Binding   reports" 4,464.10 

Printing  insurance  laws   339.69 

$12,985.70 
It  is  probable  that  the  above  is  not  complete,  as  it  is  apparent 
that    only    the    more    important    items    were    separately    listed,    the 
remainder  being  included  in  the  general  printing  bill. 

STATE   FIRE   MARSHAL. 

By  an  Act  of  June  15,  1909,  the  office  of  State  Fire  Marshal 
has  been  created.  This  officer  is  appointed  by  the  Governor,  with  the 
advice  and  consent  of  the  Senate,  for  a  term  of  four  years.  In  most 
respects  the  office  is  independent  of  any  other;  but  in  some  matters 
it  is  associated  with  the  Insurance  Department.  The  bond  of  the 
State  Fire  Marshal  must  be  approved  by  the  Insurance  Superintendent ; 
and  he  reyorts  annually  to  the  Insurance  Superintendent,  who  pub- 
lishes such  parts  as  he  deems  desirable.  The  report  of  the  Fire  Mar- 
shal regularly  appears  as  an  appendix  to  the  Report  on  Fire  Insurance. 

The  State  Fire  Marshal  is  authorized  to  appoint  one  chief  assis- 
tant, a  first  and  second  deputy  fire  marshal,  and  also  additional  depu- 
ties and  office  assistants.  He  may  also  appoint  as  inspectors  persons 
skilled  in  the  business  of  fire  insurance  and  in  the  inspection  of  build- 
ings, who  have  the  powers  of  other  deputies,  but  serve  without  com- 
pensation. Under  the  Act  of  1909,  the  State  Fire  Marshal  receives  a 
salary  of  $3,000  a  year,  the  assistant  fire  marshal  $1,800  and  the  first 
and  second  deputies  $1,500  each. 

The  appropriation  Act  of  1913  provides  for  the  following  staff 
and  salaries : 

Chief   deputy    $  2,000 

Six  deputies  @  $1,500  9,000 

Eighteen  deputies  @  $1,200 21,600 

Four  stenographers    4,500 


726  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Statistician    1-000 

Stenographer  fees   3,000 

Janitor    180 

Total   salaries    •  • $  41,280 

Traveling   expenses    $24,000 

Office  rent  and  expense : 6,000        30,000 

Total  per  annum   •$  71,280 

For  two  years  142,560 

The  work  of  the  State  Fire  Marshal  is  two  fold: 

(1)  To  mvestigate  the  causes  of  fires,  and  especially  those  of  suspic- 
ious origin, 

(2)  To  inspect  dangerous  buildings  on  complaint. 

In  this  work  the  State  Fire  Marshal  co-operates  with  local  author- 
ities— the  chiefs  of  fire  departments,  the  mayors  of  cities  and  villages 
where  no  fire  departments  exist,  and  the  township  clerks.  The  local 
officers  are  required  to  make  investigations  and  to  report  to  the  State 
Fire  Marshal  within  one  week;  and  local  officers  who  do  not  receive 
compensation  are  paid  fifty  cents  for  each  fire  reported  and  fifteen 
cents  per  mile  for  travel  to  the  place  of  the  fire.  When  the  State 
Fire  Marshal  considers  further  investigation  necessary,  he  has  power 
to  summon  witnesses  and  take  testimony  under  oath ;  and  where  there 
is  evidence  of  crime  he  is  required  to  have  prosecutions  instituted. 

On  examination  of  buildings  on  complaint,  the  State  Fire  Marshal, 
his  deputies  or  the  local  authorities,  may  order  buildings  or  other  con- 
ditions which  endanger  other  buildings  or  property  to  be  removed  or 
remedied.  Appeals  may  be  taken  from  orders  given  by  any  subordi- 
nate officer  to  the  State  Fire  Marshal. 

Financial  Statement. 

The  work  of  the  State  Fire  Marshal  is  supported  by  a  tax  on 
the  gross  receipts  of  insurance  companies  operating  in  the  State  to 
be  paid  into  a  special  fund.  The  law  provides  that  the  tax  may  not 
exceed  one-fourth  of  one  per  cent  of  the  gross  receipts,  and  whenever 
there  shall  be  an  accumulation  from  previous  years  that  the  rate  of 
assessment  on  the  gross  receipts  sha,ll  be  correspondingly  lessened. 
For  the  two  years  ending  September  30,  1914,  the  receipts  and  expen- 
ditures were  as  follows : 

1912-13        1913-14 

Receipts  $61,275.46    $62,991.04 

Expenditures'  .' 54,480.49      76,029.96 

Proposed  Building  Commissioner. 

A  Commission  appointed  under  an  Act  of  1911,  to  revise  and 
codify  the  building  laws  of  the  State  of  Illinois,  reported  in  1913  a 
tentative  draft  of  administrative  provisions  and  certain  other  portions 
of  a  proposed  building  code.  This  measure  proposed  the  creation  of 
a  State  Department  of  Buildings,  under  a  State  Building  Commis- 
sioner, to  be  appointed  by  the  Governor,  to  enforce  the  law  relating 
to  the  construction,  alteration,  repair  and  safety  of  buildings. 


SUPERVISION    OF   CORPORATIONS.  727 

If  a  State  building  code  is  enacted,  with  machinery  for  State 
supervision  of  building  construction,  it  should  be  combined  with  the 
present  State  Fire  Marshal's  office.  Such  an  office  should  also  actively 
co-operate  with  the  factory  inspection  service,  and  with  the  inspection 
of  hotels  and  lodging  houses. 


III.  SUPERVISION  BY  THE  AUDITOR  OF  PUBLIC 
ACCOUNTS. 

The  Auditor  of  Public  Accounts  has  two  functions  as  an  admin- 
istrative officer:  first,  as  the  State  auditor  in  charge  of  the  accounting 
system  for  the  entire  State  administration ;  second,  the  regulation  of 
State  banks,  trust  companies,  building  and  loan  associations,  pawners' 
societies,  wage  loan  corporations,  and  title  guarantee  companies.  For 
the  years  1910  to  1912  the  work  of  the  Auditor's  office  in  the  second 
capacity  may  be  summarized  as  follows: 

136  banks  were  organized. 
3  converted  into  national  banks. 
8  consolidated  with  other  State  banks. 
8  charters  expired. 

On  October  1,  1912,  607  banks  were  subjected  to  regulation  by  the 
auditor's  office.  Ten  calls  w^ere  made  upon  banks  for  statements  under 
the  provision  of  section  7  of  the  Bank  Act. 

During  the  biennium,  1910-12,  seventeen  banking  associations,  one 
institution  organized  under  the  general  corporation  act,  and  two  for- 
eign corporations  were  authorized  to  conduct  the  business  of  trust 
companies  under  the  law.  One  banking  association  and  one  foreign 
corporation  have  surrendered  certificates  during  the  same  period.  Two 
consolidations  affecting  three  banking  associations,  one  affecting  two 
general  corporations,  one  affecting  two  foreign  trust  companies  were 
formed. 

Two  pawners'  societies  were  in'Operation  and  regularly  examined. 

There  are  only  two  title  guarantee  companies  operating  under  the 
Illinois  law.    Both  of  these  companies  have  been  regularly  examined. 

THE  REGULATION  OF  BANKS. 

Banking  in  Illinois  may  be  conducted  in  either  one  of  three 
ways :  first,  the  national  bank  system ;  second,  under  the  State  banking 
system ;  third,  as  private  bankers.  The  first  of  the  three  classes  is 
subjected  to  examination  by  the  United  States  government;  the  second 
by  the  Auditor  of  Public  Accounts;  the  third  class  operates  entirely 
free  from  public  regulation. 

Incorporation. 

The  general  banking  law  dates  from  June  16,  1887,  It  was  then 
provided  that  banks  may  be  formed  "for  the  purpose  of  discount  and 
deposit,  buying  and  selling  exchange,  and  doing  a  general  banking  busi- 
ness excepting  the  issue  of  bills  to  circulate  as  money  and  such  banks 
or  banking  associations  shall  have  the  power  to  loan  money  on  per- 
sonal and  real  estate  security  and  to  accept  and  execute  trusts. 


SUPERVISION   OF   CORPORATIONS.  729 

The  process  of  forming  State  banks  is  similar  to  that  prescribed 
for  general  business  corporations. 

When  any  number  of  persons  desire  to  form  a  banking  corpora- 
tion they  are  required  to  render  a  statement  under  seal  and  properly 
acknowledged  showing  the  place  of  business,  the  amount  of  capital, 
the  time  for  which  the  corporation  is  formed  and  the  name  under 
which  they  propose  to  operate.  This  statement  is  presented  to  the  Audi- 
tor who,  if  he  finds  the  application  in  proper  form,  will  issue  a  permit 
to  open  books  for  the  purpose  of  securing  subscriptions  to  the  capital 
stock.  When  the  capital  stock  is  fully  subscribed,  a  meeting  of  the 
subscribers  is  called  for  the  purpose  of  organizing  and  electing  direc- 
tors. The  directors  then  organize,  appoint  the  officers  and  employes, 
make  the  by-laws,  and  take  an  oath  of  office  such  as  the  auditor  shall 
prescribe.  They  may  then  open  books  and  furnish  the  Auditor  with  a 
list  of  stockholders  and  such  records  as  the  auditor  may  require. 
When  the  directors  have  organized,  the  capital  stock  is  fully  paid 
in  and  a  record  of  the  same  laid  before  the  Auditor,  he  is  then  author- 
ized to  make  a  thorough  examination  into  the  affairs  of  the  banking 
corporation.  If  after  such  examination  is  made,  he  is  satisfied  that 
the  banking  company  has  the  full  amount  of  capital  authorized  in 
proper  funds,  he  shall  then  collect  from  the  banking  association  the 
expense  of  making  the  said  examination  and  then  shall  give  them  a 
certificate  under  seal,  authorizing  them  to  commence  business  under 
the  law.  The  said  certificate  and  the  permit  issued  in  accordance 
therewith  shall  then  be  recorded  in  the  office  of  the  recorder  of  deeds 
in  the  county  where  the  bank  is  organized.  Upon  the  recording  of 
said  certificate  and  permit  the  bank  is  fully  organized  and  may  pro- 
ceed to  do  business. 

The  Auditor  is  not  only  the  supervisor  of  the  financial  operations 
of  the  bank  but  he  is  authorized  to  withhold  the  certificate  provided 
he  is  not  satisfied  as  to  the  personal  character  and  standing  of  the 
officers  or  directors  elected  to  manage  the  business,  or  if  he  has  reason 
to  believe  that  the  bank  is  organized  for  any  purpose  other  than  that 
contemplated  by  the  Act. 

Examinations. 

The  Act  authorizes  two  distinct  kinds  of  examinations : 

(1)  An  examination  which  is  in  the  form  of  a  report  to  the 
Auditor  upon  a  blank  form  prescribed  by  the  Auditor's  office  and  sent 
out  to  each  bank.  Such  reports  must  be  called  for  at  least  once  every 
three  months.  It  is  the  practice  of  the  Auditor's  office  to  make  such 
calls  simultaneously  with  the  calls  issued  from  the  Treasury  Depart- 
ment at  Washington  upon  the  National  banks.  Such  reports  must 
be  returned  to  the  Auditor  within  five  days  after  the  call  is  received. 
The  report  received  is  published  at  the  expense  of  the  bank  making 
it  in  some  newspaper  published  as  near  as  possible  to  the  location  of 
the  bank.  These  reports  are  also  published  by  the  Auditor  in 
pamphlets  and  distributed  to  the  banks  and  other  interested  parties. 

(2)  In  addition  to  the  stated  examination  as  above  described,  the 
auditor  is  authorized  to  make  an  examination  of  the  affairs  of  every 
bank  established  under  the  provision  of  the  Act  at  least  once  in  each 


730  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

year.  For  this  examination  the  Auditor  is  authorized  to  appoint  suit- 
able deputies  who  make  a  personal  examination  of  the  bank  and  report 
to  the  Auditor  upon  a  blank  prepared  in  the  Auditor's  office. 

For  the  purpose  of  the  personal  examination  of  the  bank  the 
Auditor's  office  employs  a  number  of  bank  examiners,  and  in  addition 
to  the  office  at  Springfield  a  second  office  is  maintained  in  Chicago. 
The  expense  of  the  examination  is  provided  for  in  the  law  as  follows : 
each  examiner  receives  ten  dollars  a  day  for  his  services  and  the 
necessary  mileage.  This  is  charged  against  the  bank  and  is  paid  at 
the  time  of  the  examination.  The  examiners  are,  however,  paid  a 
salary  and  at  the  present  time  the  receipts  from  the  examination  are 
not  sufficient  to  provide  the  entire  cost  of  examination.  Consequently, 
as  a  result,  the  State  is  at  some  expense  on  account  of  the  bank 
examinations. 

The  banking  law  provides  fairly  strict  regulations  as  to  the  finan- 
cial policy  of  each  bank  and  is  especially  stringent  in  its  provisions  as 
to  the  impairment  of  the  capital  of  the  bank.  '  As  it  is  the  duty  of  the 
Auditor  to  see  that  the  banking  law  is  strictly  follow^ed  by  each  bank 
organized  under  the  Act,  it  is  of  the  utmost  importance  that  the  exam- 
inations be.  in  the  hands  of  competent  men  and  the  examinations 
thoroughly  and  carefully  made.  As  there  are  at  the  present  time 
almost  700  banks  wdiich  must  be  examined  annually  and  only  ten 
examiners  assigned  to  field  w^ork,  it  i^  evident  that  each  examiner  must 
make  something  like  seventy  examinations  annually;  or,  one  examina- 
tion in  approximately  four  days.  It  is  questionable  whether  the  exam- 
inations can  be  as  thorough  as  they  ought  to  be  with  the  present  force 
of  examiners.  It  should  be  mentioned  in  this  connection  that  four  of 
the  ten  examiners  are  assigned  to  the  district  outside  of  Chicago,  and 
that  of  the  seven  hundred  banks  over  six  hundred  are  in  the  country 
districts.  This  w^ould  mean  that  every  country  bank  examiner  must 
examine  150  banks,  or  one  every  two  days. 

TRUST  COMPANIES. 

The  work  of  the  trust  company  may  be  carried  on  in  this  State 
by  three  different  kinds  of  companies:  (1)  corporations  under  the 
general  law;  (2)  banks;  and  (3)  foreign  banks  having  trust  powers 
and  licensed  by  the  State. 

The  general  law  governing  the  operation  of  trust  companies  in 
Illinois  was  passed  in  1887.  This  Act  provided  that  any  corporation 
organized  under  the  general  law  for  the  purpose  of  accepting  and 
executing  trusts  or  any  corporation  that  might  be  authorized  by  law 
to  accept  risks  must,  before  accepting  a  trust,  file  a  statement  with  the 
Auditor  of  Public  Accounts.  If  the  Auditor  finds  that  the  company  is 
lawfully  organized  for  the  work  in  accordance  with  the  provisions  of 
the  Act,  he  shall  issue  a  license  authorizing  the  corporation  to  do  busi- 
ness as  provided  in  the  law.  Such  corporations  must  make  deposit 
with  the  Auditor  of  Public  Accounts  of  the  following  amounts  :  namely, 
companies  operating  in  cities  of  100,000  or  more  must  deposit  $200,000 
and  companies  operating  in  cities  of  less  than  100,000  must  deposit 
$50,000.     Such  deposits  are  held  in  trust  by  the  Auditor  of  Public 


SUPERVISION    OF   CORPORATIONS.  731 

Accounts  for  the  creditors  of  the  company.  Bonds  of  the  United 
States,  municipal  bonds,  or  mortgages  on  improved  or  productive 
real  estate  in  the  State  are  the  particular  kinds  of  security  that  may 
be  accepted.  Foreign  corporations  are  subjected  to  the  same  require- 
ments as  domestic  and  must  submit  a  statement  and  receive  a  license 
before  undertaking  trusts. 

Examinations  and  Reports. 

Every  trust  company  authorized  by  the  Auditor  of  Public 
Accounts  is  required  to  make  an  elaborate  report  to  the  Auditor  in 
regard  to  its  assets  and  liabilities ;  and  in  addition  the  Auditor  is  re- 
quired to  make  an  examination  of  such  companies  similar  to  that  pro- 
vided for  banking  corporations.  For  this  purpose  the  Auditor  ap- 
points examiners,  and  the  expense  of  the  examination  is  paid  by 
the  trust  company  examined.  These  examinations  are  to  be  made 
annually  and  abstracts  of  the  annual  reports,  in  form  prescribed  by  the 
auditor,  are  published  in  two  newspapers — one  located  in  the  city  of 
Springfield  and  the  other  in  the  county  seat  of  the  county  where  the 
respective  trust  company  is  located.  The  Auditor  may  make  such 
other  examinations  as  he  deems  proper  by  sending  the  proper  blank  to 
the  trust  company  and  requiring  that  it  shall  be  filled  in  accordance 
with  directions  thereon.  If  the  Auditor  finds  any  violation  of  the  law 
or  any  irregularity  in  the  conduct  of  the  business,  he  must  make  an 
order  directing  the  discontinuance  of  such  illegal  or  unsafe  practice; 
and  if  the  particular  corporation  refuses  or  neglects  to  comply  with 
the  Auditor's  directions,  he  is  directed  to  communicate  the  facts  to  the 
Attorney  General  who  will  thereupon  institute  such  proceedings  as 
the  case  may  require. 

The  Auditor  also  has  authority  to  revoke  the  certificate  where 
satisfactory  evidence  is  presented  that  any  annual  statement  or  other 
report  required  by  the  act  is  false.  If  it  is  afterwards  proven  to  the 
satisfaction  of  the  Auditor  that  the  corporation  is  then  strictly  com- 
plying with  the  law  in  all  particulars,  he  may  set  aside  the  revocation 
and  permit  the  trust  company  to  continue  business.  Certain  fees  are 
required  in  connection  with  the  reports  which  partially  pay  for  the 
supervision  of  these  corporations. 

pawners'  societies  and  wage  loan  corporations. 

Pawners'  societies  and  wage  loan  corporations  are  formed  under 
the  general  law  and  make  an  annual  report  to  the  Auditor  of  Public 
Accounts  on  each  year's  work  for  the  fiscal  period  ending  September 
30.  The  Auditor  of  Public  Accounts  has  the  same  power  of  examina- 
tion over  pawners'  societies  and  wage  loan  corporations  as  over  trust 
companies. 

building  and  loan  associations. 

Building  and  Loan  Associations  are  regulated  under  the  law  of 
1879  which  has  been  amended  several  times  in  various  particulars. 
There  are  now  591  of  these  associations  operating  under  the  law  of 
1879  in  the  State  of  Illinois  of  which  219  are  in  Chicago  and  372 


732  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

outside.  The  reports  of  the  building  and  loan  associations  are  pub- 
lished by  the  auditor  in  a  special  report  in  which  the  building  and  loan 
associations  are  alphabetically  arranged. 

Incorporation. 

Building  and  loan  associations  are  incorporated  in  the  same  gen- 
eral way  as  corporations  under  the  general  law.  Any  number  of  per- 
sons, not  less  than  five,  make  a  statement,  sealed  and  acknowledged, 
to  the  Auditor  of  Public  Accounts.  This  statement  contains  the  name 
of  the  association,  the  capital  stock,  location  and  duration  of  the  cor- 
poration, etc.  The  Auditor  then  issues  permission  to  the  commissioners 
to  open  books  for  receiving  subscriptions.  When  100  shares  have 
been  subscribed,  the  commissioners  call  a  meeting,  elect  directors, 
adopt  a  constitution  and  by-laws,  and  make  a  full  report  to  the 
Auditor  of  Public  Accounts,  including  a  copy  of  all  transactions  up 
to  the  date  of  filing  the  report.  The  Auditor  submits  the  by-laws  to 
the  Attorney-General  and  if  he  approves  them,  the  Auditor  issues  a 
complete  certificate  which  is  recorded  in  the  office  of  the  county 
recorder.    The  company  is  then  fully  organized. 

The  law  provides  that  it  shall  be  unlawful  for  any  company,  asso- 
ciation, corporation,  or  co-partnership  assuming  to  be  a  company  or 
corporation  to  transact  business  in  this  State  for  the  purpose  of  receiv- 
ing money  in  installments  or  for  supplying  money  to  build  homes, 
excepting  under  the  provisions  of  this  Act. 

The  officers  are  required  to  give  bonds  in  appropriate  amounts 
which  are  filed  with  the  Auditor  of  Public  Accounts.  The  Act  pre- 
scribes fairly  definitely  in  regard  to  shares,  capital,  statements,  with- 
drawals, meetings,  duties  of  directors  and  so  on. 

Annual  Report. 

Every  building  and  loan  association  is  required  to  make  an  annual 
report  to  the  Auditor  containing  a  detailed  statement  of  its  receipts 
and  expenditures  within  sixty  days  after  the  end  of  its  fiscal  year. 

Examinations. 

Examinations  are  prescribed  as  in  the  case  of  banks,  and  a  force 
of  examiners  employed  in  the  Auditor's  office  make  the  examinations. 

Custodian. 

The  law  provides  that  if  the  assets  of  any  building  and  loan  asso- 
ciation are  impaired  and  knowledge  of  the  fact  comes  to  tlie  Auditor 
through  reports  or  examinations,  he  shall  appoint  a  custodian, 
call  a  meeting  of  the  shareholders,  and  make  a  report  to  them. 
The  custodian  shall  then  take  charge  of  the  entire  affairs  and  make  a 
report  to  the  shareholders.  If  it  shall  be  found  practical  to  reorgan- 
ize, the  Auditor  shall  prepare  plans  for  the  same  and  turn  the  company 
over  to  the  new  organization.  In  case  he  is  unable  to  reorganize,  vol- 
untary liquidation  may  be  authorized  by  the  Auditor,  or  he  may  report 
to  the  Attorney  General  who  will  then  apply  to  the  circuit  court  for 
authority  to  wind  up  its  affairs. 


SUPERVISION    OF   CORPORATIONS.  733 

Foreign  Building  and  Loan  Associations. 

Foreign  building  and  loan  associations  arc  subject  to  the  act.  In 
order  to  undertake  the  work  of  a  building  and  loan  association  with- 
in this  State,  a  foreign  building  and  loan  association  must  apply  for 
a  certilicate  from  the  Auditor  of  Public  Accounts,  make  a  deposit  of 
$100,000  in  bonds  and  stocks,  approved  by  the  Auditor,  and  file  a 
copy  of  their  charter  and  by-laws  together  with  a  statement  of  their 
financial  resources  as  required  of  domestic  building  and  loan  associa- 
tions. If  the  Auditor  finds  the  report  satisfactory  and  all  the  provisions 
of  the  law  complied  with,  he  issues  a  certificate  permitting  such  build- 
ing and  loan  associations  to  operate  in  this  State.  He  may  cancel 
the  said  certificate  whenever  he  finds  that  the  foreign  building  and 
loan  association  is  not  operating  in  conformity  with  the  law. 

The  fee  for  the  certificate  of  authority  is  fifty  dollars  and  the 
annual  renewal  thereof  is  twenty-five. 

TITLE  GUARANTEE   COMPANIES. 

The  title  guarantee  company  act  was  passed  in  1901.  It  author- 
ized the  formation  of  companies  to  conduct  the  business  of  guarantee- 
ing titles  to  real  estate.  The  title  guarantee  company  while  in  fact  an 
insurance  company  is  not  placed  under  the  jurisdiction  of  the  insur- 
ance superintendent.  Such  companies  are  incorporated  under  the 
general  corporation  act,  but  are  subject  to  the  supervisory  control 
of  the  Auditor  of  Public  Accounts.  They  are  required  to  maintain 
deposits  with  the  Auditor  of  $25,000  of  securities,  except  in  cities  of 
3,000  or  more  where  $50,000  of  securities  are  required.  Title  guaran- 
tee companies  are  regularly  examined  by  the  Auditor  and  are  required 
to  submit  annually  reports  of  their  condition.  If  as  a  result  of  exam- 
ination it  is  found  that  the  capital  of  any  such  corporation  is  impaired, 
to  the  extent  of  twenty-five  per  cent  or  for  other  reason  is  found  to  be 
in  unsafe  condition,  it  is  the  duty  of  the  Auditor  to  cancel  the  author- 
ity to  continue  business  in  the  State. 

FINANCIAL   SUMMARY. 

The  following  statement  shows  the  amounts  appropriated  in  1913 
for  the  staff  and  expenses  of  the  banking  and  building  and  loan  depart- 
ments : 

Banking  Department. 

Chief  clerk    $  5,000 

Clerk 1,500 

Two  stenographers  @  $1,200 2,400 

Clerk  and  messenger   900 

Two  bank  examiners,  Chicago,  @  $5,000 10,000 

Two  assistant  bank  examiners,  Chicago,  @  $3,600 7,200 

Two  assistant  bank  examiners  @  $2,500 5,000 

Four  bank  examiners  @  $4,000 16,000 

Two  stenographers,  Chicago,  @  $1,200  2,400 

Extra  clerk  hire  and  examiners 5,000 

Total  salaries  $  55,400 

Traveling  expenses,  bank  examiners 7,500 


734  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Building  and  Loan  Department. 

Assistant  chief  clerk   $  3,000 

Two  clerks    4,750 

Five   examiners    1 1,500 

Total    salaries    $  19,250 

Traveling  expenses,  B.  and  L.  examiners 4,000 

Rent,  Chicago  office 1,500 

Total  per  annum $  87,650 

For  two  years  $175,300 

Furniture,  carpets,  etc.,  Chicago  office 1,000 

Grand  total    $176,300 

The  statement  below  shows  the  expenditures  and  receipts  for  each 
department  for  1912-13: 

Expenditures  and  Receipts,  igi^-i^. 

Banking         Building  and 
Department  Loan  Department 

Total  Receipts   $  95,505.48        $26,336.67 

Total   Disbursements   104,282.65  39,126.90 

Deficit   $    8,777.17        $12,790.53 

It  will  be  noticed  that  both  the  banking  and  building  and  loan 
departments  show  a  small  deficit,  which  is  relatively  larger  for  the 
l)uilding  and  loan  department.  The  fees  provided  for  the  examiners 
are  ten  dollars  a  day  and  traveling  expenses  while  actually  engaged  in 
making  examinations.  The  salaries  and  expenses  of  the  examiners 
are  on  the  average  somewhat  in  excess  of  the  amount  of  fees  prescribed 
by  law.  As  a  necessary  result  there  is  an  annual  deficit.  While  it  is  not 
necessarily  essential  that  these  departments  should  be  self-supporting, 
it  may  be  proper  to  suggest  that  the  fees  charged  for  the  examinations 
might  be  increased  sufficiently  to  overcome  the  deficit  and  thus  put 
the  burden  upon  the  banks  and  building  and  loan  associations  rather 
than  upon  the  general  taxpayers. 


IV.  THE  PUBLIC  UTILITIES  COMMISSION. 
Introduction. 

State  action  in  relation  to  what  are  now  known  as  public  utilities, 
began  in  Illinois  with  plans  for  a  canal  connecting  the  Chicago  and 
Illinois  Rivers.  After  much  discussion,  construction  was  begun  in  1836, 
and  the  canal  was  completed  and  opened  for  navigation  in  1848.  Soon 
after  work  was  begun  on  the  canal,  plans  for  an  extensive  system  of 
internal  improvements  were  undertaken,  including  a  series  of  State 
railroads ;  but  only  a  few  miles  of  road  were  built  before  this  elaborate 
plan  was  abandoned ;  at  a  considerable  loss  to  the  State,  and  the  rail- 
road built  was  sold. 

In  1851  the  Illinois  Central  Railroad  was  chartered,  and  received 
large  tracts  of  land  granted  by  Congress  to  the  State  to  aid  in  the 
construction  of  such  a  road.  Other  roads  were  rapidly  built,  aided 
in  many  cases  by  funds  raised  by  counties  and  municipalities,  which 
incurred  large  debts  for  these  purposes.  Until  after  the  close  of  the 
civil  war,  both  State  and  local  authorities  were  active  in  encouraging 
the  construction  of  railroads ;  and  there  was  no  attempt  at  public 
regulation. 

Constitution  of  1870. 

Public  opinion  in  regard  to  railroads  changed  rapidly  in  the  few- 
years  before  1870.  Complaints  of  railroad  charges  and  the  demand 
for  public  regulation  were  among  the  important  factors  leading  to  the 
constitutional  convention  of  1869-70;  and  the  revised  constitution  con- 
tained a  number  of  provisions  relating  to  railroads  and  warehouses. 
The  consolidation  of  competing  roads  was  prohibited,  the  issue  of 
stocks  and  bonds  was  restricted  and  the  general  assembly  was  required 
to  establish  reasonable  maximum  rates  and  to  pass  laws  to  correct 
abuses  and  prevent  unjust  discrimination  and  extortion.  Other  pro- 
visions provided  for  the  regulation  of  public  warehouses.  Limitations 
on  the  indebtedness  of  local  districts  restricted  closely  further  public 
aid  for  railroad  building;  while  at  the  same  time  provisions  were 
adopted  to  require  the  payment  of  debts  already  incurred. 

Railroad  and  Warehouse  Commission. 

Following  the  adoption  of  the  Constitution  of  1870,  a  railroad 
and  warehouse  commission  was  established  in  1871,  with  important 
powers  of  supervision  and  regulation  of  railroads  and  public  ware- 
houses. This  was  one  of  the  leading  measures  in  the  movement  of  this  • 
time  for  public  regulation  of  railroads;  and  the  litigation  on  its  con- 
stitutionality resulted  in  a  judicial  decision — in  the  case  of  Munn  vs. 
Illinois — upholding  the  power  of  the  State  to  regulate  business  affected 
with  a  public  interest. 


736  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

A  general  act  for  the  incorporation  of  railroads  was  passed  in 
1872 ;  and  from  time  to  time  additional  legislation  was  enacted  amend- 
ing and  supplementing  the  legislation  of  1871  and  1872,  of  which  the 
following  acts  may  be  noted : 

1873  To  prevent  extortion  and  unjust  discrimination. 

1874  in  relation  to  fencing  and  operating  railroads 

1877  To  compel  railroad  companies  to  build  and  maintain  passenger 
and  freight  depots. 

1877  Investing  conductors  with  police  powers. 

1877  In  regard  to  interlocking  signals  at  grade  crossings  and  bridges. 

1891  For  the  protection  of  grade  crossings. 

1905  To  provide  for  the  inspection  of  safety  appliances. 

1907  Establishing  passenger  rates. 

1909  To  regulate  the  size  and  construction  of  caboose  cars. 

1909  To  require  switch  connections. 

1911  To  punish  any  person  drinking  intoxicating  liquors  in  railroad 
cars. 

Of  much  more  importance  than  the  foregoing  were  the  amend- 
ments passed  in  1911  to  the  railroad  and  warehouse  commission  act 
of  1871.  These  amendments  granted  to  the  commission  much  greater 
authority  over  rates  and  services  of  railroads,  and  extended  its  juris- 
diction to  include  other  common  carriers.  Another  act  of  this  year 
provided  for  the  regulation  of  express  companies.  The  additional 
powers  granted  by  this  legislation  resembled  those  recently  granted  to 
railroad  and  public  service  commissions  in  other  states,  and  those 
granted  to  the  inter-state  commerce  commission  by  acts  of  Congress  of 
1906  and  1910. 

Local  Utilities  before  ipij. 

Before  1870  there  were  few  local  public  utility  services  in  Illi- 
nois. But  an  act  of  the  general  assembly  of  1865  granting  privileges 
to  street  railway  companies  in  Chicago  led  to  a  provision  in  the  con- 
stitution of  1870  requiring  the  consent  of  the  local  authorities  for 
street  railway  grants.  By  statute,  the  term  of  street  railway  grants 
has  been  limited  to  twenty  years,  and  frontage  consents  must  be 
secured.  Municipal  water  works  have  been  authorized ;  and  the  power 
of  cities  and  villages  to  light  the  streets  has  been  held  to  authorize  a 
municipal  plant  for  that  purpose ;  an  act  of  1903  authorizes  municipal 
street  railroads;  but  thus  far  none  have  been  established.  More 
recently,  the  city  of  Chicago  received  power  to  regulate  gas,  electric 
light  and  telephone  rates. 

PUBLIC    UTILITIES    LAW    OF    1913. 

The  Public  Utilities  Law  of  1913,  which  went  into  effect  January 
1,  1914,  repealed  the  railroad  and  warehouse  commisson  law  and  the 
act  relating  to  express  companies,  and  established  a  new  State  Public 
Utilities  Commisson  with  jurisdiction  and  general  supervision  over  all 
classes  of  public  utility  companies.  This  commission  consists  of  five 
members,  appointed  by  the  governor,  with  the  advice  and  consent  of 
the  Senate,  to  serve- — after  the  first  appointment — for  six  years,  one 
or  two  members  retiring  at  a  time.  Not  more  than  three  members  of 
the  commission  may  be  affiliated  with  the  same  political  party.  The 
chairman  is  designated  by  the  governor. 


SUPERVISION    OF    CORPORATIONS.  737 

The  commission  appoints  a  secretary  and  a  counsel  to  hold  office 
at  its  pleasure.  Other  officers  and  accountants,  engineers,  experts  and 
other  employees  are  appointed  by  the  commission  with  the  approval 
of  the  governor.  Such  appointments,  except  attorneys,  cjiief  engineer, 
chief  accountant,  one  private  secretary  to  each  commissioner,  tem- 
porary experts  and  positions  exempted  by  the  civil  service  commis- 
sion, are  made  subject  to  the  civil  service  law. 

Each  commissioner  receives  an  annual  salary  of  $10,000;  the 
secretary  $5,000,  and  the  counsel  $6,000.  The  compensation  of  other 
officers,  agents  and  employees  are  fixed  by  the  commission  subject  to 
the  approval  of  the  governor. 

The  general  assembly  of  1913  appropriated  $60,000  a  year  for  the 
expenses  of  the  commission;  and  in  addition  the  unexpended  portion 
of  the  appropriation  of  $40,360  a  year  for  salaries  and  expenses  of 
the  railroad  and  warehouse  commission  is  available  for  the  public 
utilities  commission.  These  amounts,  with  the  salaries  of  officers 
named  in  the  law,  which  are  payable  out  of  the  general  appropriation 
for  the  salaries  of  State  officers,  makes  a  total  of  about  $260,000  for 
the  18  months  from  January  1,  1914,  to  July  1,  1915. 

Public   Utilities  Defined. 

The  term  "public  utility"  is  defined  in  the  act  to  include: 

Ever}^  corporation,  company,  association,  joint  stock  company  or  asso- 
ciation, firm,  partnership  or  individnal,  their  lessees,  trustees,  or  receivers 
appointed  by  any  court  whatsoever  (except,  however,  such  public  utilities 
as  are  or  may  hereafter  be  owned  or  operated  by  any  municipality)  that 
now  or  hereafter:  (a)  may  own,  control,  operate  or  manage,  within  the 
State,  directly  or  indirectly  for  public  use,  any  plant,  equipment  or  prop- 
erty used  or  to  be  used  for  or  in  connection  with  the  transportation  of 
persons  or  property,  or  the  transmission  of  telegraph  or  telephone  messages 
between  points  within  this  State;  or  for  the  production,  storage,  transmis- 
sion, sale,  delivery  or  furnishing  of  heat,  cold,  light,  power,  electricity  or 
water;  or  for  the  conveyance  of  oil  or  gas  by  pipe  Hue;  or  for  the  storage 
or  warehousing  of  goods;  or  for  the  conduct  of  the  business  of  a  whar- 
finger; or  that:  (b)  may  own  or  control  any  franchise,  license,  permit  or 
right  to  engage  in  any  such  business. 

Incorpoj-ation,  Franchises  and  Licenses. 

No  change  is  made  by  the  public  utility  law  in  the  provisions  for 
incorporating  public  utility  companies;  and  such  companies  continue 
to  be  incorporated  by  the  Secretary  of  State.  Foreign  public  utility 
corporations  authorized  to  do  business  in  Illinois  also  continue  to  be 
licensed  by  the  Secretary  of  State;  but  it  is  provided  by  the  public 
utility  law  that : 

No  franchise,  license,  permit  or  right  to  own,  operate,  man- 
age or  control  any  public  utility,  except  common  carriers  engaged 
in  inter-state  commerce  shall  be  hereafter  granted  or  transferred 
to  any  granter  or  transferee  other  than  a  corporation  duly  incor- 
porated under  the  laws  of  this  State. 

As  enacted  the  public  utility  law  contains  no  definite  provision 
as  to  the  granting  of  special  franchises  or  licenses  to  public  utilities 
for  the  use  of  public  streets  and  highways.  One  article  of  the  bill  for 
this  law,  dealing  with  municipal  powers,  continued  the  former  powers 
of  cities  and  villages  and  provided   for  a  large  power  of  municipal 


738  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

regulation  over  local  utilities.  The  omission  of  this  article  leaves  some 
question  as  to  the  effect  of  the  law  on  the  former  powers  of  cities  and 
villages.  But  under  the  constitution  the  grant  of  local  street  railway 
rights  cannot  be  given  without  the  consent  of  the  local  authorities; 
and  it  seems  probable  that  the  earlier  laws  requiring  the  consent  of 
municipal  authorities  and  in  some  cases  of  property  owners  are  still 
in  force. 

At  the  same  time  the  public  utilities  commission  has  some  control 
over  the  beginning  of  new  public  utility  services.  No  public  utility 
company  may  begin  the  construction  of  any  new  plant  or  equipment 
wkich  is  not  in  substitution  of  an  existing  plant  or  equipment  or  an 
addition  or  extension  thereto,  until  it  obtains  from  the  commission  a 
certificate  of  public  convenience  and  necessity.  The  public  utility  com- 
mission also  succeeds  to  the  power  of  the  railroad  and  warehouse  com- 
mission (under  the  warehouse  law)  to  issue  licenses  to  public  ware- 
houses; and  it  is  also  specifically  authorized  by  the  public  utility  law 
to  hear  and  determine  applications  for  the  cancellation  of  warehouse 
licenses. 

Reports  and  Accounts. 

The  commission  has  power  to  establish  a  uniform  system  of 
accounts  for  public  utilities  (or  a  uniform  system  for  each  class  of 
public  utilities),  and  to  provide  for  the  forms  of  accounts  to  be  kept 
by  public  utilities.  It  may  provide  for  the  examination  and  audit  of 
all  accounts;  and  the  officers  and  employees  of  the  commission  have 
authority  to  inspect  and  examine  the  books,  accounts,  papers  and 
memoranda  kept  by  such  public  utilities. 

Each  public  utility  is  required  to  furnish  to  the  commission  annual 
reports,  in  the  form  and  with  such  information  as  the  commission  may 
prescribe ;  and  the  commission  may  also  require  monthly  and  other 
periodical  and  special  reports. 

Capitalzation  and  Intercorporate  Relations. 

The  power  of  public  utilities  to  issue  stocks,  bonds,  notes  or  other 
evidences  of  indebtedness  is  declared  to  be  a  special  privilege,  subject 
to  supervision  and  control  by  the  State.  The  purposes  for  which 
stocks,  bonds,  notes  and  other  indebtedness  may  be  issued  are  defined ; 
and  such  issues  (except  notes  for  not  more  than  twelve  months)  must 
first  be  authorized  by  order  of  the  commission,  made  after  a  hearing 
and  such  additional  inquiry  and  examination  as  the  commission  may 
deem  of  assistance.  \Vhen  deemed  necessary,  the  commission  shall 
make  an  adequate  physical  valuation  of  the  property  of  the  commis- 
sion before  issuing  its  order;  and  the  commission  has  power  to  ascer- 
tain the  value  of  the  property  of  every  public  utility  in  the  State,  and 
to  make  revaluations  from  time  to  time. 

The  capitalization  of  a  merger  or  consolidation  is  also  subject 
to  the  approval  of  the  commission. 

Operating  contracts  between  public  utilities  and  purchases,  leases, 
mortgages,  and  mergers  as  to  their  franchises,  licenses,  plant  or  other 
property  must  also  receive  the  consent  and  approval  of  the  commis- 


SUPERVISION    OF   CORPORATIONS.  739 

sion  granted  on  petition,  and,  if  deemed  necessary  after  a  hearing.  In 
its  order  the  commission  may  attach  such  conditions  as  it  deems 
proper. 

Control  over  Rates  and  Service. 

All  rates  or  other  charges  and  all  rules  and  regulations  by  public 
utilities  must  be  just  and  reasonable;  and  adequate,  efficient,  just  and 
reasonable  service  and  facilities  must  be  provided  and  maintained.  No 
preference  may  be  granted  to  any  person  or  corporation  in  rates,  serv- 
ices or  facilities ;  and  no  unreasonable  differences  may  be  made  as 
between  localities  or  classes  of  service. 

Schedules  of  rates  and  classifications  must  be  filed  v^ith  the  com- 
mission by  ev^ry  public  utility ;  and  such  schedules  must  be  published 
and  posted.  Unless  otherwise  ordered  by  the  commission,  no  change 
in  rates,  classifications,  rules  or  contracts  may  be  made  without  thirty 
days  notice ;  and  no  increase  in  rates  may  be  made  except  upon  find- 
ing by  the  commission  that  such  increase  is  justified.  Any  schedule  or 
rate  may  be  suspended  pending  a  hearing  by  the  commission. 

The  commission  has  power  to  determine  just,  reasonable  or 
sufficient  rates,  classifications,  rules,  or  contracts,  when  it  finds  after 
a  hearing  had  upon  its  own  motion  or  upon  complaint  any  of  these 
to  be  unjust,  unreasonable,  discriminatory  or  preferential.  The  com- 
mission may  also,  after  a  hearing,  order  the  establishment  of  through 
routes  by  two  or  more  common  carriers,  and  may  fix  joint  rates  for 
all  classes  of  public  utilities;  and  it  has  power  to  fix  reasonable  rates, 
rules  and  regulations  regarding  demurrage,  storage,  switching  and 
other  charges  incident  to  the  transportation  of  property.  It  may  also 
investigate  inter-state  rates,  and  may  apply  to  the  Inter-state  Com- 
merce Commission  for  relief  from  excessive,  discriminatory  or  illegal 
rates. 

After  a  hearing,  the  commission  may  order  any  public  utility  to 
make  reasonable  additions,  extensions  or  improvements  to  its  plant, 
equipment,  or  facilities,  and  may  require  reasonable,  safe,  adequate  or 
sufficient  rules,  practices,  services  and  methods.  More  specifically 
it  may  require  side  track  connections,  track  connections,  telegraph  and 
telephone  connections  and  the  joint  use  of  property  or  equipment. 

The  commission  has  power  to  determine  for  each  kind  of  pub- 
lic utility  suitable  standard  commercial  units  of  service,  product  or 
commodity,  to  provide  reasonable  regulations  for  examining,  measur- 
ing and  testing  such  service,  product  or  commodity,  and  to  examine 
and  test  the  service,  product  or  commodity  of  any  public  utility. 

Public  utilities  are  required  to  report  accidents  to  the  commission, 
which  is  required  to  investigate  accidents  and  the  commission  has 
power  after  a  hearing,  to  establish  standards  of  equipment  and  to  order 
the  use  of  appropriate  safety  appliances.  It  also  has  power  after  a 
hearing  to  abolish  grade  crossings;  and  no  new  grade  crossings  may 
be  constructed  without  the  permission  of  the  commission. 

Methods  of  Procedure. 

As  a  basis  for  its  work,  information  as  to  public  utilities  is 
received  by  the  commission  by  periodical  and  special  reports  and  by 


740  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

schedules  of  rates  and  regulations  filed  with  it  as  prescribed  by  law.^ 
Problems  calling  for  special  action  are  called  to  its  attention  by  peti- 
tions or  applications  for  certificates  of  convenience  and  necessity  and 
for  approval  of  stock  and  bond  issues,  by  reports  of  accidents  and  by 
complaints. 

In  addition  to  the  data  secured  by  these  means,  the  commission 
is  given  extensive  powers  to  make  inspections  and  examinations  and 
to  hold  investigations,  inquiries  and  hearings.  These  may  be  carried 
on  by  the  commission,  or  by  any  of  the  commissioners,  or  by  an 
authorized  officer  or  agent  of  the  commission ;  all  of  whom  have  power 
to  administer  oaths,  issue  subpoenas,  and  compel  the  attendance  of 
witnesses  and  the  production  of  books,  accounts  and  documents. 

Formal  hearings  are  required  before  orders  and  decisions  may 
be  made  on  certain  matters;  and  for  such  hearings  notice  of  the  time 
and  place  must  be  served  on  the  public  utility,  any  complainant,  and 
such  other  interested  parties  as  the  commission  deems  necessary.  Pro- 
vision is  also  made  for  a  rehearing  in  any  case,  and  for  modifications 
of  the  order  or  decision  of  the  commission. 

Appeals  and  Penalties. 

Appeals  from  rules  or  decisions  of  the  commission  may  be  taken 
to  the  circuit  court  of  Sangamon  County  to  determine  its  reasonable- 
ness or  lawfulness ;  and  from  the  circuit  court  appeals  may  be  taken 
directly  to  the  Supreme  Court  by  either  party  to  the  action.  The 
conditions  under  w'hich  such  appeals  may  be  taken  are  regulated  by 
the  act,  as  to  time,  notice  to  the  commission,  the  admission  of  new 
evidence  and  the  suspension  of  the  order  of  the  commission  pending 
judicial  proceedings.  The  finding  of  the  commission  as  to  questions 
of  fact  shall  be  held  to  be  prima  facie  true,  and  "a  rule,  regulation, 
order  or  decision  of  the  commission  shall  not  be  set  aside  unless  it 
clearly  appears  that  the  finding  of  the  commission  was  against  the 
manifest  weight  of  the  evidence"  or  that  it  was  without  the  jurisdic- 
tion of  the  commission. 

The  commission  is  authorized  to  commence  mandamus  or  injunc- 
tion proceedings  to  enforce  obedience  to  the  law  or  to  the  orders,  rules 
or  requirements  of  the  commission. 

Specific  penalties  are  provided  in  the  act  for  the  violation  of 
many  of  its  provisions ;  and  general  penalties  are  authorized  for  viola- 
tions or  failure  to  comply  with  any  other  provision  of  the  act  or  the 
orders,  rules  and  requirements  of  the  commission.  Such  penalties  are 
authorized  against  public  utilities  or  any  corporations,  their  officers, 
agents  or  employees  and  other  persons.  Such  penalties  include  fines 
and,  in  the  case  of  individuals,  imprisonment.  It  is  also  provided  that 
stocks  and  bonds  issued  or  inter-corporate  agreements  made  without 
the  approval  of  the  commission  shall  be  void. 
Staff  and  Organisation.  ^ 

The  staff  of  the  Public  Utilities  Commission  in  August,  1914,  was 
as  follows : 

5  Members  of  the  Commission  @  $10,000 $50,000 

Chief   counsel    6,000 

Secretary  5.000 


SUPERVISION   OF   CORPORATIONS. 


741 


Chief  engineer 6,000 

Chief  accountant    i'^^^ 


First  assistant  counsel 


4,000 


Two  assistant  counsels  @  $3,000 6,000 

Consulting  engineer    ^-O^J^ 

Assistant  chief  engineer ^'^^" 

Electrical  engineer  ^'i}^^ 

Three  private  secretaries  @  $2,400 ;.^^^ 

Auditor  2,400 

Telephone  expert   ^>5^^ 

Two  assistant  engineers  ^-^^u 

Two  safety  appliance  inspectors  ^.^J^U 

Chief  of  service  department  ■f >^UU 

Rate  clerk  J'°^" 

Clerk    .560 

Assistant  auditor   ' j-^^^ 

Assistant  accountant  \'fm 

Investigator   }'^0U 

Clerk  service  department    Ao^nn. 

Four  reporters  @  $1,200 4,800 

Three  stenographers  @  $1,200 ^.wU 

Ten  stenographers  @  $900   9,000 

Two   stenographers    InW, 

Four  file  clerks  f  940 

Statistical  clerk     J>200 

Two  janitors  and  messengers    7on 

Information   clerk    1°^. 

Copyist     900 

Mail  and  phone  clerk '^'J 

The  office  of  the  Chief  Accountant  and  Statistician  is  divided 
into  four  divisions,  namely: 

Accounting  department. 

Statistical  department. 

Rate  and  tariff  department  for  transportation  companies. 

Rate  and  tariff  department  for  other  public  utilities. 

The  Engineering  Department  is  organized  in  the  following  divis- 
ions: 

General  office. 

Railroad  department. 

Gas  department. 

Electrical  department. 

Telephone  department. 

Service  department. 

Up  to  August  11,  1914,  there  had  been  801  formal  cases  placed 
on  the  docket  of  the  commission,  and  319  cases  had  been  ^handled 
informally. 

Receipts  and  disbursements  from  the  State  treasury  from  Jan- 
uary 1,  to  September  30,  1914,  on  account  of  the  Public  Utilities  Com- 
mission were  as  follows : 
Disbursements: 

State  officers  salaries $  44,545.3/ 

Other  salaries  and  expenses   86,232.26 

Total    $130,777.63 

Receipts 151,898.63 


742  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

GRAIN  INSPECTION. 

Article  13  of  the  State  Constitution  of  1870,  besides  defining  and 
regulating  public  warehouses,  also  provides  that  "the  general  assembly 
shall  pass  laws  for  the  inspection  of  grain."  By  an  act  of  1871  a  grain 
inspection  and  registration  service  was  provided  in  connection  with 
the  railroad  and  warehouse  commission,  which  was  authorized  to  adopt 
rules  and  fix  charges  for  inspection.  This  act  has  been  amended  and 
supplemented  by  later  acts,  in  1873,  1883,  1897,  and  1907. 

Under  the  public  utility  law,  the  public  utility  commission  suc- 
ceeds to  the  powers  and  duties  of  the  railroad  and  warehouse  com- 
mission ;  but  in  other  respects  the  laws  relating  to  grain  warehouses 
and  the  inspection  of  grain  remain  in  force.  Under  these  laws  the 
public  utility  commission  issues  and  may  cancel  licenses  to  public 
warehouses  and  has  power  to  make  all  proper  rules  and  regulations 
and  charges,  and  to  establish  grades  for  the  inspection  of  grain;  to 
appoint  a  warehouse  registrar  and  assistants,  and  to  prescribe  their 
duties  and  compensation  and  exercise  general  supervision  over  them; 
and  to  appoint  a  committee  on  appeals  of  three  persons  each  year, 
to  hear  and  decide  appeals  from  the  chief  grain  inspector  or  any 
deputy. 

The  warehouse  law  fixes  maximum  rates  for  storage  and  handling 
of  grain,  and  provides  for  the  examination  and  test  of  grain  and  scales. 
It  also  regulates  the  rights  and  liabilities  of  warehousemen,  and  the 
issue  and  transfer  of  warehouse  receipts. 

The  Chief  Inspector  of  Grain  is  appointed  by  the  Governor,  with 
the  advice  and  consent  of  the  Senate,  for  a  term  of  two  years.  This 
officer  is  charged  with  the  general  supervision  of  the  inspection  of 
grain  under  the  advice  and  immediate  direction  of  the  railroad  and 
warehouse  commission,  with  authority  to  appoint  deputy  inspectors, 
upon  the  approval  of  the  commissioners,  and  with  supervision  over  all 
deputy  inspectors. 

The  office  of  the  chief  inspector  of  grain  is  in  Chicago,  where 
the  principal  work  of  the  department  is  done.  The  staff  at  this  office, 
as  provided  in  the  appropriation  of  1913,  is  more  than  100  persons, 
including  21  supervising  and  deputy  inspectors,  25  samplers,  23 
helpers,  25  clerks  and  stenographers.  Other  offices  are  maintained  at 
East  St.  Louis,  Joliet,  Kankakee,  and  Decatur.  The  appropriation  of 
1913  provides  for  11  persons  in  the  East  St.  Louis  office;  2  at  Decatur, 
and  1  each  at  Joliet  and  Kankakee. 

The  annual  report  of  the  grain  inspection  department  deals  almost 
entirely  with  the  work  of  the  Chicago  office.  Even  for  this,  the  text 
of  the  report  is  contained  in  a  few  pages,  giving  summary  statements 
of  inspections  and  finances,  for  which  detailed  tables  are  appended  as 
exhibits.  In  recent  years,  a  brief  report  from  the  deputy  chief  inspec- 
tor at  East  St  Louis,  with  statistical  tables,  is  printed  as  an  exhibit 
to  the  Chief  Inspector's  report.  No  reports  are  presented  from  the 
other  branch  offices ;  and  these  offices  are  not  even  mentioned,  except 
in  one  report,  for  the  year  1910. 


SUPERVISION    OF   CORPORATIONS.  743 

Up  to  1911  the  expenses  of  the  grain  inspection  department  were 
paid  from  the  fees  and  charges  for  inspection  and  weighing.  Under 
act  of  1911,  the  cohections  are  paid  into  the  State  Treasury  and  sal- 
aries and  expenses  are  paid  out  under  appropriation  by  the  General 
Assembly.  Under  the  former  system  the  collections  usually  exceeded 
the  expenses ;  but  in  some  years  the  expenses  were  larger  than  the 
collections  for  the  same  year,  the  difference  being  paid  out  of  the 
accumulated  balance.  The  following  statements  show  the  financial 
operations  of  the  department  for  selected  years : 

COLLECTIONS    AND    DISBURSEMENTS    OF    GRAIN    INSPECTION    DEPARTMENT. 

Chicago. 
Year  ending 
October  31  Collections    Disbursements      Balance 

1871    $  19,760.24        $  12,020.71        $  7,739.53 

1881  89,074.35  97,779.48  12,917.38 

1891    112,505.92  118,176.89  55,621.85 

1901    121,060.23  141,130.65  56,381.16 

Surplus 

or 
Deficit 

1910    152,369.08  170,591.12        -18,222.04 

8  months  ending  June  30,  1911 124,617.17  118,614.27  6,072.90 

12  montlis  ending  June  30,  1912 176,679.99  157,815.87  18,864.12 

East  St  Louis. 

12  months  1910   $  26,388.07        $  22,835.23        $17,289.84 

8  months  1911   8,681.81  12,116.83  13,854.82 

12  months  1912   13,990.66  17,133.77        

auditor's  report. 

Receipts  Warrants  issued 
July  1,  1911,  to  Sept.  30,  1912: 

Chicago    .' $256,565.59  $197,593.44 

East  St.  Louis   27,873.48  21,368.47 

October  1,  1912,  to  Sept.  30,  1914 348,531.34  391,840.18 

Appropriations  for  the  grain  inspection  department  in  1911   and 

1913  are  shown  below: 

1913  1911 

Chicago   Office.                                                           Per  annum       Total  Total 

Inspectors    $45,750        $91,000  $86,500 

Clerks  and  Stenographers  38,230            76,460  77,600 

Registrar,  Cashier,  and  Auditor 6,750            13,500  11,000 

Messengers,  etc 5,160            10,320  10,320 

Samplers  and  Helpers   54,840          109,680  99,900 

Appeals  Committee   3,600              7,200  7,200 

Rent  and  Light  9,000            18,000  18,821 

Other  Expenses   38,417  27,500 

Total    $364,577  $338,841 

East  St.  Louis. 

Inspectors   $10,200  $  20,400  $  20,400 

Registrar  and  Clerks 3,300  6,600  6,600 

Helpers  3,240  6,480  5,610 

Rents   1,000 

Office  Expenses    1,200  2,400  2,200 

Total $35,880        $35,810 


744  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Decatur. 

Inspector  and  Helper $2,520        $    5  040 

Joliet. 

Deputy  Inspector  900  1,800 

Kankakee. 

Deputy  Inspector  1,200  2  400 


Total  Grain   Inspection   Department $409,697        $374,651 


V.  CORPORATION  COMMISSIONS  IN  OTHER  STATES. 

Most  of  the  states  have  provided  for  the  administrative  control 
of  corporations  by  means  of  a  number  of  separate  offices  and  bureaus, 
as  in  Illinois.  The  registration  of  new  corporations  is  usually  under 
the  Secretary  of  State.  Every  state  has  a  banking  and  insurance  office. 
In  most  of  the  larger  states,  there  are  separate  bank  and  insurance 
commissioners;  but  in  a  "number  of  the  states  the  functions  of  one 
or  the  other  of  these  offices  are  attached  to  one  of  the  older  classes 
of  elected  state  officers, — as  the  auditor,  secretary  of  state,  or  state 
treasurer. 

Nearly  all  of  the  states  have  also  established  one  or  more  boards 
for  the  control  of  railroads  and  often  of  other  public  utilities.  Massa- 
chusetts had  for  a  time  three  commissions  for  different  classes  of 
public  utilities,— railroads,  lighting  plants,  and  telephone  and  telegraph 
companies.  New  York  State  has  two  public  utility  commissions,  one 
for  New  York  City  and  the  other  for  the  remainder  of  the  state.  But 
some  twenty  states  now  give  a  large  power  of  regulation  and  control 
over  all  or  most  classes  of  public  utilities  to  a  single  commission, — as 
the  Railroad  Commission  of  Wisconsin ;  the  Public  Utility  Commis- 
sion   of  Illinois,  and  the  Corporation  Commission  of  Oklahoma. 

In  Virginia  and  North  Carolina,  the  public  control  of  corporations 
of  all  kinds  has  been  more  thoroughly  concentrated  in  the  hands  of 
a  single  corporation  commission  in  each  of  these  states. 
Virginia  Corporation  Commission.^ 

The  Virginia  Corporation  Commission  was  created  by  the  State 
Constitution  of  1902.  It  consists  of  three  members  appointed  by  the 
Governor,  subject  to  confirmation  by  the  general  assembly  in  joint  ses- 
sion, for  terms  of  six  years,  one  member  retiring  every  second  year. 
The  constitution  provides  that  this  commission  is  the  department  of 
government  for  the  creation,  visitation,  supervision,  regulation,  and 
control  of  corporations  chartered  by  or  doing  business  in  the  state. 
The  constitution  further  provides,  in  considerable  detail,  for  the 
authority  of  the  commission  over  transportation  and  transmission  com- 
panies, including  the  power  to  prescribe  rates ;  and  for  the  adminis- 
trative procedure  before  the  commission  and  for  judicial  review  of  its 
decisions.  By  the  constitution  and  statutes,  the  commission  is  also 
made  a  board  of  tax  assessors  for  certain  classes  of  transportation  and 
transmission  companies. 

It  is  further  provided  by  the  Constitution  of  1902  that  banking 
and  other  bureaus  may  be  established  within  the  department  of  the 
state  corporation  commission.  In  1906  a  bureau  of  insurance  was 
established  under  the  supervision  and  control  of  the  corporation  com- 

sAmerican  Law  Review,  vol.  38;  481  (1904).     John  Hopkins  Univ.  Studies,  vol.  30; 
1-199  (1912). 


746  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

mission;  but  the  commissioner  of  insurance  is  elected  by  the  general 
assembly  for  a  term  of  four  years.  This  bureau  issues  licenses  and 
certificates  of  authority  to  insurance,  guaranty,  trust  and  insurance 
companies;  it  receives  reports  and  has  power  to  make  e?caminations. 
It  also  receives  reports  of  fires,  and  makes  investigations  into  the 
causes  of  fires. 

Since  1907  the  corporation  commission  has  received  financial 
statements  from  state  banking  institutions.  In  1910  the  commission 
was  given  power  to  appoint  a  bank  examiner  and  assistants,  who  make 
at  least  an  annual  inspection  of  state  banking  institutions,  and  of 
national  banks  which  are  state  depositaries. 

North  Carolina  Corporation  Commission. 

This  commission  is  constituted  as  a  court  of  record  of  three  com- 
missioners, elected  for  six  years,  one  at  each  biennial  election.  It 
selects  its  own  chairman  and  appoints  a  clerk  and  other  assistants. 
The  commission  has  general  supervision  over  transportation,  telegraph 
and  telephone  companies,  all  public  and  private  banks,  all  loan  and 
trust  companies,  and  all  building  and  loan  associations.  It  has  power 
to  prescribe  rates  of  transportation  and  transmission  companies  and 
appoints  bank  examiners. 

Under  other  acts,  the  Corporation  Commission  is  also  created 
a  board  of  State  Tax  Commissioners  and  a  State  Board  of  Equaliza- 
tion, with  general  supervision  of  the  system  of  taxation  throughout 
the  state,  and  also  assesses  corporations  for  taxation. 


VI.    SUMMARY  AND  RECOMMENDATIONS. 

The  following  table  summarizes  the  present  laws  as  to  the  charter- 
ing, admission  and  supervision  of  corporations  in  Illinois : 


Class  of  Corporation 
General  Corporations 
Banks      and     Building     and 

Loan  Associations 
Trust  Companies 
Railroads 

Gas,  Elec.  Light,  etc. 
Corporations  not  for  Profit 
Cooperative  Associations 
Educational    Institutions 
Free  Public  Libraries 
Cemetery  Associations 


Chartered   by 
Secretary   of    State 

Auditor  of  Pub.  Accts. 

Secretary  of  State 

Secretarj^  of  State 

Secretary  of  State 

Secretary  of  State 

Secretary  of  State 

Secretary  of  State 

Secretary  of  State 

Secretary  of  State 


Foreign  General  Corporations*Secretary   of   State 


Pawner's    Societies 
Wage  Loan  Corporations 
Title  Guarantee  Companies 
Insurance     Companies  —  ex- 
cept Assessment  Life  and 
Accident 
Insurance     Companies  —  As- 
sessment   Life    and    Acci- 
dent 


♦Admitted  by. 


Secretary  of  State 
Secretary  of  State 
Secretary   of    State 

Insurance  Supt. 

Secretary'   of    State 

RECOMMENDATIONS. 


Supervision  by 
Secretary   of    State 

Auditor  of  Pub.  Accts. 
Auditor  of  Pub.  Accts. 
Pub.  Utilities  Comn. 
Pub.  Utilities  Comn. 


Governor 
Governor 
County  Court 
Secretary  of  State 
Auditor  of  Pub.  Accts. 
Auditor  of  Pub.  Accts. 
Auditor  of  Pub.  Accts. 


insurance 


Supt. 


Insurance  Supt. 


L  The  granting  of  charters  and  the  supervision  of  corporations, 
of  the  same  class  after  formation  should  be  entrusted  to  the  same 
authority. 

As  a  matter  of  economy,  it  is  obvious  that  all  the  records  relating 
to  individual  corporations  and  to  particular  classes  of  corporation."- 
should  be  housed  in  the  same  quarters,  saving  space  and  facilitating 
the  work  of  those  wishing  to  consult  the  same.  Moreover,  division 
of  authority  necessitates  two  groups  of  experts,  those  who  look  up 
the  corporations  and  corporation  law  at  the  time  of  incorporation, 
and  those  who  are  entrusted  with  the  work  of  supervision  after  incor- 
poration. It  is  evident  that  the  work  of  supervision  would  become 
less  difficult  if  in  the  hands  of  those  w^ho  had  become  familiar  with 
the  particular  kind  of  corporation  through  passing  on  the  original 
papers — and,  furthermore,  it  is  still  more  evident  that  those  engaged 
in  supervising  are  the  best  judges  of  the  desirability  and  propriety 
of  granting  authority  to  solicit  stock  subscriptions  to  a  new  group 


748  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

of  promoters.  For  instance,  the  Insurance  Superintendent  is  in  a 
better  position  effectively  to  administer  the  law  relating  to  the  forma- 
tion of  new  insurance  companies  than  any  other  branch  of  the  State 
government,  because  of  the  experience  gained  in  the  work  of  super- 
vision. In  other  words,  experience  in  supervision  is  almost,  if  not 
quite,  necessary  in  order  to  properly  determine  whether  a  new  propo- 
sition is  in  reality,  as  well  as  in  form,  promoted  to  fulfill  a  lawful 
object. 

The  adoption  of  this  principle  would  necessitate  a  revision  of 
the  corporation  law  by  transferring  the  control  of  incorporation  from 
the  Secretary  of  State's  office  to  the  office  having  supervision  in  the 
following  cases : 

Trust  Companies— from  Secretary  of  State  to  Auditor. 

Railroads  and  Public  Utilities — from  Secretary  of  State  to  Pub- 
lic Utilities  Commission. 

Title  Guarantee  Companies — ^from  Secretary  of  State  to  Insur- 
ance Superintendent. 

Pawner's  Societies  and  Wage  Loan  Corporations — from  Secretary 
of  State  to  Auditor. 

Participation  in  Certificate  of  Assessment  Life  and  Accident — 
from  Secretary  of  State  to  Insurance  Superintendent. 

On  the  other  hand,  the  supervision  of  educational  institutions, 
free  public  libraries  and  cemetery  associations,  now  chartered  by  the 
Secretary  of  State  and  supervised  by  the  governor  and  the  county 
courts,  should  be  transferred  from  the  latter  authorities  to  the  Secre- 
tary of  State. 

2.  All  varieties  of  a  general  class  of  corporations  should  be 
entrusted  to  the  same  authority. 

This  principle  of  effective  supervision  is  generally  observed — 
and  where  not  observed  is  evidently  -the  result  of  an  accident.  The 
supervision  of  title  guarantee  companies  should  evidently  be  under 
the  Insurance  Superintendent,  not  under  the  auditor,  thus  bringing 
all  forms  of  insurance  under  that  office. 

3.  The  law  relating  to  the  formation  of  corporations,  including 
special  classes  as  well  as  the  general  corporation  should  be  revised  and 
codified. 

The  law  relating  to  corporations  is  the  result  of  a  series  of  laws 
passed  about  the  time  of  the  adoption  of  the  present  Constitution  in 
1870.  Thus  the  basis  of  the  insurance  law  dates  from  1869 — the 
general  corporation  law  from  1872 — the  banking  law  from  1885 ;  but 
in  addition  to  the  general  act  in  each  case  there  are  a  considerable 
number  of  amendments  and  additions  that  have  been  passed  from  time 
to  time  as  occasion  has  demanded.  Some  of  these  are  in  harmony 
with  the  general  law ;  some  are  not.  Revision  would  not  only  furnish 
the  opportunity  of  eliminating  inconsistencies,  but  would  make  the  law 
simpler  and,  tlierefore,  more  easily  understood  by  those  who  are  con- 
ducting business  under  its  terms. 

It  has  already  been  noticed  that  in  forming  an  Illinois  corpora- 
tion the  promoters  are  required  generally  to  submit  their  proposition 
to  an  official  examination  before  soliciting  subscriptions  to  the  capital 


SUPERVISION   OF   CORPORATIONS. 


749 


Stock.  To  this  general  rule  there  are  some  exceptions,  the  most  no- 
ticeable being  the  case  of  railroads.  In  the  revision  the  process  of 
formation  should  be  made  uniform  for  all  corporations  except  those 
that  are  not  incorporated  for  profit. 

4.  The  granting  of  charters  and  the  supervision  of  corporations 
should  be  centralized  and  entrusted  to  some  one  general  authority  or 
department.     Illinois  has  at  the  present  time  the   foundation   for  a 
most  efficient  system  of  corporate  supervision.    The  method  of  grant- 
ing charters  is  not  only  quite  unique,  but  is   founded  upon   correct 
principles.    Moreover,  it  is,  with  few  exceptions,  uniform  for  all  kinds 
of  corporations.     In  the  case  of  banks,  building  and  loan  associations, 
and  insurance   companies,  the   supervision  over  the   incorporation   is 
at  the  present  time  fairly  efficient.     This  results  f  rom_  the  fact  that: 
(1)    The    charter   granting   authorities:   viz,    the   Auditor   of    Pubhc 
Accounts  and  the  Insurance  Superintendent  are  responsible  for  effec- 
tive supervision  after  incorporation  and   (2)   each  office  is  equipped 
with  traveling  examiners  who  are  in  a  position  to  make  more  than 
a  formal  investigation  into  the  character  of  the  proposition  which  it 
is  proposed  to  incorporate.     The  work  of  the  Secretary  of  State  is 
in  this  particular  far  from  efficient.     This  is  due  to  two  conditions— 
(1)  the  office  is  not  and  never  has  been  properly  manned  to  secure 
efifective  supervision,  and  (2)  it  has  been  held  as  a  general  principle 
that  any  body  of  individuals  ought  to  be  allowed  to  incorporate  for 
any  lawful  purpose  at  any  time.     This  theory  is  the  outgrowth  of  the 
unfortunate  conditions  attending  the  granting  of  charters  by  special 
legislation.     Under  that  system  it  was  assumed  that  it  was  incumbent 
upon  the  incorporators  to  show  cause  why  they  should  be  granted  a 
charter,  and  in  too  many  cases  there  were  charges  of  fraud  and  cor- 
ruption; as  a  result  constitutional  provisions  against  the  granting  of 
special  charters  were  adopted  in  1848  and  1870.    A  second  result  was 
the  development  of  the  theory  that  any  group  of  men,  whether  respon- 
sible or  irresponsible,  might  apply   for  a  charter  under  the  general 
incorporation  act  and    be    granted    the    same    without  question.     In 
the    case    of    corporations     formed    under    the    general    law,    this 
practice    still    prevails.     In   the    case    of   banks,    insurance    compan- 
ies,   railways    and    other    public    utility    corporations    it  is  generally 
recognized   that    the    State   through  'its   proper   officers   has  not  only 
the  right,  but  also    is    under   a    duty    of    protecting    both  the  legiti- 
mate investors  and  consumers  of  the  products  against  fraudulent  pro- 
motions or  uneconomic  propositions.     Gradually  it  is  coming  to  be 
recognized  that  the  State  has  an  indirect,  if  not  a  direct,  interest  m  the 
formation  of  general  corporations.     This  theory  is  recognized  in  the 
Illinois  law  in  the  provision  that  any  group  of  men  desiring  to  form 
a  corporation  must  first  obtain  permission  from  the  proper  authority. 
The  Secretary  of  State  is  authorized  to  see  that  each  new  project  is 
formed  for  a  lawful  purpose.     He  is,  however,  not  in  a  favorable 
position  under  the  present  organization  of  the  office  to  see  that  the 
spirit  of  the  law  is  complied  with  in  all  cases.     It,  of  course,  would 
add  largely  to  the  expense  of  supervision,  but  the  fees  received  even 
at  the  present  time  are  amply  sufficient  to  provide   for  an  effective 
supervision  during  the.  period  of  incorporation.     The  results  of  the 


750  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

adoption  of  such  a  policy  would  be:  (1)  The  elimination  of  most 
fraudulent  promotions  before  the  solicitation  of  subscriptions  to  the 
capital  stock  began — (2)  The  restriction  of  .the  investment  of  cor- 
porate funds  to  those  fields  of  business  enterprise  where  there  is  an 
opportunity  for  legitimate  industry — (3)  The  establishment  of  con- 
fidence in  the  general  corporate  enterprises,  such  as  exists  in  the  case 
of  national  or  state  banks. 

It  is  hardly  necessary  to  call  attention  to  the  enormous  waste  of 
capital  as  a  result  of  fraudulent  promotions.  The  Postmaster  Gen- 
eral of  the  United  States  in  his  annual  report  for  1911  estimates  the 
annual  loss  at  over  $77,000,000. 

Illinois  is  in  a  position  to  become  a  leader  in  a  movement  to  pre- 
vent a  part  of  this  annual  waste  of  capital,  by  proper  supervision  of 
the  period  of  promotion. 

It  is  generally  recognized  that  it  is  a  proper  function  of  the  State 
to  prevent  the  duplication  of  public  utility  propositions  in  communi- 
ties already  supplied.  While  it  is  not  likely  that  the  State  will 
feel  called  upon  to  take  similar  precautions  in  general  business  activ- 
ity, it  is  clearly  in  conformity  with  the  spirit  of  our  corporation 
act  to  see  to  it  that  only  propositions  projected  for  legitimate  business 
activities  be  authorized  to  solicit  subscriptions  from  the  citizens  of  the 
State.  And  in  this  connection  it  would  be  well  to  write  into  the  general 
corporation  act  the  clause  of  the  banking  act  that  requires  an  estab- 
lished character  on  the  part  of  the  promoter  as  a  prerequisite  to  the 
solicitation  of  funds.  Such  supervision  as  would  be  required  to  ensure 
that  the  promoters  be  men  of  established  character  and  the  project  be 
at  least  reasonable  in  its  purpose  would  mean  a  large  annual  saving 
to  the  legitimate  capital  resources  of  the  State. 

It  is  patent  to  every  careful  observer  that  the  development  of  our 
resources  through  corporations  is  hampered  and  delayed  by  a  feeling 
on  the  part  of  the  average  man  that  any  investment  in  corporate  stock 
is  like  throwing  good  money  into  the  sea.  And  in  this  feeling  he  is 
to  a  certain  extent  justified.  The  legal  safeguards  surrounding  the 
investment  in  corporate  securities  are  amply  sufficient  to  protect  him, 
when  they  are  enforced.  But  the  fact  is  that  the  so-called  safeguards 
are  safeguards  in  form  only;  the' best  that  the  defrauded  stockholder 
can  do  is  to  assist  the  State  in  placing  the  corporate  criminal  in  penal 
confinement  for  a  time.  That,  however,  does  not  restore  the  wasted 
capital. 

To  repeat,  the  State  of  Illinois  has  in  her  corporate  law  a  unique 
opportunity  to  extend  her  administrative  machinery  so  that  the  legiti- 
mate investor  would  be  protected  and  the  honest  projects  would  be 
fostered  and  developed.  Attention  at  this  point  may  properly  be 
called  to  the  "Blue  Sky"  legislation  of  many  of  our  neighboring 
states.  Such  legislation  ought  to  be  unnecessary  and  would  be 
unnecessary  if  proper  supervision  of  the  issuance  of  securities  was 
provided  by  each  state.  The  justification  of  state  supervision  of  the 
issuance  of  corporate  securities  is  found  In  the  favors  granted  the 
corporate  stockholders.  They  are  given  limited  liability  and  in  return 
for  this  special  favor  are  expected  to  issue  full  paid  stock  and  full 


SUPERVISION    OF    CORPORATIONS.  751 

paid  only.  In  too  many  cases  the  stock  is  issued  as  fully  paid  when 
*  it  represents  nothing  but  water.  Even  worthless  securities  are  foisted 
upon  the  public  and  in  turn  the  public  demands  blue  sky  legislation 
and  state  approval  of  the  securities  offered  for  sale.  However,  as  in 
many  similar  cases,  the  proper  place  to  begin  to  reform  is  at  home, 
by  seeing  to  it  that  all  securities  issued  by  domestic  corporations  are 
what  they  purport  to  be,  viz. :  the  representatives  of  real  assets,  dollar 
for  dollar.  After  incorporation  sufficient  supervision  should  be  main- 
tained to  see  that  the  law  relating  to  the  declaration  of  dividends  out 
of  surplus  profit  only,  is  observed.  Such  supervision  would  render 
blue  sky  legislation  entirely  unnecessary, 

(5)  The  general  department  should  be  organized  into  divisions, 
each  of  which  should  have  supervision  under  the  general  direction 
of  the  department,  of  a  particular  branch  of  the  work.  These  divis- 
ions might  very  well  preserve  to  a  certain  extent  the  present  organi- 
zations, with  the  exception  that  the  general  control  would  be  com- 
bined in  one  department.  As  a  tentative  plan  the  following  may  be 
suggested : 

(a)  General  Corporations. 

(1)  Incorporation  of  domestic  corporations. 

(2)  Admission  of  foreign  corporations. 

(3)  Annual  reports. 

(b)  Banking,  Trust  Companies,  Building  and  Loan  Associations,  etc. 

(1)  Incorporation  of  domestic  corporations. 

(2)  Admission  of  foreign  corporations. 

(3)  Annual  reports. 

(4)  Examinations. 

(c)  Insurance. 

(1)  Incorporation  of  domestic  corporations. 

(2)  Admission  of  foreign  corporations. 

(3)  Reports. 

(4)  Examinations. 

(5)  State  Fire  Marshal  investigation. 

(d)  Public  Utilities. 

(1)  Incorporation  of  public  utilities  companies. 

(2)  Admission  of  foreign  companies. 

(3)  Reports. 

(4)  Examinations. 

(5)  Rates. 

(6)  Service. 

(7)  Securities. 

It  is  possible  that  an  organization  by  functions  might  prove  of 
advantage ;  such  an  organization  is  outlined  below  : 

(a)  Incorporation. 

(1)  General  corporations. 

(2)  Banks  and  trust  companies,  etc. 

(3)  Insurance  companies. 

(4)  Public  utilities  companies. 

(b)  Adtnission  of  Foreign  Corporations. 
(Arranged  by  classes.) 

(c)  Reports  and  Examinations. 
(By  classes.) 

(d)  Securities. 

(1)  Supervision  of  issues. 

(2)  Deposits — as  regulated  by  law. 

(e)  Rates  and  Services. 

(1)  Public  Utilities. 

(2)  Insurance  Companies. 


752  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

(6)  The  following  alternative  plans  are  suggested  for  consider- 
ation in  organizing  the  proposed  department : 

(a)  A  Corporation  Commission  of  five  members,  taking  the  place 
of  the  Public  Utilities  Commission,  to  exercise  all  the  powers  of  the 
Public  Utilities  Commission,  and  in  addition  to  have  supervision  over 
the  commissioners  of  general  corporations,  banks  and  insurance.  The 
supervisory  powers  should  include  power  to  approve  and  prescribe 
forms  for  accounts  and  reports,  to  approve  and  issue  general  regula- 
tions, to  review  or  decide  appeals  from  decisions  of  the  division  super- 
intendents, and  to  order  specific  investigations. 

(b)  A  Corporation  Commission  of  five  members,  one  to  be 
chairman,  one  commissioner  of  general  corporations,  one  banking  com- 
missioner, one  insurance  commissioner,  and  one  public  utilities  com- 
missioner, the  Commission  as  a  body  to  exercise  supervisory  powers 
over  the  individual  commissioners.  Two  or  more  deputy  public  util- 
ity commissioners  to  conduct  investigations  and  hearings,  and  to  act 
with  the  public  utility  commissioner  as  a  board  in  making  orders  and 
decisions. 

(c)  A  Corporation  Commission  of  three  members,  one  to  be 
chairman,  one  banking  and  insurance  commissioner  and  one  public 
utilities  commissioner,  to  exercise  supervisory  powers  as  in  (b).  The 
public  utility  commissioner  to  have  three  deputies,  to  conduct  investi- 
gations and  hearings, — orders  and  decisions  to  be  made  by  the  chair- 
man of  the  central  commission,  the  public  utilities  commissoner  and 
deputies  acting  as  a  board.  The  chairman  to  have  direct  charge  of 
the  division  of  general  corporations. 

(d)  A  Secretary  of  Corporations  as  head  of  the  department, 
and  to  act  as  chairman  of  (1)  the  corporation  commission,  to  include 
the  commissioners  of  general  corporations,  banks  and  insurance,  and 
(2)  the  public  utilities  commission,  to  include  two  or  four  members  in 
addition  to  the  secretary. 

(e)  The  Chairman  of  the  Public  Utilities  Commission  to  be 
designated  as  head  of  the  department,  with  specified  powers  of  super- 
vision over  commissioners  of  general  corporations,  banks  and  insur- 
ance, leaving  the  public  utilities  commission  with  its  present  organiza- 
tion and  powers. 


A  REPORT 

ON 

STATE  ADMINISTRATION  OF 

PUBLIC  WORKS,  PARKS 

•AND  BUILDINGS 

BY 

C.  O.  GARDNER 


CONTENTS 

Introduction  7C7  77? 

I.      HIGHWAYS '^''''^ 

A.  Historical    Introduction     757 

Local  Administration 757 

State  Administration  760 

B.  The  State  Highway  Commission 761-766 

1.  Organization  761 

2.  Functions    761 

Assistance  to  Local  Officials 761 

Investigation   and    Experimentation '^^/^ 

Control   over   State   Highway   Officials 763 

State  Aid  Roads 763 

3.  Engineering  Staff 765 

C.  County  Superintendent  of  Highways ^^'^aa 

1.  Organization  766 

2.  Functions 767 

State  Aid  Roads 767 

County  Roads  and   Bridges 767 

Local  Roads  and  Bridges 767 

D.  Local  Highway  Administration 7^0 

1.  Highway  Commissioners    769 

2.  Clerk  of  Highway  Commissioners ' 769 

3.  Treasurer 769 

E.  Methods  of  Financing  Highway  Administration 769 

F.  Summary  and  Conclusions 770 

TI.      WATER    RESOURCES     773-799 

A.  General  Remarks  '^^I'Jq^ 

B.  Illinois  and  Michigan  Canal  Commissioners ^774 

1.  Introduction    774 

2.  Organization  U^  • 

3.  Powers,  Duties  and  Methods  of  Procedure ''^ 

4.  Finances  '^LL 

5.  Summary  and   Conclusions ;^°* 

C.  Rivers  and  Lakes  Commission 7m 

1.  Introduction    783 

Historical  Summary   ^?^ 

Local  Authorities  7o4 

Drainage  Officials    784 

Municipal  Authorities  784 

Park  Boards 78J 

Internal  Improvement  Commission  ....  ■ 785 

Submerged  and  Shore  Lands  Investigation 786 

2.  Organization  786 

3.  Powers  and  Duties 786 

Collections  and  Publication  of  Information 78/ 

Supervision  of  Local  Improvements 788 


Preparation  of  Plans  for  Improvement. 


788 


Prevention  of  Pollution  of  Streams 'J^ 

Assistance  and  Advice  in  Reclamation  Projects 788 

Prevention  of  Encroachments 789 

Hearings  and  Opinions 789 

Levee  Construction   790 

4.  Work  and    Procedure 790 

5.  Finances  792 

6.  Relations  to  other  Officials 793 

7.  Summary  and   Conclusions 795 

Comments  and  Suggestions 796 

D.     General  Summary   797 


.      FISH    AND   GAME   CONSERVATION    COMMISSION 799-808 

1.  Introduction 799 

Fish  Legislation 799 

Game   Legislation 801 

2.  Present   Organization 801 

3.  Powers  and  Duties 802 

Enforcement  of   Fish  and    Game    Laws ..........  802 

Conservation  of  Fish  and  Game 802 

Reports  to  Governor 803 

Wardens   and   Deputies 803 

4.  Administration   803 

Aministration  of  Fish  and   Game  Laws 804 

Fish  Rescue  and  Distribution 804 

Fish  Preserves    804 

Fish  Hatching 804 

State  Game  Farm 805 

5.  Relation  to  other  State  Functions 805 

6.  Comments    806 

STATE  CONTROL  OF   NATURAL  RESOURCES 808-836 

Early  Local  Administration 808 

Scientific   Investigation  of  Natural   Resources 809 

State  Control  of  Fish,  Game  and  Forests 809 

State  Control  of  Water   Supply  and    Drainage 810 

Character  of   State    Authorities 812 " 

Summary     812 

Tabular   Statements    814 

Purposes  of  State  Control  of  Water  and  Natural 814 

State  Control  Arranged  by  States  and  Agencies    816 

State   and    National   Control  Arranged   by   States   and    Pur- 
poses of  Control  819 

State  and  National  Control  Arranged  by  State  and  National 

Agencies   and   Purposes   of   Control 820 

STATE  PARKS   836-839 

A.  Development  of  Parks 836 

1.  Local  Authorities   836 

2.  State  Parks 836 

B.  Illinois  Park  Commission 837 

C.  Fort   Massac   Park  Trustees 838 

D.  Comments    838 

PUBLIC   BUILDINGS    AND    MONUMENTS 839-863 

A.  Construction  of  Public  Buildings 839-847 

1.     Construction  by  Special  Commissions 839 

2.  State   Architect    840 

Organization    840 

Powers  and  Duties 841 

Administration 841 

3.  Public  Architects  in  U.  S.  and  in  other  States ...  ['. 843 

4.  State  Art   Commission 847 

B.  Control  of  Public  Buildings 847-856 

1.  Public   Buildings  in  Springfield 847 

2.  State   Offices  in   Chicago 849 

3.  Control  of  Public  Buildings  in  other  States.. 854 

C.  Public  Monuments  and  Memorials 856-859 

Lincoln   Monument 856 

Lincoln  Homestead 856 

Miscellaneous  Monuments  and  Memorials 857 

D.  Summary  and   Suggestions 859-863 

1.  Architect's   Office    860 

2.  Art   Commission    861 

3.  Control  of  Public  Buildings '. 861 

4.  Monuments   and   Memorials 862 

.      GENERAL   SUMMARY  AND  RECOMMENDATIONS 863-865 


A  REPORT  ON  STATE  ADMINISTRATION  OF 

PUBLIC  WORKS,  PARKS  AND  BUILDINGS 

By  C.  O.  Gardner. 

INTRODUCTION. 

In  this  report  it  is  proposed  to  examine  the  several  State  officers 
and  boards  whose  functions  relate  to  the  construction  of  public  works 
and  the  conservation  and  care  of  public  property  and  resources.  This 
will  include  the  authorities  dealing  with  highways,  water  resources, 
fish,  and  game  conservation,  public  buildings  and  monuments,  and 
State  parks. 

At  first  sight,  this  may  seem  a  somewhat  heterogeneous  group  of 
officials,  some  of  whom  have  little  relation  to  the  others ;  and  it  may 
be  admitted  that  the  active  relations  at  the  present  time  are  less 
important  than  in  the  other  groups  investigated  for  the  Efficiency  and 
Economy  Committee.  But  the  haphazard  and  irregular  development 
of  State  administration  prevents  any  more  satisfactory  grouping  to 
carry  out  the  general  purpose  of  the  Committee  for  a  comprehensive 
scheme  of  reorganization  into  a  limited  number  of  important  depart- 
ments. Examination  will  perhaps  show  that  the  interrelations  and  sim- 
ilarity of  functions  are  closer  than  is  usually  realized;  and  they  are 
at  least  more  important  than  is  found,  for  example,  among  the  various 
bureaus  of  the  United  States  Department  of  the  Interior. 

I.  HIGHWAYS. 

A.    HISTORICAL  INTRODUCTION. 

Local  Administration. 

The  administration  of  highways  in  Illinois  has  been  regarded, 
from  the  beginning,  almost  exclusively  as  a  local  function.  The  con- 
stitution of  1818  provided  for  the  election  of  three  commissioners 
within  each  county  who  were  given  general  jurisdiction  over  the 
affairs  of  the  county,  including  the  highways.  Under  an  Act  of  1819 
the  county  commissioners'  court  was  vested  with  authority  in  all  cases 
with  respect  to  the  public  roads,  canals,  turnpikes  and  toll  bridges ; 
and  thereafter  from  time  to  time  their  powers  were  increased.  They 
appointed  the  road  supervisors  within  the  county,  let  contracts  for 
the  construction  of  roads  and  bridges,  granted  licenses  to  individuals 
and  corporations  authorizing  the  construction  of  toll  bridges  and  turn- 
pikes, levied  road  taxes,  fixed  prices  of  labor  on  the  roads  and  the  use 
of  teams  and  performed  various  other  supervisory  functions.  The 
commissioners  also  located  new  roads  and  altered  or  vacated  old  ones 
on  petition  of  a  certain  number  of  the  voters  within  the  district.  State 
roads  were  created  and  changed  by  the  State  legislature  but  the  duty 
of  maintaining  them  fell  upon  the  county.  Thus  the  county  was  the 
unit  in  the  highway  service. 


758  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

Actual*  administration  of  the  highways,  however,  was  vested  in 
smaller  units  within  the  county,  subject  to  control  by  the  county  author- 
ities. Under  the  Act  of  1819  the  commissioners  of  the  county  were 
authorized  to  appoint  within  each  township  a  suitable  number  of  road 
supervisors.  By  an  Act  of  1825  the  county  commissioners  were 
required  annually  to  divide  the  county  into  road  districts  and  to  appoint 
one  supervisor  for  each  district.  The  compensation  provided  for  the 
supervisors  varied  from  time  to  time. 

The  supervisor  had  general  charge  of  the  upkeep  of  roads  and 
bridges  and  the  erection  and  care  of  sign  posts.  It  was  his  duty  to 
muster  the  able-bodied  men  within  his  district  for  labor  service  on  the 
roads.  He  hired  additional  labor  when  necessary,  acted  as  overseer  of 
road  laborers,  and  purchased  wood,  gravel  and  other  materials  neces- 
sary for  improvement  of  the  roads.  Under  an  Act  of  1825  the  super- 
visor was  made  the  collector  of  the  road  tax  within  his  district,  and  was 
authorized  to  pay  out  money  for  labor  and  materials.  In  1849,  how- 
ever, the  function  of  collecting  the  road  taxes  was  transferred  to  the 
county  collector.  The  only  form  of  financial  control  exercised  over 
the  supervisors  was  found  in  an  Act  of  1831  which  required  an  annual 
account  (not  necessarily  written)  to  be  submitted  to  the  county  com- 
missioners showing  receipts  and  expenditures  for  the  year.  If  there 
was  a  balance  at  the  end  of  the  year  it  was  paid  over  to  the  county 
commissioners. 

At  irregular  intervals  appropriations  were  made  directly  by  the 
Sta*°:  for  the  construction  of  particular  roads  and  bridges,  but  there 
was  Uttle  attempt  to  furnish  systematic  aid  for  this  purpose.  The 
Gene'-al  Assembly  frequently  authorized  private  individuals  or  corpora- 
tions <-o  construct  bridges  or  turnpikes  and  charge  tolls  for  their  use. 
Road  construction  and  improvement  was  commonly  financed  by  levy- 
ing a  labor  poll  tax.  A  property  tax  for  road  purposes  was  first 
authonzed  in  1825,  but  the  taxable  was  privileged  to  substitute  day 
labor  m  place  of  cash  payment  if  he  so  desired.  Taxable  realty  owned 
by  res'dents  of  the  county  was  assessed  by  the  county  commissioners 
at  a  rate  not  exceeding  $1.50  per  $100  valuation.  Later  personal 
oroperlv  was  also  made  subject  to  assessment  for  road  purposes.  In 
l827  ihe  general  property  tax  for  road  purposes  was  abandoned,  but 
was  apain  authorized  in  1831,  with  a  limitation  of  one  day's  labor 
(equivalent  to  fifty  cents)  for  each  $100  of  property.  Four  years 
later  (^835)  in  a  comprehensive  road  law,  the  maximum  rate  was 
again  changed,  as  it  has  been  from  time  to  time  since :  and  tlie  general 
property  tax  has  continued  to  be  used  as  an  increasingly  important 
means   for  financing  road  construction  and  repair. 

Under  the  constitution  adopted  in  1848  some  important  changes 
were  made  in  the  organization  and  administration  of  the  highways. 
The  former  powers  of  the  county  commissioners  were  transferred  to 
a  county  court,  composed  of  a  county  judge  and  two  justices  of  the 
peace  elected  for  four  years.  This  court  thus  assumed  the  jurisdic- 
tion over  the  roads  formerly  exercised  by  the  county  commissioners. 
However,  for  counties  that  elected  to  organize  under  the  township  form 
of  government  ^  still  more  decentralized  system  was  provided  by  an 
act  of  1849,     Public  roads  then  existing  were  declared  to  be  public 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  759 

highways  of  the  town  in  which  they  were  situated,  and  authority  over 
the  same  was  vested  in  a  board  of  highway  commissioners,  consisting 
of  three  persons  elected  annually  at  the  town  meetings.  In  1861 
the  tenure  of  office  was  increased  to  three  years  and  one  com- 
missioner elected  each  year.  The  commissioners  were  given  general 
supervisory  control  over  the  construction  of  roads  and  bridges,  issued 
directions  concerning  the  alteration  and  regulation  of  the  highways, 
and  were  generally  responsible  for  their  upkeep.  They  had,  however, 
no  power  over  State  roads.  They  were  required  to  render  an  annual 
written  account  to  the  board  of  town  auditors  (consisting  of  the  super- 
visor, clerk  and  justice)  showing  the  total  assessment  of  labor  for 
the  year,  the  amount  of  labor  performed,  sums  received  from  fines 
and  commutations  and  a  statement  of  the  necessary  improvements  and 
the  probable  expense  of  the  same  beyond  what  might  be  anticipated 
from  labor  and  the  regular  road  taxes. 

The  commissioners,  furthermore,  had  the  authority  to  lay  out  new 
roads  and  alter  or  vacate  existing  roads  on  petition  of  twelve 
voters  of  the  community  interested.  When  alterations  were  proposed 
the  commission  conducted  a  personal  examination,  gave  hearings  and 
rendered  a  decision.  Rewards  for  damages  were  subject  to  appeal 
from  the  commissioners  to  the  board  of  supervisors  of  the  county. 

The  highway  commissioners  thus  acted  in  a  broad  way  as  the 
local  legislative  authority  on  roads.  They  divided  the  towns  into  con- 
venient districts  for  administrative  purposes  and  assigned  laborers  to 
each  of  the  districts.  The  actual  administrative  officers  within  the 
towns  were  known  as  overseers  of  highways,  one  of  whom  was  chosen 
at  the  regular  town  meeting  for  each  road  district  in  the  township. 
The  overseers  executed  the  orders  of  the  highway  commissioners, 
acted  as  foremen  of  the  road  gangs  and  were  generally  responsible 
for  the  work  of 'construction  and  maintenance  of  the  highways. 

In  1859  the  principle  of  decentralization,  which  formed  such  a 
conspicuous  part  of  the  legislation  described  above,  was  carried  a  step 
further  by  an  Act  vesting  in  the  board  of  county  supervisors  entire 
control  over  the  State  roads  in  their  respective  counties  with  power 
to  re-locate  or  vacate  at  their  discretion.  In  counties  without  the 
township  system  similar  powers  were  vested  in  the  county  courts. 

The  system  above  described  applied  only  to  those  counties  that 
adopted  the  township  form  of  government.  In  other  counties  previous 
laws  remained  in  force  with  local  supervisors  for  the  road  districts 
appointed  by  the  county  courts.  In  1872  an  Act  of  the  General  Assem- 
bly provided  for  elective  highway  commissioners  to  supersede  the 
appointed  district  supervisors  in  such  counties,  thus  making  the  organ- 
ization of  the  highway  service  practically  uniform  throughout  the 
State. ^  This  law  was  repealed  in  1873  ;^  but  the  principle  of  locally 
elected  highway  commissioners  for  counties  without  township  govern- 
ment was  embodied  in  a  later  Act  passed  in  1887,  which  remained  in 
force  until  1913.  The  county  boards  of  such  counties  were  authorized 
by  the  law  of  1887  to  divide  the  county  into  districts  approximating 

^Session    Laws,    1871,    p.    680.     The   Act   also   provided    for    the    substitution    of   a 
single  commission  for  the  commission  of  three  in  counties  with  township  government. 
^By  an  act  of  April  18,  1873. 


760  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

the  congressional  township  in  size.  In  each  of  these  districts  three 
highway  commissioners  were  to  be  elected  to  serve  three  years  with 
terms  so  arranged  that  one  commissioner  was  elected  annually.^ 

To  summarize  briefly,  control  over  the  highways  was  first  vested 
in  the  county  commissioners'  court.  From  1819  to  1849  the  county 
commissioners  retained  jurisdiction,  appointing  supervisors  within  the 
road  districts  to  take  direct  charge  of  administration.  In  1849  much 
of  the  authority  of  the  county  commissioners  was  transferred  to  three 
elective  highway  commissioners  within  each  township  in  all  cases  of 
counties  that  adopted  the  township  system  of  government;  while  in 
1887  practically  the  same  system  of  organization  was  applied  to  all 
counties  by  provision  for  the  election  of  three  highway  commis- 
sioners within  each  road  district  of  the  counties  without  township 
government. 

State  Administration. 

In  1903  a  first  step  was  taken  in  the  direction  of  a  more  definite 
central  control  by  the  State.  In  that  year  a  Good  Roads  Commission 
was  created  to  investigate  problems  of  road  construction  and  road 
drainage  and  to  determine  the  best  method  of  making  an  equitable 
distribution  of  costs,^  The  commission  consisted  of  three  persons, 
one  an  engineer,  one  a  former  highway  commissioner  and  one  a  busi- 
ness man  of  attainments,— all  to  be  appointed  by  the  Governor.  It 
was  superseded  two  years  later  by  a  State  Highway  Commission  of 
three  members  appointed  by  the  Governor  and  Senate  with  a  two 
years'  tenure."  This  commission  was  given  control  over  the  local  dis- 
tribution of  road  materials  prepared  in  the  State  penitentiaries,  but  its 
powers  related  principally  to  investigations  and  experimentation.  A 
State  highway  engineer  was  selected  to  take  charge  of  the  experi- 
mental work  and  prepare  bulletins  of  advice  for  local  officials  con- 
cerning proper  methods  of  construction  and  maintenance  of  earth  and 
improved  roads. 

During  the  following  eight  years  (1905-1913)  the  highway 
commission  thus  created  rendered  valuable  service  to  local  officials 
in  many  ways.  A  large  number  of  experimental  roads  were  con- 
structed in  a  number  of  counties,  and  much  was  done  in  advising  and 
assisting  local  officials  and  in  arousing  public  appreciation  of  the 
necessity  for  road  improvements.  However,  the  commission  was  lim- 
ited as  to  its  authority  and  the  urgent  need  for  the  establishment 
of  a  comprehensive  road  system  for  the  State  led  it  to  recommend 
some  radical  changes  in  the  organization  of  the  road  system." 

The  Forty-seventh  General  Assembly  (1911)  appointed  a  special 
joint  committee  to  investigate  the  question  of  revising  the  roads,  high- 
ways and  bridge  laws,  in  connection  with  the  general  subject  of  county 
and    township    organization.      This    committee,    after    an    exhaustive 

=*Tlie  Act  of  1887  was  supplemented  by  legislation  in  1901,  providing  for  a 
return  to  the  former  system  of  appointive  supervisors  by  any  county  witliout  town- 
ship organization  through  a  popular  vote.  Act  of  IMay  10,  1901.  Session  Laws,  1901, 
county  in  19]2. 

♦Laws,  1903,  p.  305. 

"Laws,  1905,   p.  74. 

•Fourth   Report  of  111.  Highway   Com.,   1910-1911-1912,   p.   XV. 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  761 

study,  reported  to  the  following  legislature  (1913)  with  recommen- 
dations and  conclusions  and  a  draft  of  a  proposed  highway  law.  In 
substance  the  report  recommended  that  a  system  of  State  roads  be 
established,  improved  and  maintained  under  the  direction  of  a  State 
highway  commission  appointed  by  the  Governor.  It  further  provided 
for  the  creation  of  a  new  office  of  county  superintendent  of  highways 
and  the  substitution  of  an  elective  township  highway  engineer  for 
the  local  highway  commission.^  The  proposed  bill  accompanying  the 
report  was,  with  some  modification,  enacted  into  law  during  the  1913 
session  and  forms  the  basis  for  highway  administration  at  the  present 
time. 

B.    THE  STATE   HIGHW^AY   COMMISSION. 

I.   Organisation. 

Under  the  new  law,  the  State  Highway  Commission  is  the  central 
organ  of  highway  administration.  It  consists  of  three  members 
appointed  by  the  Governor  and  Senate.  They  must  devote  their  entire 
time  to  their  official  duties  during  their  term  of  office,  which  is  for  six 
years,  one  retiring  every  two  years.  The  Governor  designates  one 
member  as  president.  Not  more  than  two  members  of  the  Commis- 
sion may  be  of  the  same  political  faith.  The  president  receives  a  salary 
of  $5,000  and  the  other  Commissioners  each  receive  $3,500  and  neces- 
sary traveling  expenses.^ 

The  Commissioners  spend  about  four  days  per  week  in  the  per- 
formance of  their  duties.  About  half  of  this  time  is  occupied  with 
board  sessions,  held  every  week,  at  which  contracts  are  signed,  bids 
are  opened  and  improvements  for  State  aid  roads  approved,  etc.  Each 
Commissioner  signs  every  contract  and  all  blue  prints  of  plans  drawn 
by  the  engineer.  In  most  cases  signing  is  merely  perfunctory 
although  the  work  of  the  engineers  is  sometimes  modified  by  the  Com- 
mission. The  other  half  of  the  time  of  the  Commissioners  is  largely 
spent  in  visiting  county  boards,  explaining  the  road  laws  and  giving 
advice  and  suggestions  to  the  local  authorities.  Only  in  connection 
wdth  these  visits  is  any  attempt  made  to  apportion  the  work  of  the 
Commission  among  its  members. 

-?.  Functions. 

The  functions  of  the  State  Highway  Commission,  as  prescribed 
by  law  relate  to  the  following  general  subjects: 

(a)  Assistance  to  local  highv/ay  officials, 

(b)  Investigations  and  collection  of  statistics, 

(c)  Control  over  State  highway  officials, 

(d)  Supervision  of  State  aid  roads  and  bridges. 

These   functions  are   in  most   cases  actually  performed  by  the 
engineering  staff  or  county  superintendents,   subject  to  approval  by 
the  Commission. 
Assistance  to  Local  Officials. 

With  the  exception  of  its  power  to  prescribe  a  system  of  accounts 
the  State  Highway  Commssiion  is  given  no  direct  authority  over  the 

''Report  of  the  Joint  Legislative  Committee  of  tlie  47tli  Gen.  Assembly  on  County 
and  Township  Organization,  etc..   Vol.  1,   p.  84. 

sRoads  and  Bridges  Act,  approved  June  29,  1913,  Section  3. 


762  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

local  road  officials.  It  is,  however,  required  to  advise  and  aid  them  in 
various  ways  in  the  construction  of  local  roads  and  bridges,  in  estima- 
ting grades  and  preparing  drainage  systems.  When  requested  by  local 
officials  the  commission  must  have  prepared  plans,  specifications,  esti- 
mates of  cost,  etc.,  for  the  improvement  of  the  highways  and  the 
construction  and  maintenance  of  bridges.® 

The  most  effective  service  rendered  in  the  way  of  assisting  local 
highway  commissioners  is  performed  through  the  county  superinten- 
dent of  highw^ays,  and  is  described  more  definitely  in  connection  with 
the  duties  of  that  official.  The  commission  also  publishes  a  monthly 
periodical  devoted  to  Illinois  highways  which  contains  much  valuable 
information  designed  to  be  of  assistance  to  local  officials,  while  mem-" 
bers  of  the  engineering  staff  are  frequently  called  to  various  localities 
to  consult  with  commissioners  and  address  public  meetings. ^° 

Investigation  and  Experimentation. 

The  State  Highway  Commission  is  authorized  to  conduct  general 
investigations  to  determine  the  best  methods  for  the  construction  and 
maintenance  of  roads  for  various  sections  of  the  State,  and  collect 
statistics  and  general  information  relating  to  highways. ^^  This  con- 
stitutes the  bulk  of  the  work  carried  on  by  the  former  highway  com- 
mission under  the  law  of  1905  and  the  experimental  work  begun  then 
has  been  carried  on  without  interruption  by  the  present  commission. 
About  fifty  miles  of  experimental  concrete  and  macadam  roads 
have  been  constructed  under  the  present  law  in  Sangamon,  La  Salle, 
Madison  and  McLean  counties  for  the  purpose  of  experimentation  ;^- 
and  undertakings  started  prior  to  the  passage  of  the  present  law  have 
been  completed.  About  thirty-five  miles  of  roadway  in  various 
sections  of  the  State  were,  by  June  1,  in  process  of  construction. 
Prison  labor  is  sometimes  used  in  the  construction  of  experimental 
roads,  and  the  necessary  wagons,  scrapers,  rollers,  etc.,  are  furnished 
by  the  commission.  The  work  is  usually  placed  in  direct  charge  of 
a  roller  operator.  After  construction  annual  investigations  are  made 
to  determine  the  condition  of  the  roads  and  a  record  is  kept  of  all  data 
valuable  for  purposes  of  determining  the  merits  of  the  various  kinds 
of  materials  used.^^ 

The  commission  also  continues  to  supervise  the  distribution  and  use 
of  penitentiary  stone  on  the  local  roads.  A  conference  was  held  in 
the  Governor's  office  on  January  8,  1914  to  discuss  the  general  ques- 
tion of  prison  service  in  connection  wnth  the  highways.  It  was  here 
decided  to  employ  prison  labor  wherever  desired  by  the  local  com- 
munities for  the  improvement  of  local  roads  with  crushed  stone  from 
the  penitentiary.  The  only  necessary  expense  for  the  local  community 
under  this  scheme  will  be  that  of  paying  transportation  charges  on  the 
penitentiary  stone,  machinery,  tools,  etc.,  furnished  by  the  State,  and 
the  expenses  of  engineers  from  the  State  Highway  Department  while 
engaged  in  supervising  the  work.    According  to  the  report  of  the  State 

"Roads  and   Bridges  Law,   Sec.  3D. 

^"Illinois   Highways,   Vol.    I,   April,    1914,   p.   4. 

iiRoad  Law,  Sec.  3D. 

i^Illinols  Highways,  April,  1914,  p.  4. 

i^Report  of  Engineer  in  111.  Highways,  June,  1914,  pp.  50-51. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  763 

Engineer  at  the  close  of  May,  1914,  arrangements  had  been  completed 
for  the  construction,  during  the  summer,  of  thirteen  miles  of 
macadam  at  Beecher  and  five  miles  at  Carbondale  with  prison  labor.^* 

Control  Over  State  Highway  Officials. 

So  far  as  control  through  appointment  and  removal  is  concerned, 
'the  State  Highway  Commission's  power  is  very  limited.  The  State 
Highway  Engineer  and  his  assistant  are  appointed  and  removed  directly 
by  the  Governor,  while  all  the  other  members  of  the  official  staff  are 
in  the  classified  civil  service.  However,  certain  regulative  powers  are 
vested  in  the  Commission  which  give  that  body  considerable  authority 
over  the  administrative  staff. 

In  the  first  place  it  is  authorized  to  prescribe  rules  and  regu- 
lations fixing  the  duties  of  all  the  State  highway  officials,  including 
the  county  superintendents.  By  July,  1914,  two  bulletins  had  been 
issued  by  the  Commission,^one  containing  general  suggestions  for  the 
guidance  of  the  county  superintendents,  and  the  other  more  specific 
rules  and  regulations  relating  to  the  duties  of  the  same  officials. 
Additional  bulletins  will  be  issued  containing  rules  to  apply  to  all  other 
State  highway  officials. 

The  Commission  has  also  auditing  control  under  a  provision  of 
the  law  which  requires  it  to  prescribe  a  system  of  auditing  and  account- 
ing for  all  highway  officials,  subject  to  the  condition  that  the  system 
as  prescribed  shall  be  as  nearly  uniform  as  practicable.  By  virtue  of 
this  authority  the  Commission  has  issued  some  general  orders  to  the 
county  superintendents  relating  to  the  keeping  of  letter  filing  systems, 
indices  to  approved  contracts,  etc.,  which  will  be  described  later. 
Blank  forms  have  also  been  prepared  by  the  State  Highway  Commis- 
sion for  the  keeping  of  local  road  and  bridge  accounts  by  the  town- 
ship and  district  officials. 

State  Aid  Roads. 

State  aid  roads  are  defined  by  the  Act  of  1913  as  all  roads  and 
bridges  constructed,  repaired,  or  improved  at  the  joint  expense  of  the 
State  and  any  county  or  count'es  within  the  State,  The  State  Com- 
mission is  given  final  control  over  all  matters  relating  to  the  estab- 
lishment, improvement  and  maintenance  of  such  roads. 

With  respect  to  the  establishment  of  the  State  aid  roads,  the 
county  board  has  initiatory  authority.  It  specifies  the  highways  within 
the  county  that  are  to  be  so  designated  but  the  total  mileage  of  such 
must  not  exceed  15,  20,  or  25  percent  of  the  total  road  mileage  of  the 
county, — the  exact  percentage  depending  upon  the  class  to  which  the 
county  belongs.  The  total  county  road  mileage  is  determined  by  the 
State  Highway  Commission  and  not  the  county  authorities. 

The  procedure  followed  in  establishing  State  aid  roads  is  as  fol- 
lows :  The  county  board  designates  on  a  map  the  highways  it  desires 
to  class  as  State  aid  roads  and  forwards  the  map  so  marked  to  the 
State  Highway  Commission.  That  body,  after  examination,  may 
approve  the  selection  of  the  roads  as  shown  on  the  map,  or  may,  if 
necessary,  change  the  proposed  routes  in  order  to  have  them  connect 

**"Illinois  Highways,"  June,  1914,  pp,  49-50. 


764  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

with  those  of  adjoining  counties.  After  having  been  duly  established 
the  State  aid  roads  do  not  immediately  pass  under  the  jurisdiction  of 
the  State  Highway  Commission,  but  remain  subject  to  the  supervision 
of  the  local  highway  commissioners  until  they  are  actually  improved 
at  the  joint  expense  of  the  county  and  State.^^ 

The  State  Commission  not  only  controls  the  establishment  of^ 
State  aid  roads  but  has  final  control  over  the  question  of  improving' 
them.  Here  again  the  county  board  takes  the  initiative  by  deciding 
upon  the  sections  to  be  improved.  A  record  of  their  action  is  trans- 
mitted to  the  State  Highway  Commission  which  makes  an  investiga- 
gation  of  the  roads  under  consideration  and  approves  or  disapproves. 
If  its  action  is  favorable,  plans  and  estimates  of  the  costs  are  prepared 
by  the  State  Highway  Engineer  and  endorsed  by  the  Commission 
which  then  issues  a  final  order  authorizing  the  construction.  This 
completes  the  commission's  part  in  the  procedure;  but  before  work  is 
actually  begun  the  county  board  must  also  approve  of  the  plans  and 
officially  authorize  the  improvement.  The  State  Commission's  consent 
is  necessary  for  any  changes  in  plans  that  may  later  be  proposed. 

All  contracts  for  the  construction  and  improvement  of  State  aid 
roads  are  let  by  the  State  Highway  Commission.  The  Commission 
must  be  sure  there  are  sufficient  funds  at  its  disposal  to  defray  the 
State's  share  of  the  cost  before  it  may  enter  into  a  contract.  When 
improvements  are  contemplated  the  State  Highway  Engineer  draws 
up  the  plans  and  the  Commission  advertises  for  proposals  on  the  basis 
of  these  plans  but  others  may  be  received  and  considered.  The  adver- 
tisements must  be  published  at  least  once  a  week  for  two  consecutive 
weeks  in  a  newspaper  of  the  county  interested  and  in  others  at  the 
discretion  of  the  Commission.  The  final  award  of  the  contract  goes 
to  the  lowest  responsible  bidder  unless  the  Commission  sees  fit  to  reject 
all  proposals  and  re-advertise.  If  none  of  the  second  set  is  acceptable, 
the  State  may  itself  proceed  with  the  construction. 

Finally  the  State  Highway  Commission  has  authority  to  accept 
or  reject  the  Improvement  on  a  State  aid  road.  After  completion  of 
the  improvement  and  after  Inspection  thereof  and  a  report  thereon  by 
the  State  Highway  Engineer  the  Commission  takes  official  action  and 
communicates  its  decision  to  the  contractor  and  to  the  County  Clerk. 
Payment  for  work  under  contract  may  not  be  made  by  the  auditor 
except  when  authorized  by  the  Commission. 

The  State  Highway  Commission  Is  also  required  to  keep  State 
aid  roads  in  repair.  Although  the  Commission  is  thus  responsible 
for  maintenance,  It,  of  course,  discharges  its  duty  directly  through  the 
Engineer  and  his  subordinates. 

The  preliminary  work  of  establishing  the  State  aid  roads  is  now 
nearing  completion.  By  April,  1914,  maps  designating  the  roads  had 
been  received  and  approved  from  ninety-two  of  the  one  hundred 
and  two  counties  of  the  State  and  two  of  the  remaining  ten  were 
preparing  the  maps.  With  but  few  exceptions  maps  were  approved 
as  they  were  submitted  by  the  county  board.     Moreover  forty-eight 

i"0nce  fixed,  routes  designated  as  State  aid  roads  may  not  be  changed  within 
three  years,  but  if  the  county  board  has  not  designated  the  total  mileage  allotted 
to  the  county,  the  State  Commission  may  add  roads  sufficient  to  make  the  required 
total. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS. 


765 


counties  liad  submitted  to  the  Commission  resolutions  designating  the 
sections  of  State  roads  upon  which  improvement  was  desired  during 
the  coming  two  years."  ^ 

For  a  time  the  actual  work  of  construction  was  threatened  with 
interference  by  litigation  involving  the  constitutionality  of  the  road 
law  but  the  decision  of  the  Supreme  Court  of  the  State,  rendered  June 
14.  1914,  sustained  the  Act."  By  the  first  of  June  all  the  necessary 
surveying,  etc.,  had  been  completed  for  approximately  fifty  miles  of 
roads  in  eighteen  counties,  and  the  Commission  was  ready  to  proceed 
with  construction.  Surveys  had  been  made  of  a  toUl  of  one  hundred 
and  thirty  miles  of  roads. 

By  the  end  of  1914  State  aid  routes  in  ninety-four  counties  had 
been  agreed  upon  between  the  county  board  and  the  State  Commis- 
sion, and  contracts  had  been  awarded  on  sections  of  roads  in  forty- 
eiglit  counties  having  a  total  length  of  91.27  miles. 

5.  Engineering  Staff. 

The  law  provides  for  a  Chief  State  Highway  Engineer,  an  Assis- 
tant State  Highway  Engineer  and  such  other  officers  and  employes 
as  may  be  deemed  necessary  by  the  State  Commission.  The  Chief 
Engineer  and  his  assistant  are  appointed  by  the  Governor  for  six  (6) 
year  terms,  and  are  removable  by  the  Governor  for  incompetency, 
neglect  of  duty  or  malfeasance  in  office.  The  rest  of  the  members  of 
the  stafif  are  subject  to  the  classified  civil  service.  The  central  offices 
of  the  engineering  staff  are  situated  in  Springfield  with  the  Chief  State 
Highway  Engineer  in  charge.  With  him  there  is  the  Assistant  "State 
Highway  Engineer,  a  road  engineer,  a  bridge  engineer,  and  two  assist- 
ant engineers.  In  addition  to  the  central  office,  there  is  a  branch  office 
in  each  of  seven  divisions  of  the  State  and  a  division  engineer  placed 
in  charge.  At  present  the  division  engineers  are  in  the  Springfield  office 
but  ultimately  their  offices  are  to  be  located  at  Aurora,  Paris.  Rock 
Island.  Peoria,  Springfield,  East  St.  Louis  and  Marion.     The  division 

I'Following   is   .<i   list   of  the   counties   with    the   number   of   miles   in   each    to    be 
improved,   as   published  in   Illinois   Highways,   April,   1914,   page  4. 


Sangamon 


Clark 


Peoria    3  DuPage    ^ 

Saline    iV^  Henry    ^ 

Vermilion    4  Grundy     -^  -2 

Coles    IV2  Kendall    ^ 

Crawford   4yo  Pike 1/2 

Bond    1  P'\'^^V     1 

Livingston    3  Schuyler    1 

Franklin    -[V2  Tazewell    -/u 

Madison   4  White ^ 

Monroe   1  Whiteside    2'/o 

Clinton    iy2  Boone J 

Iroquois  6  Champaign   •> 

DeKalk     31/2  Cay     l 

Marshall    IV2  Clinton    I 


Lake    3  Edgar   3 

Kane    5  Lee     -  -^ 

Ofrip  3  McHenry    J,, 

rfrroi :'.■.: 1V>  Rock  Island   II2 

Cass  1  Stark    1 

Adams    2  Warren     -/2 

Scott    1  St.  Clair  _3 


Stephenson    2  Cook    ■ -21 

wSord'::::::::::::::::::::::::::  I       ^otai  Mileage uv 

i^Decision   printed   in   Illinois   Highways,   June,   1915,   pp.  66-68. 


766  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

engineer  has  supervision  over  State  aid  construction  and  maintenance 
within  his  district.  The  county  superintendent  has  direct  charge  within 
the  county. 

Following  is  a  ttst  of  the  officials  and  employes  provided  for  in 
the  biennial  appropriation  for  1913-15  together  with  the  salaries: 

State   Engineer $4,000 

Road  Engineer   '■ 2,520 

Bridge  Engineer  2,400 

Assistant  Engineers  (3)   each 2.000 

Assistant  Engineers   (2)   each 1,800 

Assistant  Engineers   (3)   each 1,500 

Assistant  Engineer 1,680 

Stenographers  (2)  each 1,000 

Stenographers    (2)    each 900 

Office  Assistants   (2)   each 600 

Messenger  800 

The  Chief  State  Highway  Engineer  is  the  administrative  and  tecli- 
nical  expert  of  the  State  Highway  Commission.  His  duties  are  pre- 
scribed by  the  rules  and  regulations  of  the  Commission.  Subject  to 
the  approval  of  that  body  he  has  a  large  degree  of  supervisor}^  author- 
ity over  the  construction  and  maintenance  of  State  aid  roads.  In  con- 
nection with  the  improvement  of  such  roads,  it  is  his  duty  to  draw  up 
plans  and  specifications  and  estimates  of  costs  and  transmit  his  figure? 
in  the  form  of  a  report  to  the  Commission  for  approval.  A\'hen  author- 
ized by  the  Commission  he  takes  charge  of  the  maintenance  and  repair 
of  the  State  roads  and  bridges  and  employs  the  necessary  labor.  _  He 
acts  as  chief  of  the  county  highway  superintendents,  and  may  direct 
them  to  visit  and  inspect  the  highways  and  bridges  in  the  various  towns 
or  districts  of  the  county.  No  general  regulations  have  as  yet  been 
issued  by  the  Highway  Commission  covering  the  specific  duties  of  the 
Chief  Engineer  or  his  subordinates. 

C.    COUNTY  SUPERINTENDENT   OF   HIGHWAYS. 

/.   Organization. 

For  each  county  of  the  State  there  is  selected  a  county  superin- 
tendent of  Highways,  who  serves  for  six  years.  His  salary  is  fixed 
by  the  countyboard  and  is  payable  out  of  the  general  funds  of  the 
county.  The  county  board  may  also  remove  him.  The  method  of 
appointment  provided  is  as  follows :  The  county  board  of  each  county 
nominates  from  three  to  five  persons,  residents  of  the  county.  The 
persons  so  nominated  are  subjected  to  an  examination  prescribed 
by  the  State  Highway  Commission  and  those  found  eligible  for  the 
office  are  certified  back  to  the  respective  county  boards  who  then  make 
the  appointment  from  the  certified  list.  Tf  no  one  is  found  eligible 
from  the  first  list  submitted  by  any  county,  the  county  board  sub- 
mits, for  examination,  a  second  list  of  from  three  to  five  names.  If 
none  of  these  qualify  under  the  State  examination,  then  the  county 
board  is  authorized  to  appoint  a  non-resident  of  the  county  who  has 
successfully  passed  the  examination  prescribed  by  the  State  Commis- 
sion. 

The  law  providing  for  the  creation  of  the  office  of  county  super- 
intendent has  been  in  operation  less  than  a  year.    Most  of  this  time  has 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  7(^7 

been  occupied  in  effecting  the  necessary  organization.  Examinations 
for  positions  of  county  superintendents  were  lieid  by  the  State  High- 
way Commission  in  October,  November  and  JJecember  of  1913  and 
January  and  March,  1914.  A  total  of  395  candidates  appeared  of 
which  159  were  placed  on  the  eligible  list.  On  June  1,  ninety-six 
counties  had  selected  county  superintendents,  and  by  December,  all  but 
three  of  the  102  counties  had  made  appointments. 

2.  Functions. 
State  Aid  Roads. 

The  county  superintendent  may  be  regarded  as  both  a  State  clhcial 
and  a  local  official.  As  a  State  ofticial  he  acts  as  the  local  representative 
of  the  State  Highway  Commission.  As  such  he  takes  charge  of  the 
maintenance  and  repair  of  all  State  aid  roads  subject  to  supervision 
by  the  State  Highway  Engineer.  He  receives  orders  from  the  Com- 
mission or  the  Engineer  and  his  actions  are  subject  to  supervision  by 
them  in  all  matters  pertaining  to  State  aid  roads.  In  general  he  serves 
as  the  connectmg  link  between  State  authorities  and  local  authorities. 

County  Roads  and  Bridges. 

By  county  roads  and  bridges,  as  here  used,  is  meant  those  roads 
and  bridges  that  are  constructed  and  maintained  at  the  expense,  either 
wholly  or  in  part,  of  the  county.  All  work  of  this  nature  is  under  the 
supervision  of  the  county  superintendent.  Should  the  county  board 
decide  to  build  a  bridge  within  the  county  and  pay  the  entire  cost  it 
is  the  duty  of  the  county  highway  superintendent  to  prepare  plans  and 
specifications  for  the  structure  and  submit  the  same  for  the  approval 
of  the  State  Highway  Engineer.  He  also  prepares  the  plans  and  speci- 
fications and  supervises  the  construction  and  maintenance  of  roads  and 
bridges  constructed  at  the  joint  expense  of  the  county  and  a  town  or 
road  district  therein.  He  must  inspect  all  such  improvements  after 
their  completion  and  his  properly  certified  acceptance  of  the  work  is 
necessary  before  payment  is  made  on  the  contract. 

All  plans  for  bridges  submitted  by  the  county  superintendent  for 
the  approval  of  the  State  Highway  Commission  must  be  accompanied 
by  an  exact  description  of  its  location,  showing  the  road  it  is  on, 
the  stream  it  spans  and  the  name  of  the  bridge,  if  it  has  a  local  name. 
Specific  directions  are  issued  by  the  Commission  relating  to  the  struc- 
ture of  such  bridge,  materials  used  for  substructure  and  superstructure 
and  the  bridge  designs.'^ 
Local  Roads  and  Bridges. 

Most  of  the  functions  of  the  county  superintendent  that  deal  with 
local  highways  are  purely  advisory.  He  is  required  to  advise  anu  direct 
the  local  commissioners  as  to  the  best  methods  of  repair,  mdintenance 
and  improvement  of  roads  and  bridges;  but  no  method  is  provided  for 
enforcing  his  directions  should  the  commissioners  see  fit  to  disregard 
them.  It  is  for  this  reason  that  the  superintendent  is  instructed,  in 
the  regulations  of  the  State  Highway  Commission,  to  approach  the 

"Rules    and    Regulations    for    tlie    guidance    of    county    superintendents— Bridge 
Design,  issued  by  State  Highway  Commissioa,  February  4,  1914,  pp.  4-5. 


768  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

local  problem  in  the  spirit  of  cooperation  with  the  highway  commis- 
sioners rather  than  one  of  dictation.  Hence  one  of  the  first  duties 
of  tlie  county  superintendent  is  made  that  of  arranging  meetings  with 
the  commissioners  of  each  township  or  district  in  order  to  discuss 
the  best  methods  of  improvement,  this  to  be  followed  by  a  joint  meet- 
ing of  all  highway  commissioners  of  the  county. 

The  law  requires  the  county  superintendent  to  inspect,  at  least 
annually,  and  at  other  times  on  the  direction  of  the  State  Highway 
Commission  or  the  State  Engineer,  all  roads  and  bridges  in  each  town- 
ship or  district  in  his  county.  The  inspection  trip  is  to  be  made  in 
each  town  or  district  in  company  with  the  commissioner  thereof.  The 
object  of  these  inspections  is  not  only  to  acquaint  the  county  super- 
intendent with  local  conditions  but  also  to  enable  him  to  suggest  proper 
methods  of  improvement  of  road  conditions. 

In  connection  with  the  work  of  inspection  should  be  mentioned 
that  of  preparing  maps  of  the  county  drawn  to  a  scale  of  three 
inches  to  the  mile  and  of  sufficient  size  to  accommodate  a  township  on 
each  sheet.  Blueprints  of  these  maps  are  prepared  in  the  State  office 
at  Springfield  and  are  furnished  to  each  local  highway  commissioner 
and  town  clerk  of  the  county.  These  maps  enable  the  State  officials 
to  know  all  details  of  the  local  roads  and  keep  in  close  touch  with  the 
work  of  construction  and  improvement.  This  is  very  important  in 
assisting  in  determining  proper  materials  for  local  communities. 

In  one  respect  the  county  superintendent  possesses  a  legal  power 
which  gives  him  important  possibilities  of  control  over  local  roads 
and  bridges.  His  approval  must  be  had  of  all  contracts  entered  into 
by  the  local  highway  commissioners  for  the  construction  or  main- 
tenance of  any  road  or  bridge  the  cost  of  which  is  in  excess  of  $200. 
He  must  also  approve  of  purchases  of  machinery  or  other  appliances 
used  in  road  construction  where  the  cost  exceeds  $200.  These  two 
requirements  provide  for  fairly  effective  control  over  financial  transac- 
tions of  any  importance. 

The  law  requires  the  county  superintendent  to  make  all  such  con- 
tracts approved  by  him  matters  of  record.  He  must  record  the  date 
of  the  contract,  the  date  of  approval,  name  of  town,  name  of  con- 
tractor, materials  or  work  for  which  the  contract  was  made,  the  price 
and  other  matters  of  importance.  All  such  information  must  be  kept 
in  a  special  volume  and  indexed. 

The  law  also  authorizes  the  county  superintendent  of  highways  to 
hear  and  decide  appeals  from  the  preliminary  and  final  orders  of  the 
local  commissioners  of  highways  relating  to  the  laying  out,  alteration 
or  vacation  of  local  roads. 

D.    LOCAL    HIGHWAY    ADMINISTRATION. 

Only  brief  mention  need  be  made  of  local  administration.  For 
purposes  of  local  organization  the  law  recognizes  two  distinct  types 
of  counties.  In  those  counties  organized  under  the  township  form  of 
government  the  township  is  made  the  unit  for  highway  purposes.  In 
those  counties  not  so  organized  the  county  board  is  required  to  create 
road  districts  approximating  in  size  the  congressional  township.     The 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  769 

district  boundaries,  once  lixcd,  can  be  changed  by  tlie  county  only  on 
petition  of  at  least  twenty  voters  of  the  road  district  aiiected  and 
after  due  public  notice.  However,  the  organization  provided  for  the 
township  and  that  for  the  road  district  in  counties  without  township 
government  are  similar  and  the  two  may  be  described  together. 
H  ig  hzvay  C  o  m  n  i  is  si  o  n  e  rs . 

Within  each  township  or  road  district  there  is  elected  by  popular 
vote  a  board  of  highway  commissioners,  consisting  of  three  mem- 
bers, one  being  elected  each  year  for  a  term  of  three  years.  Under 
township  organization  the  election  take  place  at  the  annual  town  meet- 
ing on  the  first  Tuesday  in  April ;  in  road  districts  at  a  regular  annual 
election  on  the  same  date.  The  salary  of  the  commissioners  is  fixed 
at  two  dollars  per  day  for  time  necessarily  employed  in  the  discharge 
of  their  official  duties.  In  place  of  the  board  of  three  commissioners, 
any  township  or  road  district  may  elect  to  choose  a  single  commis- 
sioner. This  may  be  done  by  a  petition  signed  by  twenty-five 
legal  voters  of  the  town  or  district  addressed  to  the  town  or  district 
clerk  and  asking  for  a  referendum  on  the  question  of  adopting  tht 
single  commissioner  system  in  lieu  of  the  board  system.  About  one 
hundred  townships  have  adopted  the  single  commissioner  plan. 

The  functions  of  the  highway  commissioners  may  be  summarized 
briefly.  They  are  authorized  to  determine  poll  and  general  taxes  for 
road  purposes  and  the  payment  of  damages ;  to  submit  questions  of 
issuance  of  loans  to  a  popular  vote;  and  to  supervise  expenditures. 
They  are  given  jurisdiction  over  the  establishment  of  local  roads, 
powers  of  direction  over  their  construction  and  maintenance  and  per- 
form miscellaneous  services  of  lesser  importance. 
Clerk  of  Highway  Commissioners. 

Under  the  township  system  the  town  clerk  serves  ex-officio  as 
clerk  of  the  board  of  highv/ay  commissioners,  wlule  for  each  road 
district  a  district  clerk  is  elected  for  a  term  of  three  years.  The 
compensation  of  the  clerk  is  fixed  at  $3  per  day  for  time  actually 
employed  in  attending  the  meetings  of  the  commission  or  in  attending 
to  his  clerical  duties.  He  is  required  to  attend  the  sessions  of  the 
commission  and  keep  a  record  of  the  proceedings.  He  acts  as  cus- 
todian of  all  records,  books,  and  papers  of  his  town  or  road  district. 
Treasurer. 

In  counties  under  township  organization  the  town  supervisor  is 
ex  officio  treasurer  of  the  road  and  bridge  fund.  In  other  counties 
the  district  clerk,  chosen  as  above,  acts  as  treasurer  for  his  district. 
He  is  paid  on  the  commission  basis,  being  entitled  to  two  percent  on 
all  amounts  paid  out  by  him  up  to  and  including  $2,000  and  one  per- 
cent on  all  amounts  above  that  sum,  not  including  balances  paid  his 
successor  or  amounts  paid  in  liquidation  of  debts.  The  above  is 
exclusive  of  any  compensation  to  which  he  may  be  entitled  because 
of  other  duties  performed  in  some  other  official  capacity. 

E.    METHODS    OF    FINANCING    HIGHWAY    ADMINISTRATION. 

State  aid  roads  are  constructed  and  maintained  at  the  joint  expense 
of  the  State  and  county,  each  contributing  one-half  of  the  total  cost. 


770  EFFICIENCY    AND    ECONOMY   COMMITTEE. 

Payments  for  the  State's  share  are  made  from  appropriation  by  the 
legislature  to  the  road  and  bridge  fund.  The  revenues  from  auto- 
mobile licenses  and  similar  fees  as  well  as  the  general  tax  receipts  are 
utilized  for  road  purposes.  T^or  the  biennium  1913-15  a  total  of  $1,- 
100,000  was  appropriated  for  road  construction  and  maintenance, 
$800,000  of  which  is  from  money  available  from  license  fees  and  $300,- 
000  from  general  taxes.  This  sum  is  allotted  to  the  various  counties 
in  proportion  to  the  amount  of  road  and  bridge  tax  levied  in  the 
county  as  shown  by  the  published  reports  of  the  Auditor  of  Public 
Accounts  for  the  preceding  year.  Under  a  special  provision  Cook 
county  received  twenty-five  percent  of  the  amount  collected  within 
the  county. 

After  the  allotment  is  made  by  the  State  for  each  county  it  is 
the  duty  of  the  county  to  take  the  necessary  steps  to  raise  an  amount 
equal  to  the  State  allotment.  If  it  neglects  to  do  so  within  six  months 
it  forfeits  its  allotment  which  is  then  apportioned  among  the  other 
counties. 

The  county's  share  of  the  cost  of  State  aid  roads  may  be  provided 
by  appropriation  from  available  funds,  by  the  assessment  of  a  tax, 
by  voting  a  special  tax,  or  by  issuing  bonds.  If  the  road  is  a  county 
line  road  the  county  boards  of  the  two  counties  aiTected  fix  the  pro- 
portionate share  of  one-half  of  the  total  cost  which  shall  be  borne  by 
each.  Bonds  may  be  issued  in  the  same  manner  as  provided  for  the 
issuance  of  county  bonds  for  other  purposes.  The  county  board  causes 
the  question  of  their  issuance  to  be  submitted  to  the  voters  of  the 
county. 

County  boards  are  authorized  to  construct  and  maintain  hard  roads 
at  the  entire  expense  of  the  county  in  which  case  the  money  may  be 
raised  either  by  the  vote  of  a  special  tax  or  by  bond  issues. 

The  problem  of  financing  local  construction  and  maintenance 
devolves  upon  the  township  or  road  district.  A  poll  tax  is  authorized 
but  may  be  dispensed  with.  A  general  property  tax  levy  up  to  sixty-one 
cents  on  each  $100  valuation  is  authorized ;  an  additional  levy  up  to 
twenty  cents  on  each  $100  valuation  may  be  made;  and  by  popular 
vote,  bonds  may  be  issued  for  bridges  or  a  special  tax  may  be  levied 
for  hard  roads. 

F.    SUMMARY   AND   CONCLUSIONS. 

Only  within  the  last  ten  years  has  the  State  taken  any  definite 
steps  to  treat  the  problem  of  road-making  as  a  State  problem. 
A  small  beginning  in  this  direction  in  1903  culminated  in  1913,  in  the 
passage  of  the  Tice  Road  Law,  which  provides  for  the  establishment 
of  a  comprehensive  system  of  roads  at  the  joint  expense  of  the  county 
and  State.  To  administer  these  roads  there  was  created  a  State  High- 
way Commission,  appointed  by  the  Governor,  and  a  State  Highway 
Engineer  and  assistant  who  act  as  the  administrative  officers  of  the 
Commission.  Each  county  has  a  county  superintendent  of  highways 
who  serves  as  a  local  agent  for  the  State  officials,  as  administrator  of 
county  roads  and  bridges,  and  as  general  adviser  for  local  highway 
commissioners. 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  771 

During  the  period  in  which  the  law  has  been  in  operation  (Janu- 
ary, 1915)  the  State  machinery  provided  for  has  been  organized  and 
99  of  the  102  county  superintendents  have  been  chosen.  Construction 
and  repair  of  experimental  roads  has  continued.  State  aid  roads  have 
been  established  in  94  counties,  and  48  of  these  counties  have  designated 
the  sections  of  State  roads  they  desire  to  have  improved.  The  State 
engineers  have  proceeded  to  examine  the  roads  so  selected,  have  com- 
pleted 130  miles  of  surveying  and  have  drawn  up  and  completed  plans 
and  contracts  have  been  made  for  about  90  miles  of  these  roads. 

The  new  road  law  has  not  been  in  operation  a  sufficient  length  of 
time  to  warrant  any  conclusions  as  to  results.  It  represents  a  long 
step  in  the  direction  of  effective  central  supervision  and  control,  the 
need  of  which  has  long  since  been  demonstrated.  The  State  Commis- 
sion has  recently  prepared  a  map  showing  the  highways  that  have  been 
established  as  State  aid  roads.  A  study  of  this  map  reveals  some 
routes  that  extend  with  some  degree  of  continuity  through  the  State 
or  connecting  important  points  within  the  State.  There  are,  how- 
ever, several  indications  of  the  fact  that  the  system  was  designed 
by  94  different  authorities  (8  counties  had  not  established  State  aid 
roads).  The  system  resembles  not  so  much  a  State  system  as  a  group 
of  local  systems  more  or  less  effectively  connected.  Such  a  result  was 
inevitable  and  perhaps  unavoidable. 

The  situation  is  even  less  satisfactory  when  the  question  of 
improving  the  State  aid  roads  is  considered.  The  county  authorities 
determine  the  sections  to  be  improved.  The  biennial  allotment  to  each 
county,  in  most  instances,  is  sufficient  to  construct  only  a  few  miles  of 
roads  and  these  few  miles  may  be  distributed  to  various  sections  of 
the  county.  Many  years  must  elapse  before  all  State  aid  roads  can 
be  improved.  In  the  meantime  millions  of  dollars  will  be  expended  in 
constructing  disconnected  stretches  of  roads  scattered  everywhere  and 
leading  nowhere.  Improvement  should  be  confined  at  first  to  important 
roads  that  form  through  routes  and  to  this  end,  the  State  Highway 
Commissioners  should  have  power  not  only  to  alter  the  location  of 
State  aid  roads  as  fixed  by  the  county  boards,  but  likewise  to  designate 
what  routes  shall  be  improved  first. 

There  may  be  some  question  whether  the  organization  provided 
to  administer  the  State  aid  roads  is  best  adapted  to  that  end.  After  a 
careful  summary  of  the  work  to  be  performed  by  the  central  authori- 
ties there  seems  to  be  little  justification  for  a  board  or  commission  in 
direct  charge.  The  only  important  functions  to  be  performed  that 
might  make  a  board  necessary  or  desirable  relate  to  the  establishment 
of  State  aid  roads,  the  apportionment  of  highway  funds  among  local- 
ities, and  the  issuance  of  rules  and  regulations  governing  the  powers 
and  duties  of  the  subordinate  officers  of  the  department.  With  respect 
to  the  establishment  of  State  aid  roads  there  is  little  to  be  done  by  the 
State  authorities  beyond  seeing  that  the  roads  selected  by  the  counties 
connect  with  each  other.  The  duty  of  apportioning  State  money  is 
merely  perfunctory,  while  the  rules  and  regulations  relate  largely  to  the 
duties  of  the  county  superintendents  and  consist  principally  of  engi- 
neering technique  in  road  and  bridge  construction  and  maintenance. 


772  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

So  far  those  that  have  been  issued  were  prepared  by  the  State  engi- 
neer and  merely  approved  by  the  Commission.  The  departmental  duties 
relate  almost  exclusively  to  administration  in  a  field  requiring  expert 
engineering  skill.  It  would  seem,  therefore,  that  greater  efficiency 
might  be  obtained  if  direct  administration  of  the  highways  were  placed 
in  the  hands  of  a  single  commissioner  chosen  on  the  basis  of  his 
technical  knowledge,  with  the  approval  of  some  higher  authority  for 
certain  actions  of  most  importance. 


II.  WATER  RESOURCES. 

A.    GENERAL  REMARKS. 

Jurisdiction  over  the  waters  and  waterways  of  the  United  States 
is  vested  in  the  several  states,  subject  only  to  national  authority  over 
navigable  streams  in  the  interest  of  interstate  commerce  and  oyer  the 
waters  on  public  lands  and  international  boundaries.  In  Illinois  it 
would  seem  that  the  rights  of  the  public  with  respect  to  the  water 
resources  was  not  until  recently  very  fully  recognized  either  in  the 
laws  or  in  the  decision  of  the  courts."  Primary  interest  seems  to 
have  been  centered  upon  the  p-otection  of  private  property  rights  along 
the  shores  and  beds  of  streams  rather  than  safeguarding  public  interests 
In  1842  the  State  Supreme  Court  held,  in  Middleton  v.  Pritchard.^" 
that  the  streams  of  Illinois  were  non-navigable  in  law  and  that  the 
riparian  rights  of  private  owners  extended  to  the  middle  of  the  chan- 
nel.   This  rule,  however,  was  not  applied  to  lakes  and  ponds. 

There  are  some  indications,  however,  of  a  recognition  of  public 
interests  in  the  waterways  even  in  the  earliest  legislation.  In  1819 
condemnation  of  private  property  was  authorized  for  the  construction 
of  a  dam  for  a  grist  mill.  The  public  character  of  the  grist  mill  was 
made  the  justification  for  such  action.  Legislation  of  this  sort  was 
very  common  during  the  30's  and  40's.  But  more  recently  the  courts 
have  held  that  the  extension  of  the  right  of  eminent  domain  for  dams 
for  other  purposes  is  unconstttutional.^^  In  1889  the  use  of  water 
for  domestic  purposes  was  given  precedence  over  its  use  for  purely 
private  enterprises.^-  As  a  recognition  of  the  public's  interest  in  the 
use  of  waters  for  navigation  the  State  early  embarked  on  a  broad 
program  of  stream  improvements  at  the  expense  of  the  public.  Most 
of  these  projects  were  dropped  within  a  few  years. 

At  present,  the  State's  authority  over  water  resources  is  lodged 
in  two  important  commissions, — the  Illinois  and  Michigan  Canal  Com- 
missioners and  the  Rivers  and  Lakes  Commission.  Besides  these,  how- 
ever, there  are  many  other  offices  that  perform  functions  directly 
related  to  the  subject,  among  them  being  the  Fish  and  Game  Commis- 
sion, the  State  Board  of  Health,  State  Water  Survey,  Natural  History 
Laboratory,  Public  Utilities  Commission  and  State  Geological  Survey. 
The  relative  importance  of  the  functions  performed  by  each  of  these 
bodies  will  be  explained  in  the  following  pages. 

lOFairlie,  J.  A.— Public  Control  of  Water  Supplies  in  Illinois,  in  Proceedings  of 
the  Illinois  Water  Supply  Association,  Sixth  Meeting,  p.  87. 
^'S,    Scammon    (4,    111.),   509. 

2iGaylord   v.   Sanitary   District,   214  III.   576    (1903). 
"Elgin  V.  Elgin  Hydraulic  Co.,  85  111.  App.  182. 


774  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

B.       ILLINOIS   AND   MICHIGAN    CANAL   COMMISSIONERS. 

Introduction. 

The  Illinois  and  Michigan  Canal  is  an  artificial  waterway  96  miles 
long  connecting  the  Chicago  and  the  Illinois  Rivers.  The  total  cost 
of  construction,  including  interest  on  loans,  aggregated  more  than 
$13,393,000.  The  section  of  the  canal  extending  from  the  Chicago 
River  to  Joliet  has  been  abandoned  but  connections  are  made  near  the 
latter  place  with  the  Chicago  Sanitary  Canal,  thereby  still  affording 
a  through  waterway  for  traffic.  The  canal,  therefore,  is  only  a  por- 
tion of  the  present  waterway  which  consists  of  a  stretch  of  32  miles 
from  Chicago  to  Joliet  (or  thereabouts)  via  the  Sanitary  Canal ;  thence 
63  miles  from  Joliet  to  LaSalle  along  the  Illinois  and  Michigan  Canal, 
where  it  enters  the  Illinois;  and  finally  along  the  Illinois  River  from 
LaSalle  to  Grafton  at  the  mouth  of  the  Illinois,  a  distance  of  223 
miles. 

Proposals  to  construct  a  waterway  leading  from  the  Lakes  to  the 
Mississippi  basin  began  soon  after  the  earliest  explorations  of  the 
French  ;  and  were  renewed  from  time  to  time  during  the  territorial 
period  of  Illinois.  In  1808  the  Illinois  waterway  project  was  urged 
in  Gallatin's  famous  report  on  Means  of  Communication;  and  from 
1818  to  1825  it  was  repeatedly  advocated  as  a  desirable  extension  of 
the  Erie  Canal  to  the  Gulf.  In  1822  the  U.  S.  Government  granted 
a  right  of  way  through  the  public  lands  of  a  ninety  foot  strip  on  either 
side  of  a  proposed  canal.  Five  years  later  (1827)  an  additional  grant 
was  made  to  the  State  of  alternate  sections  of  land  on  either  side  of 
the  right  of  way.  This  grant  was  made  subject  to  the  condition  that 
the  canal  when  completed  "shall  be  and  forever  remain  a  public  high- 
way for  the  purposes  of  the  government  of  the  United  States,  free 
from  any  toll  or  other  charge,  whatever,  for  any  property  of  the 
United  States,  or  persons  in  their  service,  passing  through  the  same." 
These  grants  were  followed  by  supplemental  legislation  in  1833,  1842, 
and  1854.  In  all  480,000  acres  were  granted  by  the  federal  govern- 
ment most  of  which  was  sold  to  pay  expenses  of  construction  of  the 
canal.  The  total  receipts  from  these  sales  have  been  about  $6,p00,000. 
At  present  there  remains  in  the  possee-^ion  of  the  canal  authorities  some 
lots  in  Chicago  and  Lockport  valued  at  about  $168,000. 

Aided  by  these  grants,  the  State  of  Illinois  took  definite  action  in 
1829  when  it  authorized  construction  although  actual  work  was  not 
begun  until  1836.    The  canal  was  finally  completed  and  ready  for  traffic 
by  1848. 
Organisation. 

Under  an  Act  of  1829  canal  administration  was  first  vested  in  a 
commission  of  three  appointed  by  the  Governor  and  Senate,  and 
to  serve  for  two  years.  Two  years  later  under  an  amendment 
to  the  original  act,  it  was  provided  that  one  of  their  number  should 
be  designated  by  the  Governor  as  superintending  commissioner,  who 
was  to  devote  his  entire  time  to  canal  affairs.  In  1833  the  office  of 
canal  commissioners  was  abolished;  but  was  recreated,  practically  in 
its   original    form,    in    1836,    and   in   the    following  year   was    made 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  775 

appointive  by  the  legislature  instead  of  by  the  Governor.  In  1843  the 
organization  was  again  changed  by  the  abolition  of  the  office  of  com- 
missioners, and  the  establishment  in  its  stead  of  a  Board  of  Trustees 
of  three  members,  one  appointed  by  the  Governor  and  two  selected 
by  the  subscribers  to  the  $1,600,000  canal  loan  authorized  in  the  same 
year.  This  Board  continued  to  manage  the  canal  until  1871  when 
jurisdiction  was  transferred  to  the  canal  commissioners  created  in 
1867  to  construct  the  Illinois  and  Mississippi  Canal. 

As  at  present  organized  under  an  act  of  1874,  jurisdiction  is 
vested  in  a  board  of  canal  commissioners  consisting  of  three  per- 
sons appointed  by  the  Governor  and  Senate  for  terms  of  two 
years.  The  Commissioners  must  give  bond  to  the  extent  of  $2,500 
and  receive  as  compensation  $5  per  day  for  each  day  actually  employed 
in  the  duties  of  the  ofihce.  The  commissioners  elect  annually  one  of 
their  number  as  president,  one  as  secretary  and  one  as  treasurer.  Two 
of  the  three  commissioners  constitute  a  quorum  for  the  transaction  of 
business.  Quarterly  meetings  are  required  and  others  may  be  held  at 
the  request  of  any  of  the  members. 

Following  is  a  list  of  officers  and  agents  employed  by  the  canal 
commissioners  in  1913,  together  with  salaries: 

General  Superintendent $2,500  per  annum 

Assistant    Superintendent 1,500     " 

Chief  Clerk  1,80Q     " 

Ass't  Clerk  and  Stenographer 1,600     "         " 

Attorney  1,500     " 

Assistant  Treasurer 360     "  " 

Collector  of  Tolls 1,080     " 

Collector  of  Tolls  (2)   each  $900 1,800     " 

Locktender  35  per  mo. 

Locktenders  (6)  each  $35  per  month  during  navigation. 

$25  per  month  during  winter  months. 
Locktenders   (3)    each  $50  per  month  during  navigation. 

$25  per  month  in  winter. 
Locktenders   (1)   each  $50  per  month  during  navigation 

$35  per  month  in  winter. 
Locktenders   (2)    each  $40  per  month  during  navigation. 

Powers,  duties  and  methods  of  procedure. 

The  jurisdiction  of  the  canal  commissioners  extends  over  the 
canal  proper;  lands  and  other  property  along  the  route  of  the  canal; 
over  the  Henry  and  Copperas  Creek  dams  and  locks  in  the  Illinois 
River;  and  also  over  a  set  of  locks  and  dams  on  the  Little  Wabash 
River  at  New  Haven  in  the  south  eastern  section  of  the  State.  The 
improvement  on  the  Little  Wabash,  however,  has  been  practically  aban- 
doned. No  attempt  is  made  to  maintain  the  lock  and  dam  there  and 
no  toll  office  is  operated. 

The  commissioners  have  general  control  and  management  of  the 
canal  with  its  feeders,  together  with  all  property,  locks,  dams  and  all 
other  improvements  of  the  navigation  of  the  Illinois  and  Little  W^ abash 
Rivers.     Specifically  its  powers  consist  of  the  following: 

1.  The  power  to  appoint  and  remove  at  pleasure  a  general  superintend- 
ent, collectors  and  other  oflficers  and  agents  they  may  deem  necessary, 
prescribe  their  duties  and  fix  their  compensation. 


776  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

2.  Power  to  prescribe  rules  and  regulations  governing  the  operation  of 
the  canal  and  canal  properties.  Printed  copies  of  these  rules  must 
be  posted  for  public  inspection  in  the  offices  of  the  tolls  collector. 

3.  Power  to  fix  rates  of  toll  and  collect  the  same. 

4.  Power  to  lease  canal  lands  and  lots  for  periods  not  longer  than  twenty 
years;  lease  water  power  and  lands  connected  therewith  to  the 
highest  bidder;  lease  to  the  highest  bidder  the  right  to  harvest  ice  in 
sections  not  exceeding  1,000  feet  provided  such  does  not  interfere  witli 
the  proper  management  of  the  canal. 

5.  Power  to  dispose  of  property  unnecessary  for  the  proper  management 
of  the  canal;  to  sell  canal  lots  and  lands  owned  by  the  state;  and  to 
sell  riparian  rights  along  the  Des  Plaines  River,  with  the  exception  of 
the  ninety  foot  strip  along  the  canal  used  in  connection  w'ith  water 
power.  Such  sales  must  be  at  public  auction  to  the  highest  bidder 
and  can  be  made  only  with  the  approval  of  the  Governor. 

It  is  the  duty  of  the  commissioners  to  see  that  the  canal  property 
is  kept  in  good  condition,  bring  suits  against  trespassers,  and  keep 
accurate  financial  accounts.  Balances  on  hand  at  the  close  of  the 
fiscal  year  must  be  handed  over  to  the  State  Treasurer  with  the  excep- 
tion of  small  sums  to  be  retained  for  purposes  of  repairs.  Annual 
reports  must  be  submitted  to  the  Governor  showing  summaries  of  all 
official  acts  during  the  year  and  financial  conditions.  Reports  must  also 
be  submitted  quarterly  to  the  Auditor  of  Public" Accounts  showing 
all  moneys  received  during  the  quarter  together  with  vouchers  for  all 
expenditures. 

The  headquarters  of  the  canal  commissioners  are  at  Lockport, 
Illinois,  w^iere  all  the  regular  meetings  of  the  commission  are  held. 
Meetings  are  called  about  once  every  two  weeks  at  which  vouchers 
are  approved,  lands  leased  and  the  regular  business  of  the  commis- 
sioners transacted. 

The  corps  of  officers  and  employes  in  the  Illinois  and  Michigan 
Canal  service  is  established  and  its  personnel  fixed  by  the  commis- 
sioners. At  present,  in  addition  to  the  locktenders,  collectors,  and 
clerical  force,  whose  duties  are  obvious,  there  is  an  assistant  treasurer, 
attorney,  assistant  superintendent  and  superintendent.  The  superin- 
tendent is  presumed  to  have  general  charge  of  canal  administration. 
He  gives  his  entire  time  to  the  canal  service  and  acts  as  general  execu- 
tive for  the  commissioners.  He  employes  the  clerical  assistants,  labor- 
ers, etc.,  signs  all  warrants  or  vouchers  for  expenditures  and  submits 
the  same  to  the  commissioners  for  their  signatures  and  approval,  and 
subject  to  approval  by  the  commission,  takes  all  necessary  steps  'in 
carrying  out  and  enforcing  the  orders  of  the  commissioners.  The 
superintendent's  office  is  located  in  Lockport. 

The  assistant  superintendent  is  also  chosen  by  the  canal  commis- 
sioners, and  is,  nominally,  subject  to  the  orders  of  the  superintendent. 
It  is  difficult  to  differentiate  between  the  work  of  the  assistant  super- 
intendent and  that  of  his  chief.  The  assistant  hires  labor  to  carry  on 
general  constructive  work  and  maintenance  and  repair  operations, 
sometimes  independently  of  the  superintendent  and  even  without  his 
knowledge.     At  present  his  headquarters  are  in  Ottawa. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS. 


777 


Each  year  warrants  for  labor  service  on  the  canal,  exclusive  of 
the  salaries  of  regular  officials,  are  drawn  for  about  equal  amounts 
by  the  Superintendent  and  his  assistant.  Large  sums  are  also  expended 
by  the  collector  at  Ottawa  for  labor  service. 

Neither  the  Superintendent  nor  the  assistant  superintendent  is  an 
engineer.  There  is  in  fact  no  engineer  attached  to  the  office  or  con- 
nected with  canal  administration.  It  is  of  interest,  however,  to  note 
that  the  present  general  superintendent  has  enlisted  the  cooperation 
of  the  Rivers  and  Lakes  Commission  which  has  detailed  an  engineer 
from  its  office  to  make  an  investigation  of  the  records  in  the  office 
at  Lockport  with  a  view  to  determining  whether  or  not  records  of 
previous  surveys  of  canal  lots  and  lands  have  been  made,  and  if  not 
to  take  steps  to  see  that  such  a  survey  is  made.  It  is  not  certain  that 
the  records  of  the  office  of  the  canal  commissioners  include  surveys 
of  canal  properties  although  it  may  be  presumed  that  such  have  been 
made.  In  the  past,  official  records  of  canal  transactions  seem  not 
to  have  been  very  carefuly  preserved.  Records  of  a  number  of  years 
in  succession  are  missing  altogether. 

During  1913  two  stations — Ottawa  and  Lockport — furnished  prac- 
tically all  the  tolls  that  were  collected.  A  collector  is  stationed  at  each 
of  these  points,  although  at  Lockport  the  chief  clerk  of  the  commis- 
sion acts  also  as  collector.  The  collectors  pay  over  all  tolls  to  the 
treasurer  of  the  canal  commissioners.  At  present  provision  is  made 
for  three  collectors,  one  with  a  salary  of  $1,080  and  two  at  $900  each. 
In  1913  the  sum  of  $1,157.97  was  collected  at  Lockport,  $474.30  at 
Ottawa  and  $35.75  noted  in  the  report  as  small  tolls  (Channahon). 

Finances. 

For  several  decades  after  the  canal  was  opened,  the  revenues 
received  therefrom  exceeded  operating  expenses  and  a  handsome  sur- 
plus was  usually  turned  over  to  the  State  treasury.  Since  1896,  how- 
ever, expenditures  have,  in  most  years,  exceeded  the  revenues  and  no 
profit  accrued  to  the  State.  (In  1895  a  payment  of  $50,000  was  made). 
On  the  other  hand  small  appropriations  are  made  from  year  to  year 
for  general  improvements  and  maintenance  of  the  canal  locks^and 
dams.  The  amount  received  from  tolls  grew  steadily  from  $87,890 
in  1848  to  a  maximum  of  $300,810  in  1865,  from  which  time  there 
was  a  gradual  decrease  to  $149,635  in  1870.  For  the  year  1865  is  also 
recorded  the  greatest  number  of  boats  running,  (288)  which  has  been 
exceeded  only  within  recent  years.  Between  1860  and  1870  the  total 
annual  tonnage  ranged  from  367,437  in  1860  to  817,738  in  1870.  The 
following  table  shows  the  number  of  boats  running,  tonnage,  receipts 
and  disbursements  for  the  canal  and  Illinois  River  improvements  from 
1870  to  the  present  time : 


778 


EFFICIENCY   AND    ECONOMY    COMMITTEE. 


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PUBLIC    WORKS,    PARKS    AND   BUILDINGS. 


779 


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0\0^0\0\0^a^O^C^C^C^O^O^O\0\ 


780  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

The  improvements  on  the  Little  \\'abash  River  at  New  Haven 
resulted  in  a  small  surplus  for  the  first  years  of  operation ;  but  in  1874 
a  deficit  of  $362.73  was  created.  The  Wabash  locks  and  dams  have 
long  since  been  abandoned  although  the  canal  commissioners  still  have 
jurisdiction  over  them. 

It  will  be  noted  from  the  foregoing  table  that,  although  the  amount 
of  tonnage  carried  over  the  canal  has  largely  increased  since  1908 
there  has  been  only  a  very  slight  increase  in  tolls  since  that  date. 
This  may  be  explained  by  the  fact  that  most  of  the  extra  tonnage 
carried  consists  of  United  States  Government  property  upon  which 
no  tolls  may  be  levied.  The  connection  now  made  with  the  Chicago 
Sanitary  Canal,  at  Joliet,  provides  a  through  waterway  capable  of 
transporting  barges  measuring  103  by  17  by  4.5  ft.  The  bridge  clear- 
ance is  now  11.6  feet  above  the  water  line. 

The  amount  of  toll  receipts  reached  its  highest  point  in  1865 
when  it  aggregated  over  $300,000.  Since  then  there  has  been  a  com- 
paratively gradual  decline  until  in  1913  only  $2,712.10  was  collected. 
Toll  receipts,  however,  no  longer  represent  the  principal  source  of 
revenue.  Below  is  given  a  table  of  canal  receipts  (exclusive  of  State 
appropriation)  for  the  year  1913: 

Another  important  source  of  revenue  in  the  past  has  been  from 
the  proceeds  of  sales  of  canal  lands.  About  480,000  acres  of  land 
was  granted  by  the  United  States  Government.  Most  of  this  has  been 
divided  into  lots  and  plats  and  sold  from  time  to  time  and  in  some 
years  the  receipts  from  this  source  have  aggregated  large  sums.  Fol- 
lowing is  a  table  showing  proceeds  from  canal  lands  sales  :-^ 

1830—10,850  acres    $  14.204.87 

135  acres  in  Chicago  and  Ottawa 4,594.00 

1836— Sales  in  Chicago  and  Ottawa 544,074.97 

1836-42-40—295  acres 302,248.40 

189  Lots    77,793.00 

Stone  and  Timber 9,659.00 

1842— Due  Canal  fund  a/c  sales 207,682.53 

Total  $1,160,256.77 

1845— Total  receipts  from  sales $1,152,064.79 

1845-71— Bv  Board  of  Trustees 4,706,482.68 

1871-1908^By    Canal    Commissioners 121,942.83 

Total    $5,980,490.30 

Canal  receipts  (exclusive  of  State  appropriation)  for  the  year 
1913  were  as  follows: — 

Tolls  on  Canal $  2,710.10 

Leases  on  90  ft.  strip  and  lots 5,781.20 

Water  power   rentals 14,150.00 

Water   pipe,    sprinkling    privileges    and    miscellaneous 

receipts 5,240.17 

Ice  leases   901.50 

Total  receipts   $28,782.97 

ssReport  on  Taxation  nnd   Revenue  System  of  Illinois,  p.  120. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  781 

Disbursements  for  the  same  period  were  as  follows: 

Maintenance  and   repairs $23,646.09 

Tolls  and  rents 5,789.75 

Illinois   River   11,856.33 

Bridge  repairs 7,178.82 

Chicago   docking    200.00 

Dredge 412.80 

Steamboat  channel  and  basin 20.11 

Total $49,103.90 

Expenditures  thus  exceeded  receipts  by  $20,318.93. 
The  item  for  maintenance  and  repairs  incKides  all  sorts  of  expen- 
ditures for  miscellaneous  supplies,  materials,  equipment,  etc.,  but  the 
major  portion  is  for  personal  services.  The  items  "tolls  and  rents," 
"dredge"  and  "steamboat  channel"  are  almost  exclusively  items  for 
labor,  and  of  the  $33,646.09  under  maintenance  and  repairs  $19,338.26 
were  for  personal  services.  Following  is  a  table  showing  totals  for 
personal  services  (exclusive  of  regular  salaries)  from  all  accounts  for 
the  year  1913: 

Maintenance  Illinois  a 

and  Repairs  River  Totals 

Labor  $16,088.55  $7,471.95  $31,427.07 

Commissioner's  expenses    709.82  655.18  1,674.54 

Gen.  Superintendent's  expenses 292.16  296.22  661.17 

Ass't    Superintendent's    expenses 293.64  287.67  746.93 

Attorney  expenses   175.69  175.75  379.25 

Chief  Clerk  expenses    142.29  142.32  321.16 

Collector's  expenses    134.94  10.40  169.26 

Expert  and   Special   services 1,501.17  1,039.65  2,705.45 

Total    $19,338.26      $10,079.14        $37,984.83 

(a)  Including  Tolls  and  Rents,  $5,733.30;  Bridge  Repairs,  $2,546.27;  Steamboat  Chan- 
nel and   Basin,   $20.11;    Dredge,   $367.75.     Total    Disbursements,    $49,103.90. 

Summary  and  Conclusions. 

It  is  evident  from  the  foregoing  that  the  Illinois  and  Michigan 
Canal  is  not  only  no  longer  a  revenue  producer  for  the  State,  as  it 
was  a  few  decades  ago,  but  that  it  is  operated  and  maintained  at  an 
actual  loss  to  the  State, — this  loss  to  be  measured  by  the  amount  of 
State  appropriations  used  by  the  commissioners  from  tirne  to  time  for 
repairs  and  improvements.  (See  Table.)  An  appropriation  of  $50,000 
was  made  by  the  legislature  in  1911,  but  was  enjoined  on  the  ground 
That  an  aid  to  canals  was  a  violation  of  the  constitution.  The  sum  was 
thus  not  available  for  use.  A  second  appropriation  of  $50,000  was  made 
in  1913,  and  was  immediately  followed  by  a  second  injunction  which  is 
pendmg  in  the  courts.  In  the  meantime  the  canal  is  being  operated 
from  the  contingent  fund  of  the  canal  commissioners,  but  as  canal 
receii)ts  average  about  $30,000  per  year  and  expenditures  approximate 
$50.0(i0.  it  is  only  a  que?t.'on  of  time  when  this  fund  will  be  depleted 
unless  State  aid  is  given.  The  report  of  the  commissioners  for  1913 
shows  a  balance  in  this  fund  of  $43,780.13  at  the  beginning  of  the 
fiscal  year  December  1,  1913.  It  is  impossible  to  tell  just  what  pro- 
portion, of  the  canal  expenditures  from  year  to  year  is  for  operation, 
and  what  parts  represent  outlays  for  repairs  and  replacements.  In 
the  books  of  the  commissioners  and  the  reports  to  the  Governor  no 
attempts  are  made  to  differentiate  between  these  two  characters  of 
expenditures. 


,782  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

Furthermore  the  canal  authorities  state  that  unless  funds  are  made 
available  in  the  near  future  to  repair  the  locks  and  dams  their  use- 
fulness will  be  seriously  impaired  if  not  completely  destroyed.  It  is 
stated  that  some  of  the  old  locks  are  in  such  a  dilapidated  condition 
that  ihey  are  likel>  at  any  time  to  give  way  to  unusual  pressure. 

The  canal  commissioners  have  realized  the  serious  situation  and 
have  started  a  movement  to  finance  extensive  alterations  and  improve- 
ments in  order,  once  more,  to  make  the  canal  revenue  a  productive 
undertaking.  In  a  special  report  to  the  Governor,  issued  in  1912,  it 
was  estimated  that  $1,000,000  was  needed  to  rehabilitate  the  canal 
property.  This  included  replacement  of  the  old  stone  locks  by  new 
concrete  structures  large  enough  to  pass  eight  hundred  or  one  thousand 
ton  barges,  replacement  of  the  present  wooden  aqueducts  by  steel  and 
concrete  and  the  installation  of  modern  machinery  to  operate  the  locks. 
The  increased  traffic  that  would  result  from  such  facilities  would,  it 
is  said,  produce  a  revenue  of  $200,000  annually  which  would  soon 
repay  the  State  for  the  original  outlay  and  at  the  same  time  benefit 
commerce  immeasurably  by  affording  a  means  of  cheap  transportation. 

Under  date  of  September  25,  1914,  a  board  of  engineers  appointed 
by  Governor  Dunne  submitted  a  report  in  favor  of  plans  for  a 
waterway  of  eight  feet  minimum  depth  between  Lockport  and  Utica 
and  available  for  immediate  construction.  The  report  contained  three 
projects,  estimated  to  cost  from  $1,682,000  to  $3,075,000;  and  recom- 
mended the  last,  which  involves  using  the  canal  from  Joliet  to  Dres- 
dan,  and  the  Illinois  River  for  45  miles  to  LaSalle. 

Under  the  laws  as  they  exist  at  present  time,  there  is  no  official 
relationship  established  between  the  canal  commissioners  and  the 
Rivers  and  Lakes  Commission,  from  whose  jurisdiction  the  canal  and 
its  properties  are  completely  exempted.  In  some  respects,  however, 
[heir  problems  are  very  closely  connected.  Both  are  vitally  intrested  in 
commercial  waterways  and  the  jurisdiction  over  the  subject  ends  with 
one  of  these  bodies  where  it  begins  with  the  other.  -  The  canal  was 
constructed  and  has  been  operated  for  the  purpose  of  affording  a 
through  Avaterway  from  the  Lakes  basin  to  the  Mississippi  basin.  Such 
a  waterway  is  at  present  maintained  but  it  is  subject  to  various  juris- 
dictions— that  of  the  canal  commissioners  extending  over  all  a  rela- 
tively small  portion  of  the  whole  distance.  The  future  solution  of 
the  deep  waterway  project  concerning  which  the  Rivers  and  Lakes 
Commission  has  considerable  jurisdiction  is  inseparably  bound  up  with 
the  future  disposition  of  the  Illinois  and  Michigan  Canal. 

The  administration  of  the  Illinois  and  Michigan  Canal  is  largely 
an  engineering  problem  and  yet  there  is  no  engineer  attached  to  the 
office  in  any  way.  This  may  perhaps  help  to  explain  why,  although 
thousands  of  dollars  are  annually  expended  on  canal  maintenance  and 
repairs,  the  general  condition  of  the  canal  is  constantly  deteriorating. 
There  should  be  a  general  superintendent  for  the  canal  who  should  be 
given  direct  charge  of  its  administration.  He  should  be  an  engineer 
by  training,  and  should  have  authority  to  select  his  own  staff  required 
to  carry  on  the  business  of  the  canal. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  783 

In  the  second  place,  neither  present  conditions  of  operation  nor 
future  prospects  warrant  a  continuance  of  the  plans  of  independent 
management  of  the  Canal.  The  plan  has  not,  either  from  the  point 
of  view  of  efficiency  or  of  economy,  proved  to  be  entirely  satisfactory 
in  the  past;  the  extent  of  business  carried  on  does  not  justify  the 
existence  of  an  entirely  separate  and  independent  department  at  the 
present  time;  while  problems  of  the  Canal's  future  argue.,  still  more 
potently  for  consolidation  with  other  waterway  authorities. 

C.      RIVERS   AND    LAKES    COMMISSION. 

/.     Introduction. 

Historical  Summary. 

Ambitious  undertakings  for  the  improvement  of  water  courses 
were  rather  common  during  the  first  twenty  years  after  the  admission 
of  Illinois  as  a  State.  Large  sums  were  appropriated  for  the  improve- 
ment of  the  Wabash  and  Kaskaskia  Rivers  in  1832-*  and  later  in  this 
decade,  when  the  State  was  engaging  in  all  sorts  of  speculative  enter- 
prises, a  systematic  scheme  of  internal  improvements  was  undertaken 
on  a  large  scale.  In  1837  a  Board  of  Commissioners  of  Public  Works 
was  created  to  promote  and  maintain  a  general  system  of  internal 
improvements  and  one  of  the  duties  of  the  Board  was  that  of  survey- 
ing rivers  designated  from  time  to  time  by  the  General  Assembly  and 
constructing  and  maintaining  improvements  thereon  to  aid  navigation.-^ 
The  Board,  however,  was  abolished  in  1840  and  the  State  abandoned 
the  policy  of  furnishing  direct  State  aid  to  internal  improvements. 

Henceforth  river  improvements  were  undertaken  by  local  units, 
special  commissioners  appointed  by  the  General  Assembly  or  by 
specially  incorporated  associations.-''  In  1843  the  counties  along  the 
Mississippi  and  Wabash  rivers  were  given  jurisdiction  over  these 
streams  for  purposes  of  improvement,-' 

Problems  of  drainage  and  reclamation  were  dealt  with  in  much 
the  same  way — i.  e.,  by  the  local  units  or  by  corporations  created  for 
this  particular  purpose.  One  of  the  earliest  of  the  latter  was  the  Wa- 
bash River  Levee  Company  organized  in  1847  to  construct  and  main- 
tain levees  along  that  river.^®  In  1850  Congress  granted  the  state 
title  to  large  tracts  of  swamp  lands  within  its  boundaries.  Two  years 
later  the  General  Assembly  turned  over  these  lands  to  the  counties  in 
which  they  were  situated  in  order  that  proper  steps  might  be  taken  for 
their  reclamation.  For  the  purpose  of  preserving  and  maintaining  the 
ditches  thus  constructed,  the  county  boards  were  authorized  in  1883, 
to  form  special  drainage  districts  and  appoint  a  drainage  commissioner 
to  take  charge  of  each.     This  law  is  still  in  force, 

2*Message  of  Gov.  Reynolds,  House  Journal,  1833,  p.  11. 

^^^During  1837,  $300,000  was  appropriated  for  the  Wabash,  Rock,  Kaskaskia  and 
Little  Wabash  rivers  alone.    Act  Feb.  27,  3837.    Session  Lavi^s,  1837,  p.  123  ff. 

-"In  1837  a  special  connuissiou  was  appointed  by  the  General  Assembly  to  Improve 
the  Big  Vermilion.  The  Kaskaskia  Navigation  Co.,  was  created  by  legislative  act 
in  1841,  and  another  in  1853.  Various  companies  were  organized  along  the  Rock  river 
in  1849,  and  in  1851  a  company  was  created  to  improve  the  Illinois  river. 

-''Act  March  4,  1843.    Session   Laws,  p.   109. 

280ther  such  bodies  were:  Cook  Co.  Drainage  Commissioners,  authorized  in 
1852;  Naples  Protective  Association,  1852;  American  Bottom  Board  of  Improvements, 
1853;  Winnebago  Drainage  Co.,  1855;  Sewage  Commissioners  of  Chicago,  1855. 


784  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

Local  Authorities. 

The  extent  of  decentralization  in  control  over  the  water  resources 
of  the  State  existing  at  present  may  be  shown  by  referring  to  the 
various  local  officials  that  have  jurisdiction  over  some  phases  of  the 
subject. 
Drainage  Officials. 

In  1908  there  were  at  least  782  local  drainage  districts,  each  gov- 
erned by  authorities  independent  of  each  other  and  of  State  control.-" 
Excepting  a  few  of  the  large  ones,  most  of  these  districts  are  organ- 
ized under  general  laws  of  1879  and  1885.  Under  the  act  of  1879 
districts  may  be  created  for  agricultural,  sanitary  or  mining  purposes 
and  governed  by  a  commission  of  three  appointed  by  the  county 
court.  The  act  of  1885  provides  for  various  methods  of  creating  and 
controlling  districts  for  agricultural  or  sanitary  purposes.  In  coun- 
ties with  township  government  the  town  highway  commissioners  are 
made  drainage  commissioners  with  authority  to  organize  drainage  dis- 
tricts after  which  control  is  vested  in  three  elective  commissioners. 
In  other  districts  known  as  special  districts,  including  two  or 
more  townships,  or  situated  in  counties  without  township  government, 
the  commissioners  are  either  elected  or  are  appointed  by  the  county 
court,  depending  on  the  size  of  the  district. 

The  Chicago  Sanitary  District  is  by  far  the  most  important  of  the 
drainage  districts.  In  many  respects  its  powers  have  far  more 
than  local  significance.  It  was  organized  under  an  act  of  1889  and 
is  governed  by  a  board  of  nine  trustees  elected  by  the  voters  of 
the  district.  The  trustees  are  given  very  extensive  taxing  and  police 
powers.  A  canal  has  been  constructed  at  a  total  cost  of  more  than 
$50,000,000  from  the  Chicago  river,  to  Lockport  on  the  Des  Plaines 
which  has  a  minimum  depth  of  twenfy-two  feet  and  width  of  one 
hundred  and  sixty  feet.  The  canal  was  designed  as  an  outlet  for 
the  sewage  of  Chicago,  but  is  almost  equally  important  as  a  com- 
mercial waterway.  Considerable  revenue  is  obtained  from  water 
power  developed  along  the  canal  and  sold  to  municipalities  for  lighting 
purposes.  The  state  reserves  the  right  to  demand  a  part  of  the  profits 
resulting  from  water  power  development,  and  a  biennial  report  to  the 
Governor  and  General  Assembly  is  required. 

Another  local  improvement  of  large  importance  is  that  of   the 
East  Side  Levee  and  Sanitary  District,  embracing  East  St.  Louis  and 
surrounding  territory. 
Municipal  Authorities. 

Under  the  cities  and  villages  act  of  1872  municipalities  are  given 
power  to  construct  and  maintain  sewage  systems,  drains  and  cess- 
pools, regulate  the  channel  of  water  courses  and  landings  and  abate 
nuisances  by  draining  ponds  and  preventing  pollution  of  water  courses 
and  water  supplies.  For  the  purpose  of  preventing  the  pollution  of 
the  water  supply  the  jurisdiction  of  the  city  is  extended  ten  miles 
beyond  the  city  limits.  Cities  may  own  and  operate  their  own  water 
works,  in  which  case  they  are  not  subject  to  the  jurisdiction  of  the 
State  Public  Utilities  Commission.  Control  of  water  supply  is,  in 
fact,  almost  exclusively  in  the  hands  of  local  officials. 
2»Ileport  of  Rivers  and  Lakes  Commission. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  785 

Cities  also  exercise  considerable  authority  over  their  water  fronts. 
They  may  reclaim  and  acquire  complete  title  to  submerged  shore  lands 
under  the  public  waters  bordering  on  or  within  the  city.  By  special 
vote  the  city  may  repair  levees  and  levy  a  special  tax  for  such  a  pur- 
pose not  to  exceed  $1  per  $100  valuation. 

Park  Boards. 

Park  boards  may  alter  the  boundaries  of  their  parks  by  including 
adjacent  submerged  lands  provided  no  interference  with  navigation 
results.  In  1903  the  South  Park  Commissioners  of  Chicago  w^ere  ex- 
pressly granted  rights  to  the  submerged  lands  along  the  lake  front  of 
Chicago. 

Internal  Improvement  Commission. 

Somewhat  recently  a  movement  was  begun  for  the  adoption  of  a 
more  energetic  waterway  policy  on  the  part  of  the  State.  In  1905  it 
found  expression  in  the  creation  of  the  Internal  Improvement  Com- 
mission, consisting  of  three  persons  appointed  by  the  Governor  to 
collect  data  relating  to  deep  waterway  and  reclamation  projects.  At 
first  only  $7,000  was  appropriated  for  expenses ;  but  in  1907  the  Com- 
mission was  continued  and  an  additional  expenditure  of  $30,000  author- 
ized. In  1907  the  Commission  submitted  a  report  recommending  the 
construction  of  a  deep  waterway  from  Lake  Michigan  to  the  Missis- 
sippi river.^°  Soon  after,  a  constitutional  amendment  was  proposed 
for  the  authorization  of  a  bond  issue  of  $20,000,000  to  connect  the 
Chicago  Drainage  Canal  at  Lockport  with  the  Illinois  river.  The 
amendment  was  submitted  and  carried  at  the  general  election  of  1908. 
The  internal  improvement  commission  then  prepared  a  bill  to  carry 
out  the  substance  of  the  amendment.  It  was  introduced  in  the  General 
Assembly  of  1909  but  failed  of  passage. 

Shortly  after  the  adoption  of  the  constitutional  amendment  of 
1908,  an  event  occured  which  hastened  further  legislation  affecting  the 
waterways.  The  Economy  Light,  Heat  and  Power  Co.,  a  private 
corporation,  began  the  construction  of  a  dam  across  the  Des  Plaines 
river  near  its  junction  with  the  Kankakee,  in  order  thereby,  to  utilize 
the  w^ater  power  which  would  result  from  the  construction  of  the  pro- 
posed deep  waterway  along  the  Des  Plaines.  The  Company  claimed 
the  right  to  construct  such  a  dam  under  a  contract  entered  into  with 
the  Canal  Commissioners,  whereby  they  had  leased  the  property  for 
twenty  years  with  the  privilege  of  indefinite  renewals.  A  tem- 
porary injunction  was  issued  and  in  the  trial  which  followed  the  State 
Supreme  Court  sustained  the  main  contentions  of  the  Company.  The 
case  was  then  carried  to  the  United  States  Supreme  Court  which  has 
recently  upheld  the  decision  of  the  State  Court.  Meanwhile  another 
case  has  been  started  in  the  United  States  Courts  and  now  awaits 
action  by  the  Supreme  Court. 

30A  second  report  STibmitted  to  the  General  Assembly  in  1911  related  to  surface 
water  supply  of  the  State.  It  contained  a  complete  record  of  the  streams  of  southern 
and  central  Illinois  for  a  period  covering  two  (2)  years,  together  with  tables  of 
precipitation  showing  rainfall  statistics  for  the  entire  State.  Surface  Water  Supply 
Of  Illinois,  1908-191(>— The  Internal  Improvement  Commission  of  Illinois. 


786  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

Submerged  and  Shore  Lands  Investigation. 

One  of  the  results  of  the  agitation  over  the  Economy  Light,  Heat 
and  Power  Co.,  case  was  the  creation  of  a  special  joint  committee  of- 
the  General  Assembly  of  1909  to  study  the  conditions  of  submerged 
and  shore  lands  and  alleged  rights  of  ownership  thereto  by  individuals 
and  corporations.  This  committee,  after  an  extensive  investigation, 
submitted,  in  1911,  an  exhaustive  report^^  in  w^hich  emphasis  was 
placed  on  the  urgent  necessity  for  imrnediate  action  on  the  part  of  the 
state  to  prevent  further  encroachments  on  the  shore  lines.  The  Com- 
mittee recommended  the  appointment  of  a  commission  of  three  or  five 
persons  to  be  vested  with  authority  over  the  rivers  and  lakes  of  the 
State.  The  result  was  the  creation  of  the  present  Rivers  and  Lakes 
Commission.  ^^  Organization. 

The  Rivers  and  Lakes  Commission  consists  of  three  members 
appointed  by  the  Governor  and  Senate  and  removable  by  the  Governor 
for  cause.  An  attempt  is  made  to  obtain  a  body  of  men  who  are 
familiar  with  the  technical  phases  of  the  problems  involved  in  their 
work.  For  this  purpose  it  is  provided  that  one  member  must  be 
a  lawyer,  one  an  engineer  and  the  third  person  one  who  is  in- 
timately acquainted  with  the  lakes  and  rivers  of  the  State.  Not  more 
than  two  members  may  have  the  same  political  affiliations.  One 
member  of  the  Commission  is  appointed  each  year  and  serves  for 
three  years  with  a  salary  of  $3,500  per  annum.  The  Chairman 
is  designated  by  the  Governor  and  receives  an  additional  $1,500  per 
annum. 

As  at  present  organized  the  office  staff  of  the  commission  consists 
of  a  Secretary,  junior  engineer,  hydraulic  aide,  two  stenographers  and 
some  extra  help.     Headquarters  are  located  in  Chicago. 
5.  Powers  and  Duties. 

The  powers  of  the  Commission  have  been  enlarged  by  an  amend- 
ing Act  of  1913  and  are  at  present  very  extensive  in  scope.  It  is 
given,  in  general  terms,  "jurisdiction  and  supervision  over  all  the 
rivers  and  lakes  of  the  State  of  Illinois,  wherein  the  State  of  Illinois 
or  the  people  of  the  State  of  Illinois  have  any  rights  or  interests. "^- 

In  another  section  it  is  vested  with  full  and  complete  jurisdiction 
"over  every  public  body  of  water  in  the  State  of  Illinois  subject  to  only 
the  paramount  authority  of  the  Government  of  the  United  States  wuth 
reference  to  the  navigation  of  such  stream  or  streams,  and  the  laws  of 
the  State."  Nevertheless,  important  exceptions  are  made  in  the  law 
which  tend  seriously  to  abridge  the  sweeping  jurisdiction  granted  to 
the  Commission  in  the  above  terms,  while  there  is  some  question  as 
to  what  extent  its  authority  supersedes  that  previously  granted  to 
various  other  organs  of  the  State  and  local  governments. 
The  definite  exceptions  noted  are  as  follows : 

1.  The  Rivers  and  Lakes  Commission  has  no  jurisdiction  over  park 
boards  vested,  by  an  Act  of  1903,  with  authority  to  enlarge  their 
properties  by  extensions  over  lands  and  the  beds  of  adjoining  waters. 

•iReport  of  the  Submerged  and  Shore  Lands  Legislative  Investigating  Committee 
to   the  Governor  and  47th   General  Assembly,   1911.     Three   Volumes. 
»=Hurd.    Revised   Statutes    (1013).   p.   146.   par.  51. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  787 

2.  The   Commission  has  no  jurisdiction  over  harbors,  piers  and   other 
structures  erected  by  park  or  municipal  authorities  along  navigable 

3.  The   Commission   has   no   authority   over   the   Chicago    Sanitary   Dis- 

4.  The  Commission  has  no  jurisdiction  over  the  Illinois  and  Michigan 
Canal  or  its  properties. 

In  brief,  the  Illinois  and  Michigan  Canal,  the  Chicago  Sanitary 
District  and  park  and  municipal  improvements  along  Lake  Michigan 
are  excluded  from  the  jurisdiction  of  the  Rivers  and  Lakes  Commis- 
sion. The  only  semblance  of  authority  over  them  is  found  in  the 
amending  Act  of  1913  which  requires  the  city  or  park  authorities  to 
tile  with  the  Commission  all  plans  of  improvements  along  the  lake 
front  after  their  completion. 

The  specific  powers  vested  in  the  Commission  may  be  outlined  as 
follows : 

Prevention  of  pollution  of  streams. 

Regulation  and  prevention  of  encroachments  on  water  lines. 

Receive  complaints,  give  hearings  and  issue   orders   relating  to  pollution 
and  encroachments. 

Preparation  of  plans  for  public  reservations,  etc. 

Supervision  over  local  improvements. 

Collection  and  publication  of  information. 

Assistance  in  local  drainage  and  reclamation  projects. 

Construction  of  levees. 

Collection  and  Publication  of  Information  . 

The  Commission  is  required  to  collect  and  disseminate  a  vast 
amount  of  data  relating  to  the  navigability  of  streams,  their  availability 
for  water  power  and  for  the  propagation  of  fish,  and  general  infor- 
mation with  regard  to  the  natural  resources  of  the  State  waters  and 
the  conservation  of  these  resources.  In  the  first  place  it  is  authorized 
to  have  prepared  accurate  maps  of  all  counties  of  the  State  showing 
navigable  and  non-navigable  rivers  and  streams  and  the  shore  lines  of 
all  lakes.  They  are  to  cause  surveys  to  be  made  and  maps  and  charts 
prepared  showing  high  and  low  water  marks,  river  gauges,  etc.,  along 
streams  to  aid  in  determining  their  navigability,  collect  statistics  and 
general  information  relating  to  deep  waterways  and  publish  and  dis- 
seminate literature  on  the  subject.  A  detailed  study  of  the  streams 
is  authorized  with  a  view  to  determining  their  availability  for  pur- 
poses of  water  power  and  all  such  information  must  be  reported  to  the 
Governor.  Bulletins  are  to  be  issued  from  time  to  time  containing  the 
results  of  the  investigations  of  the  Commission.  Co-operation  with  the 
Fish  Commission  is  also  required  to  aid  in  the  cultivation  and  propa- 
gation of  fish  suitable  for  cheap  meat. 

Under  the  original  act  the  Commission  frequently  had  considerable 
difficulty  in  obtaining  information  required  under  the  law  because  of 
the  fact  that  it  was  without  any  means  of  enforcing  its  requests  for 
data  from  individuals,  corporations  and  local  authorities.  An  attempt 
was  made  to  remedy  this  defect  by  an  amendment  to  the  original  Act, 
passed  in  1913,  which  gave  the  Commission  or  its  duly  authorized 
agent  the  right  to  "cross  any  lands  within  the  State  and  enter_  any 
building  or  factory  when  the"  power  used  is  of  hydraulic  generation." 


788  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

Furthermore,  in  making  investigations,  the  commissioners  may  issue 
subpoenas  for  the  attendance  of  witnesses,  may  administer  oaths,  and 
any  refusal  to  obey  an  order  of  the  Commission  subjects  the  offender 
to  a  f^ne  of  from  $100  to  $1,000. 
Assistance  and  Advice  in  Drainage  and  Reclamation  Project. 

It  is  made  the  duty  of  the  Commission  to  aid  in  every  way  possible 
local  drainage  and  reclamation  projects.  They  are,  however,  given  no 
direct  authority  over  such  matters  beyond  the  influence  ^yhich  they 
may  exert  over  the  local  officials  and  the  aid  they  may  furnish  by  col- 
lecting facts  and  placing  their  knowledge  at  the  disposal  of  the  local- 
ities. Indirectly,  however,  the  Commission  may  exercise  considerable 
control  over  the  local  authorities.  The  Commission  is  required  to 
furnish  at  cost,  data  in  its  possession,  showing  survey  elevations,  con- 
tours, cost  of  construction  of  levees,  and,  in  general,  give  aid  and 
advice  to  local  drainage  officials  when  they  request  such  information. 
Moreover,  the  power  of  the  Commission  over  the  pollution  of  streams 
may,  in  case  of  sanitary  districts,  make  it  practically  impossible  for  tiie 
district  to  proceed  without  the  approval  of  the  Commission. 

Supervision  of  Local  Improvements. 

The  approval  of  the  Commission  is  especially  required  for  all  pro- 
posed structures  of  any  sort  in  any  of  the  waters  of  the  state.  Plans 
and  specifications  of  such  proposed  improvements  must  be  filed  with 
the  Commission  and  its  written  consent  must  be  obtained  before  any 
such  projects  are  carried  out.  .Structures  erected  illegally  may  be 
abated  by  the  Commission  or  may  be  permitted  to  stand  subject  to 
such  rules,  regulations  and  restrictions  as  the  Commission  may  see  fit 
to  impose.  No  authority  is  given  the  Commission  to  dispose  of  any 
lands  or  submerged  property  belonging  to  the  State. 
Preparation  of  Plans  for  Improvement  of  Public  Waters. 

For  the  purpose  of  encouraging  the  use  of  the  public  waters  of  the 
State  for  purposes  of  pleasure  and  recreation,  the  Commission  is 
authorized  to  draw  up  plans  looking  to  a  general  scheme  for  beautify- 
ing the  waters  of  the  State  and  enhancing  their  attractiveness  as  pleas- 
ure resorts.  The  Commission  is  also  required  to  draw  plans  for  the 
reservation  of  tracts  of  land  along  the  waterways  to  be  reserved  for 
pleasure,  recreation  or  sports.  Reports  of  their  work  along  this  line 
are  required  to  be  presented  to  the  Governor,  with  proposed  bills. 

Prevention  of  Pollution  of  Streams. 

The  law  of  1911  as  it  originally  stood  made  it  the  duty  of  the 
Commission  to  see  that  the  streams  and  rivers  are  not  polluted  or  de- 
filed, but  a  proviso  withdrew  from  its  jurisdiction  all  cases  affecting 
the  rights  of  drainage  or  sanitary  canals  or  districts.  By  the  amend- 
ment of  1913  these  exceptions  were  removed  to  some  extent  leaving 
only  the  exceptions  noted  above.  Specifically  the  authority  of  the 
Commission  is  to  see  that  the  rivers  and  streams  are  "not  polluted  or 
defiled  by  the  deposit  or  addition  of  any  injurious  substancesand  that 
the  same  are  not  affected  injuriously  by  the  discharging  therein  of  any 
foul  or  injurious  substance,  so  that  fish  or  other  aquatic  life  is  de- 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  789 

Strayed.  And  if,  upon  investigation  the  Commission  shall  find  that 
any  such  streams  and  lakes  are  so  polluted  and  defiled,  or  are  affected 
injuriously  by  the  discharging  therein  of  any  foul  or  injurious  sub- 
stances, so  that  fish  or  other  aquatic  life  is  destroyed,  \t  shall  be  the 
duty  of  the  said  Commission  to  enter  an  order  commanding  the  abate- 
ment of  such  nuisance  within  such  time  as  may  be  fixed  by  the  Com- 
mission," 

It  would  seem  from  the  foregoing  that  the  jurisdiction  of  the  Com- 
mission over  the  subject  of  pollution  relates  only  to  the  effect  of  such 
pollution  on  aquatic  life  and  has  no  direct  bearing  upon  the  question 
of  public  health  as  aft'ected  by  the  pollution  of  streams. 

The  Commission  may,  after  investigation  and  hearing,  as  explained 
later,  order  the  abatement  of  a  nuisance  found  to  exist  as  above.  It 
may,  and  often  does,  also  suggest  methods  by  which  the  abatement 
may  be  effected,  but  it  cannot  force  the  persons  or  authorities  respons- 
ible for  pollution  to  accept  its  recommended  solution.  In^  practice, 
however,  it  has  much  the  same  result  inasmuch  as  the  Commission  has 
final  power  to  feject  a  method  proposed  as  not  in  fact  abating  the 
nuisance  complained  of.  The  result,  therefore,  is  that  the  Commis- 
sion's approval  of  proposed  plans  for  sewage  disposal,  etc.,  is  fre- 
quently sought  in  advance. 

It  is  the  duty  of  all  police  ofiicers  of  the  State  to  enforce  the 
orders  of  the  Commission. 
Prevention  of  Encroachments. 

This  power  is  granted  in  general  terms  but  some  specific  authority 
is  vested  in  the  Commission  to  supplement  the  general  grant.  It  is 
required  to  examine  the  shore  lines  of  Lake  Michigan  and  the  Chicago 
River  at  least  four  times  per  year,  to  see  that  no  unlawful  encroach- 
ments are  made  upon  the  public  waters.  It  has  authority  to  inquire 
into  encroachments  or  invasions  on  every  stream,  river,  lake  or  other 
body  of  water  in  which  the  State  has  an  interest,  with  exceptions  al- 
ready noted.  Plans  of  all  proposed  improvements  or  structures  of 
any  sort  in  any  of  the  public  waters  must  be  filed  with  the  Commission 
and  approved  by  it  before  construction,  but  when  such  improvements 
have  been  made  the  Commission  may  permit  them  to  remain  subject 
to  regulation  by  the  Commission.  The  term  "public  waters"  as  here 
used  is  defined  as  being  "all  open  public  streams  and  lakes  capable  of 
being  navigated  by  water  craft  for  commercial  uses  and  purposes, 
together  with  all  bayous,  sloughs,  backwaters  and  submerged  lands  that 
are  open  to  the  main  channel  or  body  of  water  and  directly  accessible 
in  their  natural  state  by  such  water  craft." 
Hearings  and  Opinions. 

In  order  to  assist  the  Commission  in  preventing  the  pollution  of 
streams  and  encroachments  on  the  public  waters,  the  Comrnission  is 
authorized  to  receive  complaints  from  individuals  or  corporations  with 
regard  to  the  unlawful  use  or  abuse  of  the  waters  of  the  State.  Upon 
receipt  of  such  complaints  a  hearing  may  be  granted  and  an  order  is- 
sued by  the  Commission  defining  the  rights  and  interests  of  the  parties 
affected  and  prescribing  their  duties.     Sheriffs,  marshals  and  the  regu- 


790  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

lar  police  officers  of  the  State  are  required  to  enforce  the  lawful  orders 
of  the  Commission.  In  conducting  hearings,  witnesses  may  be  sub- 
poenaed and  compelled  to  attend  and  produce  books  and  records. 
Appeal  may  be  taken  from  the  decisions  of  tlie  Commission  to  the 
Circuit  Court  of  Sangamon  County,  thence  directly  to  the  Supreme 
Court  of  the  State. 

Levee  Construction. 

In  1913  appropriations  were  made  to  the  Rivers  and  Lakes  Com- 
mission for  improving  and  constructing  levees  in  and  around  certain 
cities  on  the  Ohio,  Mississippi  and  Illinois  rivers,  as  follows: 

City   of   Cairo $250,000 

City  of  Mound  City j 50,000 

City  of  Shawneetown 39,000 

Village  of  Naples 3,000 

Totals  $342,000 

4.  Procedure  and  Work  of  the  Commission. 

The  Rivers  and  Lakes  Commission  was  duly  organized  in  August, 
1911,  with  an  original  appropriation  of  $15,000  wdth  which  to  carry 
on  its  work.  Soon  after,  plans  were  effected  for  co-operation  with 
various  state  and  national  bodies  among  them  being  the  United  States 
and  State  Geological  Surveys,  the  State  Water  Survey,  the  State  Fish 
Commission  and  many  others.  The  preliminary  work  of  the  Com- 
mission was  almost  exclusively  limited  tp  the  collection  of  data,  such  as 
the  preparation  and  collection  of  maps  and  atlases  Of  the  counties  of 
the  State,  river  profiles,  facts  about  undeveloped  water  power,  precipi- 
tation and  corporation  records,  inventories  of  water  power  plants  and 
drainage  districts,  tables  of  drainage  areas,  etc.  By  October,  1914, 
the  Commission  had  published  for  general  distribution  fifteen  bulletins 
related  to  various  subjects  connected  with  the  waterways  of  the  State. 
In  addition  to  the  biennial  report  to  the  Governor  four  supplementary 
reports  have  been  made  as  follows : 

A  Report  of  the  Surface  Water  Supply  of  Illinois. 

A  Report  of  the  Prevention  of  Overflow  of  Little  \\'abash  and 
Skillet  Fork  with.  maps. 

A  Report  of  the  Plans  for  the  Reclamation  of  the  Land  in  the 
Kaskaskia  Valley  with  maps. 

A  Report  on  the  Water  Resources  of  Illinois,  with  Appendix  on 
Water  Power  and  Drainage  Districts. 

At  the  close  of  1913  ten  complaints  had  been  received  from  vari- 
ous sources  and  hearings  given.  Five  of  the  ten  related  to  encroach- 
ments, and  in  three  of  the  five  no  definite  results  were  obtained  cither 
because  of  the  inadequacy  of  the  Commission's  powers  or  for  some 
other  reason.  In  the  two  other  cases  of  encroachments  suits  were 
ordered  begun  in  the  courts.  Four  cases  related  to  the  pollution  of 
streams  and  here  again  the  weakness  of  the  Commission's  powers  were 
shown.  In  three  of  the  four  nothing  was  accomplished  by  the  Com- 
mission— one  was  referred  to  the  Chicago  Sanitary  District,  which 
had  jurisdiction,  another  was  dropped  for  lack  of  authority  and  the 
third  was  brought  to  no  definite  conclusion.     Finally,  one  case  related 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  791 

to  the  obstruction  of  the  navigability  of  the  Illinois  River.  Here  the 
Secretary  of  War  was  informed  of  the  facts  and  the  obstruction  was 
ultimately  removed. 

It  should  be  noted,  however,  that  results  given  above  for  1913 
were  obtained  before  the  recent  amendments  to  the  original  law  were 
enacted.  These  amendments  have  greatly  strengthened  the  Commis- 
sion's powers  by  vesting  police  power  in  the  Commission  as  well  as 
authority  to  compel  the  attendance  of  witnesses  and  the  production  of 
evidence  at  hearings. 

The  work  of  the  Rivers  and  Lakes  Commission  relating  to  en- 
croachments along  the  water  fronts  and  to  pollution  constitutes  a  very 
important  part  of  its  duties  and  bids  fair  to  increase  in  importance. 
Encroachments  are  discovered  usually  by  actual  inspection  of  the  Com- 
mission or  its  agents,  or  by  complaints  being  registered  by  individuals 
interested.  When  information  of  this  sort  reaches  the  Commission 
an  investigation  is  made.  The  investigation  is  almost  invariably  a 
matter  involving  a  survey  of  the  shore  lines,  which  is  by  nature  an 
engineering  proposition.  Sometimes  the  legal  aspects  of  the  question 
are  also  important,  to  determine  the  claims  of  individuals  or  corpora- 
tions concerned.  When  the  facts  are  before  the  Commission  it  reaches 
a  conclusion  and  if  it  finds  that  an  encroachment  exists  contrary  to 
law  it  communicates  with  the  offenders  and  orders  the  removal  of 
the  obstruction.  Unless  a  protest  is  raised  no  hearing  is  given  but 
should  the  offender  so  desire,  a  hearing  may  be  demanded.  Only  in 
the  more  important  cases,  however,  are  hearings  necessary. 

Questions  concerning  the  pollution  of  streams  and  rivers  consti- 
tute almost  half  of  the  work  of  the  Commission.  Here  perhaps  even 
more  complicated  problems  arise  than  in  the  case  of  encroachments. 
As  noted  above  a  strict  construction  of  the  powers  of  the  Commission 
might  lead  to  the  conclusion  that  its  jurisdiction  over  pollution  extends 
only  to  a  determination  of  the  effect  of  such  pollution  upon  aquatic 
life.  In  practice,  however,  the  Commission  has  not  confined  itself  to 
this  limited  phase  of  the  question.  For  instance,  on  Febuary  5,  1912, 
the  village  of  Plainfield  was  ordered  to  abate  a  nuisance  arising  from 
the  discharge  of  raw  sewage  into  the  Du  Page  river,  on  the  ground 
that  such  created  a  "public  nuisance."  On  June  5,  of  the  same  year, 
complaints  were  heard  against  the  city  of  Elgin  on  the  ground  that 
her  discharge  of  raw  sewage  into  the  Fox  River  "constitutes  a  menace 
to  the  health  and  lives  of  the  people  residing  adjacent  to  said  stream; 
that  it  further  operates  to  depreciate  the  value  of  lands  adjacent  to 
said  river,"  and  "constitutes  a  menace  to  the  lives  and  health  of  per- 
sons all  over  the  State  for  the  reason  that  ice  is  cut  and  sold  for  human 
consumption  in  large  quantities  from  said  polluted  stream. "^^  The 
Commission  found  that  these  charges  were  well  founded  and  recom- 
mended measures  to  remedy  the  situation. 

Complaints  concerning  pollution  of  streams  come  from  various 
sources.  Private  individuals  frequently  submit  complaints.  The 
wardens  of  the  Fish  and  Game  Commission  are  also  instructed  to  take 
note  of  all  instances  of  pollution  and  report  to  the  Commission.     Such 

33See  Annual  Report  of  Rivers  &  Lakes  Commission,  1911,  pp.  21-2*. 


792  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

reports  are  forwarded  to  the  Rivers  and  Lakes  Commission  for  action. 
Finally,  the  Rivers  and  Lakes  Commission,  or  their  agents,  may  dis- 
cover instances  of  such  cases  and  proceed  without  a  formal  complaint. 

When  information  of  any  particular  instance  of  alleged  pollution 
reaches  the  Commission  it  refers  the  matter  to  the  State  Water  Survey 
located  at  the  State  University  in  Urbana.  This  bureau  proceeds  to 
make  an  investigation,  to  determine  whether  the  pollution  complained 
of  actually  constitutes  a  nuisance,  such  as  to  warrant  abatement  by 
the  Commission.  Facts  are  assembled  and  recommendations  sug- 
gested, based  upon  the  facts,  and  the  whole  forwarded  to  the  Rivers 
and  Lakes  Commission.  The  latter  almost  invariably  accepts  the 
recommendations  of  the  Water  Survey  and  proceeds  accordingly. 
Here,  as  in  the  case  of  encroachments,  hearings  are  had  only  when  the 
importance  of  the  case  seems  to  demand  such,  or  when  satisfactory 
adjustment  cannot  be  made  otherwise. 

Most  cases  of  pollution  of  streams  arise  because  of  poor  or  inade- 
quate sewage  facilities  provided  by  cities  and  towns  along  the  rivers. 
Hence  the  function  of  the  Commission  in  so  far  as  they  relate  to  such 
cases  are  constantly  bringing  it  into  direct  contact  with  these  local 
officials.  The  question  arises  as  to  the  extent  to  which  the  Commis- 
sion may  go  by  virtue  of  its  authority  over  pollution  in  controlling  the 
local  officials.  In  cases  that  have  arisen,  the  Commission  has  not,  in 
fact,  attempted  to  dictate  to  local  authorities  concerning  the  manner 
in  which  they  may  proceed  to  comply  with  an  order  to  abate  a  nuisance 
but  has  sometimes  suggested  measures  which  would  meet  with  its 
approval.  Its  authority  finally  to  determine  whether  remedial  action 
results  in  abatement  amounts  ultimately  to  authority  to  supervise,  to 
a  large  extent,  local  methods  of  sewage  disposal.  This  again  neces- 
sitates engineering  skill  almost  exclusively.  In  the  case  of  Plainfield 
referred  to  above,  the  village  authorities  agreed,  on  the  recommenda- 
tions of  the  Commission,  to  install  twin  settling  basins  to  remove  the 
sludge  from  the  sewage  before  its  discharge  into  the  river.  Later 
when  the  village  delayed  in  taking  measures,  the  Commission  ordered 
an  abatement  of  the  nuisance  in  accordance  with  the  agreement.  In 
the  case  of  Elgin,  the  Commission  recommended  the  organization  of  a 
Sanitary  District. 

5.  Finances. 

As  noted  above  an  original  appropriation  of  $15,000  was  made  to 
the  Commission.  Following  are  the  expenditures  of  the  Commission 
from  .date  of  its  organization  August  8,  1911  to  December  31,  1912, 
inclusive : 

Office  Salaries $  8,215.00 

Expenses  of  Commissioners 809.43 

Traveling  Expenses    542.1 1 

Rent,  Telephone  and  Light 1.559.19 

Public  Hearings,   Supplies 3,762.85 

Field  Work  11,905.44 

Maps 898.96 

Totals  $27,693.08 

For  the  biennium  of  1913-1915,  provision  was  made  for  an  office 
stafif  consisting  of  a  secretary,  a  junior  engineer,  hydraulic  aide,  two 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  793 

Stenographers  and  some  extra  help.  A  total  of  $30,200  per  year  was 
authorized  for  operating  expenses,  while  $342,000  was  appropriated 
to  the  Cominission  for  the  purposes  of  repairing  levees  at  Cairo,  Mound 
City,  Shawncetown  and  Naples.  Following  are  the  total  appropria- 
tions for  the  biennium : 

1913-14  1914-15 

Salaries  of  Office  StaflF  (with  extra  help) $    9,600.00        $  9,600.00 

Traveling  Expenses   2,000.00  2,000.00 

Surveys  and  Stream  Gauging 12,000.00  12,000.00 

Maps,  Supplies,  etc 3,000.00  3,000.00 

Rent  1,800.00  1,800.00 

Prosecutions    1,800.00  1,800.00 

Repair  of  Levees 342,000.00         

Deficiency 4,000.00        

Total    $376,200.00        $30,200.00 

Total    for  biennium $406,400. 

6.     Relations  to  Other  Officials. 

State  Fish  ayid  Game  Commission. 

The  care  and  management  of  the  State  streams  vitally  affects  fish 
life  and  thus  brings  the  Fish  and  Game  Commission  in  close  touch 
with  the  Rivers  and  Lakes  Commission.  The  former  reports  cases  of 
pollution  of  streams  and  encroachments  discovered  by  wardens,  that 
threaten  aquatic  life,  and  depends  upon  the  Rivers  and  Lakes  Commis- 
sion to  give  relief.  The  latter  is  required  to  co-operate  with  the  Fish 
and  Game  Commission  in  the  propagation  of  fish. 

State  Water  Survey. 

Both  the  Rivers  and  Lakes  Commission  and  the  State  Water  Sur- 
vey are  authorized  by  law  to  collect  data  and  make  investigations  re- 
lating to  streams.  Both  do  so,  but  in  the  past  and  at  the  present  time 
co-operation  has  been  effected  in  order  to  avoid  duplication. 

State  Board  of  Health. 

There  is  no  direct  legal  relationship  established  between  these  two 
bodies.  Both,  however,  are  given  legal  jurisdiction  over  the  abate- 
ment of  nuisances  as  regards  the  pollution  of  streams.  In  actual  ad- 
ministration most  of  the  authority  over  the  subject  is  exercised  by  the 
Rivers  and  Lakes  Commission.  In  fact  complaints  of  pollution  com- 
ing up  to  the  Board  of  Health  have  been  referred  by  that  body  to  the 
Rivers  and  Lakes  Commission.  Thus  although  here  again  exists  the 
possibility  of  a  conflict  of  authorities,  or  at  least  double  jurisdiction, 
in  practice  such  is  avoided  by  amicable  and  purely  informal  working 
relations  betv/een  the  departments. 

The  Board  of  Health  has  also  made  several  investigations  relating 
to  water  supplies  and  water  resources  Among  these  may  be  noted 
the  following: 

1.  Report  on   the   \\'atcr   Supplies   of   Illinois   and   the  pollution  of   its 
streams  (1889). 

2.  Advance  notes  of   Sanitary  Investigations  of  the  Illinois  River  and 
its  Tributaries  (1900). 


794  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

3.     Report   of    Sanitary   Investigations    of    the    Illinois,    Mississippi   and 
Missouri  rivers  (1904). 

State  Laboratory  of  Natural  History. 

The  Laboratory  of  Natural  History  is  organized  for  the  purpose 
of  making  scientific  investigations.  It  has  for  many  years  interested 
itself  in  special  studies  of  stream  pollution  and  its  effect  upon  aquatic 
life.  The  Laboratory  has  co-operated  with  the  Rivers  and  Lakes  Com- 
mission by  furnishing  valuable  data  on  this  subject.  It  is  now^  co- 
operating v^ith  the  Rivers  and  Lakes  Commission  in  conducting  a 
special  investigation  of  Illinois  river  problems. 

Illinois  and  Michigan  Canal  Commissioners. 

The  Canal  Commissioners  and  Rivers  and  Lakes  Commissioners 
are  not  legally  or  actually  associated  in  any  way. 

Geological  Survey. 

The  Geological  Survey  has  published  several  bulletins  relating  to 
water  supplies.  It  has  from  time  to  time  co-operated  with  state  of- 
ficials in  making  surveys  relating  to  public  waters  and  has  recently 
been  engaged  in  a  survey  of  lands  subject  to  overflow. 

Public  Utilities  Commission. 

Through  its  authority  to  regulate  rates  and  service  of  public  utili- 
ties, the  Public  Utilities  Commission  of  the  States  has  some  jurisdiction 
over  water  resources.  Included  among  utilities  over  which  it  has  su- 
pervision are  privately  owned  water  works,  wharfage  or  dock  corpora- 
tions, and  corporations  engaged  in  water  transportation.  Through  its 
authority  over  water  front  utilities  it  may  exercise  extensive  regulative 
powers  over  shore  lines.  As  an  illustration  of  its  connection  with  the 
Rivers  and  Lakes  Commission  a  recent  case  may  be  noted.  The  Utili- 
ties Commission  while  investigating  complaints  as  to  water  service 
rendered  by  a  private  concern  in  Harrisburg  discovered  that  the  source 
of  most  of  the  trouble  lay  in  the  pollution  of  the  source  of  water  sup- 
ply caused  by  the  discharge  of  raw  sewage  into  the  river.  The  question 
of  pollution  was  immediately  referred  to  the  Rivers  and  Lakes  Com- 
mission for  settlement. 

Drainage  and  Sanitary  Authorities. 

With  the  exception  of  the  Chicago  Sanitary  District,  local  drainage 
authorities  are  loosely  connected  to  the  Rivers  and  Lakes  Commission, 
by  the  requirement  that  plans  and  specifications  for  works  which  they 
undertake  must  be  filed  with  the  Commission.  In  practice  many  local 
drainage  officials  call  upon  the  Commission  for  advice  and  suggestions ; 
and  in  this  way  the  Commission  has  sometimes  been  influential  in 
shaping  the  local  plans. 

Municipal  Authorities. 

Municipal  officials  are  required  to  file  with  and  obtain  the  approval 
of  the  Rivers  and  Lakes  Commission  for  all  projected  improvements 
along  the  shores  of  streams  or  other  bodies  of  water.  The  Commis- 
sion through  its  powers  concerning  pollution,  also  exercises  consider- 
able control  over  the  installation  of  local  sewage  systems. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  795 

Co-operative  Movements. 

In  order  to  overcome  somewhat  the  obvious  disadvantages  of  poor 
organization  the  various  departments  and  commissions  have  from 
time  to  time  entered  into  co-operative  undertakings  of  different  sorts. 
One  of  the  best  illustrations  of  such  co-operation  may  be  seen  in  a 
recent  action  taken  at  a  joint  meeting  in  the  Governor's  office  at  which 
were  representatives  of  the  State  Laboratory  of  Natural  History,  Riv- 
ers and  Lakes  Commission,  Fish  and  Game  Commission  and  the  Soil 
Survey  Bureau.  The  meeting  was  called  at  the  suggestion  of  the 
Director  of  the  Natural  History  Laboratory  in  order  to  discuss  the 
different  aspects  of  problems  connected  with  the  Illinois  river.  The 
result  of  the  conference  was  a  decision  to  employ  competent  engineers 
to  make. an  exhaustive  study  of  the  river,  keeping  in  mind  problems 
of  navigation  and  transportation,  the  fishing  industry,  reclamation  and 
overflow.     Engineers  have  accordingly  been  engaged : 

1.  To  assemble  existin,e;  data  and  study  the  flow  of  the  Illinois  river  and 
its  principal  tributaries  from  all  the  available  data  obtainable,  relating 
to  the  maximum  flows,  the  yearly  seasonal  and  short  time  variations, 
the  magnitude  of  these  variations  and  their  duration,  and  draw  such 
conclusions  as  may  be  practicable  as  to  the  flow  likely  to  prevail  in 
the  future  taking  into  consideration  the  flow  of  the  Chicago  Drainage 
Canal  present  and  probably  future. 

2.  To  assemble  existing  data  on  gauge  heights,  and  so  far  as  possible, 
correlate  gauge  heights  and  flow  at  salient  points  upon  the  river. 

3.  To  ascertain  from  existing  maps  and  records  gauge  readings  the 
area  of  overflow  of  the  river  for  each  foot  in  rise  of  the  level  of 
the  low  water  of  1901. 

4.  To  estimate  the  existing  storage,  its  diminution  by  land  reclamation 
past  and  probable  future,  and  the  eflfect  upon  flood  heights  by  reason 
of  land  reclamation  and  the  channel  restrictions  incident  thereto. 

5.  To  study  existing  fisheries,  their  value,  the  tendency  of  increase  and 
decrease,  the  cause,  the  effect  of  land  reclamation  on  fisheries,  and 
the  efi"ect  of  the  sewage  of  Chicago  and  other  municipalities. 

6.  To  ascertain  the  extent  of  land  reclamation  by  diking  within  the  valley 
of  the  river  and  forecast  as  accurately  as  possible  the  extent  to  which 
diking  operations  will  be  continued  in  the  future,  if  present  policies 
are  pursued  and  the  effect  upon  agriculture  upon  said  districts  re- 
sulting from  the  exclusion  of  flood  waters. 

7.  To  estimate  as  closely  as  practicable  the  effects  of  the  removing  of 
existing  dams  in  the  Illinois  river  upon  floods,  fisheries,  agriculture, 
reclamation  and  navigation. 

8.  After  assembling  the  above,  to  outline  the  most  favorable  plans  for 
harmonizing  the  various  interests  affected  to  the  end  that  the  largest 
return  may  be  secured  from  the  sum  of  all,  estimating  costs  as  far  as 
practicable  from  existing  data. 

At  the  conclusion  of  the  study  the  engineers  are  to  embody  the 
results  in  a  written  report  to  be  submitted  to  the  Rivers  and  Lakes 
Commission. 

7.  Summary  and  Conclusions. 

The  Rivers  and  Lakes  Commission  was  first  organized  in  1911  with 
broad  but  vague  powers  but  with  no  police  authority  with  which  to  en- 
force them.  Under  these  conditions,  the  Commission  confined  itself 
largely,  but  not  exclusively,  to  the  collection  of  data  relating  to  the 
water  resources  of  the  State.  After  the  strengthening  of  the  powers  of 
the  Commission  in  1913,  it  has  been  engaged  in  supervising  the  waters 
and  shore  lines  through  its  authority  over  encroachments  on  the  water 


796  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

fronts  and  pollution  of  the  waters  of  streams.  Under  appropriations 
of  1913  the  Commission  is  now  also  engaged  in  the  construction  of 
State  levees. 

The  main  functions  of  the  Rivers  and  Lakes  Commission  relate 
to: 

1.  Investigation, 

2.  Regulation, 

3.  Construction. 

Its  legal  authority  to  investigate  problems  relating  to  waters  and 
water  resources,  the  Commission  shares  with  the  State  Board  of 
Health,  State  W^ater  Survey,  the  Laboratory  of  Natural  History  and 
Geological  Survey.  In  practice  most  of  the  Commission's  work  of 
investigation  is  now  performed  by  the  State  Water  Survey.  The  Com- 
rnission's  regulatory  authority  relates  to  encroachments  and  the  pollu- 
tion of  streams. 

With  respect  to  the  former  the  Commission  is  the  only  State 
body  with  jurisdiction,  save,  possibly,  the  Public  Utilities  Commission, 
but  its  authority  is  curtailed  by  exceptions  in  favor  of  independent 
action  by  some  local  city  and  park  officials.  Its  regulatory  authority 
over  pollution  it  shares,  in  law  but  not  in  fact,  with  the  State  Board 
of  Health.  The  authority  of  the  Commission  to  construct  levees  is 
not  granted  specifically  but  may  easily  be  implied  from  the  broad 
general  powers  conferred  upon  the  Commission. 

Comments  and  Suggestions. 

The  powers  of  the  Rivers  and  Lakes  Commission  as  at  present 
defined  by  law  are  too  vague  and  indefinite,  and  are  susceptible  to 
varying  interpretations  that  are  likely  to  lead  to  conflicts  of  jurisdiction 
with  other  State  authorities.  It  is  desirable  that  the  Commission  should 
have  broad  powers  but  the  extent  to  which  they  affect  those  of  other 
State  and  local  officials  should  not  be  open  to  question.  At  present  the 
Rivers  and  Lakes  Commission  could  absorb  important  functions  of  the 
Fish  and  Game  Commission,  State  Water  Survey,  some  of  the  State 
Board  of  Health  and  several  other  bodies  without  seriously  straining 
its  powers. 

The  Commission's  power  over  encroachments  should  extend  to  all 
waters^  of  the  State  whether  artificial  or  natural.  Local  drainage 
authorities  should  be  required  to  file  plans  and  specifications  of 
improvements  and  receive  the  approval  of  the  Commission  of  such 
plans  before  undertaking  construction  work  affecting  drainage. 

Control  over  the  pollution  of  streams  should  be  vested  in  the  same 
authorities  that  control  the  question  of  water  supply.  Pollution  of 
streams  almost  invariably  affects  sewage  disposal  and  problems  of 
sewage  disposal  and  water  supply  are  very  frequently  so  closely  related 
that  one  cannot  be  settled  adequately  without  consideration  of  the 
other.  Many  cogent  reasons  may  be  advanced  in  favor  of  placing  both 
under  the  jurisdiction  of  the  State  Board  of  Health.  However,  in 
view  of  the  fact,  that  at  present  the  question  of  pollution  is  being  suc- 
cessfully administered  by  the  water  authorities,  it  is  suggested  that 
they  retain  jurisdiction  in  this  field  and  assume  the  additional  function 
of  supervising  water  supplies.     If  this  is  done  the  waterway  officials 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  797 

should  be  given  definite  autliority  to  approve  or  reject  all  plans  for 
construction  or  alteration  of  local  water  works  systems  as  well  as 
sewage  disposal  systems. 

Inasmuch  as  the  important  functions  in  the  administration  of 
waterways  are  of  an  engineering  nature,  it  is  suggested  that  a  single 
commissioner  be  placed  in  charge  and  given  supervision  over  the  con- 
struction and  maintenance  of  levees  and  other  public  works  pertaining 
to  waterways  that  might  be  planned  in  the  future,  as  well  as  super- 
vision over  local  drainage  improvements,  sewage  disposal  systems  and 
water  works  systems.  In  hearing  and  deciding  complaints  as  to  pol- 
lution of  streams  or  encroachments  he  might  constitute  one  member 
of  a  board  on  which  would  also  be  represented  the  Fish  and  Game 
authorities  and  a  third  person.  The  remaining  functions  of  the  pres- 
ent Rivers  and  Lakes  Commission  could  be  very  properly  performed 
under  the  supervision  of  a  single  Commissioner. 

D.    GENERAL  SUMMARY. 

There  are  at  least  eight  State  ofiices,  boards  and  commissions 
performing  functions  related  in  some  way  to  the  water  resources  of 
the  State.  Three  of  these — Rivers  and  Lakes  Commission,  Illinois 
and  Michigan  Canal  Commissioners  and  State  Water  Survey  are  inter- 
ested exclusively  in  water  resources.  The  Fish  and  Game  Commission 
is  largely  concerned.  The  other  four  have  only  a  secondary  inter- 
est in  the  subject.  They  are  the  Public  Utilities  Commission,  the 
State  Geological  Survey,  the  State  Board  of  Health  and  the  State 
Laboratory  of  Natural  History. 

Following  is  a  statement  intended  to  indicate  the  general  char- 
acter of  the  functions  relating  to  water  resources  performed  by  each  of 
these  State  offices : 
Rivers  and  Lakes  Commission — 

Collection  of  data,  investigation,  etc. 

Control  and  improvement  of  Navigation. 

Water  Power. 

Water  Pollution. 

Control  of  Water  Fronts,  etc. 

Conservation  of  aquatic  life. 

Reclamation  and   Drainage. 
Public   Utilities   Commission — 

Control  and  improvement  of  Navigation. 

Control  of  Water  Fronts,  etc. 

Water  Supply   (Control  of  water  works). 
Board  of  Health- 
Collection  of  data,  investigation,  etc. 

Water  Pollution. 

Water  Supply   (control  of  water  works). 
Fish  and  Game  Conservation  Commission. 

Collection  of  data,  investigation,  etc. 

Conservation   of  aquatic  life. 
Illinois  and  Michigan  Canal  Commission — 

Control  and  Improvement  of  Navigation. 

Water  Power. 
State  Water  Survey — 

Collection  of  data,  investigation,  etc. 
Laboratory  of  Natural  History — 

Collection  of  data,  investigation,  etc. 
Geological  Survey — 

Collection  of  data,  investigation,  etc. 


798  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

The  Rivers  and  Lakes  Commission  overshadows  all  the  other 
departments  in  the  scope  of  its  powers.  It  exercises  in  some  way 
jurisdiction  over  each  function  mentioned  save  only  that  of  water 
supply.  Six  of  the  eight  State  offices  have  authority  to  collect  statis- 
tics and  make  investigations;  three  have  direct  authority  over  river 
improvements  for  navigation  purposes;  and  two  are  concerned  with 
each  of  the  following:  A\"ater  pollution,  water  supply,  water  power, 
encroachments  on  water  fronts  and  conservation  of  fish  life.  Thus 
with  respect  to  most  of  the  functions  relating  to  water  resources  there 
is  a  possibility  of  duplication  of  work  due  to  the  fact  that  there  are 
two  or  more  sources  of  authority  over  one  subject. 

Administration  of  the  waters  and  waterways  is  decentralized. 
There  are  eight  State  offices  with  varying  degrees  of  authority.  In 
addition  there  are  numerous  local  authorities  in  most  cases  independent 
of  State  control.  The  question  of  water  supply  control  is  almost 
exclusively  a  local  one  while  drainage  and  reclamation  projects  are  in 
the  hands  of  local  autonomous  districts. 

Of  the  four  important  water  departments  of  the  State  system — 
three — Rivers  and  Lakes,  Illinois  and  Michigan  Canal,  and  Fish  and 
Game  are  organized  as  commissions,  appointed  by  the  Governor,  and 
independent  of  each  other.  The  fourth,  the  State  Water  Survey  has 
powers  of  investigation  only  and  is  under  the  State  University. 

It  does  not  seem  desirable  under  present  conditions,  to  attempt 
to  consolidate  all  the  activities  of  the  State  relating  to  water  resources 
into  one  department.  On  the  other  hand  there  is  manifest  need  for 
greater  concentration  of  authority  than  exists,  in  order  not  only  to 
center  responsibility  for  the  performance  of  administrative  duties  but 
to  make  possible  the  formulation  of  a  State  waterway  program  that 
will  take  into  consideration  all  factors  involved.  The  administration 
of  the  Illinois  and  Michigan  Canal  should  not  be  completely  separated 
from  and  independent  of  all  other  waterway  authorities.  There  is 
also  need  of  more  effective  State  control  over  drainage  and  reclama- 
tion projects.  The  use  of  the  waters  for  purposes  of  domestic  con- 
sumption and  for  general  municipal  purposes  is  not  subject  to  State 
regulation.  It  would  seem  desirable  to  have  some  State  supervision 
over  local  water  plants.  There  shfculd,  furthermore,  be  some  definite 
legal  connection  established  between  the  waterways  authorities  and 
fish  and  game  authorities,  particularly  because  of  the  close  association 
between  problems  of  fish  conservation  and  waterway  programs. 

To  summarize,  it  is  suggested : 

1.  That  tlic  functions  now  performed  by  tlie  Illinois  and  Michigan  Canal 
Commissioners  and  the  Rivers  and  Lakes  Commission  be  consolidated 
into  one  authority  having  general  jurisdiction  over  waterways. 

2.  That  this  authority  should  be  one  person  rather  than  a  Commission. 

3.  That  the  State  Waterway  authorities  should  be  given  more  definite 
legal  control  over  local  drainage  plans  and  local  water  plants. 

4.  That  provision  should  be  made  for  a  more  effective  organization  and 
definition  of  the  relations  between  the  various  authorities  having 
power  over  water  resources. 


III.  FISH  AND  GAME  CONSERVATION  COMMISSION. 

1.    INTRODUCTION. 

Fish  Legislation. 

No  attempt  was  at  first  made  by  the  State  to  control  or  regulate 
in  any  manner  the  taking  of  fish  from  the  waters  of  the  State.  In 
1857  the  sale  or  reception  of  fresh  water  fish  in  the  Chicago  markets 
was  forbidden  except  after  inspection  by  persons  appointed  by  the 
city  council.  In  1861,  an  attempt  was  made  to  control  the  taking  of 
fish  from  the  streams  and  lakes.  In  that  year  fishing  with  a  net  was 
prohibited  in  a  certain  arm  of  the  Illinois  River  in  LaSalle  county, 
while  in  Rock  Island  county  fishing  was  made  illegal  during  the 
periods  between  June  1  and  August  1 ;  and  from  December  1  to  the 
first  of  the  following  April.  The  latter  Act  was  repealed  by  the  next 
General  Assembly.  During  the  60's  some  sort  of  restrictive  fish  legis- 
lation was  enacted  at  nearly  every  session  of  the  legislature,  but  all 
of  the  Acts  were  local  in  that  they  applied  only  to  certain  rivers  or 
streams  and  most  frequently  only  to  certain  stretches  of  a  river. 

These  laws  either  forbade  fishing  with  nets  or  established  a  closed 
season  (usually  the  spawning  season)  during  which  no  fishing  was 
permitted. 

Special  legislation  for  the  protection  of  game  and  fish  was 
definitely  prohibited  by  the  Constitution  of  1870.  The  first  general  law 
aft'ecting  the  entire  State  was  enacted  in  1872.  This  Act  forbade  the 
placing  of  dams,  seines,  nets,  drags  or  other  obstructions  across  any 
of  the  streams,  rivers,  lakes,  ponds  or  other  water  courses,  that  would 
interfere  with  the  natural  passage  of  fish  up  and  down  such  a  water 
course.  Seines  with  less  than  1^  inch  meshes  were  forbidden.  The 
justice  of  the  peace  was  authorized  to  enforce  the  provisions  on  com- 
plaint from  any  source,  and  impose  fines  of  from  $10  to  $50  for 
infractions  of  the  law.  This  Act  was  amended  in  1879  by  permitting 
dams  and  other  obstructions  but  making  it  the  duty  of  the  owners  of 
such  to  install  suitable  fishways.  The  size  of  the  mesh  of  the  seine 
allowed  by  law  was  also  changed  in  1879  to  2  inches,  and  has  so 
remained  up  to  the  present  time,  although  fish  commissioners  have 
frequently  recommended  reversion  to  the  1^  inch  mesh  in  order  to 
encourage  destruction  of  the  gar. 

By  the  latter  part  of  the  70's  it  was  coming  to  be  realized  that 
the  State  should  do.  more  to  conserve  the  fish  industry  and  protect  the 
fish  in  the  public  streams.  With  spasmodic  regulation  affecting  only 
limited  sections  the  waters  were  fast  approaching  depletion.  The  situ- 
ation led  to  the  enactment  of  a  law  (May  13,  1879)  which  for  the 
first  time  provided  for  a  permanent  State  organization  to  deal  with  the 


800  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

fish  question.  The  Governor,  with  the  approval  of  the  Senate,  was 
authorized  to  appoint  a  Board  of  Fish  Commissioners  to  consist  of 
three  persons,  one  being  chosen  each  year  for  a  three  year  term.  They 
were  to  receive  no  compensation,  but  $300  was  allowed  per  year  for 
traveling  expenses  for  the  board. 

The  duties  of  the  board  were  at  first  confined  ot  measures  to 
increase  the  fish  supply  rather  than  preventive  measures  to  protect  the 
existing  supply.  It  was  authorized  to  establish  fish  hatcheries  and 
breeding  establishments,  employ  a  "practical  and  competent"  fish  cul- 
turist  to  act  as  superintendent  and  have  general  charge  of  such  estab- 
lishments subject  to  direction  by  the  board. 

The  board  was  also  authorized  to  take  all  measures  within  their 
means  to  propagate  and  increase  native  food  fishes  and  to  introduce 
new  varieties. 

The  work  af  the  board  consisted  at  first  largely  in  catching  native 
fish  along  the  sloughs,  holes  and  lakes  of  the  Mississippi  and  Illinois 
rivers  and  distributing  the  catch  over  the  State  to  stock  other  streams 
or  private  waters.  A  fish  hatchery  was  established  at  Havana,  on  the 
Illinois  river,  and  about  1896  a  receiving  and  distributing  pond  was 
established  at  Urbana.  The  latter  was  used  as  a  general  storage  place 
for  fish,  particularly  bass  and  croppie,  and  as  a  general  distributing 
center  for  the  eastern  section  of  the  State. 

In  general  the  enforcement  of  the  laws  relating  to  fishing  was  left 
^o  the  local  officials.  Any  person  might  lodge  a  complaint  before  a 
justice  and  if  a  conviction  of  violation  of  the  law  resulted  the 
informant  was  entitled  to  one-half  the  fine  imposed.  The  other  half 
went  to  the  local  school  fund.  In  particular  the  constables  were  sup- 
posed to  act  as  informants.  In  1897  steps  were  taken  to  insure  a  more 
rigid  enforcement  of  the  laws.  On  request  of  the  Board  of  Fish  Com- 
missioners the  Governor  of  the  State  was  authorized  to  appoint  fish 
wardens  to  enforce  the  fish  laws.  They  were  removable  by  the  Gov- 
ernor and  received  the  same  compensation  as  that  allowed  the  con- 
stables. They  were  vested  with  authority  to  serve  processes,  arrest 
offenders  and  prosecute  violators  of  the  law.  In  1903,  the  number 
of  such  wardens  was  fixed  at  five  and  they  were  giyen  a  salary  of 
$900  per  annum,  in  lieu  of  a  percent  of  the  fines  imposed  as  form- 
erly. Two  years  later  the  Governor  was  authorized  to  appoint  one  or 
more  deputy  wardens  in  each  county  of  the  State  to  assist  the  wardens 
in  the  enforcement  of  the  laws.  The  deputies,  however,  instead  of 
being  granted  a  fixed  salary  were  paid  on  the  same  basis  as  were 
constables,  viz. — one-half  of  all  fines  imposed  as  a  result  of  their 
action. 

In  1911  still  further  changes  were  made,  particularly  in  local 
organization,  for  enforcement  of  the  fish  laws.  The  State  was  divided 
into  nine  districts  and  one  warden,  with  a  salary  of  $900  per  annum, 
was  allotted  to  each.  The  Governor  also  appointed  five  deputy  fish 
wardens  for  each  district,  whose  compensation  was  fixed  at  $2  per  day 
and  expenses  not  to  exceed  $35  per  month.  The  State  board  was 
retained  with  powers  and  duties  similar  to  those  previously  exercised. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS,  801 

Game  Legislation. 

The  history  of  the  game  laws  of  the  State  resembles  closely  that 
relating  to  fish.  No  restrictive  legislation  with  regard  to  game  is  to 
be  found  prior  to  1855  when  an  act  was  passed  declaring  it  unlawful 
to  kill,  trap,  buy  or  sell  deer,  fawn,  wild  turkey,  grouse,  prairie  chicken 
or  quail  in  certain  seasons  of  the  year,  under  penalty  of  from  $5 
to  $50.  Although  the  law  was  couched  in  general  terms  it  applied  to 
less  than  half  the  State,  since  57  of  the  then  existing  100  counties  were 
specifically  exempted.  Ten  years  later  in  a  revision  of  the  game  laws, 
forty-eight  counties  were  exempted  and  from  time  to  time  thereafter 
the  number  of  such  was  reduced. 

For  nearly  a  half  century  after  1855,  numerous  laws  were  passed 
relating  to  game  but  most  of  them  merely  added  to  the  list  of  wild 
animals  or  game  fowl  to  be  protected.  In  1873  many  species  of  wild 
birds  were  included  in  the  list.  The  laws  established  a  closed  season 
for  certain  groups  of  birds  or  animals  but,  with  a  few  exceptions,  did 
not  prohibit  entirely. 

In  response  to  a  movement  throughout  the  State  for  the  con- 
servation of  wild  animals  and  birds  and  for  a  rnore  effective  enforce- 
ment of  existing  game  laws  a  law  was  passed  in  1897  providing  for 
the  appointment  of  a  State  Game  Commissioner,  a  game  warden  for 
each  congressional  district  and  one  or  more  deputies  for  each  county. 
The  Game  Commissioner  was  appointed  by  the  Governor  and  held 
office  during  the  tenure  of  the  appointing  authority.  His  duty  was  to 
enforce  all  the  statutes  relating  to  game  and  birds,  bring  action  against 
offenders  against  the  law,  prosecute  violators  and  recover  fines  and 
penalties,  and  superintend  the  issuance  of  hunting  licenses.  His  sal- 
ary was  $2,500  per  annum,  and  he  was  required  to  render  an  annual 
report  to  the  Governor. 

Under  an  act  of  1903,  which  modified  to  some  extent  the  law 
of  1897,  the  State  Game  Commissioner  was  authorized  to  appoint  with 
the  approval  of  the  Governor,  ten  game  wardens  (the  number  was 
increased  to  16  in  1907)  the  appointments  to  be  based  "upon  efficient 
service  only  and  without  regard  to  political  influence."  The  Com- 
missioner was  likewise  authorized  to  appoint  deputy  game  wardens 
from  each  county  of  the  State  who  were  placed  directly  under  his 
supervision  and  control.  The  compensation  allowed  the  wardens  was 
$900  per  annum  while  the  deputies  were  entitled  to  one-half  of  all 
fines  imposed  as  a  result  of  action  !;rought  by  them,  and  a  per  diem 
to  be  fixed  by  the  Game  Conmii.ssioi:c;r.  but  not  to  exceed  $2  per  day. 

2.       PRESENT   ORGANIZATION. 

In  1913  the  fish  and  game  laws  were  completely  revised,  and  all 
the  functions  of  the  State  relating  to  the  protection  and  conservation 
of  fish,  game  and  wild  fowls  were  vested  in  a  single  authority,  known 
as  the  Fish  and  Game  Conservation  Commission.  The  Commission 
consists  of  three  persons,  appointed  by  the  Governor  and  Senate,  one 
of  whom  is  designated  by  the  Governor  as  the  President  of  the  Com- 
mission. For  local  administration  of  the  laws  the  State  is  divided 
into  six  districts  and  one  fish  and  game  warden  is  appointed  by  the 


802    '  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

Commission  for  each  district.  The  Commission  also  appoints  ten 
deputy  wardens  for  each  district  who  serve  continuously  and,  in 
addition,  special  or  temporary  deputy  wardens  not  to  exceed  sixty  in 
all.  Other  officers,  employes  and  agents  may  be  engaged  by  the  Com- 
mission at  its  discretion.  Besides  the  regular  corps  of  officials  named 
above  all  constables  of  the  State  are  made  ex  officio  special  deputy 
wardens  to  serve  as  such  without  compensation  other  than  one-half 
of  all  fines  recovered  in  cases  in  which  they  have  filed  complaints. 

The  compensation  of  the  fish  and  game  officials  and  stafif  as  pro- 
vided in  the  last  appropriation  ordinance  of  1913  is  as  follows: 

Commissioner,  President   $5,000.  per  annum 

Commissioners  (2)   each 2,500.     " 

Wardens  (6)   each 1,500.     " 

Deputy  Wardens  (60)   each 1,200.     " 

Extra  Deputy  Wardens   (60)  each  (1913  only) 100.  per  month 

for  2  mo. 

Stenographers  (2)  each 900.  per  annum 

.       Chief   Clerk 1,800.     " 

Clerk 1,200.     " 

Messenger  800.     " 

Other  expenses  authorized  by  the  appropriation  act  of  1913  are 
for  the  following  services : 

Traveling  expenses $30,000.  per  annum 

Office  expense,  printing,  etc 15,000.     "        " 

Fish  propagation  and  protection 15,000      " 

Maintenance  of  State  Game  Farm 12,000. 

Purchase  of  launches 7,500.     " 

Maintenance  of  launches 5,000.     "         " 

The  total  appropriation  for  the  biennium  aggregates  $361,700. 

3.    POWERS  AND  DUTIES. 

Broadly  speaking  the  powers  and  duties  of  the  new  fish  and  game 
commission  are  much  the  same  as  those  previously  vested  in  the  Fish 
Commission  and  the  Game 'Commissioner.  The  new  body  is  required 
to  secure  the  enforcement  of  the  fish  and  game  laws,  take  measures 
to  conserve  the  fish  and  game  of  the  State,  and  report  annually  to  the 
Governor  as  to  progress  made. 

Enforcement  of  Fish  and  Game  Laws. 

The  members  of  the  Commission  are  made  responsible  for  the 
proper  enforcement  of  the  game  and  fish  laws  and  for  that  reason  are 
clothed  with  direct  authority  personally  to  make  arrests,  etc.  The 
president  of  the  Commission  is  the  executive  chief  and  acts  as  general 
supervisor  and  administrator  over  the  staff  of  wardens  and  deputies. 
The  Commission  appoints  the  wardens  and  deputies,  requires  them  to 
report  regularly  and  issues  orders  to  them  from  time  to  time. 

Conservation  of  Fish  and  Game. 

The  duties  with  reference  to  conservation  form  the  most  impor- 
tant part  of  the  work  of  the  Commission.  In  the  first  place,  it  is 
required  to  select  suitable  locations  and  establish  fish  hatcheries  and 
breeding  places  for  the  purpose  of  increasing  the  number  of  native 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS. 


803 


food  fishes  and  introducing  new  varieties  that  give  promise  of  flour- 
ishing in  Illinois  waters.  Such  hatcheries  are  to  l)e  under  tlie  manage- 
ment of  a  fish  culturist  selected  by  the  Commission  and  under  its  direct 
authority.  To  aid  in  the  work  of  investigation  and  conservation  the 
commissioners  or  their  agents  are  fully  empowered  to  catch  fish  at  any 
time  or  from  any  place  they  may  see  fit  for  the  purpose  of  destroymg 
objectionable  fish  or  for  purposes  of  propagation  or  distribution. 

The  Commission  is  also  authorized  to  set  aside  fish  preserves  in 
waters  within  the  jurisdiction  of  the  State.  When  such  are  estab- 
lished notice  of  their  location  in  each  county,  in  wdiich  the  preserve  is 
located,  must  be  published  at  least  once  in  a  newspaper.  Conspicuous 
notice  must  also  be  posted  at  the  outlet  of  the  preserves  and  at  high- 
way crossings.  Such  preserves  are  closed  for  fishing  purposes  except 
with  hand  and  line  or  rod  and  line. 
Reports  to  Governor. 

The  Commission  is  required  to  submit  annual  reports  to  the  Gov- 
ernor of  the  State  setting  forth  the  accomplishments  of  the  year  and 
recommendations  of  desirable  alterations  in  the  laws. 
Wardens  and  Deputies. 

In  the  enforcement  of  the  laws  t-lie  deputies  are  clothed  with  full 
police  powers.  It  is  their  duty  to  detect  violations  of  the  laws  and 
cause  the  arrest  and  punishment  of  offenders.  If  they  have  reason 
to  suspect  an  individual  or  corporation  of  the  possession  of  game, 
fowl  or  bird  contrary  to  law  it  is  their  duty  to  make  an  affidavit  of 
the  fact  before  the  justice  of  the  peace  who  issues  a  search  warrant 
and  orders  the  seizure  bv  the  constable  of  all  such  found.  No  State 
officials  are  held  liable  for  damages  incurred  by  wrongful  seizure.  The 
wardens  or  their  deputies  may  themselves  seize  on  sight  without  pro- 
cess all  fish  or  game  of  illegal  kinds  found  in  the  illegal  possession  of  a 
person  with  a  license.  They  may,  moreover,  seize  all  nets  and  other 
devices  for  catching  or  killing  fish  that  do  not  conform  to  the  require- 
ments of  the  law. 

When  complaints  are  made  as  to  infractions  of  thelaw,  the  war- 
dens or  deputies  must  investigate  such  complaints  and  if  they  appear 
to  be  well  founded  cause  proceedings  to  be  instituted  against  the 
offenders.  In  administering  their  duties  the  wardens  and  deputies 
are  vested  \\\t\\  full  power  to  execute  warrants,  etc.,  as  any  justice 
of  the  peace  or  constable.  They  may  arrest  on  sight  and  without 
warrant  and  arraign  before  a  court  any  person  actually  detected  in 
violating  the  law.  ^    administration. 

Under  the  Act  of  1913  the  machinery  for  the  enforcement  of  the 
fish  and  game  laws,  although  modified  somewhat,  remains  substantially 
as  it  had  previously  existed  under  independent  managements.  One 
commission  now  has  charge  of  both  fish  and  game.  The  headquarters 
of  the  commission  are  located  in  Springfield  where  regular  meetings 
are  held  on  the  second  Wednesday  of  each  month,  and  at  other  times 
on  the  call  of  the  president.  At  these  meetings  new  lands  are  pur- 
chased, hatcheries  or  ponds  are  established,  fish  preserves  located  and 
reports  from  wardens  received  and  discussed. 


804  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

Most  of  the  work  which  devolves  upon  the  commissioners  is  per- 
formed outside  the  regular  sessions.  For  administrative  purposes  the 
State  is  divided  into  three  divisions — northern,  central  and  southern — - 
and  one  commissioner  is  assigned  to  each  and  has  the  charge  of  the 
wardens,  fish  preserves,  hatcheries  and  other  establishments  therein. 

The  main  functions  of  the  Commission  relate  to : 
Administration  of  fish  and  game  laws, 
Fish  rescue  and  distribution, 
Fish  preserves. 
Fish  hatching. 
State  game  farm. 

Administration  of  Fish  and  Gauie  Laws. 

Here  the  work  of  the  Commission  is  purely  administrative  in 
character.  It  appoints  wardens  and  deputies,  issues  directions  as  to 
proper  methods  of  procedure  in  general  and  in  particular  cases  and 
supervises  them  in  the  enforcement  of  the  laws.  It  also  sub-divides 
the  districts  and  assigns  a  deputy  warden  to  each  sub-division. 

Fish  Rescue  and  Distribution. 

This  work  continues  to  be  an  important  function  of  the  fish  and 
game  officials  as  it  was  that  of  the  fish  commissioners.  For  purposes 
of  distribution,  fish  are  obtained  from  the  low  grounds  along  the 
Illinois  and  Mississippi  Rivers.  During  flood  seasons  the  fish  find  their 
way  into  the  shallow  waters  of  the  low  lands  that  furnish  admirable 
feeding  and  spawning  grounds.  With  the  return  of  the  streams  to 
their  normal  levels  many  thousands  of  them  are  left  stranded.  The 
Commission  collet:ts  these  and  distributes  them  through  various  sec- 
tions of  the  State  or  returns  them  to  the  bed  of  the  river.  In  a  recent 
report  it  is  stated  that  650,000  fish  have  been  rescued  in  the  immediate 
vicinity  of  Galena  alone. 

Fish  Preserves. 

Several  places  along  the  principal  fish  streams  have  been  desig- 
nated as  fish  preserves  and  reserved,  according  to  law,  for  fishing  vvuth 
rod  and  line  only.  These  include  the  Rock  river  and  its  tributaries, 
Ouincy  Bay,  Calumet,  and  other  streams  and  waters,  aggregating  a 
t'otal  of  about  1,000  miles. 

Fish  Hatching. 

To  give  artificial  aid  in  the  conservation  of  fish  life,  a  hatchery 
was  established  at  Havana  on  the  Illinois  River  some  years  ago.  It 
however,  was  allowed  to  deteriorate  and  had  been  practically  aban- 
doned until  the  new  Commission  caused  it  to  be  rehabilitated.  It  is 
now  used  particularly  for  the  propagation  of  commercial  varieties  of 
fish,  such  as  the  carp  and  buffalo,  that  are  in  demand  in  the  markets 
as  cheap  food  fish  and  that  thrive  in  the  muddy  streams  of  central 
and  southern  Illinois.  During  the  last  year  10,000,000  pike-perch  eggs 
were  hatched  and  distributed  from  the  Havana  hatchery.  Buffalo 
spawn  has  also  been  obtained  and  hatched  to  some  extent  and  the 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS. 


805 


Commission  has  recently  decided  to  enlarge  the  Havana  hatchery  to 
turn  out  50,000,000  buffalo  fry  a  year.  The  hatchery  is  under  the 
supervision  of  the  warden  of  the  district  in  which  it  is  located. 

In  addition  to  the  Havana  hatchery,  fish  ponds  have  been  estab- 
lished at  Spring  Grove,  McHenry  county,  in  the  northern  section  of 
the  State.  The  property  of  the  Commission  at  this  place  covers  forty 
acres,  twenty-five  of  which  was  just  recently  (Spring  of  1914)  pur- 
chased for  bass  ponds.  When  completed  there  will  be  seven  or  eight 
ponds  in  the  plant  with  a  capacity  of  about  10,000,000  bass  fry  per 
year.  It  is  estimated,  that  the  present  ponds  will  produce  at  least 
3,000,000  fry  during  the  present  year.  The  Spring  Grove  ponds  are 
being  utilized  for  the  propagation  of  black  bass,  and  other  game  fish 
that  thrive  particularly  well  in  the  lakes  and  streams  of  northern  Illi- 
nois. A  hatchery  is  also  to  be  constructed  at  Spring  Grove  with  a 
capacity  of  50,000,000  fry  and  to  be  used  principally  for  pike-perch. 
The  Spring  Grove  ponds,  and  hatchery  when  completed,  is  to  be  under 
the  direct  supervision  of  a  fish  culturist  selected  by  the  Commission. 

State  Game  Farm. 

For  the  preservation  and  propagation  of  various  forms  of  wild 
fowl,  birds,  etc.,  indigenous  to  Illinois  or  capable  of  thriving  therein, 
a  State  farm  has  been  established  at  Auburn,  a  suburb  of  Springfield. 
At  present  the  farm  consists  of  199  acres  and _  is  in  charge  of  a 
deputy  warden  assigned  to  the  work  by  the  Commission. 

5.     RELATION    TO    OTHER    STATE   FUNCTIONS. 

The  work  of  this  Commission  is  very  intimately  associated  with 
some  of  the  other  State  departments,  particularly  with  reference  to  the 
care  of  fish.  The  pollution  of  streams,  a  subject  under  the  jurisdiction 
of  the  Rivers  and  Lakes  Commission  and  of  the  State  Board  of  Health, 
vitally  affects  fish  propagation  in  that  it  seriously  interferes  with  the 
hatching  of  eggs  and  often  destroys  the  young  fish.  In  the  1909  report 
of  the  fish  commissioners  it  is  declared  that  more  fish  were  being  de- 
stroyed, both  in  maturity  and  in  embryo,  by  refuse  from  manufacturers 
and  other  establishments  along  the  streams  than  by  all  other  methods 
used  by  the  fishermen  and  anglers.  An  investigation  was  made  of  the 
effect  of  the  opening  of  the  Chicago  Sanitary  Canal  upon  aquatic  life 
in  the  Illinois  river.  The  conclusion  reached  was  that  the  result 
was  temporarily  unfavorable  to  the  interests  of  the  fish  commissioners 
in  that  it  reduced  the  total  catch  by  increasing  the  size  of  the  current 
and  thus  permitting  the  fish  to  seek  refuge  in  deep  water.  Fish  seem 
to  have  been  driven  away  from  the  upper  stretches  of  the  river  and 
to  have  concentrated  in  the  regions  lower  down.  According  to  figures 
furnished  by  one  of  the  commissioners  there  was  a  loss  in  the  catch 
of  fish  for  1908  over  the  preceding  year  of  37  per  cent  from  La  Salle 
to  Mossville  (upper  Illinois),  while  there  was  a  gain  of  70  per  cent 
from  Mossville  to  Meredosia  (middle  Illinois)  and  another  loss  of  37 
per  cent  from  Meredosia  to  Grafton,  the  latter  at  the  mouth  of  the 
Illinois. 

The  effect  of  sewage  upon  the  fish  supply  is  further  illustrated 
by  conditions  along  the  Chicago  lake  front.     When  the  sewage  of  the 


806  EFFICIENCY    AND    ECONOMY   COMMITTEE. 

city  was  dumped  into  the  lake  the  large  numbers  of  bass  and  other 
white  fish  almost  disappeared.  Since,  however,  the  sewage  has  been 
diverted  into  the  Illinois  there  has  been  a  remarkable  increase  in  the 
number  of  these  varieties  of  fish  found  in  that  vicinity. 

The  question  of  fish  propagation  and  pollution  of  streams  are, 
therefore,  very  closely  associated.  As  a  part  of  their  function  of  caring 
for  the  fish  the  wardens  are  instructed  by  the  Fish  and  Game  Com- 
mission to  report  all  cases  of  pollution  they  may  find.  Such  data  is 
then  forwarded  to  the  Rivers  and  Lakes  Commission  for  action. 

Drainage  and  levee  districts  also  directly  afifect  the  work  of  the 
fish  conservation.  In  the  statement  above  concerning  conditions  along 
the  Illinois  river  it  will  be  noted  that  there  appears  a  loss  in  the  lower 
stretches  of  the  river.  This  is  attributed  largely  to  the  construction 
of  levees  and  drainage  dams  along  this  section,  which  prevent  the 
fish  from  getting  out  into  the  shallow  waters  that  serve  as  natural 
feeding  or  breeding  grounds.  It  is  claimed  by  some  that  the  conse- 
quent loss  in  fish  more  than  counterbalances  the  gain  in  farm  values 
of  the  land  reclaimed  by  the  levees. 

To  summarize,  the  following  State  departments,  offices  and  com- 
missions have  some  definite  relation  to  the  work  of  the  Fish  and  Game 
Commission : 

1.  Rivers  and  Lakes  Commission. 

Pollution  of  Streams. 
Levee  Construction  by  State. 

2.  Board  of  Health. 

Nuisances  and  Related  to  Stream  Pollution. 

3.  State  Water  Survey. 

Special  Investigations  to  determine  effect  of  pollution  on 
aquatic  life. 

4.  State  Natural  History  Laboratory. 

Scientific  investigations   relating  to  aquatic  and  biological 
life. 

5.  Local  Drainage  Officials. 

Control  of  stream  flow  by  levees  and  ditches. 

6.     COMMENTS. 

The  principal  functions  performed  by  the  Fish  and  Game  Com- 
missioners concern  the  enforcement  of  the  fish  and  game  laws  and 
measures  to  conserve  fish  and  game.  The  latter  consist  principally  in 
establishing  and  maintaining  fish  hatcheries,  fish  preserves  and  super- 
intending the  State  game  farm.  The  nature  of  these  duties  does  not 
justify  the  existence  of  a  commission  as  the  administrative  head  of  the 
department.  At  least  equal  efficiency  could  be  obtained  by  substituting 
a  single  commissioner  who  could  be  held  more  directly  responsible 
and  whose  control  over  the  administrative  machinery  could  be  made 
more  effective  than  if  authority  were  diffused. 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  807 

The  services  performed  by  this  department  are  very  closely  asso- 
ciated with  those  of  several  other  State  offices,  particularly  the  Rivers 
and  Lakes  Commission,  and  it  would  seem  advisable  to  establish  a 
definite  organic  relationship  of  some  sort  with  them.  In  practice  co- 
operation has  been  relied  upon  to  attain  the  ends  desired.  Such  co- 
operation should  be  facilitated  by  the  establishment  of  definite  legal 
connections. 


IV.  STATE  CONTROL  OF  NATURAL  RESOURCES.^* 
Public  regulation  of  natural  resources  has  only  in  recent  years 
become  of  importance  in  the  Unite'd  States.  Early  laws  were  usually 
administered  by  local  authorities  or  through  the  courts.  Preceded  by 
some  investigational  surveys,  direct  control  through  State  offices  began 
after  1860;  and  since  1900  there  has  been  a  distinct  tendency  towards 
greater  state  control,  and  to  a  more  centralized  administration. 

Early  Local  Administration. 

Early  laws  for  the  protection  of  fish  and  game  were  enforced  by 
local  authorities  and  by  judicial  proceedings.  Boards  of  County  Com- 
missioners were  often  authorized  to  appoint  game  wardens,  who  also 
had  authority  over  fish  and  forests.  In  New  England,  towns  often  had 
game  wardens  and  foresters. 

Boards  of  County  Commissioners  also  usually  had  some  power  oyer 
the  use  of  sources  of  water  supply.  City  or  town  authorities  had  similar 
powers  to  construct  and  operate  water  supply  systems ;  the  pollution  of 
water  supply  was  made  a  misdemeanor ;  and  the  maintenance  of  any 
source  of  pollution,  a  nuisance  subject  to  abatement  by  injunction  or 
other  court  proceedings. 

•  Laws  were  early  passed  in  most  states  for  the  formation  of  local 
drainage  associations  or  districts  f^  and  in  the  Western  states  for  local 
irrigation  projects. 

A  general  characteristic  of  all  such  laws  was  the  failure  to  provide 
for  any  uniformity  of  administration,  either  through  comprehensive 
investigations,  uniformity  of  local  organization  or  control  by  a  central 
State  organ.  Often  there  was  a  confusion  of  overlapping  local  dis- 
tricts ;  there  was  no  power  for  the  execution  of  adequate  plans ;  and 
in  many  cases  property  was  not  protected  from  unwise  or  dishonest 
projects. 

With  the  increase  of  population  in  numbers  and  density  the  im- 
portance of  these  problems  was  better  realized;  while  constitutional 

34  Data   compiled   and   analyzed   by   Quincy  Wright,   A.   M. 
BIBLIOGRAPHY. 

The  State  Administrative  Organization  was  taken  directly  from  the  State  Laws  _  and 
Statutes.  The  Reports  of  the  Pennsylvania  Water  Supply  Commission  were  examined. 
The    National    Administrative    organization    was   taken    from   J.    A.    Fairlie,    National    Admims- 


and 


Congressional  Directory,  Washington,  1914.  On  Geological  Surveys,  Frank  WDe 
Wolf,  Work  of  the  State  Geolocical  Surveys  in  Mining  and  Scientific  Press,  Vol.  108, 
Number  1,  p.  35,  San  Francisco.  Tan.  3,  1914,  and  C.  W.  Hayes,  the  State  Geological  Sur- 
veys of  the  U.  S  Geological  Survey  Publications,  Bulletin  465,  Washington,  1911,  were 
consulted.  The  latter  contains  an  excellent  historical  account,  as  well  as  discussion  of  the 
powers  and  work,  and  reprint  of  the  laws  governing  all  State  Geological  Surveys.  On 
Forestry  Conservation  an  article  in  the  Review  of  Reviews,  Vol.  50,  p.  46,  July,  1914, 
was  read.  ,  , 

33  In  Indiana  special  acts  were  passed  from  1799  to  1852  and  a  general  state  law 
in  the  latter  year.  In  New  York,  the  revised  statutes  of  1852  contain  general  provisions 
as  to  drainage.     In  California,  drainage  laws  were  passed  as  early  as   1867. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  809 

provisions  against  special  legislation  (beginning  about  1850)  have  re- 
duced the  volume  of  special  acts,  while  general  laws  have  in  turn  been 
followed  by  the  development  of  State  administration. 

Scientific  Investigation  of  Natural  Resources. 

The  earliest  State  action  in  regard  to  natural  resources  was  in  pro- 
viding for  Geological  Surveys  with  powers  to  investigate  geological 
formations,  minerals,  coal,  oil,  water  supply  and  other  natural  resources 
of  the  State.  North  Carohna  formed  the  hrst  such  survey  in  1823, 
South  Carolina  followed  in  1824,  and  most  of  the  southern  and  eastern 
States  made  similar  provisions  during  the  next  two  decades.  The  west- 
em  and  middle  western  states  followed  with  similar  organizations  in 
the  fifties,  sixties  and  seventies.  Many  of  the  surveys  were  temporary ; 
and  some  of  the  states  have  had  as  many  as  three  or  four  surveys,  each 
lasting  for  a  period  of  five  to  ten  years.  Only  four  states,  Idaho,  New 
Mexico,  Montana  and  Utah  have  never  had  surveys.  Thirty-eight 
states,  at  present,  have  such  authorities. 

Aside  from  the  work  of  Geological  Surveys,  Boards  of  Agricul- 
ture, Experiment  Stations  and  State  Universities  have  frequently  car- 
ried on  similar  work,  and  occasionally  special  surveys  have  been  in- 
stituted. 

Following  the  discussion  of  conservation  problems  at  the  meeting 
of  State  Governors  in  the  White  House  in  1908,  a  number  of  States 
have  established  conservation  commissions  for  a  more  comprehensive 
survey  of  natural  resources.  Ten  States  have  such  bodies.  Utah  and 
Oregon  provided  for  a  conservation  commission  in  1909.  Louisiana, 
Maryland  and  Rhode  Island  created  conservation  commissions  in  1910 ; 
New  York,  Wisconsin,  Kansas  and  California  in  1911;  and  Nebraska 
in  1913.  The  functions  of  most  of  these  bodies  are  investigatory  and 
supervisory  over  other  investigatory  State  bodies,  for  the  purpose 
of  correlating  their  work.  The  Conservation  Department  of  New  York 
has,  however,  larger  powers  of  supervision  and  control. 

State  Control  of  Fish,  Game  and  Forests. 

In  1866,  Vermont  provided  for  a  State  Fish  and  Game  Commis- 
sioner, and  New  Hampshire  followed  in  1869.  Other  States  have  fol- 
lowed, though  in  the  majority  of  cases  the  control  of  fish  and  the  con- 
trol of  game  was  at  first  assigned  to  distinct  authorities, — very  often 
a  fish  commission  being  created,  while  game  protection  was  left  to  local 
authorities.  In  the  decade  between  1890  and  1910,  however,  the  two 
authorities  have  been  concentrated  in  most  cases;  and  now  thirty-four 
States  have  a  fish  and  game  commission  or  similar  body. 

Forestry  control  by  central  State  authority  was  scarcely  begun 
until  the  decade  following  1820,  although  a  number  of  States  gave 
incidental  powers  over  forestry  conservation  to  their  Boards  of  Agri- 
culture or  Land  Office.  Maine  provided  for  a  State  Forestry  Com- 
missioner in  1891 ;  and  New  Hampshire  made  a  similar  provision  in 
1893.  Other  States  have  followed  and  now  twenty-five  States  have 
forestry  commissions  or  similar  bodies  with  general  jurisdiction  over 
the  care  of  forests  and  the  prevention  of  fires.  Most  of  these  States 
have  set  aside  forest  reserves,  which  are  under  the  immediate  care  of 


810  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

the  Forestry  Commission;  and  many  of  them,  especially  in  the  Appa- 
lachian and  Rocky  Mountain  regions,  have  given  consent  to  the  acqui- 
sition of  land  by  the  National  Government  for  forestry  reserves. 

Three  tendencies  toward  centralization  of  administrative  control 
may  be  noted:  (1)  The  concentration  of  forestry,  fish  and  game 
under  one  department,  usually  called  a  forestry,  fish  and  game  com- 
mission. Ten  States,  of  which  West  Virginia  and  Colorado  are  typical, 
have  done  this.  (2)  The  extension  of  the  functions  of  the  depart- 
ment or  board  of  agriculture  to  embrace  forestry,  fish,  game,  and 
often  other  matters  such  as  drainage  and  irrigation.  In  tifteen  States, 
the  authority  of  the  Board  of  Agriculture  extends  over  forests;  and 
in  Virginia,  West  Virginia,  Georgia,  Tennessee,  North  Carolina  and 
Ohio  it  extends  also  over  fish  and  game.  In  Ohio  the  department  con- 
trol is  most  effective ;  an  Act  of  1913  created  a  Department  of  Agri- 
culture to  supersede  eight  previously  distinct  boards  and  commissions, 
and  gave  it  effective  control  over  tish,  game,  and  forests.  (3)  The 
establishment  of  a  conservation  department  or  commission. 

In  most  of  the  ten  States  with  such  commissions,  their  powers  are 
simply  those  of  investigation  and  recommendation.  But  in  Michigan, 
the  Domain  Commission  has  control  over  State  lands  and  the  man- 
agement of  State  forest  reserves.  The  New  York  Conservation  Com- 
mission has  much  more  extensive  authority. 

It  supersedes  all  previous  departments  interested  in  conservation ; 
and  establishes  control  of  fish,  game,  minerals,  forests,  water,  drainage, 
and   reclamation   under   one    centralized    department,    with    adequate 
powers  to  enforce  the  law. 
State  Control  of  Water  Supply  and  Drainage. 

During  the  first  half  of  the  nineteenth  century  there  was  an  active 
period  of  State  construction  of  canals  and  river  improvements;  and  a 
number  of  States  still  maintain  such  waterways, — as  in  New  York, 
Ohio  and  Illinois.  But  these  are  now  of  little  importance,  except  in 
New  York,  where  a  new  and  enlarged  system  of  canals  is  in  process 
of  construction. 

State  control  over  water  problems  next  developed  in  connection 
with  the  State  Boards  of  Health.  The  first  of  these  was  established  by 
Massachusetts  in  1869;  and  other  States  soon  followed.  In  the  earlier 
laws  there  was  no  specific  mention  of  control  over  water  supply;  but 
under  the  general  power  to  take  measures  for  the  public  health  and 
to  abate  nuisances,  State  Boards  of  Health  came  to  exercise  some 
power  to  prevent  water  pollution.  More  recently  (mainly  since  1900), 
authority  over  water  pollution  has  been  definitely  conferred  on  State 
Boards  of  Health ;  and  in  thirty-six  States  such  power  is  now_  granted 
to  some  extent.  In  many  cases,  however,  the  power  is  given  incident- 
ally, and  there  is  no  efifective  provision  for  securing  its  enforcement. 
The  Ohio  law  of  1910  is  the  most  effective;  and  this  has  been  followed 
in  Wisconsin  and  Indiana. 

Parallel  with  this  development  of  the  powers  of  State  Boards  of 
Health  has  been  the  creation  of  new  State  authorities  for  the  control 
of  water  supply,  irrigation  and  drainage, — different  aspects  being  em- 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  811 

phasized  in  the  several  States.  New  Jersey,  in  1882,  created  a  water 
storage  commission,  in  1899  a  sewage  and  drainage  commission ;  and  in 
1907  a  water  supply  commission,  with  extensive  powers  not  only  of 
regulation  and  supervision,  but  also  for  the  construction  and  operation 
of  water  works.  New  York  and  Pennsylvania  created  water  supply 
commissions  in  1905,  and  California  in  1913.  Minnesota,  Florida  and 
Texas  have  established  special  authorities  for  the  control  of  drainage 
and  reclamation  works. 

Illinois  in  1911  created  a  Rivers  and  Lakes  Commission  with  an 
extended  scope  of  authority  over  public  waters. 

Most  of  the  far  western  States  have  provided  for  a  State  Engi- 
neer, or  State  Irrigation  Board,  with  control  over  water  supply  for 
irrigation,  water  power  and  domestic  consumption,  and  in  some  States 
over  drainage  works. 

The  development  since  1907  of  State  control  ovqr  public  utilities, 
by  railroad  or  public  service  commissions,  has  included  the  regulation 
by  such  commissions  of  the  rates,  service  and  facilities  of  urban  water 
supplies.  An  Act  of  Wisconsin,  in  1911,  to  extend  further  the  con- 
trol of  the  Railroad  Commission  over  water  power  companies  has  been 
held  to  be  unconstitutional. 

Functions  in  relation  to  some  aspects  of  water  and  drainage  prob- 
lems have  also  been  conferred  on  other  State  authorities.  Thus  some 
power  in  drainage  matters  have  been  conferred  on  the  geological  survey 
in  North  Carolina  and  Illinois,  the  State  Land  Board  in  Oregon,  the 
Department  of  Agriculture  in  Washington,  and  the  Engineering  Schools 
of  the  State  Universities  in  Wisconsin  and  Kansas. 

To  a  large  extent  this  recent  development  of  State  control  has 
been  distributed  among  a  number  of  authorities,  and  has  often  been 
accompanied  by  the  creation  of  new  boards  and  commissions.  Some 
effort  towards  a  better  co-ordination  and  concentration  of  effort  is  to  be 
seen  within  the  last  few  years.  The  New  York  and  Pennsylvania 
water  supply  commissions  represent  an  attempt  to  combine  a  large 
part  of  the  State  control  over  water  problems  in  one  department.  New 
York  has  gone  even  further  in  the  Conservation  Department,  created 
in  1911,  which  included  the  water  supply  commission  as  one  division 
with  other  divisions  for  drainage  and  reclamation,  and  for  fish,  game 
and  forestry  conservation.  Conservation  commissions  in  other  States 
provide  an  investigational  and  advisory  body  as  a  means  of  co-ordinat- 
ing the  work  of  various  agencies  in  special  fields. 

The  need  for  a  more  effective  organization  is  also  indicated  by 
the  steps  which  have  been  taken  to  secure  better  co-ordination  between 
the  several  branches  of  the  United  States  Government  which  have  to 
do  with  water  problems.  National  control  in  these  matters  is  now 
exercised  to  some  degree  by  no  less  than  twenty  bureaus  or  offices  in 
five  executive  departments  and  several  detached  services.  At  a  meeting 
held  in  Chicago  on  June  17,  1914,  of  those  interested,  plans  were  dis- 
cussed for  reorganizing  these  services  so  as  to  secure  greater  co- 
ordination. 


812  EFFICIENCY    AND   ECONOMY   COMMITTEE. 

Character  of  State  Authorities. 

The  scope,  methods  and  purposes  of  State  activity  in  relation  to 
natural  resources  varies  widely  between  the  different  States,  and  in 
the  same  State  between  the  various  objects  of  State  action.  The  first 
stage  is  naturally  that  of  securing  information,  by_  collecting  existing 
data,  and  by  more  and  more  intensive  investigations,  and  'scientific 
experiments.  This  leads  easily  to  the  work  of  education, — of  the  gen- 
eral public,  of  trained  experts,  and  of  public  officials  by  means  of 
advice  and  recommendations. 

Another  stage  is  reached,  when  the  State  authority  is  given  more 
definite  police  powers  of  supervision  over  local  authorities,  and  of  regu- 
lation and  control  over  individuals  and  corporations  and  their  property. 
Such  supervision  and  regulation  is  usually  for  purposes  of  conservation 
and  protection ;  but  may  be  extended  to  include  active  efforts  for  the 
promotion  and  improvement  of  the  public  resources  and  the  general 
welfare. 

A  further  stage  is  reached  when  the  State  establishes  and  main- 
tains public  works  and  institutions  either  for  the  conservation  of  re- 
sources or  the  active  promotion  of  the  public  welfare. 

In  the  tabular  statements  which  follow  are  given  a  further  analysis 
of  the  various  purposes  of  State  control,  and  a  brief  indication  of  the 
agencies  and  purposes  of  control  in  each  State  and  in  the  United  States 
Government.  The  agencies  most  commonly  found  are  geological  sur- 
veys, fish,  game  and  forestry  commissions  and  State  Boards  of  Health. 

The  scope  of  State  action  is  most  highly  developed  in  respect  to 
fish,  game  and  forestry  conservation,  in  which  most  of  the  States 
exercise  investigational,  supervisory  and  regulative  powers  ;  while  many 
also  maintain  fish  hatcheries  and  some  States  have  game  and  forest 
reserves.  In  regard  to  water  and  drainage,  most  of  the  States  now 
exercise  both  investigational  and  some  supervisory  powers,  and  many 
also  have  direct  State  regulation  of  private  activities ;  but  constructive 
State  works  for  these  purposes  are  limited  to  a  few  States.  New  York 
and  New  Jersey  have  both  State  water  supply  and  navigation  works ; 
Florida,  Minnesota,  Louisiana  and  Texas  have  State  reclamation 
works;  and  Utah  and  Oregon  have  State  water  supply,  water  power 
and  irrigation  works. 

Summary. 

The  general  tendency  in  State  action  towards  natural  resources  is 
towards  a  greater  exercise  of  authority  by  the  State  governments,  with 
some  steps  towards  a  greater  concentration  of  authority. 

Most  of  the  States  maintain  geological  surveys,  and  many  of  the 
States  have  other  investigational  and  scientific  agencies.  In  some 
States  much  of  this  work 'of  scientific  investigation  is  connected  with 
the  State  Universities.  In  recent  years  there  was  some  tendency  to 
concentrate  and  coordinate  the  investigation  of  most  or  all^  matters 
relating  to  the  natural  resources  of  the  State  under  a  conservation  com- 
mission. With  respect  to  more  active  regulation,  local  authorities  still 
exercise  much  authority,  especially  in  matters  of  water  supply  and 
drainage ;  but  they  now  do  so  in  most  of  the  States,  under  supervision 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  813 

by  some  State  administrative  organ.  In  addition  to  supervising  local 
authorities,  the  States  are  also  exercising  direct  control  over  individuals 
and  corporations,  and  are  engaging  more  actively  in  constructive  enter- 
prises in  these  fields,  as  is  exhibited  by  the  number  of  States  maintain- 
ing fish  hatcheries,  and  game  and  forestry  reserves ;  while  some  States 
are  actively  engaged  in  the  improvement  of  waterways,  the  distribution 
of  water  supply,  and  irrigation,  drainage  and  reclamation  works. 

The  latest  tendency  is  also  toward  the  concentration  and  centraliza- 
tion of  authority  in  a  smaller  number  of  boards  and  commissions.  This 
has  resulted  in  a  number  of  difi'erent  classifications  of  the  powers  exer- 
cised by  any  one  department.  Sanitation,  rate  regulation,  agriculture, 
irrigation,  or  conservation  may,  any  one  of  them,  loom  up  as  the  most 
important  to  a  State  according  to  its  peculiar  conditions.  To  Ohio, 
Indiana,  and  Massachusetts,  sanitation  has  appeared  most  important; 
and  matters  of  water  supply  and  drainage  are  placed  under  the  State 
Board  of  Health.  With  the  concentrated  populations  of  New  York, 
New  Jersey  and  Pennsylvania,  the  equal  distribution  and  conservation 
of  water  has  seemed  important,  and  special  commissions  have  been 
created  with  wide  power  over  these  matters ;  while  in  New  York  con- 
servation as  the  dominant  note  is  carried  a  step  farther  by  including  all 
questions  of  water  and  natural  resources  under  a  single  department. 
In  the  western  State,  irrigation  and  engineering  problems  have  been 
most  important ;  hence  matters  of  water  supply  and  drainage  are 
usually  centered  about  an  officer  whose  primary  function  is  in  these 
fields.  The  conservation  of  fish,  game  and  forests  is  also  important 
in  these  States ;  and  there  is  very  often  a  concentration  of  these  three 
matters  under  one  head,  often  under  the  advice  and  assistance  of  an 
investigatory  conservation  commission.  The  Department  of  Agricul- 
ture has  been  made  a  center  of  concentration  in  a  number  of  States. 
States  as  far  apart  as  Ohio,  Georgia,  and  Washington  have  concen- 
trated a  large  number  of  authorities  relating  to  conservation  and  drain- 
age under  this  head. 


814  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

PURPOSES  OF  STATE  CONTROL  OF  NATURAL  RESOURCES. 

I.  Scientific  Investigation  of  Natural  Resources. 

1.  Exploration  and  Examination. 

a.  Geological  Formations,  Paleontology,  Minerals,  ores,  clays,  building 
stones. 

b.  Fuels,  coal,  oil,  natural  gas. 

c.  Water,  artesian  and  surface. 

d.  Soils. 

e.  Natural  History,  fish,  fauna,  flora. 

f.  Geography,  topography,  gauging  of  streams. 

g.  Meterological   Phenomena,  weather  conditions,  climate,  etc. 

2.  Educative  Work. 

a.  Publications,  bulletins,  maps,  charts,  reports. 

b.  Museums,  collection  of  specimens. 

c.  Lectures. 

II.  Conservation  of   Natural  Resources. 

1.  Fish. 

a.  Protection  of  fish  habitats,  river  and  lake  conservation,  prevention 
of  pollution  of  streams. 

b.  Protection   of    fish,    enforcing   fish    laws,   stockmg   rivers   with   fish, 
construction  and  maintenance  of  fish  hatcheries. 

c.  Investigation  of  fish  habitats  and  means  of  propagation. 

2.  Game. 

a.  Protection  of  habitats,  forest  conservation,  game  preserves. 

b.  Protection  of  game  and  birds,  enforcing  game  laws,  breeding  and 
propagating  of  birds  and  animals,  issuing  hunting  licenses. 

c.  Investigation  of  habits  of  birds  and  animals,  museums,  popular  edu- 
cation, bulletins. 

3.  Forests. 

a.  Maintenance  of  Forest  Reserves,  replanting  of  trees. 

b.  Protection  from  fires,  patrols,  etc. 

c.  Protection  of  timber,  enforcing  forest  laws,  etc. 

d.  Investigation  of  trees  and  forests,  proper  forestry  methods,  timber 
cutting,  replanting,  etc. 

4.  Minerals. 

a.  Investigation  and  discovery  of  mineral  resources. 

b.  Assay  of  minerals  and  ores. 

c.  Enforcement  of  mining  laws,  determination  of  mining  claims. 

5.  Water. 

a.  Protection  of  head  water  forests. 

b.  Prevention  of  pollution  of  streams. 

III.  Providing  Water  Supply. 

1.  Irrigation. 

a.  Organization  of  Irrigation  Districts. 

b.  Construction  of  irrigation  works,  canals,  ditches,  etc. 

c.  Regulation  of  distribution  of  water,  determining  water  rights. 

d.  Investigation  of  irrigation  possibilities. 

2.  Water  Power. 

a.  Construction  or  regulation  of  dams,  reservoirs,   etc. 

b.  Regulation  of  distribution  of  water,  determining  water  rights. 

c.  Investigation  of  water  power  possibilities. 

d.  Conservation   of  water  resources,  water  shed  protection. 

e.  Regulation  of  water  power  companies. 

3.  Water  for  Public  Consumption. 

a.  Conservation  of  water  resources,  protection  of  water  sheds. 

b.  Prevention  of  pollution  of  streams,  inspection  of  sources. 

c.  Construction  and  maintenance  of  water  supply  plants. 

d.  Regulation  of  water  companies. 

e.  Organization  of  local  districts  for  water  distribution. 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  815 

IV.  Drainage. 

1.  Sewage  Disposal. 

a.  Organization  of  sewage  districts. 

b.  Construction  and  maintenance  of  sewage  systems. 

c.  Sanitary  regulations,  prevention  of  pollution  of  streams 

d.  Investigation  of  means  of  sewage  disposal. 

2.  Land  Reclamation. 

a.  Investigations  of  reclamation  possibilities. 

b.  Construction  of  works  for  drainage  of  overflowed  lands. 

3.  Agricultural  Drainage. 

a.  Organization  of  drainage  districts 

b.  Construction  of  means  of  drainage,  canals,  ditches,  etc. 

c.  Investigations  of  drainage  possibilities,  surveys,  etc. 

V.  Promoting  Navigation. 

1.  Waterways. 

a.  River  and  Harbor  Improvement. 

b.  Canal  construction. 

c.  Deep  waterways. 

d.  Prevention  of  obstructions,  regulation  of  bridges,  etc. 

2.  Transportation. 

a.  Inspection  and  regulation  of  vessels. 

b.  Regulation  of  navigation  companies. 

c.  Enforcement  of  navigation  laws. 

3.  Commerce. 

a.     Regulation  of  water  commerce. 

VI.  Prevention  of  Floods. 

a.  Issuing_  flood  warning,  gauging  streams. 

b.  Inspection  and  regulation  of  dams,  reservoirs. 

c.  Protection  of  water  sheds,  forest  conservation. 

d.  Construction  of  levees. 


816  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

STATE  AGENCIES  OF  CONTROL  OVER  NATURAL  RESOURCES 


States 

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7     14 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  817 

NOTES   TO   TABLES   ON   PP.   64,   67,   68-83. 

i — Investigatory,  power  of  making  surveys,  examinations,  etc.,  and  issuing  reports  and 
recommendations. 

s — Supervisory,  power  of  supervising  local  public  authorities,  either  by  appointment 
and  removal  or  by  issuing  orders  and  directions  which  must  be  obeyed;  also  includes  power 
of   co-operating   with   local    public    authorities. 

r — Regulative,  power  of  regulating  private  action,  enforcing  laws,  issuing  of  manda- 
tory   rules   and    orders    which    may    be    enforced    against    private    individuals    or    corporations. 

c Constructive,     power    of    expending     money     for     improvements     or    any     constructive 

work  for  public  benefit,  as  dredging  of  rivers,  construction  of  dams  and  power  sites,  own- 
ership and  maintenance  of  forest  reserves,  game  preserves,  and  fish  hatcheries,  construction, 
ownership   and    operation   of    waterworks,   and    canals,   etc. 

NOTES   TO   TABLE  ON   P.   64. 

1  The  work  of  the  Geological  Surveys  is  usually  investigatory  and  embraces  niinerals, 
soils,  coal,  oil,  gas,  etc.  It  extends  to  drainage  investigation  in  New  Jersey,  North  Caro- 
lina Tennessee,  Illinois;  to  water  supply  investigations  in  New  Jersey,  1  ennsylvania, 
Virginia,  North  Carolina,  South  Carolina,  Florida,  Alabama,  Mississippi,  Tennessee,  Ken- 
tucky, Wisconsin,  Iowa,  Missouri,  Oklahoma,  and  Washington;  to  fish  and  game  in  Con- 
necticut, North  Carolina,  Alabama,  Michigan,  Wisconsin,  Minnesota,  Iowa,  North  Dakota, 
and  to  forests  in  Connecticut,  West  Virginia,  North  Carolina,  Florida,  Alabama,  Mississippi, 
Tennessee,   Michigan,    Wisconsin,    Minnesota,    Iowa,    North    Dakota,    and    California. 

2.  The  Conservation  Department  in  New  York  embraces  the  functions  of  fish  and 
game  commissions,  forestry  commissions,  water  supply  commissions,  state  drainage  board  ana 
river   improvement  board.     In  the  other  states  it  is  largely  an  investigatory  commission. 

3.  In  Vermont,  Massachusetts,  West  Virginia,  Florida,  Alabama,  Tennessee,  Michigan, 
Wisconsin,  Te-xas,  and  Colorado  the  Fish  and  Game  Commission  also  exercises  supervision 
over  forestry.  In  New  York,  Fish  and  Game  control  is  under  the  Conservation  Depart- 
ment; and  in  Ohio,  Georgia,  Virginia,  and  North  Carohna,  it  is  under  the  Department 
of  Agriculture,  which  exercises  control  in  addition  to  the  Fish  and  Game  Commission  in 
Tennessee  and  West  Virginia.  Separate  authorities  control  Fish  and  Game  in  K^hode 
Island,  Pennsylvania,  North  Carolina,  South  Carolina,  Wyoming,  Maryland,  and  Wash- 
ington; while  Virginia  and  Georgia  have  Fish  Commissions  alone.  Ihese  nine  states  are 
marked  "x."  Mississippi  and  Arkansas  alone  have  no  state  control  of  Fish  and  Game;  in 
Arkansas  the   Railroad   Commission   regulates  the  placing   of  fishways  over   dams. 

4.  The  land  office  controls  state  forests  in  Maine,  New  York,  Michigan  Wisconsin, 
Texas,  Montana,  Wyoming,  Colorado,  Utah,  New  Mexico,  and  Oregon;  the  Fish  and  Game 
Department  in  Vermont,  Massachusetts,  West  Virginia,  Florida,  Alabama,  Tennessee,  Mtcm- 
gan.  Wisconsin,  Texas  and  Colorado,  has  also  control  of  forestry  while  in  Vermont, 
Massachusetts,  Rhode  Island,  Pennsylvania,  Virginia.  West  Virginia,  North  Carolina,  boutii 
Carolina,  Georgia,  Tennessee,  Kentucky,  Ohio,  Wisconsin,  South  Dakota,  and  Colorado, 
the  Department  of  Agriculture  exercises  some  control  over  forestry. 

5.  The  Board  or  Department  of  Agriculture  has  supervision  of  forestry  interests  in 
all  of  the  states  listed  except  Texas,  Nevada,  Utah,  and  Washington.  It  has  control  ot 
fish  and  game  in  Virginia,  West  Virginia,  Georgia,  Tennessee,  North  Carolina,  and  Ohio; 
of  irrigation  in  North  Carolina,  Texas,  Nevada.  Utah;  and  of  reclamation  and  drainage 
in  Pennsylvania,  North  Carolina,  Texas,  and  Washington.  Practically  all  of  the  states 
have  a  Board  or  Department  of  Agriculture,  but  it  is  only  listed  where  it  has  specihc 
authority   over  some  of  the  matters  considered  in  this  report. 

6.  The  land  offices  have  regulative  powers,  usually  on  state  lands,  in  connection  vrith 
conserving  natural  resources,  as  follows:  Maine,  navigation,  forests;  New  York,  torests. 
minerals;  Michigan,  forests;  IVisconsin,  water  power,  forests,  minerals;  Texas,  torests; 
Montana  irrigation,  water  power,  forests;  IVyoming,  irrigation,  water  power,  torests,  min- 
erals; Colorado,  forests;  Utah,  irrigation,  water  supply,  water  power,  minerals;  Oregon, 
reclamation,    forests. 

7.  A  State  Board  of  Health  exists  in  all  of  the  states  except  Arizona  and  New  Mexico 
with  power  to  abate  nuisances  in  all  cases.  Only  those  states  are  listed  which  specifically 
give  their  Board  power  over  the  pollution  of  water.  Virginia  and  Texas  specifically  give 
power  to  inspect  sewage  disposal  for  general  sanitation.  In  many  cases  no  effective  provi- 
sion is  made   for   its  enforcement. 

8  This  includes  public  service  commissions  and  railroad  commissions  exercising  power 
over  utilities  and  corporation  commissions.  The  power  extends  to  public  water  supply 
companies  in  Massachusetts,  Pennsylvania,  South  Carolina,  and  Washington,  and  to  water 
power  companies   in   Arkansas,   and   to   both   in   the   other   states    listed. 

9.  The  functions  of  State  Engineers  are  usually  in  connection  with  Water  Supply  and 
Irrigation.  A  similar  officer  exercises  other  functions  in  other  states,  as  follows:  ivew 
York,  drainage,  navigation;  Florida  and  Minnesota,  drainage;  Louisiana,  flood  prevention, 
drainage;    Texas,    drainage;    Kansas,   drainage;    California,    drainage. 

Aside  from  the  State  Drainage  Boards  the  following  state  bodies  exercise  investigatory 
powers  or  supervision  over  drainage:  Fermont,  Board  of  Agriculture;  New  Jersey,  i,Ute 
Board  of  Health,  State  Geological  Survey,  Governor;  New  York,  Conservation  Department, 
Superintendent  of  Public  Works.  State  Engineer  and  Surveyor,  Governor;  Pennsylvama. 
Department  of  Agriculture;  North  Carolina,  Department  of  Agriculture,  Geological  Survey, 
South  Carolina  Governor  through  appointment  of  officers  of  local  districts;  i  ennessee. 
State  Geological  Survey;  Illinois.  River  and  Lakes  Commission,  Ceclogical  Survey,^  btate 
Water  Survey;  IVisconsin,  Agricultural  College;  Louisiana,^  Board  of  State  Lngineers, 
Tfxaj,    State    Reclamation    Engineer,    Commissioner    of    Agriculture;    Kansas,    tngineenng 


818  EFFICIENCY    AND    ECONOMY   COMMITTEE. 

School  of  State  University  and  Agricultural  School,  Board  of  Irrigation  Survey  and  Ex- 
periment; Nebraska,  State  Board  of  Irrigation,  Highways  and  Drainage;  South  Dakota, 
State  Engineer;  California,  Department  of  Engineering,  Governor;  Oregon,  State  Land 
Board,  State  Engineer;  Washington,  Department  of  Agriculture.  List  includes  states  where 
head  authority  is  drainage  or  irrigation  board. 

10.  Includes  the  Water  Storage  Commission  of  Maine;  and  metropolitan  water  and 
sewerage  board  of  Massachusetts.  The  Conservation  Department  has  absorbed  the  Water 
Supply   Commission   of   New   York. 

11.  Includes  Massachusetts,  Board  of  Harbor  and  Land  Commissioners;  New  Jersey, 
Department  of  Inland  Waterways;  Pennsylvania,  Board  of  Commissioners  of  Navigation; 
Illinois,  Rivers  and  Lakes  Commission  and  Canal  Commissioners;  California,  Examining 
Commission   of   Rivers   and  Harbors. 

12.  Special  authorities  not  included  are:  Vermont,  State  Ornithologist;  Massachusetts, 
State  Ornithologist;  Rhode  Island,  Commissioner  of  Dams  and  Reservoirs,  Commissioners 
of  Shell  Fisheries.  Commissioner  of  Llirds,  Metropolitan  Park  Commissioners;  \'eic  york, 
Commissioner  of  State  Reserve  at  Niagara;  New  Jersey,  Commission  to  consider  pollution 
of  streams;  Pennsylvania,  State  Ornithologist;  North  Carolina,  Audobon  Society;  South 
Carolina,  Audobon  Society;  Tennessee,  Assayer;  Ohio  Flood  Relief  Commission;  Illinois, 
State  Water  Survey;  Wisconsin,  Board  of  Control,  State  Park  Board;  Kansas,  Board  oi 
Irrigation   Control  and  Experiment;    Oregon,   State   Biologist.     These  states  are  marked   "x." 

NOTES  TO  TABLE  ON  P.  67. 

1.  Fish  includes  the  protection  and  propagation  of  fresh  and  salt  water  fish,  oysters, 
crabs  and    lobsters. 

2.  Game   includes   th6   protection   and   propagation   of   all   animals  and   birds. 

3.  Forests  include  the  protection  of  trees,  the  care  and  management  of  parks  and 
forest   reserves,   protection   from   fires. 

4.  Minerals  include  coal,  oil,  ores,  clay,  building  stones,  natural  gas,  geologic  forma- 
tions,  fossils. 

5.  Water  for  Public  Use  refers  to  the  distribution  of  water  for  ordinary  domestic 
purposes,  the  conservation  of  supply,  the  prevention  of  pollution  and  the  regulation  of 
water   supply    companies. 

6.  Water  power  includes  the  construction  of  improvements  for  water  power,  the  regula- 
tion of  water  rights  and  distribution  and  the  regulation   of  water   power  companies. 

7.  Irrigation  refers  to  the  organization  of  irrigation  districts,  the  regulation  of  water 
rights  and   distribution   of  water. 

8.  Sewage  Disposal  includes  the  inspection  and  sanitary  regulation  of  sewage  systems, 
and  sewage  disposal  plants. 

9.  Agricultural  Drainage  refers  to  drainage  by  tiling  or  ditching,  the  organization  of 
districts   for   such   work   and   their   regulation. 

10.  Land  Reclamation  refers  to  drainage  of  swamps,  or  water-logged  land,  but  not 
to   reclamation   of   arid   or   desert   lands   by   irrigation,   which   is   considered   under   irrigation. 

11.  Flood  Prevention  embraces  levee  work,  dam  inspection,  etc..  but  not  protection 
of  watersheds,    which    is  considered   under    forest   conservation. 

12.  Navigation  includes  river  and  harbor  improvements,  dredging,  removal  of  obstruc- 
tions,  but  not   transportation   laws   or    water  commerce. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS. 


819 


STATE  AND  NATIONAL  CONTROL  BY  STATES  AND  PURPOSES. 


State 

Fish,  Game,  For- 
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V.    STATE  PARKS. 

A.     DEVELOPMENT  OF  PARKS. 

1.  Local  Authorities 

Until  very  recent  times  the  development  of  parks  and  park  systems 
in  Illinois  has  been  viewed  as  a  matter  purely  of  local  concern.  For 
the  establishment  and  maintenance  of  parks  and  boulevards,  the  ordi- 
nary local  units  of  government  have  been  granted  the  necessary  powers 
and  in  addition,  special  local  park  districts  have  been  provided  for. 
Cities,  villages  and  towns  are  vested  with  authority  to  create  and  main- 
tain pleasure  drives  and  parks.  In  1911  legal  provision  was  made  for 
the  organization  of  townships  into  park  districts  by  petition  of  50  legal 
voters  to  the  county  judge  who  appoints  three  park  commissioners. 
When  special  park  districts  are  created  the  machinery  of  government 
consists  of  an  elective  board.  An  Act  of  1893,  for  instance,  provides 
for  the  election  of  a  president  and  six  trustees  for  four  year  terms,  as 
a  governing  board  for  districts  comprising  territory  in  two  adjoining 
townships  or  lying  wholly  within  a  single  township.  If  a  district  is 
organized  which  reaches  beyond  county  boundaries,  the  governing  body 
is  an  elective  commission  of  five.  The  question  of  organization  of  spe- 
cial park  districts  is  always  subject  to  a  referendum  in  the  proposed 
districts. 

Under  the  above  and  other  provisions  many  local  park  districts 
have  been  created.  Special  districts  are  completely  autonomous.  The 
only  possibility  of  central  administrative  control  rests  with  the  Gover- 
nor who  has  authority  to  fill  vacancies  in  the  local  governing  boards. 

2.  State  Parks 

In  1909  the  first  step  was  taken  toward  the  development  of  a  State 
Park  system.  The  General  Assembly  of  that  year  authorized  the  Gov- 
ernor to  appoint  a  Commission  of  five  to  serve  without  compensation 
and  to  be  known  as  the  Illinois  Park  Commission.  The  Commission 
was  required  to  make  a  careful  survey  of  the  state,  select  such  portions 
as  might  be  desirable  for  park  purposes  and  make  recommendations 
concerning  the  same  to  the  next  General  Assembly.  In  1909  it  sub- 
mitted a  report  strongly  recommending  the  purchase  of  properties  in 
the  region  of  Starved  Rock  and  their  conversion  into  a  State  Park. 
Other  locations  were  also  investigated  but  no  further  purchases  were 
urged.  As  a  result  the  General  Assembly  authorized  acquisition  of 
about  1100  acres  of  land  in  the  neighborhood  of  Starved  Rock  and  cre- 
ated a  Park  Commission  to  take  charge. 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  837 

At  present  there  are  the  following  State  Parks : 

1.  Starved  Rock  Park 

2.  Fort  Massac  Park 

3.  Fort  Chartres  Park 

4.  Shabonna  Park 

The  Park  Commission  has  jurisdiction  over  each  of  these  with  the 
exception  of  Fort  Massac  Park. 

B.      ILLINOIS  PARK  COMMISSION. 

The  Illinois  Park  Commission  was  created  by  Act  of  the  General 
Assembly  of  June  10,  1911.  It  consists  of  three  persons  who  serve 
without  compensation  for  terms  of  three  years.  They  are  appomted 
by  the  Governor  on  a  bi-partisan  basis  with  terms  of  office  so  arranged 
that  one  retires  annually. 

The  Park  Commission  has  direct  control  and  management  of  all 
the  public  parks  of  the  state,  acquired  by  the  Act  of  1911  or  thereafter. 
Fort  IMassac  Park  having  been  acquired  previous  to  the  Act  of  1911, 
was  thus  excluded.  The  Commissioners  appoint  the  necessary  custodi- 
ans, keepers  and  other  employees,  make  rules  and  regulations  governmg 
the 'use  of  the  parks  by  the  public,  and  plan  and  execute  the  general 
landscape  gardening  of  the  parks.  They  may  lease  portions  of  park 
property  and,  subject  to  authorization  by  the  General  Assembly,  may 
purchase  additional  lands  and  tracts  for  park  purposes.  An  important 
part  of  the  work  of  the  Commissioners  consists  in  conducting  mvestiga- 
tions  and  planning  desirable  extensions  of  the  state  park  system.  It 
is  made  the  duty  of  the  Commission  to  report  to  the  Governor  from 
time  to  time  concerning  proposed  parks  and  recommend  regions  that 
might  be  preserved  for  park  purposes. 

There  are  now  three  parks  under  the  jurisdiction  of  the  Park 
Commission.  The  most  important  of  these  is  the  Starved  Rock  Park, 
a  tract  of  over  1100  acres  along  the  northern  stretches  of  the  IlHnois 
river,  which  was  purchased  for  approximately  $150,000  in  1911.  In 
1913,  the  General  Assembly  authorized  an  expenditure  of  $4,000  for 
re-bu'ildmg  the  walls  of  Fort  Chartres,  Randolph  county,  and  acquiring 
property  adjacent  thereto  for  park  purposes.  The  Park  Commission 
was  given  jurisdiction.  The  third  park  mentioned  is  Shabonna  Park, 
in  La  Salle  county.  There  is  a  State  Monument  erected  in  this  park 
and  the  Park  Commissioners  are  responsible  for  proper  maintenance  of 
the  surrounding  grounds. 

Following  are  the  appropriations  granted  to  the  Park  Commission 

for  the  biennium,  1913-15  : 

1913-14         1914-15 

Maintenance  and  repair.  Starved  Rock $  1,500  $1,500 

Additional  Land   , 45.000 

Drainage  and   Sanitation 6,500  1,500 

Labor  and  Police  (1912) 200 

Traveling  Expenses  of  Commission 500  500 

Salary  of  Superintendent  to  May  31,  1913 1,000 

Maintenance  and  repairs  Shabonna  Park 2,000 

Totab $56,700  $3,500 

(a)     Exclusive  of  Fort  Chartres  appropriation  of  $4,000. 


838  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

C.     FORT  MASSAC  PARK 

Fort  Massac  situated  on  the  Ohio  river,  was  purchased  from  priv- 
ate owners  in  1903  and,  with  a  few  acres  of  the  surrounding  territory, 
was  transformed  into  a  State  Park.  It  is  governed  by  a  board  of  trus- 
tees consisting  of  the  Governor,  Secretary  of  State,  Auditor  of  Public 
Accounts,  State  Regent  of  Illinois  of  the  Daughters  of  American  Revo- 
lution, and  two  Illinois  Daughters  appointed  by  the  Regent.  This 
Board  was  given  original  authority  to  purchase  the  property  and  to 
control  and  manage  it  after  its  transformation  into  a  State  Park.  It 
is  required  to  make  a  biennial  report  to  the  General  Assembly  showing 
a  detailed  account  of  all  transactions  with  recommendations  for  desired 
legislation.  At  present  the  annual  maintenance  charge  amounts  to 
$3,100  of  which  $600  is  for  a  custodian.  For  1913-15  an  additional 
expenditure  of  $1,500  was  authorized  for  the  extension  of  the  retaining 
walls  along  the  river. 

D.      COMMENTS. 

The  creation  of  the  Park  Commission  of  1911  was  a  decisive  step 
in  the  direction  of  a  systematic  development  of  a  State  Park  system. 
The  movement  has  merely  begun,  with  the  creation  of  a  State  Park  at 
Starved  Rock  and  the  three  other  minor  parks.  The  present  and  future 
functions  of  the  park  authorities  will  relate  largely  to  two  things,  viz :, 
maintenance  of  existing  parks,  and  planning  new  ones.  As  new  parks 
are  created  the  first  of  these  functions  will  become  increasingly  import- 
ant. At  present,  the  second  function  is  sufficiently  important  to  war- 
rant the  employment  of  one  whose  entire  time  will  be  devoted  to  the 
work.  The  present  unpaid  Commission  should,  therefore,  be  replaced 
by  a  single  paid  Commissioner  whose  attention  should  be  devoted 
largely  to  planning  a  comprehensive  system  of  State  Parks  and  pleas- 
ure grounds. 


VI.    PUBLIC  BUILDINGS  AND  MONUMENTS. 

A.     CONSTRUCTION    OF    PUBLIC    BUILDINGS. 

L    Construction  by  Special  Commissions. 

Several  methods  have  been  employed  in  the  past  in  the  construc- 
tion of  public  buildings.  The  most  common  has  been  to  vest  control 
over  construction  in  the  State  officials  for  whom  the  structure  was 
erected.  Thus  most  reformatories,  insane  asylums  and  buildings  used 
for  charitable  purposes  were  planned  and  erected  under  the  supervision 
of  the  boards  of  trustees  in  charge  of  these  institutions.  The  same  is 
true  of  the  State  normal  schools  and  other  educational  institutions. 
The  boards  of  trustees  had  charge  of  preparing  plans  and  specifications, 
subject  as  a  rule  to  approval  by  the  Governor.  They  also  let  the  con- 
tracts for  construction  and  supervised  erection. 

Another  plan  frequently  followed  has  been  that  of  creating  special 
commissions  for  the  particular  purpose  of  erecting  the  building,  after 
which  it  was  handed  over  to  the  officials  for  whose  use  it  was  intended. 
This  has  usually  been  the  procedure  for  the  most  important  public 
structures  and  those  intended  for  a  number  of  departments. 

Some  of  the  more  important  public  buildings  that  have  been  erected 
by  special  commissions  are  the  State  House  at  Springfield,  the  Supreme 
Court  Building,  the  State  Arsenal  and  Armory,  various  armory  build- 
ings for  the  Illinois  National  Guard,  and  some  miscellaneous  structures. 

In  1867,  the  General  Assembly  first  appointed  a  special  commission 
of  seven  members  which  was  given  full  authority  to  proceed  with 
measures  toward  the  construction  of  a  new  Capitol.  It  was  superseded 
in  1869  by  the  State  House  Commission,  consisting  of  three  "skillful 
and  discreet"  persons,  appointed  by  the  Governor.  The  commissioners 
were  authorized  to  employ  architects  and  other  necessary  assistants,  and 
to  cause  plans  and  specifications  to  be  prepared  and  submitted  for  the 
approval  of  the  committees  on  public  buildings  and  State  library  of  the 
two  houses  of  the  General  Assembly.  The  commission  continued  in 
existence  until  the  work  of  construction  was  completed,  and  was  abol- 
ished in  1874. 

Repairs  to  the  State  House  have  also  been  placed  under  the  con- 
trol of  special  bodies.  In  1905  an  ex-officio  committee,  consisting  of 
the  Governor,  Lieutenant  Governor,  Secretary  of  State,  Auditor,  At- 
torney General,  and  Treasurer  was  authorized  to  make  alterations  and 
additions  costing  $120,000.  Minor  repairs,  however,  are  usually  placed 
under  the  supervision  of  the  Secretary  of  State. 

In  1901,  the  construction  of  an  Arsenal  and  Armory  at  Springfield 
was  placed  under  the  control  of  a  commission  consisting  of  the  Gover- 
nor, Secretary  of  State  and  Auditor  of  Public  Accounts. 


840  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

The  present  Supreme  Court  Building  in  Springfield,  erected  in 
1905,  with  an  appropriation  of  $350,000,  was  constructed  under  the 
direction  of  the  Governor,  Lieutenant  Governor,  Secretary  of  State, 
Auditor,  Treasurer,  Attorney-General  and  three  judges  of  the  Supreme 
Court. 

An  Act  of  1907  authorized  the  Governor  to  appoint  a  committee 
of  three  to  select  sites,  prepare  plans  and  specifications  and  supervise 
the  construction  of  a  new  penitentiary  and  an  asylum  for  the  criminal 
insane  at  Joliet. 

The  General  Assembly  in  1911  provided  the  initiatory  steps  toward 
the  construction  of  a  new  edifice  in  Springfield  to  be  known  as  the 
Educational  Building.  A  special  commission  was  authorized  to  select 
a  site,  prepare  plans  and  specifications  and  report  to  the  succeeding 
session  of  the  General  Assembly.  The  commission  consisted  of  the 
Governor,  Secretary  of  State,  Superintendent  of  Public  Instruction, 
President  of  the  Board  of  Trustees  of  the  State  Historical  Library, 
President  of  the  State  Historical  Society,  Auditor  of  Public  Accounts 
and  Department  Commander  of  the  State  G.  A.  R. 

Various  acts  making  appropriations  for  armories  have  provided 
for  ex  officio  boards  to  have  control  .over  construction.  The  erection  of 
the  Arsenal  at  Springfield  under  such  a  board  has  been  mentioned. 
Acts  of  1911  and  1913,  have  provided  for  the  erection  of  armories  in 
various  cities  of  the  State,  each  to  be  under  the  direction  of  the 
Adjutant  General,  division  commander  and  regimental  commanders  of 
the  organization  for  which  the  armory  is  intended.  The  boards  are 
given  full  power  to  select  sites,  purchase  grounds,  and  exercise  com- 
plete control  over  construction,  including  letting  contracts. 
Armories  have  been  thus  authorized  as  follows:^'' 

Second    Infantry Chicago    $300,000 

Fifth  and  Eighth  Infantry  and  Na- 
val Reserve Quincy  ; 65,000 

Third  Infantry Aurora  45,000 

Third  Infantry Woodstock   20,000 

Eighth    Infantry Chicago 100,000 

First  Cavalry Chicago   $225,000 

Third  Infantry Ottawa    30,000 

Sixth  Infantry Galesburg    50,000 

A  commission  was  also  authorized  (1913)  to  purchase  a  site  and 
armory  building  at  Kewanee  for  $20,000. 

2.  State  Architect. 
Organization. 

The  office  of  the  State  Architect  of  public  buildings  and  improve- 
ments was  created  by  an  act  of  the  General  Assembly  passed  April  24, 
1899.  The  act  is  still  in  force  although  its  provisions  have  been  some- 
what modified  by  an  amendment  of  1909. 

The  State  Architect  is  appointed  by  the  Governor  with  the  consent 
of  the  Senate  for  a  term  of  four  years.  As  compensation,  he  receives 
a  fixed  salary  of  $5,000  per  year,  and  in  addition,  a  certain  commission 
for  expenses.  According  to  an  amending  act  of  1905,  this  commission 
was  not  to  exceed  1>4  per  cent  of  the  total  cost  of  the  work.     But  in 

36  Includes  appropriations   of   1911   and    1913. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  841 

1909,  further  amendment  provided  that  the  board  of  trustees  of  the 
State  institutions  or  State  commissions  or  other  departments  interested 
should  pay  all  necessary  expenses  incurred  by  the  State  Architect^  in 
employing  draftsmen,  superintendents  and  other  assistants  in  rendering 
architect's  services.  Such  services,  however,  must  not  exceed  2>4  per 
cent  of  the  cost  of  the  work  involved  and  is  subject  to  audit  by  the 
departmental  officials  for  whom  the  service  was  rendered.  x\t  present, 
therefore,  the  compensation  allowed  the  architect  is  $5,000  per  year, 
plus  a  commission  of  ly^  per  cent  of  the  cost  of  construction. 

Pozvers  and  Duties. 

The  powers  and  duties  of  the  State  Architect  are  set  forth  very 
briefly  in  the  laws.  On  request  of  any  board,  commission  or  office  of 
the  State  government,  it  is  his  duty  to  prepare  plans,  specifications  and 
models  for  the  erection  of  proposed  public  buildings  and  improvements. 
This  includes  additions,  alterations  and  repairs  to  public  buildings  al- 
ready erected,  and  the  construction  and  perfection  of  all  systems  of 
sewage,  drainage  and  plumbing,  as  well  as  improvements  of  all  grounds 
upon  which  buildings  are  erected.  The  Governor's  approval  must  be 
obtained  for  all  such  drawings  and  plans. 

In  addition  to  preparing  plans  and  specifications  the  State  Archi- 
tect is  required  to  supervise  construction.  He  must  inspect  materials 
used  in  construction,  and  if  such  are  not  according  to  the  standard 
called  for  under  the  specifications,  he  must  report  the  fact  to  the  office 
or  board  letting  the  contract.  The  Architect  has  full  power  to  define 
the  true  meaning  and  intent  of  any  of  the  drawings,  plans  and  specifica- 
tions and,  if  his  interpretation  is  not  observed,  may  stop  the  process  of 
construction  and  order  the  removal  of  defective  material. 

Administration. 

The  office  of  the  State  Architect  is  located  in  Chicago.  He  em- 
ploys his  own  assistants  and  pays  them  from  the  2>4  per  cent  com- 
mission allowed  him.  His  office  stafl:'  is  therefore  his  own  staff;  but 
all  plans,  specifications,  and  drawings  made  for  the  State  are  the  prop- 
erty of  the  State  and  not  of  the  Architect.  He  is  not  required  to  submit 
reports  to  any  State  official,  but  his  expense  account  for  the  construc- 
tion of  any  particular  building  is  subject  to  audit  by  the  board  or  the 
institution  interested. 

Following  is  an  estimate  of  receipts  and  expenditures  for  the  year 
1914,  prepared  by  the  State  Architect  and  based  on  receipts  and  dis- 
bursements from  January  1,  to  June  1,  1914: 

Receipts 

1.  Appropriations  for  possible  buildings,  $2,050,000, 

2y2%  of  which  is $51,250.00 

2.  Salary  of  Architect 5,000.00 

Total   receipts $56,350.00 


842  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

Disbursements 

1.  Office   force   (per  month) $2,520.00 

2.  Traveling  expenses  (per  month) 30.00 

3.  Office  materials   (per  month) 250.00 

4.  Rent,  phone,  light,  postage,  water,  etc 350.00 

Total  per  month $  3,150.00 

Total  per  year 37,812.00 

Deficit  from  1913 $  3,852.54 

Total   disbursements 41,664.54 

Excess  of  receipts  over  disbursements $14,685.46 

It  should  be  observed  that  no  allowance  is  made  in  the  above  esti- 
mate for  failure  to  use  the  total  amount  appropriated,  or  for  changes 
decided  on  after  plans  have  been  drawn  by  the  Architect.  The  latter 
always  necessitates  a  redrawing  of  the  plans  which  involves  additional 
expense  for  the  architect's  office.  Under  the  present  system  the  Archi- 
tect is  not  called  upon  to  prepare  preliminary  sketches  of  proposed 
buildings.  The  institution  desiring  a  structure  makes  a  rough  estimate 
of  the  amount  it  desires  to  spend  (consultation  with  the  Architect  is 
sometimes  had)  and  asks  the  General  Assembly  for  that  sum.  In  the 
case  of  new  institutions,  appropriations  for  various  purposes  are  usually 
lumped,  which  leaves  the  amount  to  be  spent  for  construction  of  a 
particular  building  somewhat  flexible.  The  Architect  can  then  proceed 
to  prepare  plans,  and  bids  can  be  received  and  contract  let  on  the 
plans.  But  in  the  case  of  appropriations  for  an  old  institution,  the  sum 
appropriated  represents  the  maximum  expenditure  for  the  construction 
of  each  building.  It  sometimes  happens  that  the  lowest  bids  received  on 
the  Architect's  plans  exceed  this  maximum,  which  necessitates  a  re- 
drawing of  plans  on  a  less  elaborate  scale,  and  involves  still  more  ex- 
pense for  the  Architect's  office. 

Hence  the  figures  given  in  the  estimate  should  not  be  taken  as 
representing  with  accuracy  an  estimated  net  profit  for  the  year.  It  has 
been  estimated  that  the  net  profits  of  the  Architect  will  average  $7,000 
or  $8,000  per  year.  On  the  basis  of  $2,050,000  of  construction  per 
year,  it  would  undoubtedly  be  more  than  this.  At  any  rate,  it  seems 
clear  that  the  profits  accruing  to  the  Architect  are  larger  than  the  $5,000 
salary  attached  to  the  office  and  all  above  $5,000  must  be  obtained  from 
the  2^>  per  cent  commission  allowed  for  expenses  of  the  office  for 
drawing  plans  and  supervision. 

Under  the  present  arrangements,  the  State  Architect  neither  pre- 
pares preliminary  plans  nor  does  he  inspect  the  work  of  the  construc- 
tion. It  is  contended  that  the  two  and  one-half  per  cent  allowed  the 
Architect  is  not  sufficient  to  warrant  pay  for  more  than  drawing  of  the 
plans.  Whatever  inspection  there  is,  thus  devolves  upon  the  officials 
of  the  institution  interested. 

According  to  the  schedule  of  the  American  Institute  of  Architects, 
Architects  are  entitled  for  professional  services  to  a  minimum  charge  of 
six  per  cent,  based  on  the  total  cost  of  the  work  complete.  Professional 
services  include  conferences,  preparation  of  preliminary  studies,  work- 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS. 


843 


ing  drawings,  specifications,  large  scale  and  full  size  detailed  drawings 
and  general  directions  and  supervision  of  work.  The  proportionate 
charge  for  particular  parts  of  their  work  is  as  follows : 

Preliminary  studies 2 

General  drawings    2 

Specifications   1 

Scale  and  full  size  details 2 

General  Supervision 3 

Thus  .3  of  6  per  cent  or  1.8  per  cent  is  allowable  for  supervision  of 
construction,  and  .2  of  6  per  cent  or  1.2  per  cent  for  preliminary  plans. 
In  other  words  3  per  cent  or  half  the  cost  of  the  services  of  an  Archi- 
tect, relates  to  drawing  preliminary  plans  and  supervising  construction, 
neither  of  which  functions  are  performed  by  the  State  Architect  of 
Illinois.  The  remaining  3  per  cent  represents  the  proportion  that  would 
be  allowed  by  the  American  Institute  of  Architects  for  work  similar  to 
that  performed  by  the  State  Architect. 

Were  the  office  of  State  Architect  abolished,  the  State  could  hardly 
hope  to  obtain  the  services  of  the  best  of  Architects  for  much  less  than 
the  commission  authorized  by  the  institute.  But  under  a  system  of 
competitive  bidding  for  each  individual  piece  of  construction,  as  would 
be  necessary  without  a  State  Architect,  the  drawing  of  preliminary 
plans  could  not  be  dispensed  with.  Therefore,  a  fair  charge  to  the 
State  for  architectural  services  would  be  about  4.3  per  cent  of  the  total 
cost  of  construction.  This  probably  represents  a  minimum  expense  that 
might  be  expected  under  a  system  of  competitive  bidding  for  services 
similar  to  those  now  performed  by  the  State  Architect.  Other  factors, 
such  as  payment  for  preliminary  plans  prepared  by  unsuccessful  com- 
petitors would  probably  swell  the  total  expense  to  at  least  5  per  cent. 
In  New  York,  where  architectural  services  are  obtained  by  competition, 
the  schedule  of  charges  of  the  American  Institute  of  Architects  (6%) 
is  allowed. 

If  the  estimated  total  appropriation  of  $2,050,000  be  taken  as 
representing  the  total  cost  of  building  construction  for  a  year  it  will  be 
seen  that  the  State  is  now  obtaining  the  services  of  the  State  Architect 
for  about  2.7  per  cent  of  the  cost  of  building  construction.^^ 

3.     Public  Architect  in  the  United  States  and  Other  States. 

There  is  a  Supervising  Architect  in  the  United  States  Department 
of  the  Treasury.  But  only  a  few  of  the  more  important  States  have 
created  a  special  office  of  State  Architect.  Of  thirty-seven  States,  in- 
cluding all  those  of  importance,^^  only  four  (exclusive  of  Illinois)  have 
provided  such  an  office,  while  one  other  has  an  official  whose  primary 
duties  relate  to  architectural  work.  These  States  are  New  York,  Iowa, 
Nebraska,  Kansas,  and  California. 

37  21^%    commission   on   $2,050,000 $51,250 

Salary    5,000 

$56,250 

38  Tlie    following-    states    were    not    examined:       Mississippi,    Tennessee,     West    \'irginia, 
Delaware,   Maryland,    Vermont,   Idaho,   Arizona,   Nevada,   North   Dakota,   and    South   Carolina. 


844  EFFICIENCY   AND    ECONOMY    COMMITTEE. 

United  States  Supervising  Architect. 

The  Supervising  Architect  in  the  United  States  Department  of  the 
Treasury  has  charge  of  the  following  matters,  subject  to  the  direction 
and  approval  of  the  Secretary  of  the  Treasury :  The  selection  of  sites 
for  public  buildings;  securing  necessary  State  jurisdiction;  the  prepara- 
tion of  estimates,  drawings,  etc.,  for  approval  by  the  cabinet  officers,  as 
required  by  law,  preliminary  to  the  erection  of  court  houses,  custom 
houses,  post  offices,  marine  hospitals,  etc.,  securing  competitive  designs 
and  completing  arrangements  under  the  Treasury  Act ;  arranging  all 
details  incident  to  the  Government  entering  into  contracts  for  con- 
struction, etc.  He  is  also  charged  with  the  duty  of  keeping  in  repair 
all  buildings  under  the  control  of  the  Treasury  Department ;  keeping  in 
a  proper  state  of  efficiency  and  capacity  all  heating  apparatus  and 
hoisting  systems  in  those  buildings,  supplying,  to  public  buildings  in  the 
control  of  the  Treasury  Departments  outside  the  District  of  Columbia, 
furniture  and  fixtures  and  repairing  and  replacing  the  same.  He  also 
controls  the  supply  of  vaults,  safes,  etc.,  the  assistant  custodian  and 
janitor  forces,  and  the  supply  of  fuel,  lights  and  water  for  said  buildings. 

Nezv  York. 

By  Act  of  1914  the  office  of  State  Architect  has  been  re-organized 
as  the  Department  of  Architecture.  The  State  Architect  is  head  of  the 
department,  and  is  appointed  by  the  Governor,  with  the  advice  and 
consent  of  the  Senate  for  a  term  of  three  years,  at  an  annual  salary  of 
$10,000.  He  may  appoint  three  deputies,  a  secretary,  an  assistant 
secretary,  two  confidential  assistants,  and  such  architectural  and  engi- 
neering experts,  draftsmen  and  other  employes  as  may  be  necessary. 

The  State  Architect  shall  prepare  drawings  and  specifications  and 
supervise  the  construction  of  all  new  buildings  erected  at  the  expense 
of  the  State, — with  certain  exceptions,  for  State  buildings  in  Albany, 
the  New  York  State  Building  at  the  Panama-Pacific  Exposition,  and 
buildings  under  the  control  of  the  armory  commission.  He  also  pre- 
pares drawings  and  specifications  for  additions,  alterations  and  improve- 
ments, except  when  the  work  is  done  by  an  institution  or  its  inmates. 
He  prepares  forms  of  contracts  to  be  approved  by  the  Attorney-Gen- 
eral ;  contracts  must  be  approved  by  the  State  Comptroller ;  and  bills  for 
payment  must  be  certified  by  the  State  Architect.  Whenever  plans  and 
specifications  for  State  buildings  are  prepared  by  architects  other  than 
the  State  Architect,  they  must  be  approved  by  the  State  Architect. 

An  Act  of  1910  authorizes  the  State  Architect  with  the  approval 
of  the  Governor,  to  obtain  plans,  etc.,  for  public  buildings  by  competi- 
tion. Not  less  than  five  competitors  shall  be  invited  by  the  Governor ; 
and  awards  are  to  be  made  by  a  board  consisting  of  the  State  Archi- 
tect, one  appointed  by  the  Governor  as  a  representative  of  the  appointed 
board  or  commission  under  whose  jurisdiction  the  building  is  to  be 
erected,  ayd  one  architect  selected  by  the  State  Architect  from  a  list  of 
six  or  more  chosen  by  the  invited  competitors. 

In  1900,  there  were  27  persons  in  the  State  Architect's  office,  and 
the  expenses  of  the  office  were  $55,657.  In  1912,  the  office  force  had 
increased  to  7Z  and  the  expense  to  $131,225.     In  July,  1914,  there  were 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS. 


845 


91  persons  in  the  department,  and  the  expenses  for  the  preceding  three 
years  averaged  $137,500.  The  estimated  cost  of  buildings  for  which 
plans  were  prepared  during  these  three  years,  was  $7,195,593.  Thus 
the  expense  of  the  State  Architect's  office  were  somewhat  less  than  six 
per  cent  of  the  estimated  cost  of  buildings. 

EMPLOYES,    SALARIES    AND   OTHER   EXPENSES    OF   THE    NEW    YORK    STATE   ARCHITECT'S 
OFFICE,   1900-1912. 

Expenses 
Number  of  ' 

Year 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 
1907. 
1908. 
1909. 
1910. 
1911. 
1912. 


Number  of 

Other  Than     . 

Total 

Employees 

Salaries 

Salaries 

Expenses 

Z7 

$  43,835.12 

$11,822.41 

$  55,657.53 

37 

44,340.75 

9,199.32 

53,540.07 

40 

45,378.06 

6,970.40 

52,348.46 

38 

44,992.98 

6,881.09 

51,804.07 

42 

48,015.99 

8,533.58 

56,549.57 

41 

50,177.93 

6,284.67 

56,462.60 

51 

52^36.35 

6,628.72 

59,265.07 

51 

59,466.14 

7,268.34 

66,734.48 

51 

74,841.27 

15,091.88 

89,933.15 

62 

86,799.42 

13,134.52 

99,933.94 

66 

93,532.72 

19,345.40 

112,878.12 

63 

104,371.83 

21,282.04 

125,653.87 

7Z 

107,143.88 

24,082.11 

131,225.99 

California. 

In  California,  all  new  construction  or  repair  of  State  buildings  in- 
volving more  than  $1,000  is  under  the  control  of  the  Department  of 
Engineering  with  a  State  engineer  in  charge.  Within  this  department 
there  is  established  the  office  of  State  Architect.  The  Architect  is 
appointed  by  the  Governor  and  receives  a  salary  of  $4,800  per  year. 
He  prepares  plans,  specifications  and  estimates  of  all  proposed  struc- 
tures and  submits  them  for  approval  to  an  advisory  board.  This  board 
consists  of  the  Governor,  State  Engineer,  General  Superintendent  of 
State  Hospitals,  Chairman  of  the  Board  of  Harbor  Commissioners  and 
three  other  persons  appointed  by  the  Governor  and  serving  at  his 
pleasure.  The  Architect  not  only  draws  the  plans,  etc.,  but  also  super- 
vises construction  either  personally  or  through  a  deputy.  After  com- 
pletion he  inspects  the  structure  and  certifies  its  condition  to  the  State 
Engineer. 

The  Engineering  Department  has  no  jurisdiction  over  improve- 
ments on  the  water  front  at  San  Francisco.  All  such  are  under  the 
supervision  of  the  State  Harbor  Commissioners. 

Following  is  a  summary  table  of  expenditures  of  the  State  Archi- 
tect of  California,  compiled  from  the  annual  reports  of  the  State  Comp- 
troller: 1908        1909         1910  1911  1912 
State  Architect — 

Appropriation    

Disbursements    , 

Architectural  Design- 
Appropriation    

Disbursements     

Architectural  Draughtsmen — 

Appropriation 

Disbursements    


$4,000 
4,000 

$4,000 
4,224 

$4,800 
4,800 

$  4,800 
4,133 

$  4,800 
520 

"400 

2,400 
2,400 

2,400 
2,400 

2,400 
2,400 



6,000 
5,627 

6,000 
6,000 

6,000 
5,973 

Total   appropriations    $4,000      $4,000      $13,200      $13,200      $13,200 

Total  disbursements 4,000      $4,627      $13,027      $12,533  8,893 


846  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

loii'a. 

In  Iowa,  control  over  the  construction  of  State  buildings  costing 
more  than  $1,000  is  vested  in  a  Board  of  Control  of  State  Institutions, 
consisting  of  three  members  appointed  by  the  Governor  for  six  years. 
The  Board  is  authorized  to  employ  an  architect  to  prepare  plans,  etc., 
and  perform  the  usual  functions,  including  supervision  of  construction. 
His  salary  is  fixed  by  the  Board.  In  cases  of  sufficient  magnitude  the 
Board  may  obtain  the  services  of  a  consulting  architect  or  procure 
plans  from  some  other  architect.  In  1912,  $8,000  was  appropriated  for 
the  Architect's  office,  $6,000  of  which  was  the  salary  of  the  Architect. 

Kansas. 

Kansas  provided  by  statute  m  1905  for  a  State  Architect,  to  be 
appointed  by  the  Governor  for  a  term  of  two  years.  His  salary  is 
fixed  at  $2,500  per  year  with  necessary  traveling  expenses,  based  on 
the  rates  of  three  cents  per  mile.  He  is  required  to  prepare  drawings, 
plans,  specifications,  estimates  and  models  for  the  erection  and  com- 
pletion of  all  buildings  constructed  at  the  expense  of  the  State.  He 
must  personally  supervise  construction,  inspect  all  materials  and  per- 
form other  customary  services  of  an  Architect.  His  office  is  under  the 
Board  of  Public  Works,  which  consists  of  three  appointees  of  the  Gov- 
ernor. 

The  following  table  shows  expenses  of  the  Architect's  office  for 
1913  and  appropriations  for  1914  and  1915: 

1913  1914  1915 

State  Architect $2,500  $2,500  $2,500 

Draftsman    1,800  

Draftsman    1,200  1,200  1.200 

Stenographer  900  900  900 

Extra  draftsm.an  and  materials 601  700  700 

Traveling  and  incidental  expenses 871  900  900 

Total.. $7,872  $6,200  $6,200 

Nebraska. 

A  statute  of  1911  made  the  Governor  of  the  State,  inspector  and 
supervisor  of  the  construction  and  repair  of  State  buildings.  The  Gov- 
ernor is  authorized  to  appoint  a  deputy  inspector  at  a  salary  of  $2,000 
who  serves  practically  as  a  State  Architect.  Control  over  the  erection 
of  new  buildings,  and  repairs  and  improvements  is  vested  in  a  Board 
of  Control,  consisting  of  three  members  appointed  by  the  Governor. 
All  improvements  involving  an  expenditure  of  more  than  $1,000  must 
be  constructed  under  estimates  furnished  by  the  Deputy  Inspector  and 
Supervisor,  who  is  also  charged  with  the  duty  of  personal  inspection 
and  supervision  of  the  construction.  The  deputy  thus  furnishes  esti- 
mates and  supervises  construction  and  in  these  respects  performs  the 
same  service  as  the  State  y\rchitect  in  other  States. 

Summary. 

Apparently  the  only  States  of  the  Union  that  employ  a  State  Archi- 
tect, are  New  York,  Illinois,  California,  Kansas  and  Iowa,  while  Ne- 

89  In   New   Jersey,   the   Commissioner   of  Charities  and   Corrections  is  authorized  by  law 
to  appoint,  subject  to  approval  by  the  Governor,  an  assistant  who   shall  be  an   Architect. 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  847 

braska  has  an  official  called  the  deputy  inspector  who  performs  sim- 
ilar services.^''  In  all  these  States  the  Architect  is  appointed  by  the 
Governor,  except  in  Iowa  where  he  is  chosen  by  the  Board  of  Control 
of  Public 'institutions.  The  salary  of  the  Architect  ranges  from  $10,000 
per  year  in  New  York  to  $2,500  in  Kansas  and  $2^000  for  the  Deputy 
Inspector  in  Nebraska.  \n  all  cases  (omitting  Illinois)  the  compensa- 
tion of  the  Architect  is  fixed  and  his  office  staff  provided  for  by  law. 
In  New  York,  special  provision  is  made  for  obtaining  outside  archi- 
tectural services  when  the  x\rchitect  and  the  Governor  deem  it  desirable. 

4.    State  Art  Commission. 

In  1909  there  was  created  a  State  Art  Commission,  consisting  of 
two  painters,  two  sculptors,  two  architects  and  two  other  persons  not 
engaged  in  any  of  the  above  pursuits.  The  Governor  serves  as  ex 
officio  member  and  appoints,  with  the  consent  of  the  Senate,  the  other 
members,  who  serve  for  four-year  terms.  The  commission  acts  in  an 
advisory  capacity  only.  It  approves  or  disapproves  of  the  artistic  qual- 
ities of  all  plans,  specifications  and  designs  of  works  of  art  or  public 
buildings  that  may  be  submitted  to  it  on  the  request  of  the  Governor. 
It  possesses  no  final  authority  to  accept  or  reject  such  plans  but  merely 
to  pass  upon  their  artistic  merits.  Aloreover,  there  is  no  legal  necessity 
for  submitting  designs  of  proposed  structures  to  the  commission  at  all. 

It  seems  that  little  use  has  been  made  of  the  Art  Commission 
up  to  the  present  time.  The  General  Assembly  of  1913,  however, 
appropriated  to  the  Commission  the  sums  of  $10,000  and  $1,000  to  be 
used  in  th^  preparation  of  plans  for  Lincoln  and  Douglas  Monuments. 

B.    CONTROL  OF  PUBLIC  BUILDINGS. 

1.   Public  Buildings  in  Springfield. 

The  public  buildings  in  Springfield  consist  of  the  Capitol,  Execu- 
tive Mansion,  Arsenal,  Supreme  Court  Building,  and  Power  House. 
The  Lincoln  Home  and  Lincoln  Monument,  in  charge  of  special  boards, 
are  discussed  as  monuments  and  memorials. 

Control  over  public  buildings  is  vested  in  various  authorities.  The 
Secretary  of  State  has  charge  of  the  maintenance  and  up-keep  of  all 
"houses,  lots,  grounds  and  appurtenances"  of  buildings  that  are  not 
specifically  given  over  to  some  other  authority  by  law.  As  a  matter 
of  fact,  control  over  the  maintenance  of  most  of  the  buildings  is  vested 
in  some  one  else.  The  Adjutant-General  has  charge  of  the  care  of  the 
arsenal ;  the  Supreme  Court  controls  the  maintenance  of  the  supreme 
court  building ;  and  the  Governor  has  control  of  the  maintenance  of 
the  executive  mansion.  This  leaves  only  the  state  house  and  power 
house  under  the  jurisdiction  of  the  Secretary  of  State. 

Specifically  the  Secretary  of  State  is  responsible: 

1.  For  the  proper  up-keep  of  the  Capitol,  surrounding  grounds 
and  the  power  house. 

2.  For  furnishing  heat  and  light  to  the  State  House,  Arsenal  and 
Supreme  Court  Building. 


848  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

3.  For  care  and  replacement  of  furniture  in  the  halls,  corridors, 
basement,  Senate  and  House  Chambers  and  Committee  Rooms.  (Each 
office  has  charge  of  its  own  furniture.) 

4.  For  cleaning  service  in  the  State  House  and  Power  House 
(with  exceptions  noted  later). 

5.  For  preservation  of  the  Capitol  and  guarding  it  against  fire  (in 
connection  with  the  Treasurer). 

To  perform  these  functions,  the  Secretary  of  State  appoints  a 
Superintendent  of  Public  Buildings  and  Grounds  at  a  salary  of  $2,500 
per  year.  The  Superintendent,  subject  to  the  approval  of  the  Secretary, 
appoints  an  assistant  and  the  necessary  corps  of  engineers,  firemen,  car- 
penters, janitors  and  other  employees.  He  takes  personal  charge  of 
movable  furniture  under  the  jurisdiction  of  the  Secretary  of  State.  He 
also  inspects  coal  delivered  under  contract  to  see  that  it  is  of  the  proper 
grade  and  properly  weighed. 

Following  is  a  list  of  employees  and  salaries  authorized  by  appro- 
priation of  1913  under  the  office  of  the  Secretary  of  State: 

Superintendent  of  buildings  and  grounds $  2,500 

Assistant  superintendent  of  buildings  and  grounds 1,800 

Carpenters   (2  at  $1,000  each) 2,000 

Policemen  (6  at  $800  each) 4.800 

Elevator  (6  at  $800  each) 3,600 

Janitors   (11  at  $800  each) 8,800 

Flagman   800 

Engineer 1,800 

Assistant  engineers  (2  at  $1,320  each) 2,640 

Firemen  (9  at  $900  each) 8,100 

Weigher    1,000 

Electrician    1,600 

Assistant  electrician   (3  at  $1,200  each) 3,600 

Helper  900 

Total $43,940 

In  1913,  a  total  of  $31,500  was  appropriated  for  general  im- 
provements, repairs  and  maintenance  of  the  Capitol,  in  addition  to 
appropriations  for  salaries. 

The  assistant  superintendent  of  public  buildings  and  grounds  acts 
practically  as  head  janitor.  The  eleven  janitors  under  him  perform 
cleaning  services  only  for  the  halls  and  lavatories  of  the  State  House 
and  for  the  power  house. 

The  State  Treasurer  employs  nine  watchmen  at  a  salary  of  $900 
each.     They  are  independent  of  control  by  the  Secretary  of  State. 

Each  office  in  the  Capitol  buildings  employs  its  own  janitor  or 
arranges  for  its  own  janitor  service.  There  are  at  least  fourteen  such 
offices  paying  an  aggregate  of  $9,540  a  year  for  janitors,  the  individual 
salaries  ranging  from  $180  to  $900.  This  sum,  together  with  the  ex- 
penditures under  the  Secretary  of  State's  offices,  amounts  to  more  than 
$20,000  per  year  spent  for  janitor's  salaries  for  the  Capitol  alone. 
Moreover,  such  docs  not  represent  the  total  amount  so  spent.  Several 
offices  in  the  State  House  are  not  here  included  for  the  reason  that 
their  expenses  for  cleaning  services  are  lumped  with  other  office  ex- 
penses and  thus  cannot  be  ascertained. 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  849 

The  Adjutant-General  has  general  control  of  the  maintenance  of 
the  State  Arsenal.  An  annual  appropriation  of  $3,220  is  made  to  his 
office  for  this  purpose. 

The  maintenance  service  of  the  Supreme  Court  Building  is  con- 
trolled by  the  members  of  the  State  Supreme  Court,  with  the  exception 
of  the  janitor  in  the  Attorney-General's  office.  There  is  a  head  janitor 
and  five  regular  janitors  (including  the  office  of  the  Attorney-General) 
with  individual  salaries  ranging  from  $800  to  $1,000  per  annum. 
$5,700  is  appropriated  annually  for  an  engineer,  matron,  two  elevator 
conductors  and  two  watchmen. 

For  the  care  and  maintenance  of  the  Executive  Mansion  and 
grounds  an  appropriation  of  $15,000  a  year  was  made  in  1913;  and  an 
additional  appropriation  of  $16,000  for  repairs  and  improvements. 

Following  is  a  summary  of  appropriations  for  the  maintenance  of 
public  buildings  in  Springfield  for  the  biennium  1913-1915:*" 

Total 
Capitol  building—  1913-4  1914-5       Biennium 

Salaries  for  janitors,  watchmen,  carpenters, 

engineers,   etc $  61,580        $  61,580        $123,160 

General  maintenance  and  improvements...         31,200  1,000  32,200 

Arsenal  building 2,500  2,500  5,000 

Executive   mansion 31,000  15,000  46,000 

Supreme  Court  building 11,020  11,020  22,040 

Heating  and  lighting 18,000  13,000  31,000 

Total $155,300       $104,100       $259,400 

2.   State  Offices  in  Chicago. 

Thirty  State  offices,  boards  and  commissions  have  offices  in  the 
city  of  Chicago.  This  does  not  include  institutions,  such  as  the  Chi- 
cago State  Hospital  for  the  Insane,  the  Charitable  Eye  and  Ear  In- 
firmary, the  Industrial  Home  for  the  Blind,  or  the  Colleges  of  Medicine 
and  Dentistry  and  the  School  of  Pharmacy  of  the  University  of  Illinois, 
nor  the  Lincoln  or  West  Park  Boards.  These  thirty  offices  are  in 
some  cases  branch  offices  of  departments  which  have  their  main  head- 
quarters at  Springfield ;  in  other  cases  they  are  the  main  offices  of  the 
State  offices,  boards  or  commissions. 

Most  of  these  offices  are  scattered  in  various  places  in  the  central 
business  district,  i^  or  near  the  so-called  loop  district,  from  180  North 
Dearborn  Street  to  738  South  Wabash  Avenue,  which  are  more  than  a 
mile  from  each  other.  In  a  few  cases  several  offices  are  in  the  same 
building:  the  State  Treasurer,  the  banking  department  of  the  Auditor 
of  Public  Accounts  and  the  Inheritance  Tax  office  of  the  Attorney- 
General  are  in  the  Otis  Building,  at  10  South  La  Salle  Street ;  the  Fire 
Marshal,  the  Rivers  and  Lakes  Commission,  the  Chief  Factory  In- 
spector and  the  Civil  Service  Commission  are  in  the  Transportation 
Building  at  608  South  Dearborn  Street.  But  in  many  cases  each  office 
is  in  a  separate  building;  and  the  offices  which  are  grouped  together 
are  not  those  which  have  the  closest  relations  to  each  other. 

40  This  does  not  include  expenses   for   maintenance  of  each   of  the  offices  other  than 
janitor  service  therein. 


850  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

Several  offices  are  located  outside  of  the  central  business  district- 
as  the  North  and  West  Side  Free  Employment  offices,  the  Automobile 
Department  of  the. Secretary  of  State  and  the  Live  Stock  Commission. 
These  seem  to  be  located  for  reasons  of  convenience  for  the  particular 
office. 

Each  of  these  offices  is  rented  by  the  department  concerned ;  and 
the  rentals  and  other  terms  of  the  leases  show  wide  variations ;  while 
the  aggregate  amount  paid  by  the  State  is  a  large  sum.  The  rate  of 
rental  ranges  from  thirty  cents  a  square  foot  for  the  West  Side  Free 
Employment  Office,  to  $1.75  a  square  foot  for  the  Banking  Department, 
and  the  total  rental  averages  over  $1.00  a  square  foot.  The  rentals 
below  this  average  are  in  cheaply  constructed  and  poorly  located  build- 
ings, in  some  cases  in  buildings  used  mainly  for  storage  purposes. 
Rentals  in  modern  office  buildings  average  about  $1.40  a  square  foot. 
The  total  rental  paid  for  58,000  square  feet  of  office  space  amounts 
to  $59,336.  In  a  few  cases  the  rental  includes  janitor  service  and 
electric  lights ;  and  in  one  case  some  telephone  service.  Including  the 
expense  for  these  services  in  all  the  offices,  the  total  amount  paid  for 
the  thirty  offices  is  $72,293,  or  an  average  of  $1.25  per  square  foot. 
Excluding  the  offices  located  outside  of  the  business  district  the  average 
expense  for  rentals  and  janitor,  lights  and  telephone  service  is  $1.30 
a  square  foot. 

Much  inconvenience  is  caused  both  to  the  public  and  to  the  State 
service,  by  the  scattered  location  of  these  offices.  It  is  often  difficult  to 
learn  where  a  department  has  its  office;  and  the  frequent  changes 
which  come  with  short  term  leases  increase  this  difficulty.  _  The  trans- 
action of  business  between  closely  related  departments  is  hindered  and 
delayed.  There  can  be  no  question  that  the  convenience  and  efficiency 
of  these  departments,  as  well  as  the  convenience  of  the  general  public, 
can  be  greatly  improved  by  concentrating  most  of  these  offices  in  a 
single  building  in  the  central  business  district. 

If  the  several  examining  boards  were  thus  found  in  the  same 
building,  the  same  examination  room  could  be  used  by  all  the  boards, 
while  at  present  each  board  provides  separate  rooms  for  this  purpose. 
From  data  presented  to  the  Efficiency  and  Economy  Committee,  it 
is  also  clear  that  there  can  be  a  considerable  direct  saving  of _  expense 
in  the  amount  paid  for  rentals  and  office  expenses  by  assembling  most 
of  these  offices  in  a  single  building.  Even  under  the  present  systeni  of 
separate  short  term  leases  by  the  different  departments,  it  is  possible 
to  secure  a  substantial  reduction  of  expenses,  and  at  the  same  time 
place  all  the  departments  in  more  comfortable  quarters  and  more  con- 
veniently located  than  many  of  the  departments  now  have.  A  larger 
saving  can  be  made  if  the  State  could  make  a  single  lease  for  a  large 
part  of  a  single  building  for  a  term  of  years. 

Another  solution  of  the  problem  is  to  have  the  State  construct  a 
building  in  Chicago  for  the  various  State  offices.  To  erect  such  a 
building  would  probably  mean  a  larger  immediate  outlay,  but  if  built 
with  accommodations  for  necessary  expansion,  the  State  would  save 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  851 

money  in  the  long  run.  Rental  values  in  the  business  district  of  Chi- 
cago are  rapidly  increasing  and  the  annual  payments  to  be  made  would 
be  higher  at  each  renewal  of  a  lease. 

Some  of  the  departments  with  their  main  offices  in  Chicago  should 
be  moved  to  Springfield.  This  has  recently  been  done  in  the  case  of 
the  Board  of  Dental  Examiners  and  the  Board  of  Examiners  of  Regis- 
tered Nurses ;  and  this  has  also  been  arranged  for  the  State  Veterinar- 
ian. There  does  not  appear  to  be  sufficient  reason  for  locating  the 
headquarters  of  the  State  Architect  in  Chicago  rather  than  in  the  State 
Capitol.  In  connection  with  the  reorganization  and  consolidation  of 
State  offices  other  transfers  may  also  be  advisable. 


852 


EFFICIENCY    AND   ECONOMY   COMMITTEE. 


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854  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

3.     Control  of  Public  Buildings  in  Other  States. 

Various  methods  are  used  by  the  different  States  for  the  custody 
and  care  of  public  buildings  and  movable  property  of  the  state.  Among 
the  larger  states  the  most  common  arrangements  are  either  for  an  ex 
officio  board  of  elective  state  officers,  or  for  an  official  appointed  by 
and  responsible  to  the  Governor.  The  former  of  these  methods  is 
used  in  New  York,  New  Jersey,  Missouri  and  Kansas.  The  latter 
method  is  used  in  Ohio,  Wisconsin,  Minnesota,  Nebraska  and  Cali- 
fornia. In  Pennsylvania  and  Iowa,  ex  officio  boards  have  general  su- 
pervision, but  the  superintendent  or  custodian  is  appointed  by  the  Gov- 
ernor. In  Massachusetts  and  Indiana  the  officers  in  charge  of  the  State 
Capitol  are  selected  by  the  State  Legislature. 

In  the  above  named  states,  the  duties  of  such  officers  usually 
include  not  only  care  of  the  State  Capitol  Building,  but  also  the  Execu- 
tive Mansion  and  other  Public  Buildings  in  the  Capitol  City;  they 
further  include  making  contracts  or  purchases  for  fuel,  furniture  and 
other  office  supplies ;  and  in  Iowa  for  providing  light,  and  telegraph 
and  telephone  facilities. 

New  York. 

The  Governor,  Lieutenant-Governor  and  Speaker  of  the  Assembly 
are  trustees  of  public  buildings, — which  include  the  Capitol,  State  Hall, 
Geological  Hall  and  Executive  Mansion.  They  allot  to  the  legislature 
and  the  departments  of  government  the  space  "required  by  law  and 
as  in  the  judgment  of  the  trustees  shall  be  adequate  and  suitable."  They 
provide  furniture  and  repairs  and  alterations  to  the  buildings  can  be 
made  only  with  their  consent.  They  appoint  and  remove  at  pleasure 
a  superintendent  of  public  buildings  (salary  not  to  exceed  $5,000)  and 
fix  the  salaries  of  employees. 

The  superintendent  of  public  buildings  has  direct  charge  of  the 
above  mentioned  buildings.  He  makes  appointments,  rules  and  pur- 
chases, subject  to  the  approval  of  the  trustees.  Coal  must  be  purchased 
from  the  lowest  bidder  after  advertising  for  bids. 

New  Jersey 

The  Governor,  Treasurer  and  Comptroller  have  charge  of  the 
Capitol  and  Executive  House. 

Pennsylvania 

•The  Governor,  Auditor  General  and  State  Treasurer  form  a  Board 
of  Commissioners  of  jxiblic  grounds  and  buildings,  which  has  control 
and  supervision  over  the  public  grounds  and  buildings,  including  the 
executive  mansion,  and  of  all  repairs,  alterations  and  improvements ; 
and  makes  contracts  for  furniture,  fuel,  repairs,  stationery  and  supplies, 
for  the  legislature,  the  several  departments,  boards  and  commissions  of 
the  State  Government,  and  the  executive  mansion. 

A  superintendent  of  public  grounds  and  buildings  is  appointed 
by  the  Governor,  with  the  advice  and  consent  of  the  Senate,  who  has 
charge  of  the  Capitol  police,  the  caretakers  of  the  grounds,  the  car- 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS. 


85^ 


penters  and  mechanical  force  in  the  State  Capitol  and  the  staff  of  the 
executive  mansion — 128  positions  are  provided  for  in  the  law,  besides 
temporary  help  when  needed. 

Wisconsin 

There  is  a  Superintendent  of  Public  Property,  appointed  by  the 
Governor,  for  a  term  of  two  years,  at  a  salary  of  $2,000.  He  has 
charge  of  the  Capitol  and  grounds,  the  Executive  Mansion  and  all  mov- 
able property  of  the  State  not  by  law  in  charge  of  some  other  officer. 
He  keeps  the  Capitol,  grounds  and  Executive  Mansion  in  repair;  he 
makes  contracts  for  fuel,  furniture  and  other  supplies;  and  he  is  cus- 
todian of  public  documents.  He  makes  an  annual  report,  with  inven- 
tory of  stationery  and  personal  property. 

Unused  property  is  sold  by  the  Governor,  Secretary  of  State  and 
Treasurer. 
Minnesota 

The  (governor  has  control  of  the  State  Capitol. 
Nebraska 

The  Governor  is  ex-officio  commissioner  of  the  department  of 
inspection  and  supervision  of  state  buildings,  and  appoints  a  deputy. 

California 

The  Governor,  Secretary  of  State  and  Treasurer  are  State  Capitol 
Commissioners,  and  as  such  has  charge  of  the  buildings  of  the  State- 
Capitol. 

By  Act  of  1911,  a  Superintendent  of  Capitol  Buildings  and 
Grounds  is  appointed  by  the  Governor  and  holds  office  at  his  pleasure 
at  a  salary  of  $3,000.  He  has  charge  of  the  Capitol  Buildings  and 
Grounds,  and  appoints  policemen,  gardeners  and  other  employees ;  sub- 
ject to  the  Board  of  Examiners  (Board  of  Control),  he  purchases  and 
distributes  supplies  and  makes  rules  for  the  buildings  and  grounds. 

Missouri 

There  is  a  Board  of  permanent  seat  of  Government,  which  consists 
of  the  Governor,  Secretary  of  State,  State  Auditor,  Treasurer  and 
Attorney-General.  This  Board  has  supervision  over  the  public  prop- 
erty at  the  seat  of  Government,  and  appoints  a  Commissioner. 

Iowa 

The  executive  council — consisting  of  the  Governor,  Secretary  of 
State,  Auditor  and  Treasurer  —  has  supervision  of  the  Capitol,  the 
assignment  of  offices  and  the  purchase  of  supplies ;  it  makes  contracts 
for  lighting  and  repairing  the  Capitol  and  State  Buildings  in  Des 
Moines,  and  necessary  telegraph,  telephone  and  water  connections. 

The  custodian  of  public  buildings  and  property  is  appointed  by 
the  Governor,  with  the  advice  and  consent  of  the  Senate,  for  a  term 
of  two  years.  He  has  charge  of  the  Capitol  Building,  grounds  and 
furniture,  and  of  all  other  State  Buildings  and  grounds  at  the  seat  of 
Government  not  otherwise  provided  for  by  law.  He  has  charge  of  the 
Capitol  police. 


856  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

Kansas 

The  executive  council — consisting  of  the  Governor,  Secretary  of 
State,  Auditor,  Treasurer,  Attorney-General  and  Superintendent  of 
Public  Instruction — has  the  care  and  management  of  the  State  House 
and  grounds;  it  appoints  janitors  and  other  employees,  and  provides 
for  light,  fuel  and  furniture  for  the  several  departments  and  legislature. 

Massachusetts 

The  Sergeant  at  Arms,  chosen  annually  by  the  legislature,  has 
charge  of  the  State  House  and  State  Buildings  in  Boston. 

Indiaita 

The  General  Assembly  appoints  a  custodian  of  public  buildings 
and  property. 

Ohio 

The  Adjutant-General  is  Superintendent  of  the  State  House  and 
as  such  appoints  the  attendants  and  makes  contracts  for  fuel^. 

C.      MONUMENTS  AND  MEMORIALS. 

Lincoln  Monument 

The  Lincoln  Monument  is  situated  in  Oak  Ridge  Cemetery,  Spring- 
field, on  a  plot  of  land  of  about  nine  acres.  It  was  originally  erected 
under  the  supervision  of  the  Lincoln  Monument  Association,  a  private 
corporation,  but  the  state  contributed  liberally  to  the  expenses  of  the 
enterprise.  By  an  Act  of  May  18,  1895,  the  state  accepted  a  convey- 
ance of  the  property  and  placed  it  under  direct  supervision  of  an  ex- 
officio  l^)Oard,  consisting  of  the  Governor,  Superintendent  of  Public  In- 
struction and  State  Treasurer.  The  Board  appoints  a  custodian  to  take 
charge  of  the  monument  and  grounds  which  are  kept  open  to  the  pub- 
lic. The  custodian  must  be  a  Union  Veteran  of  the  Civil  War  or  the 
son  of  a  Union  Veteran. 

The  following  appropriations  were  made  for  the  monument  for 
the  year   1913-1914: 

Salary  of  Custodian $1,500 

Fuel  and  care  of  Grounds 1,750 

Repairs   500 

Total   $3,750 

Lincoln  Homestead 

In  1887  the  General  Assembly  authorized  the  purchase  by  the 
state  of  the  Lincoln  Home  in  Springfield  from  Robert  T.  Lincoln  and 
his  wife.  A  special  Commission  was  created  to  have  charge  of  the 
property.  It  consists  of  the  Governor,  Secretary  of  State,  Auditor, 
Treasurer  and  Superintendent  of  Public  Instruction.  A  custodian  is 
employed  at  a  salary  of  $1,500  per  annum  to  care  for  the  premises  and 
exhibit  relics,  etc.,  collected  therein.  At  present  the  cost  of  maintain- 
ing the  home  is  $2,450  per  year. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS. 


857 


Miscellaneous  Monuments  and  Memorials 

In  addition  to  the  Lincoln  Monument  and  Homestead,  there  are 
several  dozen  of  minor  monuments,  some  of  which  are  of  considerable 
value,  scattered  throughout  the  state  and  elsewhere,  they  have  been 
erected  at  the  expense  of  the  state.  As  a  rule,  they  were  designed 
and  erected  with  state  appropriations  by  special  commissions  created 
for  the  particular  purpose,  which  ceased  to  exist  after  the  work  of  con- 
struction was  completed.  As  a  result  most  of  them  seem  to  lie  out- 
side the  jurisdiction  of  any  particular  official.  During  the  past  forty 
years  somewhat  more  than  thirty  such  monuments  have  been  erected 
representing  a  total  expenditure  on  the  part  of  the  state  of  over 
$600,000. 

Following  is  a  list  of  monuments  and  memorials  erected  since  1870, 
together  with  the  date  of  authorization,  appropriation,  and  the  authority 
in  charge  of  each: 


MONUMENTS  AND  MEMORIALS  ERECTED  BY  THE  STATE 
(1870-1913) 


Date 
Author- 
ized 

Name 

Amount 
Author- 
ized 

Authority  in  Control 

By 

Whom 
Selected 

1873 

Soldier's  Monument 

(Mound  City) 

Douglas  Monument 

(Chicago)  (1879) 

Lincoln  Monument 

(Springfield) 

Shadrack  Bond  Monu- 
ment (Chester) 

Black  Hawk  War 

Volunteers 

$25,000 

/  50,000 

\    9,000 

27,000 

1,500 

2,500 

500 

50,000 

6,000 

1    1,000 
1  65,400 

9,000 

300 
25,000 

65,000 
9,000 

Goverrtor 

1877 
1881 

■l  Committee  of  9 

Lincoln  Monument  Assn. 

Committee  of  2     

Legislature 
Governor 

1883 

Committee  of  3       

Governor 

Stillman's  Run 

Committee  of  3       

Legislature 

1887 
■1889 

1893 

Logan  Monument 

Gettysburg  Monument 

and  Tablets,  etc 

Chickamauga,  Lookout 

Mt.  &  Missionary 

Ridge  (1895) 
Shield's  Statue  for  Nat'l 

Gallery,  Washington. .  . 
Francis  Scott  Key  Monu- 

Committee  of  12 

Committee  of  3 

[committee  of  10 

Legislature 

Governor 

Governor 

Governor 

1895 

State  Geologist 

1897 

Lovejoy  Monument 

Shiloh  Battlefield  Monu- 
ment, etc.  (1899) 

Frances    Willard    Statue 
for  Nat'l  Gallery,Wash- 

Lovejoy  Monument  Assn. 
Committee  of  10 

Governor 
Governor 

858 


EFFICIENCY   AND    ECONOMY   COMMITTEE. 


Date 
Author- 
ized 

Name 

Amount 
Author- 
ized 

Authority  in  Control 

By 
Whom 
Selected 

1901 

Vicksburg  Tablets,  etc. . . 
John  Rector  Monument.. 

Stillman's   Valley  Monu- 

2,000 
2,000 

5,000 

$5,000 
5,000 

600 

500 

6,000 
15,000 

Committee  of  18" 

John   Rector   Monument 
Ass'n. 

Battleground      Memorial 
Ass'n  of  Stillman's  Val- 
ley. 

Moline  Chapter  D.  A.  R. 
La  Salle  Mem.  Ass'n. 

Committee  of  3 

Governor 

1905 

Campbell's  Island  Monu- 
njgnt                 

Harding  MonumeEt 

John   J.    Harden    Monu- 
ment 

Governor 

1907 

Elias  Kane  Lent  Monu- 
ment (Randolph  Co.).. 

George  Rogers  Clark 
Monument  (Quincy)..  . 

Andersonville  Monument 

Vicksburg  Military  Park 
Com 

Committee  of  3             ... 

Governor 

Committee  of  5 

Governor 

Governor 

1909 

Committee  of  5 

Governor 

1911 

Edwardsville  Historical 
Monument 

5,000 

5,000 
20,000 

5,000 
2,500 

25,000 

1,200 

1,000 

Ex-officio  Com." 

General  Michael  Kelly 

Lawler  Monument .... 
Kenesaw  Mt.  Monument 

Thos.  Carlin  Monument. 
Ft.  Edwards  Monument. 
Jno.    P.    Altgeld    Monu- 
ment 

Governor 

Officers  of 

1913 

Kenesaw 
Mt.  Ass'n. 

Committee  of  5 

Governor 

Committee  of  5 

Governor 

Bronze  Tablet  Memorial 
HaU 

Committee  of  3 

Governor 

Stephen  A.  Douglas  Mon- 
ument                

State  Art  Commission^ 

Lincoln  Monument 

10,000 

State  Art  Commission'^ 

a     Must  be  Vicksburg  Veterans. 

b  Consisting  of  Governor  Lieutenant-Governor,  President  Illinois  His- 
torical Society,  Secretary  Illinois  Historical  Society  and  Secretary  State  Board  of 
Administration. 

c    Authority  only  to  submit  designs,  etc.,  to  General  Assembly,  not  to  erect. 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS. 


859 


Expositions,  Fairs,  etc. 

The  duty  of  supervising  the  construction  of  buildings  and  placing 
of  exhibits,  etc.,  at  various  expositions  and  fairs  has  usually  been  placed 
upon  a  special  commission  composed  of  from  one  to  forty  members  who 
serve  without  compensation.  Over  $1,700,000  have  been  appropriated 
for  expositions  since  1870.  All  of  this  does  not,  of  course,  represent 
expenditures  for  construction  of  buildings,  but  the  appropriations  usu- 
ally involved  such  construction.  Following  is  given  a  list  of  appropria- 
tions for  exposition  purposes: 

Amt,  Ap-        Authority  By  Whom 

Date        Name  of  Exposition  priated  in  Control  Appointed 

1875     Philadelphia  Centennial  Ex-  State  Board  of 

position    $  10,000        Managers 

1885     New  Orleans   Exposition..  5,000    Committee  of  3      General  Assembly 

New   Orleans   Exposition..  5,000    Committee  of  3      General  Assembly 

1891     World's    Columbia    Exposi-  State  Board  of 

tion   800,000        Agriculture 

1895    Atlanta  (Ga.)  Exposition..        90,000    Committee  of  3      Governor 
1897    Tennessee    Centennial    and 

International   Exposition.        20,000    Committee  of  40    Governor 

Omaha  Exposition 45,000    Committee  of  20    Governor 

1899    Ohio  Centennial  Exposition  2,500    Committee  of  11     Governor 

1901     Louisiana    Exposition 250,000    Committee  of  15    Governor 

Pan-American  Exposition..        75,000    Committee  of  7      Governor 

South  Carolina  Exposition.        25,000    Committee  of  7      Governor 

1905    Jamestown  Ter.   Centennial        20,000    Committee  of  7      Governor 

Lewis  and  Clark  Exposition        25,000    Committee  of  7      Governor 

1909    Perry  Centennial  Exposition 

(1915)    10,000     Committee  of  5      Governor 

1911     Panama  Pacific  Exposition.        25,000  )  Governor  &  Dep. 
1913    Panama  Pacific  Exposition.      300,000  i  Commissioners 
Illinois  Centennial  Anniver- 
sary          10,000    Committee  of  15    General  Assembly 

Fiftieth  Anniversary  Negro 
Emancipation   25,000     Committee  of  9      Governor 


,  D.      SUMMARY  AND  SUGGESTIONS. 

At  present  some  of  the  authorities  that  have  to  do  with  the  con- 
struction and  maintenance  of  pitblic  buildings  and  monuments  are  the 
Governor,  Secretary  of  State,  State  Architect,  Art  Commission,  and 
numerous  ex  officio  and  other  special  commissions  created  from  time 
to  time  by  the  legislature  and  serving  without  pay.  The  planning  and 
designing  of  new  buildings  is  left  with  the  State  Architect,  and,  in 
some  instances,  with  special  commissions  working  independently  of 
the  State  Architect's  office.  Contracts  for  construction  are  let  by  the 
authorities  in  charge  of  the  office  or  department  for  which  the  building 
is  intended.  The  latter  also  supervises  construction  in  most  cases, 
although  the  State  Architect  is  vested  with  authority  to  do  so.  Monu- 
ments and  memorials  are  erected  by  special  appointive  commissions.^ 

Control  over  the  maintenance  and  upkeep  of  the  public  buildings  in 
Springfield  lies  with  the  Governor  for  the  Executive  Mansion,  the  Sec- 
retary of  State  for  the  Capitol,  the  Adjutant-General  for  the  Armory 
and  the  Supreme  Court  Justices  for  the  Supreme  Court  Building.  In 
addition  the  Attorney-General  employs  his  own  janitor  for  his  offices 


860  EFFICIENCY   AND   ECONOMY   COMMITTEE. 

in  the  Supreme  Court  Building,  while  each  office  in  the  State  Capitol 
has  its  own  janitorial  services.  The  state  officials  having  headquarters 
or  branch  offices  in  Chicago  provide  for  their  own  offices  and  office 
maintenance. 

Architect's  Office 

Most  of  the  states,  including  those  of  such  importance  as  Pennsyl- 
vania and  Ohio,  have  no  regular  office  of  State  Architect.  About 
half  a  dozen  states  have  established  such  a  position;  and  where  con- 
struction works  involving  aggregate  amounts  of  considerable  size  can 
be  anticipated  with  more  or  less  regularity,  such  an  office  seems  to 
have  some  justification. 

The  organization  and  functions  of  the  office  in  Illinois  are,  how- 
ever, unsatisfactory.  This  is  the  only  state  with  a  State  Architect  which 
compensates  the  official  with  a  fixed  salary  plus  an  additional  percentage 
commission  for  his  office  force.  Such  a  plan  has  the  apparent  advan- 
tage of  being  elastic,  inasmuch  as  the  amount  paid  for  architectural 
services  is  made  dependent  upon  the  amount  of  work  to  be  done.  But 
this  advantage  is  not  so  obvious  if  the  total  amount  of  work  is  suffi- 
cient to  keep  a  regular  staff  busy  throughout  the  year ;  while  if  a  regu- 
lar staff  is  not  maintained  the  advantage  of  a  definite  special  service  is 
in  large  measure  lost. 

In  fact,  under  the  present  arrangements  neither  the  Architect  nor 
his  stafif  have  been  permanent;  and  the  State  has  failed  to  gain  the 
advantage  either  of  following  a  definite  policy  of  building  construction 
through  a  series  of  years  or  of  the  technical  efficiency  of  a  permanent 
office  staff.  A  new  State  Architect  does  not  take  over  an  organized 
office  force;  and  is  thus  not  prepared  to  handle  work  either  expedi- 
tiously or  efficiently.  There  is  no  definite  provision  under  the  present 
law  for  preparing  preliminary  plans  of  proposed  buildings,  or  compre- 
hensive plans  for  the  development  of  institutional  grounds  and  build- 
ings over  a  period  of  years.  Moreover,  it  may  be  urged  that  the  State 
work  is  of  too  varied  a  character  for  any  one  architect  to  do  it  all  suc- 
cessfully. It  should  be  possible  to  consult  specialists  for  particular 
classes  of  construction ;  and  especially  for  structures  of  considerable 
importance,  there  should  be  provision  for  inviting  competition  of  the 
best  Architects. 

The  office  of  State  Architect  was  established  at  a  time  when  each 
state  institution  was  under  the  control  of  a  separate  authority.  Under 
these  conditions  it  provided  a  means  for  securing  some  uniformity  and 
harmony  in  the  construction  of  buildings  for  the  same  general  pur- 
poses. But  with  the  consolidation  of  the  charitable  institutions  under 
the  Board  of  Administration ;  and  the  further  reorganization  of  insti- 
tutional management  recommended  by  the  Efficiency  and  Economy 
Committee,  the  State  Architect  will  serve  to  weaken  the  power  of  the 
central  managing  boards  over  the  institutions  under  their  control.  As 
each  class  of  institutions  requires  somewhat  dififerent  qualities,  such 
bodies  as  the  Board  of  Administration,  the  Board  of  University  Trus- 
tees, and  the  proposed  Board  of  Prison  Administration  and  Normal 
School  Board  might  well  be  allowed  to  select  the  Architects  for  their 
own  buildings.    There  should  likewise  be  a  single  board  for  the  con- 


PUBLIC    WORKS,    PARKS    AND   BUILDINGS.  861 

struction  of  armories,  instead  of  providing  a  special  committee  for  each 
building,  and  there  should  be  adequate  provisions  to  insure  competition 
and  open  bidding. 

The  primary  function  of  a  State  Architect  sliould  be  to  prepare 
general  plans,  preliminary  sketches  and  estimates  for  public  buildings 
of  all  sorts  as  a  basis  for  appropriations,  and  to  act  as  consulting  archi- 
tect in  selecting  architects,  by  competition  or  otherwise,  to  prepare 
detailed  plans  and  specifications  for  particular  buildings,  and  to  approve 
such  plans.  He  might  further  be  required  to  prepare  working  plans 
and  specifications  for  buildings  for  which  competitive  plans  are  not 
invited,  at  the  discretion  of  the  several  authorities  charged  with  the 
construction  of  such  buildings. 

To  perform  these  functions,  however,  the  State  Architect  should 
be  a  non-political  official ;  and  both  he  and  his  stafi^  should  be  selected 
and  retained  on  a  basis  of  merit  and  efficiency.  Unless  these  conditions 
can  be  met,  the  office  should  be  abolished. 

Art  Commission 

The  State  Art  Commission  should  be  retained  and  should  be  re- 
quired to  pass  upon  all  proposed  structures  including  monuments.  It 
should  consist  of  the  Governor,  and  other  persons  appointed  by  the 
Governor,  including  a  Sculptor,  Painter  and  Architect,  to  serve  with- 
out compensation. 

Control  of  Public  Buildings 

The  function  of  caring  for  the  public  buildings  in  Springfield 
should  be  concentrated  in  a  single  official  and  not  scattered  as  at  pres- 
ent among  a  number  of  offices.  Concentration  would  undoubtedly 
efii^ect  not  only  an  annual  saving  of  considerable  sums  now  wasted  by 
duplication  of  effort,  but  would  insure  greater  efficiency  in  the  service. 
The  Superintendent  of  Public  Buildings  and  Grounds  should  have 
charge  of  the  entire  janitorial  service  for  the  Capitol,  Supreme  Court, 
xArsenal,  Executive  Mansion  and  Power  House.  He  should  also  be 
required  to  furnish  communication  service  (telephone  and  telegraph) 
to  the  various  offices,  as  well  as  perform  the  other  duties  now  devolv- 
ing upon  him. 

There  is  no  apparent  reason  why  the  duty  of  maintaining  the  Capi- 
tol and  other  Public  Buildings  should  devolve  upon  the  Secretary  of 
State.  Such  a  function  is  more  or  less  foreign  to  his  primary  interests 
and  belongs  more  properly  in  the  departments  concerned  with  Public 
Buildings.  Most  of  the  actual  work  of  supervision  must  necessarily  be 
vested  in  a  Superintendent  in  direct  charge.  This  officer  should  have 
supervision  of  the  State  Capitol  and  all  other  state  buildings  in  Spring- 
field, and  also  over  any  other  buildings  owned  or  leased  by  the  state 
for  office  purposes.  He  should  also  have  power,  with  the  approval  of 
the  Governor,  to  make  contracts  for  fuel  (now  made  by  the  State 
contract  commissioners)  and  for  telephone  service,  lights  and  other 
office  services  in  the  State  office  buildings. 

Efficiency  and  economy  and  convenience  to  the  public  would  all 
be  served  by  a  centralization  of  the  State  offices  located  in  Chicago. 


862  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

The  most  desirable  plan  would  seem  to  be  for  the  State  to  construct  a 
building  for  office  purposes,  in  which  event  its  maintenance  should  be 
placed  under  the  same  authorities  as  those  controlling  the  Springfield 
structures.  Pending  such  action,  the  Superintendent  of  Buildings,  with 
the  approval  of  the  Governor,  should  be  authorized  to  make  a  general 
lease  for  assembling  in  a  single  building  as  many  as  practicable  of  the 
State  offices  which  the  public  convenience  require  to  be  located  in 
Chicago. 

Monuments  and  Memorials 

The  assumed  economic  advantages  of  employing  special  commis- 
sions serving  without  compensation  to  erect  each  monument  or  memo- 
rial proposed  does  not  warrant  a  continuance  of  the  policy.  Control 
over  the  erection  of  monuments  should  be  centralized  in  one  state  offi- 
cial. Such  would  undoubtedly  insure  greater  consideration  of  the 
artistic  merit  of  these  so-called  works  of  art  and  would  also  place  them 
definitely  under  some  state  official  who  would  be  responsible  for  their 
proper  care.  The  Art  Commission's  approval  of  all  monuments  or 
memorials  erected  at  the  expense  of  the  state  should  be  required  be- 
fore erection.  If  special  commissions  are  to  be  employed  for  the 
construction  and  placing  of  exhibits  at  expositions,  they  should  in 
all  cases  be  required  to  report  a  detailed  statement  of  all  expendi- 
tures with  vouchers,  together  with  statement  of  work  of  the  Com- 
mission. 


VII.    GENERAL  SUMMARY  AND  RECOMMENDATIONS. 

An  attempt  has  been  made  to  consider  all  the  boards  or  offices  of 
the  state  government  that  are  performing  functions  relating  to  the 
construction  of  public  works  or  the  conservation  and  care  of  public 
property  and  resources.  The  principal  offices  of  this  nature  are  the 
Highway  Commission,  Rivers  and  Lakes  Commission,  Illinois  and 
Michigan  Canal  Commissioner,  Fish  and  Game  Conservation  Com- 
mission, Park  Commission,  State  Architect  and  numerous  minor  au- 
thorities, such  as  the  State  Art  Commission,  boards  of  trustees  of  Fort 
Massac  Park,  Lincoln  Home  and  Lincoln  Monument  and  many  ex 
officio  and  special  unpaid  commissions.  In  addition  to  these  the  Gov- 
ernor, Secretary  of  State,  Adjutant-General  and  the  Supreme  Court  of 
the  state  are  vested  with  some  control  over  the  maintenance  of  publii: 
buildings. 

Aside  from  the  Architect's  office  and  the  officials  last  mentioned, 
the  administrative  machinery  has,  in  each  instance  taken  the  form  of  a 
board  or  commission  appointed  by  the  Governor.  Some  of  them  con- 
sist of  members  who  devote  all  of  their  time  to  their  official  duties; 
while  others,  such  as  the  park  commission,  art  commission,  the  trustee 
boards  and  the  special  commissions  are  composed  of  members  who 
serve  without  compensation. 

The  amounts  appropriated  for  the  use  of  the  various  offices  and 
commissions  for  the  biennium  1913-15  are  shown  below: 

Name  1913-14  1914-15  Total 

State  Highway  Commission $   507,500        $   800,000        $1,307,500 

111.  and  Michigan  Canal  Commissioners. . .  50,000  50.000 

Rivers  and  Lakes  Commission 376,000  30,200  406,200 

Fish  and  Game  Commission 193,100  151,600  344,700 

Park  Commission 56,700 •••a*A 

FortChartres 4,000  3,500  64,200 

State  Architect 5,000  5,000  10,000 

State  Art  Commission 11,000  11,000 

Secretary  of  State  (maintenance  of  build- 
ings) . 43,900  43,900  87,800 

Trustees  Fort  Massac  Park 4,600  3,100  7,700 

Trustees  Lincoln  Homestead 2,450  2,450  4,000 

Trustees  Lincoln  Monument 3,750  3,250  7,000 

Governor  (care  and  improvement  of  Ex- 
ecutive Mansion) 31,000  15,000  46,000 

Adjutant-General   (care  and  improvement  _    ^^ 

of  Arsenal) 2,500  2,500  5,000 

Supreme  Court  (care  and  improvement  of 

Supreme  Court  Building) 7,700  7.700  15,400 

Special  Commissions— 

1.  Penitentiary  Build'g  Commissioners         117,860  117,860 

2.  Perry  Victory  Centennial  Commis- 

sioners ...  f 50.000  50.000 


864  EFFICIENCY   AND    ECONOMY   COMMITTEE. 

3.  Panama-Pacific  Commissioner.  300,000  300,000 

4.  Memorial  Commissions  (two).  20,818  20,818 

5.  Monument  Commissions  (four)  33,100  33,100 

6.  Education  Bldg.  Commission..  10,000  10,000 

Totals    $1,830,978        $1,068,200        $2,899,178 

Several  of  the  important  commissions  have  a  very  recent  origin 
or  have  been  recently  re-organized.  The  office  of  the  Illinois  and  Mich- 
igan Canal  Commissioners  dates  back  to  1870  and  the  State  Architect's 
office  was  established  in  1899.  On  the  other  hand,  the  Highway  Com- 
mission, the  Fish  and  Game  Commission,  Rivers  and  Lakes  Commis- 
sion, Park  Commission  and  State  Art  Commission  have  been  created 
within  the  last  three  years.  The  object  of  most  of  the  recent  legislation 
is  to  obtain  a  more  effective  centralization  of  administration  than  had 
existed  before.  Control  of  State  Highways  has  been  concentrated  in 
a  State  commission  ;  fish  and  game  laws  are  now  enforced  by  a  single 
commission  whereas  two  independent  authorities  had  existed;  the  ad- 
rninistration  of  state  parks  had  been  placed  largely  in  the  hands  of  a 
single  commission,  and  the  organization  of  the  rivers  and  lakes  com- 
mission represents  the  same  tendency. 

There  is,  however,  need  for  more  complete  concentration  of  author- 
ity in  the  administration  of  some  of  these  function «-  Control  over  the 
water  resources  of  the  state  in  the  interests  of  navigation,  commerce, 
water  power  development,  sanitation,  water  supply  control,  drainage 
and  flood  prevention  should  be  vested  in  some  single  state  authority 
without  exceptions  being  made  that  would  seriously  limit  its  powers. 
The  office  of  the  Illinois  and  Michigan  Canal  Con.missioners  should  be 
abolished  and  its  functions  assumed  by  the  waterway  officials.  The 
practice  of  creating  special  commissions  with  authority  over  the  erec- 
tion of  specified  buildings  should  be  abandoned.  Perhaps  the  greatest 
need  for  centralization  of  authority  lies  in  the  maintenance  of  public 
buildings  in  Springfield.  The  present  practice  of  vesting  control  in 
numerous  officials  has  no  advantages  and  renders  efficient  and  economi- 
cal service  almost  impossible. 

Moreover,  there  is  need  for  some  sort  of  coordination  between 
the  organs  of  government  that  are  established  to  administer  the  high- 
ways, waterways,  fish  and  game  laws  and  public  buildings.  At  pres- 
ent there  is  practically  no  working  relationship  legally  established  al- 
though some  exists  in  practice  as  a  matter  of  necessity.  There  is  a 
distinct  need  for  cooperative  action  in  the  administration  of  water 
resources  and  fish  and  game  conservation  for  the  problems  involved 
frequently  interlace.  There  is  less  need  for  connecting  these  functions 
with  highways,  parks  and  public  buildings.  Logically,  however,  they 
all  form  a  group  that  is  fairly  homogeneous  and  with  future  develop- 
ment, their  interests  are  likely  to  become  more  directly  associated. 

Most  of  the  duties  to  be  performed  by  the  groups  of  officials  under 
consideration  relate  to  the  construction  or  maintenance  of  public  works 
or  public  property  of  some  kind.  The  nature  of  these  duties  demands 
concentration  of  authority  to  produce  the  most  effective  results.  On 
the  other  hand,  there  remain  some  large  problems,  particularly,  in 
highway  and  waterway  administration,  the  proper  solution  of  which 


PUBLIC    WORKS,    PARKS    AND    BUILDINGS.  865 

requires  consideration  from  several  points  of  view.  It  seems,  there- 
fore, that  there  is  some  necessity  for  a  board  or  commission  with  wide 
jurisdiction  but  whose  primary  functions  would  relate  first,  to  the  settle- 
ment of  questions  involving  more  than  one  bureau,  and  secondly  to 
planning-  a  comprehensive  system  for  future  development.  Supervision 
over  the  work  of  any  one  service  should  not  extend  to  administrative 
routine. 

It  is  therefore  recommended: 

1.  That  the  functions  of  the  state  relating  to  highways,  water 
resources,  fish  and  game  conservation,  parks  and  public  build- 
ings be  grouped  into  a  single  executive  department ; 

2.  That  this  department  be  placed  under  the  general  supervision 
of  a  board  of  thre&  persons  appointed  by  the  Governor ; 

3.  That  there  be  created  within  the  department  divisions  or  bu- 
reaus dealing  with  highways,  water  resources,  fish  and  game 
conservation,  public  parks  and  monuments  and  buildings; 

4.  That  each  of  the  bureaus  be  placed  in  charge  of  a  single  execu- 
tive head ; 

5.  That  the  bureau  chiefs  be  given  authority  to  appoint  all  subor- 
dinate oflficials  and  employes  of  the  bureaus  who  should,  with 
a  few  exceptions,  be  placed  in  the  classified  civil  service. 


A  REPORT 

ON 

THE  MILITARY  DEPARTMENT 

OF  THE 

STATE  OF  ILLINOIS 

BY 

QUINCY  WRIGHT,  A.  M. 


CONTENTS 

T.      THE   ILLINOIS   STATE    MILITIA    871-888 

1.  History  of  Legislation    871 

State  Legislation   871 

United  States  Laws   873 

2.  The  Military  Forces 873 

Organized  and  Unorganized  Militia 873 

The  Illinois  National  Guard   873 

Enlistment  bv  vears,  1901-1912   874 

Relative  Militia  Strength  of  States,  1912   874 

The  Illinois  Naval  Reserve   875 

Enlistment  by  years,   1902-1912    876 

Relative  Strength  of  States,  1912   876 

Personnel     876 

Enlisted  Men    876 

Officers    877 

The  Retired  List  878 

Pay  and   Allowances    878 

Equipment,  drills,  armories,  etc 878 

Mobs,  Riots  and  Disturbances   879 

3.  The  Commander-in-Chief   880 

4.  The   Staff  Departments    880 

Adjutant  General's  Department   880 

Inspector   General's   Department    881 

Quartermaster  General's  Department   882 

Subsistence   Department    882 

Ordnance  Department    882 

Pay   Department    882 

Corps  of  Engineers   882 

Signal  Corps   882 

Judge  Advocate's  Department  882 

Militant  Offences    882 

Courts  Martial   883 

Medical    Department    884 

Medical   Corps    884 

Hospital  Corps  884 

Aledical  Reserve  Corps  884 

5.  Finances     884 

Militarv  Appropriations  and  Expenditures    885 

Analysis  of  Military  Appropriations,  1909,  1911,  1913 886 

Analysis  of  Military  Expenditures,  1910-12  886 

6.  Comments    887 

II.      THE    UNITED   STATES   GOVERNMENT  ANT  THE   STATE    MILITIA    889-906 

1.  National  Legislation 889 

Constitutional  Provisions   889 

Congressional   Legislation    890 

Congressional  Appropriations   891 

The  Dick  Law  and  Subsequent  Legislation  892 

2.  Actual  Use  of  the  Militia  bv  the  National  Government 897 

1789-1814    ; 897 

1814-1864    898 

1864-1914    899 

3.  Constitutional   and   Legal   Conclusions    901 

The  Jurisdiction  of  the  U.  S.  Government  over  the  Militia 901 

The  Jurisdiction  of  the  State  Government  over  the  Militia 901 

Cases  in  which  the  Militia  may  be  called  out  902 

Cases  in  which  the  Militia  may  not  be  called  out  903 

The  Discretionary  Power  of  the  President   905 

The  Leadership  of  the  Militia 905 

General    Conclusion    906 


I.     THE  ILLINOIS  STATE  MILITIA. 

I.       HISTORY    OF   LEGISLATION. 

State  Legislation. 

The  Illinois  Constitution  of  1818  provided  for  the  establishment 
of  a  State  Militia  with  the  Governor  as  Commander-in-Chief,  to  con- 
sist of  all  free,  able  bodied  men — negroes,  mulattoes  and  Indians 
excepted — between  the  ages  of  eighteen  and  forty-five,  and  resident  in 
the  state.  Persons  with  conscientious  scruples  might  be  exempted 
from  service  in  time  of  peace  on  paying  an  equivalent  in  money. 
Company,  battalion  and  regimental  officers — staff  officers  excepted — 
were  to  be  elected  by  their  respective  company,  battalion  or  regiment. 
Brigadier  and  Major  Generals  were  to  be  elected  by  the  officers  of 
their  respective  brigades  and  divisions.  All  officers  were  to  receive 
commissions  from  the  Governor  to  be  held  during  good  behavior,  or 
until  the  attainment  of  the  age  of  sixty  years.  Members  of  the. militia 
were  exempted  from  arrest  during  actual  service  except  for  treason, 
felony  or  breach  of  the  peace. 

In  accordance  with  these  constitutional  provisions,  an  elaborate 
military  organization  was  provided  for  in  a  statute  of  1819  entitled  "an 
act  for  organizing  the  militia  of  the  state."  This  provided  that  the 
commanding  officer  of  each  company  enroll  all  eligible  male  citizens ;  and 
that  such  persons  be  required,  to  provide  themselves  with  musket,  bay- 
onet, knapsack,  blanket,  canteen  etc.  within  six  months  of  enrollment. 
The  militia  was  organized  into  two  divisions  of  two  brigades  each,  each 
brigade  to  consist  of  several  regiments,  each  one  of  which  comprised 
one  county.  The  whole  military  organization  was  under  the  control 
of  the  Governor  as  commander-in-chief,  assisted  by  two  aides-de-camp 
and  an  adjutant  general.  The  division  officers  were  a  major  general, 
division  inspector,  quartermaster  general  and  two  aides-de-camp.  The 
brigades  were  under  the  control  of  a  brigadier  general,  brigade  in- 
spector, quartermaster  general  and  one  aide-de-camp.  •  The  regimental 
officers  were  a  colonel,  lieutenant-colonel,  major,  surgeon,  adjutant 
quartermaster,  paymaster,  sergeant  major,  quartermaster  sergeant, 
drum  major,  and  fife  major.  The  battalion  was  commanded  by  a 
lieutenant  colonel  and  the  company  by  a  captain  with  one  lieutenant, 
one  ensign,  four  sergeants,  four  corporals,  a  drummer  and  a  fifer.  In 
each  regiment  there  was  to  be  one  company  of  artillery  and  one  of 
cavalry.  Provision  was  made  for  drill  at  regular  intervals,  for  calling 
into  service,  for  conduct  while  under  orders,  etc.  The  act  was  very 
elaborate  and  apparently  had  the  intention  of  putting  all  able  bodied 
men  under  a  more  or  less  formal  military  organization. 

The  general  system  as  outlined  in  the  law  of  1819  was  continued 
until  the  act  of  1877,  which  virtually  installed  the  present  military  code. 
There  were,  however,  some  changes  made  from  time  to  time,  as  in  an 
act  of  1826  for  "the  organization  and  government  of  the  militia  of  the 


872  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

State,"  and  an  act  of  1833  with  the  same  title,  which  provided  for  five 
divisions  of  two  to  four  brigades  each  and  fourteen  brigades  in  all. 
An  Act  of  1837,  entitled  "an  act  encouraging  volunteer  companies," 
introduced  a  somewhat  novel  feature  in  that  it  recommended  and  pro- 
vided for  the  creation  of  volunteer  companies  with  a  more  formal 
organization  and  more  regular  drill  than  in  the  regular  militia,  thus 
forecasting  the  later  division  of  the  militia  into  a  volunteer  organized 
miUtia  and  the  unorganized  mil-tia. 

At  the  outbreak  of  the  civil  war  a  special  session  of  the  legisla- 
ture was  called,  which  passed  the  act  of  1861  "to  organize  six  regi- 
ments of  volunteers  from  the  state  of  Illinois  and  to  provide  for  the 
election  of  regimental  officers  and  of  a  brigadier  general"  and  also  "an 
act  to  prepare  the  state  of  Illinois  to  protect  its  own  territory  and  to 
repel  invasion  and  to  render  efficient  and  prompt  assistance  to  the 
United  States  if  demanded."  In  1865  was  passed  "an  Act  to  provide 
for  the  appointment  and  to  designate  rank,  fix  pay,  and  prescribe  duty 
of  the  adjutant  general  of  Illinois." 

The  Constitution  of  1848  had  repeated  verbatim  the  sections  of 
the  Constitution  of  1818  relating  to  the  militia.  The  Constitution  of 
1870  repeated  its  main  features,  but  provided  specifically  that  the  or- 
ganization, equipment  and  discipline  of  the  militia  should  conform  so 
far  as  possible  to  that  of  the  United  States  Army.  It  omitted  the  pro- 
vision requiring  the  election  of  officers,  thus  permitting  more  central- 
ized control  through  appointed  officers. 

An  Act  was  passed  in  1874  "to  revise  the  law  in  relation  to  the 
state  militia ;"  and  in  1877  "the  military  code  of  Illinois"  was  enacted, 
which  put  the  militia  on  practically  its  present  basis.  The  active 
militia  were  organized  on  the  basis  of  voluntary  enlistment  for  a  term 
of  five  years  under  the  title  "The  Illinois  National  Guard."  The  Gov- 
ernor acted  as  commander-in-chief,  with  a  stafif  composed  of  an  ad- 
jutant general,  a  commissary  general  and  a  quartermaster  general 
The  Governor  was  to  appoint  division  and  brigade  officers,  to  serve 
during  good  behavior ;  and  company  and  regimental  officers  were  to  be 
elective.  An  examining  board  composed  of  six  or  more  officers  ap- 
pointed by  division  commanders  was  provided,  with  the  function  of 
examining  commissioned  officers  below  the  rank  of  brigadier  general. 

In  1893  the  organization  of  the  Illinois  Naval  Reserve  was  pro- 
vided for  in  "an  Act  to  establish  a  naval  militia."  The  act  of  1877 
was  revised  in  1897  by  "an  Act  to  revise  the  military  and  naval  code 
of  Illinois ;"  and  further  alterations  were  made  in  1903  in  "an  Act 
to  establish  a  military  and  naval  code  for  the  State  of  Illinois."  The 
most  recent  act  is  that  of  1909,  "an  Act  to  establish  a  military  and 
naval  code  of  the  State  of  Illinois  and  to  repeal  all  acts  in  conflict 
herewith." 

Under  Authority  of  Section  3,  Art.  2,  of  this  code,  which  gives 
the  commander  in  chief  authority  to  reorganize  the  militia  under 
certain  limitations,  the  governor  issued  an  executive  order  on  Dec. 
22,  1913,  which  took  effect  Jan.  1.  1914,  reorganizing  the  militia  to 
conform  to  the  organization  provided  by  Section  3  of  the  national 
militia  act  as  amended  in  1910,  and  as  required  by  the  War  Depart- 
ment of  the  United  States,  in  a  circular  of  Aug.  1,  1913,  of  all  states 


MILITARY   ADMINISTRATION.  873 

desiring  to  participate  in  the  national  militia  appropriation. 
United  States  Laws. 

Since  1792  the  United  States  Congress  has  legislated  on  the  sub- 
ject of  the  militia.  In  1903  a  more  thorough  system  of  national  regu- 
lation of  the  State  Militia  was  undertaken  through  the  passage  of  the 
so-called  Dick  Militia  Act.  This  provided  for  the  regulation  of  the 
militia  through  the  division  of  militia  affairs  in  the  United  States 
Department  of  War.  It  also  required  an  annual  inspection  of  the 
militia,  at  least  five  days  encampment  and  twenty- four  days  drill 
through  the  year,  and  increased  the  annual  militia  appropriation  to 
$3,000,000  (raised  to  $4,000,000  in  1906),  to  be  apportioned  among 
the  states,  but  not  to  any  state  that  failed  to  meet  these  requirments. 
The  war  department  requires  an  annual  report  from  the  adjutant 
general  of  the  state.  Especially  since  the  passage  of  this  act.  United 
States  aid  has  been  of  great  assistance  in  improving  the  condition  of 
the  militia. 

The  act  as  amended  in  1910  required  that  "On  and  after  Jan.  21, 
1910,  the  organization  ....  of  the  Organized  Militia  in  the  several 
States,  Territories,  and  the  District  of  Columbia  shall  be  the  same  as 
that  ....  prescribed  for  the  Regular  army  of  the  United  States, 
subject  in  time  of  peace  to  such  general  exceptions  as  may  be  author- 
ized by  the  Secretary  of  War."  In  Circular  No.  8  of  Aug.  1,  1913, 
the  War  Department,  described  this  organization  and  required  States 
desiring  to  participate  in  the  national  militia  appropriation  to  conform 
their  militia  organization  to  it. 

2.       THE   MILITARY   FORCES. 

Organised  and  Unorganized  Militia. 

The  Illinois  Militia  is  at  present  organized  under  an  act  of  1909 
"to  establish  a  military  and  naval  code  for  the  State  of  Illinois  and  to 
repeal  all  acts  in  conflict  herewith"^  and  an  executive  order  which  took 
effect  January  1,  1914.- 

All  able  bodied  male  citizens  between  the  age  of  eighteen  and 
forty-five  except  those  exempt  by  state  or  national  law  are  subject  to 
military  duty  and  are  designated  as  the  Illinois  State  Militia.  This 
body  is  divided  into  the  organized  and  unorganized  militia,  the  former 
being  in  turn  divided  into  the  Illinois  National  Guard  and  the  Illinois 
Naval  Reserve. 

The  Illinois  National  Guard. 

The  Illinois  National  Guard  forms  the  land  forces  in  time  of 
peace.  As  provided  by  the  statute  it  may  consist  of  not  more  than 
one  major  general,  three  brigadier  generals,  twenty-four  battalions  of 
infantr>%  one  regiment  of  cavalry,  a  corps  of  engineers,  three  batteries 
of  field  artillery,  a  signal  corps,  and  a  field  hospital  and  ambulance 
corps,  with  the  necessary  line,  staff  and  non-commissioned  officers  and 
the  officers  of  the  retired  list. 


iHurd-s  Revi.sed   Statute,  Chapter  129,  Edition  of  1913,   page  234r.. 

-This  executive  order  is  under  date  of  Dec.  22,  1913,  and  it  prescribes  the  organi- 
zation outlined  in  Circular  No.  8,  of  the  War  Department  of  the  United  States,  Office 
of  the  Chief  of  Staff,  Division  of  Militia  Affairs,  dated  Aug.  1,  1913, 


874  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

The  act  provides  that  the  infantry  be  organized  into  eight  regi- 
ments, composed  of  twelve  companies  with  a  maximum  of  1154  men, 
commanded  by  a  colonel.  Two  or  more  regiments  of  infantry  com- 
manded by  a  brigadier- general  form  a  brigade.  The  officers  and 
troops  of  the  line  and  staff  attached  are  to  form  the  "tactical  and 
administrative  military  division,"  to  be  commanded  by  a  major-general, 
who  is  responsible  for  instruction,  discipline  and  military  efficiency. 

The  statute  also  provides  that  the  staff  be  organized  into  ten  de- 
partments:  the  adjutant  general's  department,  the  inspector  general's 
department,  the  quartermaster's  department,  the  subsistence  depart- 
ment, the  ordnance  departm.ent,  the  medical  department,  the  pay 
department,  the  judge-advocate's  department,  the  corps  of  engineers 
and  the  signal  corps. 

This  organization  was  materially  altered  by  the  executive  order 
of  the  governor  which  went  into  effect  Jan.  1,  1914.  The  whole 
division  organization  was  abolished,  the  office  of  major  general  was 
discontinued,  the  number  of  brigadier  generals  was  reduced  to  two  and 
the  subsistence  department  was  consolidated  with  the  Quartemaster's 
Corps. 

The  tables  below  show  the  number  of  officers  and  enlisted  men 
in  the  Illinois  National  Guard  for  the  years  1901  to  1912,  and  a  com- 
parison of  the  strength  of  the  organized  militia  of  Illinois  and  certain 
other  states  in  1912 : 

ENLISTMENT  BY  YEARS,    1901-1912.^ 

Year  Officers               Enlisted  Men  Total 

1901  470  6524  6994 

1902  512  6414  6926 

1903  540  6129  6669 

1904  485  6072  6557 

1905  485  5784  6269 

1906  496  5433  5929 

1907  492  5648  6140 

1908  500  5813  6313 

1909  520  6165  6585 

1910  507  5828  6335 

1911  521  5774  6295 
1912  521  5586  6107 

a.     From   the  Statistical  Abstracts  of  the  United   States. 

RELATIVE  MILITIA  STRENGTH  OF  STATES,   1912.^          No. Militia 

per 

Enlisted  Population  100,000 

State                                      Officers        Men  Total  1910  Census  Pop. 

Massachusetts. 443            5421  5864            3.336,416  174 

New  York 990          14477  15469           9,113,614  169 

New  Jersey 345            3934  4279            2,537,167  168 

Alabama 213           3212  3425           2,138,093  160 

California 234           3191  3425           2,377,549  144 

Iowa 215           2825  3040           2,224,771  136 

Pennsylvania 743            9705  10148            7,665,111  132 

Wisconsin 197           2892  3089           2,333,860  132 

Ohio 518           5462  5980           4,767,121  125 

Illinois 521            5586  6107           5,638,591  109 

Missouri 262           2995  3257           3,293,335  99 

Total— All    States 9142        112710  121852  91,972,266  132 

a.    From   the  U.   S.   Statistical  Abstract  for  1912. 


MILITARY   ADMINISTRATION. 


The  Illinois  Naval  Reserve. 


875 


The  Illinois  Naval  Reserve  forms  f  e  naval  force  in  time  of 
peace.  As  provided  in  the  statutes  it  consists  of  a  ship's  compliment 
of  twelve  divisions,  with  necessary  line,  staff,  warrant  and  petty  offi- 
cers, and  the  officers  of  the  retired  list.  It  is  organized  as  a  ship's 
crew,  commanded  by  a  captain,  who  is  assisted  by  an  executive  officer 
known  as  the  commander,  a  navigating  officer  of  the  rank  of  lieu- 
tenant commander,  an  ordnance  officer  and  an  equipment  officer  of 
the  rank  of  lieutenant. 

The  staff  is  to  consist  of  a  lieutenant  commander  acting  as  chief 
engineer,  a  lieutenant  acting  as  paymaster,  a  lieutenant  junior  grade 
as  passed  assistant  paymaster,  an  ensign,  assistant  paymaster,  a  lieu- 
tenant, chaplain,  two  lieutenants  junior  grade  acting  as  signal  officer 
and  secretary,  two  ensigns,  aids  and  not  more  than  eight  warrant 
officers  and  petty  officers  to  be  created  at  the  discretion  of  the  com- 
mander-in-chief. 

The  crew  is  to  be  divided  into  twelve  divisions  of  which  two  are 
steam  engineers  and  one  a  band.  The  ordinary  division  is  to  consist 
of  a  lieutenant,  lieutenant  junior  grade,  two  ensigns,  a  boatswain's 
mate,  quartermaster,  gunner's  mate,  all  first  class ;  a  master  at  arms, 
boatswain's  mate,  gunner's  mate,  second  class;  a  quartermaster,  third 
class ;  two  musicians,  a  coxswain  for  every  twenty  seamen  and  thirty 
to  eighty  seamen. 

Each  steam  engineer's  division  is  to  consist  of  a  lieutenant  who  is 
passed  assistant  engineer,  two  ensigns  who  are  assistant  engineers,  four 
chief  mates  of  the  second  class,  two  electricians  and  a  yeoman  also  of 
the  second  class;  two  musicians  and  four  oilers  of  the  third  class; 
eight  water  tenders  and  eight  firemen  of  the  first  class;  twenty-four 
firemen  of  the  second  class  and  twenty-four  coal  passers. 

The  chief  engineer,  signal  officer,  secretary  and  aids  are  not  to 
be  staff  officers  but  line  officers  and  as  such  entitled  to  assume  com- 
mand. The  naval  forces  are  to  be  under  the  direct  command  of  the 
commander-in-chief;  but  when  in  actual  service,  senior  officers  of  the 
national  guard  present  may  command  them  unless  otherwise  ordered 
by  the  commander-in-chief. 

The  staff  and  crew  officers  are  to  be  commissioned  by  the  Gov- 
ernor as  commander-in-chief.  The  petty  officers  of  divisions  are  to 
be  appointed  by  warrant,  on  recommendation  of  the  commanding 
officer  of  their  division,  by  the  commanding  officer  of  the  naval  re- 
serves, provided  they  have  passed  examinations  prescribed  by  the 
officer  issuing  the  warrant.  The  commander-in-chief  is  authorized  to 
appoint  officers  and  seamen  of  the  United  States  Navy  detailed  to 
duty  with  the  naval  reserves  as  instructors  to  such  duties  and  rank  in 
the  Naval  Reserves  as  he  thinks  advisable. 

The  number  of  officers  and  enlisted  men  in  the  Illinois  Naval 
Reserve  for  the  years  1902  to  1912  and  the  Naval  Reserves  in  other 
States  for  1912  are  shown  in  the  following  tables: 


876 


EFFICIENCY  AND   ECONOMY   COMMITTEE. 


ENLISTMENT  BY  YEARS    IQOZ-lQlZ/'i 

Year  Officers  Enlisted  Men              Total    • 

1902  68  529                        597 

1903  52  570                        622 

1904  55  536                        591 

1905  53  629                        681 

1906  ■  52  606  658 

1907  54  637  661 

1908  50  669  719 

1909  51  587  638 

1910  49  525  574 

1911  44  526  570 

1912  50  587  637 

RELATIVE  STRENGTH  OF  STATES,  1912. 'i 

State                                                               Officers            Enlisted  Men  Total 

New   York 72  1096  1168 

California 58  606  664 

Illinois 50  587  637 

Louisiana 46  544  590 

Massachusetts 42  541  583 

Michigan 41  434  475 

New  Jersey 29  377  406 

Ohio 23  319  342 

North  Carolina 44  265  309 

a.     From   U.   S.    Statistical   Abstract. 

Personnel. 
Enlisted  Men. 

Able  bodied  men  of  good  character,  eighteen^  to  forty-five  years  of 
age,  literate  and  citizens  of  the  United  States,  or  intending  to  become 
such,  may  enlist  for  a  term  of  not  less  than  three  years.  Musicians, 
members  of  hospital  corps,  etc.,  may  enlist  as  such.  Minors  may  not 
enlist  without  the  consent  of  parent  or  guardian.  Persons  dishonor- 
ably discharged  from  any  United  States  military  organization  are 
ineligible.  Men  honorably  discharged  even  though  over  forty-five  may 
re-enlist,  with  the  privilege  of  withdrawing  after  a  year  unless  in 
active  service  at  the  time. 

All  candidates  must  sign  enlistment  papers  and  take  an  oath. 
They  may  transfer  from  one  company  to  another,  but  a  man  absent 
from  drill  four  successive  times  will  be  dropped  from  the  roll,  and 
on  remaining  absent  two  months  without  leave  will  be  reported  as  a 
deserter.  A  dropped  man  may  be  re-enlisted  within  two  years.  War- 
rant, non-commissioned,  or  petty  officers  may  be  reduced  to  the  ranks. 

Enlisted  men  may  receive  a  formal  discharge  from  their  superior 
officer  on  expiration  of  term  of  enlistment,  on  application  approved 
by  commander-in-chief,  application  of  immediate  commander  approved 
by  commander-in-chief,  sentence  of  court  martial  or  conviction  of 
felony  by  a  civil  court. 

Hn  the  code  under  head  "enlisted  men"  a  inininnim  awe  of  sixteen  is  provided. 
In  the  ireneral  statement  of  orpanization  the  mininuim  is  eighteen.  The  discrepancy 
was  found  to  he  due  to  a  tvpof,M-aplii(al  error  in  the  former  case  and  a  jreneral  order 
was  issued  directing  the  discharge  of  all  men  under  eighteen.  From  information 
contained  in  letters  from  the  Adjutant  Ceneral  and  the  Judge  Advocate  Oeneral  of  the 
Illinois   National   Ouard. 


MILITARY   ADMINISTRATION.  877 

The  discharge  may  be  honorable,  dishonorable  or  without  honor. 
Honorable  discharge  is  given  to  men  whose  service  has  been  honest 
and  faithful,  to  whom  a  character  of  "good"  or  better  is  given  by 
immediate  commander.  Dishonorable  discharge  is  given  in  case  of 
discharge  by  court  martial  or  conviction  of  felony  in  a  civil  court. 
Discharge  without  honor  is  given  where  the  service  has  not  been 
honest  and  faithful.  In  this  case  the  party  has  a  right  of  defense. 
Those  discharged  without  honor  cannot  re-enlist,  except  under  order 
of  the  commander-in-chief,  or  hold  any  office  under  the  state  for  a 
period  of  five  years. 
Officers. 

The  commander-in-chief  makes  all  appointments  to  comrnissioned 
rank  in  the  organized  militia  and  signs  all  commissions  which  must 
be  attested  and  issued  by  the  Adjutant  General.  He  selects  his  per- 
sonal stafT  and  appoints  the  general  of^cers  of  the  national  guard  from 
those  above  the  grade  of  major  who  have  served  as  officers  for  seven 
years.  StalT  officers  in  regiments  and  brigades,  he  appoints  at  the 
recommendation  of  their  immediate  commander,  and  they  hold  office 
at  the  latter's  discretion.  The  commander-in-chief  must  approve  all 
elections  and  recommendations  for  appointments.  Appointments  must 
specify  grade,  regiment,  brigade,  etc.,  and  must  be  formally  accepted 
before  commission  issues. 

Colonel,  lieutenant  colonel,  and  major  of  the  line  are  filled  by 
election.  All  company  officers  commissioned  in  regiment  or  separate 
battalions  are  entitled  to  vote.  Company  officers  are  filled  by  general 
election  in  the  company.  The  commander-in-chief  orders  meetings 
for  regimental  elections  through  the  officer  appointed  to  preside,  who 
must  give  one  week's  notice  by  mail  to  each  person  entitled  to  vote. 
Voting  is  by  ballot  and  a  majority  elects.  In  case  of  failure  to  elect, 
the  commander-in-chief  appoints  on  recommendation  of  the  inter- 
mediate commander.  In  company  elections  no  one  may  vote  who  has 
not  been  enlisted  at  least  four  months  previously  to  the  election.  A 
certified  list  of  those  privileged  to  vote  must  be  posted  before  the 
election. 

Recommendations  for  appointments  and  reports  of  elections  must 
be  forwarded  to  the  Adjutant  General  through  the  intermediate  com- 
mander who  endorses  his  approval  or  disapproval.  The  same  general 
principles  of  election,  appointment  and  reporting  apply  to  the  Naval 
Reserve. 

All  officers  hold  tenure  until  vacated  by  death,  resignation,  retire- 
ment, acceptance  of  another  commission  in  the  state  military^  or  naval 
service,  sentence  of  court  martial,  or  finding  of  board  of  officers,  pro- 
vided that  officers  below  the  rank  of  lieutenant  colonel  must  be  re- 
examined physically  and  professionally  every  five  years,  and  others 
at  the  discretion  of  the  commanding  officer.  Appointments  and  pro- 
motions below  the  rank  of  lieutenant  colonel  are  contingent  upon 
passing  examinations  prescribed  by  the  commander-in-chief. 

The  commander-in-chief  may  provide  for  proper  examinations 
which  must  be  uniform  for  the  same  rank  but  may  be  occasionally 
changed.  Those  passing  examinations  receive  a  certificate  and  their 
record  is  filed  in  the  office  of  the  adjutant  general.     The  certificate  of 


878  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

examination  is  good  for  two  years,  but  a  new  physical  examination 
may  be  required  after  six  months. 

Any  officer  may  recommend  that  an  officer  under  his  command 
deemed  undesirable  be  examined' by  a  board  of  officers  for  investiga- 
tion. In  such  a  case  the  commander-in-chief  convenes  a  board  of 
three  to  five  officers,  one  of  whom  must  be  a  medical  officer,  to  conduct 
an  examination  and  report  its  findings  to  the  Adjutant  General.  If 
the  officer  is  found  undesirable  and  the  commander-in-chief  approves 
of  their  action,  the  commission  is  vacated. 

The  Retired  List. 

The  commissioned  officers  may  retire  after  ten  year's  service.  If 
they  have  served  twenty  years,  they  may  retire  at  the  next  higher 
grade.  All  commissioned  officers  must  retire  at  the  age  of  sixty-five. 
Officers  may  be  retired  for  physical  disability,  on  the  recommendation 
of  a  retiring  board  of  five  officers,  two  of  them  medical.  If  the  dis- 
ability was  received  in  line  of  duty  they  may  retire  with  the  next 
higher  grade.  The  commander-in-chief  may  commission  a  private 
as  second  lieutenant  or  ensign  by  brevet,  and  retire  him  upon  recom- 
mendation of  his  commanding  officer,  after  fifteen  years'  service. 
The  commander-in-chief  may  detail  retired  officers  for  duty  under 
proper  rank.  A  retired  officer  may  re-enter  active  service  taking  the 
rank  of  the  office  to  which  he  is  appointed. 

Pay  and  Allowance. 

The  Adjutant  General  receives  a  salary  of  $5,000;  the  Adjutant 
General,  chief  assistant  to  the  Adjutant  General,  $3,500;  the  assis- 
tant quartermaster  general,  $3,500;  the  assistant  quartermaster  in 
charge  of  the  State  arsenal,  $1,500;  and  other  officers  while  in  actual 
service  receive  the  same  salaries  as  are  given  in  the  United  States 
Army.    Transportation  is  furnished  on  all  occasions. 

Those  disabled  in  the  service  are  given  free  medical  treatment  for 
thirty  days  or  for  six  months  at  the  recommendation  of  a  board  of 
three  medical  officers.  Further  claims  for  injuries  or  for  death  or 
wounds  received  in  the  service  must  be  made  before  the  State  court 
of  claims.  All  such  payments  are  made  from  the  military  emergency 
fund. 

The  members  of  the  organized  militia  are  exempt  from  jury  duty, 
road  labor  and  poll  tax,  and  are  privileged  from  arrest  while  in  the 
actual  service  of  the  State  except  for  treason,  felony  or  breach  of  the 
peace. 

Equipment,  Drills,  Armories,  etc. 

The  uniform  must  conform  to  that  of  the  United  States  army  or 
nav\',  and  may  not  be  removed  or  loaned  from  the  armory  except 
at  command.  The  quartermaster  is  authorized  to  purchase  uniforms 
and  equipment  from  the  United  States  Government  to  sell  to  officers 
and  men. 

Every  organization  must  have  suitable  drill  rooms  and  lockers 
before  any  military  stores  or  goods  will  be  furnished.  The  com- 
mander-in-chief may  require  a  bond  from  officers  in  charge  of  public 


MILITARY   ADMINISTRATION.  879 

property  or  stores  in  armories,  arsenals,  etc.  Naval  forces  must  be 
situated  near  a  suitable  body  of  water. 

Target  ranges  and  armories  are  under  the  control  of  the  Adju- 
tant General. 

The  commander-in-chief  and  the  captain  of  the  Naval  Reserve 
regulate  the  number  and  character  of  drills,  of  which  there  must  be 
at  least  forty  a  year.  All  companies  must  be  given  rifle  practice  at 
the  order  of  the  commander-in-chief.  The  commander-in-chief 
arranges  an  annual  camp  for  the  National  Guard  and  an  annual  cruise 
for  the  Naval  Reserve,  of  eight  to  twelve  days  duration,  and  provides 
camp  regulations  covering  such  matters  as  disobedience,  disorderly 
conduct,  sale  of  spirituous  liquors,  insulting  officers,  etc. 

The  State  has  built  a  combined  arsenal,  armory  and  museum  at 
Springfield,  and  several  regimental  armories  in  Chicago,  with  several 
others  authorized.  The  Springfield  arsenal  and  armory  was  authorized 
in  1901  with  an  appropriation  of  $150,000  for  building.  It  is  located 
north  of  the  capitol  grounds  with  a  length  of  310  feet  and  a  width 
of  154  feet.  The  armory  hall  is  136  by  220  feet,  with  a  200  foot  rifle 
range  in  the  basement.  The  south  end  of  the  building  contains  the 
arsenal  and  museum,  and  also  company  rooms,  officer's  quarters  and 
brigade  and  regimental  headquarters. 

Camp  Lincoln  comprises  150  acres  at  the  northwest  of  the  city 
of  Springfield ;  and  is  used  for  the  annual  encampments  and  tour  of 
instruction.  It  contains  a  parade  ground,  drill  ground,  a  1000  yard 
riffle  range,  and  tenting  grounds,  with  buildings  for  stores,  horse  sheds 
and  bath  rooms. 

Camp  Logan,  on  the  shore  of  Lake  Michigan,  north  of  Waukegan, 
covers  about  260  acres ;  and  is  used  by  the  militia  in  the  northern  part 
of  the  State  during  the  target  season— from  April  1  to  October  31. 
There  are  also  a  number  of  smaller  riffe  ranges  at  various  points  in 
the  State  where  companies  are  located. 

Mobs,  Riots  and  Disturbances. 

The  Governor  may  call  out  the  military  forces  to  suppress  mobs, 
riots  or  disturbances ;  and  on  such  occasions  commanding  officers  may 
make  arrests  without  process.  Civil  officers  may  direct  the  military 
officers  as  to  the  purpose  to  be  accomplished,  but  may  not  control  the 
military  officers'  discretion  as  to  the  proper  means  to  be  pursued.  The 
military  authorities  have  power  to  disperse  mobs  and  are  not  liable 
for  deaths  or  injury  resulting  in  the  performance  of  such  duty.  In 
the  case  of  a  death  in  the  course  of  duty,  the  commanding  officers  must 
convene  a  court  of  inquiry,  composed  of  two  to  five  commissioned 
officers,  as  soon  as  practicable  and  transmit  its  findings  to  the  Adju- 
tant General  through  military  channels.  This  finding  should  recom- 
mend discharge  or  holding  to  trial.  Enlisted  men  on  trial  before  a 
civil  or  criminal  court  for  acts  done  while  under  military  order  must 
be  defended  at  the  expense  of  the  State,  if  the  Attorney-General  is 
first  consulted.  Such  expenses  are  to  be  paid  out  of  the  military 
emergency  fund  or  the  military  fund. 

Contingents  of  the  organized  militia  may  not  leave  the  State  with- 
out the  order  of  the  commander-in-chief. 


880  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

It  is  made  a  misdemeanor  for  any  person  to  make  the  member- 
ship of  another  person  in  the  national  guard  or  naval  reserves  serve  as 
a  detriment  to  the  latter's  progress  in  business,  trade  or  professional 
work.  The  State's  attorney  must  resist  all  applications  for  habeas 
corpus  made  by  persons  convicted  by  court  martial. 

3.    COMMANDER-IN-CHIEF. 

The  Governor  is  commander-in-chief  of  the  State  militia.  As 
such  he  may  call  out  the  unorganized  or  reserve  militia  when  necessary 
and  organize  them.  He  may  alter  the  organization  of  the  organized 
militia  subject  to  the  limitation  that  he  may  not  increase  the  total 
number  of  brigades,  regiments,  battalions,  companies,  etc.,  prescribed 
by  law.  His  discretion  is  also  limited  by  legislation  and  orders  of 
the  national  government,  if  the  State  desires  to  participate  in  the 
national  militia  appropriation.  In  time  of  war,  insurrection  or  rea- 
sonable danger,  he  may  increase  the  authorized  enlistments  to  the  full 
war  strength  prescribed  by  the  United  States  army  regulations;  but 
after  the  emergency,  the  enlistment  must  return  to  the  prescribed  peace 
basis.  He  may  also  make  rules  and  regulations ;  but  the  organization, 
discipline  and  equipment  of  the  organized  militia  must  conform  so 
far  as  practicable  to  that  of  the  United  States  army. 

The  commander-in-chief  appoints  a  personal  stafit'  of  ten  aides, 
four  of  them  not  above  the  grade  of  colonel,  at  discretion,  and  six 
below  the  grade  of  colonel  'from  among  the  commissioned  officers  of 
the  Illinois  National  Guard  or  Illinois  Naval  Reserve.  The  aides  hold 
office  at  the  discretion  of  the  Governor  and  retire  at  the  expiration  ol 
his  term.  The  commander-in-chief  appoints  three  main  stafif  officers ; 
an  Adjutant  General  with  the  rank  of  brigadier  general  who  is 
ex  officio  chief  of  stafif,  inspector  general,  quartermaster  general,  com- 
missary general,  paymaster  general,  and  chief  of  ordnance  of  State 
forces;  a  surgeon-general  with  the  rank  of  colonel;  and  a  judge 
advocate  with  the  rank  of  colonel.  On  the  recommendation  of  the 
Adjutant  General,  he  appoints  from  the  organized  militia  not  below 
the  rank  of  captain  or  lieutenant  respectively,  five  assistants  to  the 
Adjutant  General  as  follows:  an  adjutant  general,  inspector  general, 
assistant  quartermaster  general,  and  ordnance  officer  with  the  rank  of 
colonel,  and  an  assistant  quartermaster  with  the  rank  of  captain. 

The  adjutant  general,  and  his  assistants  must  be  of  militar)'  train- 
ing and  have  had  five  year's  experience  as  an  officer,  and  the  adju- 
tant general,  assistant  adjutant  general,  assistant  quartermaster  gen- 
eral and  assistant  quartermaster  must  reside  at  the  Capitol  and  give 
their  entire  time  to  their  military  duties.  The  surgeon  general  and 
judge-advocate  must  be  of  military  training  with  five  years'  experience 
as  an  officer  and  ten  years'  experience  in  the  practice  of  medicine  and 
of  the  law  respectively. 

4.    THE  STAFF  DEPARTMENTS. 

Adjutant  General's  Department. 

The  Adjutant  General's  Department  consists  of  the  Adjutant  Gen- 
eral and  five  adjutant  generals  acting  as  assistants.  An  Adjutant 
General  with  the  rank  of  colonel  acts  as  chief  assistant  to  the  Adjutant 


MILITARY   ADMINISTRATION.  881 

General,     The  other  adjutant  generals  rank  as  lieutenant  colonel  or 
major  and  are  assigned  duties  on  the  staffs  of  brigade  commanders. 

The  Adjutant  General  issues,  transmits  and  keeps  record  of  all 
orders  and  regulations  of  the  commander-in-chief  and  all  matters  per- 
taining to  the  unorganized  militia,  the  National  Guard  and  the  Naval 
Reserve.  He  keeps  a  record  of  all  appointments,  elections,  commis- 
sions and  enlistments  and  a  military  history  of  each  member  of  the 
State  military  forces.  He  has  charge  of  all  correspondence  and 
records  the  services  of  each  troop.  He  preserves  colors,  flags,  guidons, 
and  military  trophies  and  furnishes  all  necessary  blanks,  forms  and 
instruction  books. 

He  has  supervision  of  State  arsenals  and  armories,  grounds, 
buildings  and  rifle  ranges.  He  oversees  the  purchase  of  military  sup- 
plies ordered  by  the  commander-in-chief,  having  power  to  buy  in 
amounts  of  less  than  $100  at  discretion  and  in  amounts  over  $100 
from  the  lowest  bidder  after  proper  advertisement.  Money  received 
from  the  sale  of  damaged  or  surplus  supplies  is  to  be  put  in  the  treas- 
ury as  "The  State  Military  Fund"  to  be  used  only  for  military 
purposes. 

On  or  before  the  first  of  November  preceding  the  regular  session 
of  the  General  Assembly  he  must  prepare  a  report  of  all  the  transac- 
tions of  his  office  for  the  two  preceding  years  to  be  presented  to  the 
legislature. 

The  above  duties  are  placed  by  law  in  the  Adjutant  General's 
office;  but  as  a  matter  of  fact,  the  duties  of  that  officer  are  much  more 
extensive,  as  all  of  the  administrative  departments  except  those  of  the 
Surgeon  General,  Judge  Advocate,  corps  of  engineers  and  signal  corps 
are  concentrated  in  his  person.  The  Adjutant  General  is  ex  officio 
inspector  general,  quartermaster  general,  commissary  general,  pay- 
master general,  and  chief  of  ordnance ;  and  the  duties  presently  to  be 
described  as  incumbent  upon  the  departments  under  those  offtcers  are 
in  reality  vested  in  the  Adjutant  General  making  him  by  far  the  most 
important  military  officer  in  the  State. 

In  addition  to  his  duties  prescribed  by  State  law  he  is  required 
by  the  Dick  Militia  Act  of  1903  to  make  an  annual  report  to  the 
Division  of  Militia  affairs  of  the  United  States  War  Department  at 
Washington. 

The  Adjutant  General  maintains  an  office  in  the  capitol  at 
Springfield,  and  in  the  capacity  of  chief  of  ordnance  one  at  Camp 
Logan  Rifle  Range,  near  Zion  City,  and  in  the  same  capacity  two 
offices  in  Chicago.  Including  the  employees  at  the  State  arsenal  and 
at  Camp  Lincoln,  he  employes  twenty  persons,  aside  from  the  statutory 
officials,  in  such  capacities  as  watchmen,  stenographers,  clerks,  la- 
borers, custodians,  etc. 

The  Inspector  General's  Department  consists  of  the  inspector 
general,  who  is  the  Adjutant  General,  and  three  inspector  generals, 
one  of  the  rank  of  colonel  and  two  that  of  major.  The  duties  of  the 
office  are  to  inspect  individuals,  troops  and  organizations  of  the  militia. 
The  commander-in-chief  may  detail  any  officer  of  the  National  Guard 
or  Naval  Reserves  to  make  inspections.  The  entire  organized  militia 
must  be  inspected  at  least  once  a  year. 


882  EFFICIENCY   AND   ECONOMY  COMMITTEE. 

The  Quartermaster  General's  Department  consists  of  the  quarter- 
master general,  who  is  the  Adjutant  General,  an  assistant  quarter- 
master general  of  the  rank  of  colonel,  two  quartermasters  of  the  rank 
of  lieutenant-colonel,  five  quartermasters  ranking  as  majors,  and  six 
quartermasters  with  the  rank  of  captain.  The  duties  of  the  depart- 
ment are  to  furnish  means  of  transportation,  clothing,  tentage,  fuel, 
stoves,  animals,  forage,  water,  lighting  material,  building  material, 
stationery,  and  other  supplies  not  specified  to  some  other  departrnent. 
The  assistant  quartermaster  has  immediate  charge  of  the  State 
arsenal. 

The  Subsistence  Department  is  provided  by  statute  to  consist  of 
a  commissary  general,  who  is  the  Adjutant  General,  a  deputy  com- 
missar}' general  ranking  as  lieutenant  colonel,  three  commissaries 
ranking  as  major,  and  four  post  commissary  sergeants.  By  executive 
order  this  department  has  been  consolidated  with  the  quartermaster 
general's  department. 

T-'ie  Ordnance  Department  consists  of  the  Chief  of  Ordnance, 
who  is  the  Adjutant  General,  an  ordnance  officer  ranking  as  colonel, 
and  two  inspectors  of  small  arms  practice,  ranking  as  major.  The 
department  furnishes  ordnance  and  ordnance  stores  as  defined  in  the 
United  States  Army  regulations. 

The  Pay  Department  is  under  the  Adjutant  General,  who  acts  as 
paymaster  general,  assisted  by  officers  assigned  to  such  duties  by  the 
commander-in-chief.  It  has  charge  of  the  disbursement  of  pay  and 
renders  accounts  of  same  in  the  Adjutant  General's  report. 

The  Corps  of  Engineers  is  to  consist  of  the  chief  engineer  with 
the  rank  of  lieutenant  colonel  and  the  officers  of  the  engineer's  troops. 
All  men  on  the  corps  of  engineers  must  have  training  in  some  branch 
of  engineering  science. 

The  Signal  Corps  is  provided  by  statute  to  consist  of  a  chief 
signal  officer  ranking  as  lieutenant,  a  captain,  three  first  lieutenants, 
five  sergeants,  first  class ;  nine  sergeants,  ten  corporals,  two  cooks, 
eighteen  privates,  first  class,  and  eighteen  privates.  Two-thirds  of  the 
corps  must  be  expert  telegraphers  or  electricians. 

JUDGE  ADVOCATE  GENERAL's   DEPARTMENT. 

The  Judge  Advocate  General's  Department  consists  of  the  Judge 
Advocate  of  the  rank  of  colonel  who  performs  the  office  of  Judge 
Advocate  General,  a  judge  advocate  of  the  rank  of  lieutenant  colonel, 
and  one  of  the  rank  of  major.  The  department  is  charged  with  the 
duty  of  preferring  charges  against  members  of  the  State  forces,  giv- 
ing advice  as  to  the  legality  of  proceedings  and  sentences  of  court 
martial,  passing  on  the  action  of  courts  of  inquiry,  drafting  contracts, 
deeds,  leases,  etc.  It  is  to  act  as  the  legal  adviser  to  the  commander- 
in-chief,  and  the  Adjutant  General  in  matters  pertaining  to  the  military 
and  naval  service  of  the  State.  Any  officer  may  be  detailed  to  act  as 
judge  advocate  of  a  court  martial. 

Military  Offenses  are,  wrongly  enlisting  minors,  false  certifica- 
tion, secreting  stores,  disrespect  to  superiors,  striking  superiors,  fail- 


MILITARY   ADMINISTRATION.  883 

ing  to  report,  conduct  unbecoming  an  officer,  conduct  pre  judical  to 
good  order,  wilful  absenting  from  drill  for  two  months,  desertion, 
larceny  or  other  felony.  All  are  subject  to  trial  by  court  martial.  An 
enlisted  man  is  not  liable  in  a  civil  court  for  taking  life  in  discharge 
of  military  duty. 

Courts  Martial  are  general  or  summary,  the  former  alone  having 
jurisdiction  to  try  the  more  serious  offenses.  General  courts  martial 
may  be  summoned  by  the  commander-in-chief  or  division  commander 
within  his  own  command,  the  summoning  officer  naming  from  five  to 
thirteen  officers  to  serve.  Commissioned  officers  are  not  if  possible 
to  be  tried  by  officers  of  inferior  rank  and  may  only  be  tried  at  gen- 
eral court  martial.  The  general  court  martial  may  try  officers  or 
enlisted  men  for  military  offenses  mentioned  in  the  code,  and  may 
punish  by  cashiering  and  dismissal,  reduction,  reprimand,  dishonor- 
able discharge,  fine  or  imprisonment,  or  both.  More  serious  offenses 
such  as  felonies  may  only  be  tried  in  a  full  court  of  thirteen,  and  sen- 
tence must  be  imposed  according  to  the  Illinois  criminal  code.  In 
such  trials  the  State's  attorney  of  the  county  where  the  crime  took 
place  may  be  present. 

Summary  courts  martial  may  be  summoned  and  appointed  by  the 
commanding  officer  of  a  division,  brigade,  regiment,  unassigned  battal- 
ion, ships  crew  or  detached  company  or  other  independent  organiza- 
tion. They  may  try  enlisted  men  for  minor  oft'enses  and  impose 
sentence  of  reprimand,  forfeiture  of  pay,  fine  under  $5.00  or  prison 
under  five  days. 

The  procedure  in  courts  martial  must  conform  to  that  in  the 
United  States  Army,  the  accused  being  given  the  right  of  representa- 
tion by  counsel  or  a  suitable  officer.  Findings  of  courts  martial  may 
be  remitted  or  mitigated  or  commuted  by  the  officer  preferring  the 
charge.  Sentence  of  dismissal,  fine  of  over  $100,  imprisonment  over 
thirty  days  must  be  approved  by  the  commander-in-chief  before  going 
into  effect. 

V\  itncsses  may  be  summoned  by  subpoena  of  the  judge  advocate. 
Witnesses  refusing  to  testify  or  appear  may  be  arrested  and  treated 
as  in  a  civil  court.  Witness  fees  are  the  same  as  in  a  civil  court.  The 
Auditor  of  Public  Accounts  is  directed  to  issue  warrants  for  the  pay- 
ment of  such  accounts  certified  by  the  Adjutant  General  and  approved 
by  the  commander-in-chief. 

Fines  imposed  by  general  court  martial  may  be  deducted  from 
back  pay  due,  or  the  Adjutant  General  may  issue  a  warrant  for  their 
collection  to  the  sheriff  or  constable  of  the  county  where  the  person 
resides.  The  sheriff  must  collect  as  in  a  civil  case  and  pay  within 
twenty  days  to  the  Adjutant  General.  If  he  cannot  collect,  the 
Adjutant  General  shall  issue  a  warrant  of  committment  and  the  sheriff 
shall  then  confine  the  delinquent  in  jail,  for  each  dollar  of  fine  due. 
In  the  case  of  summary  court  martial  the  officer  summoning  the  court 
may  issue  similar  warrants. 

The  Adjutant  General  must  issue  warrants  for  commitment  to 
jail  or  penitentiary  according  to  the  decision  of  courts  martial.  The 
sheriff  must  obey  orders  of  courts  martial  and  the  warrants  of  the 
Adjutant  General  or  other  officer.     All  fines  are  paid  into  the  State 


884  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

treasury  and  accredited  to  the  military  fund  of  the  State.  Judge 
Advocates  of  general  courts  martial  and  officers  of  summary  courts 
martial  are  empowered  to  take  oaths  and  depositions. 

MEDICAL  DEPARTMENT. 

The  Medical  Department  is  provided  by  statute  to  consist  of  the 
medical  corps,  the  hospital  corps  and  the  medical  reserve  corps.  All 
appointments  to  medical  offices  are  made  upon  recommendation  of 
the  commanding  officer  of  the  organization  where  the  party  is  to  serve 
subject  to  passage  of  examination  prescribed  by  the  Surgeon  General 
and  approval  by  the  Surgeon  General.  All  appointees  of  the  medical 
and  medical  reserve  corps  must  be  graduates  of  reputable  medical 
colleges.  Captains  in  the  medical  corps  are  ordinarily  filled  by 
advancement  of  lieutenants. 

The  Medical  Corps  consists  of  the  Surgeon  General  with  the 
rank  of  lieutenant  colonel ;  fifteen  surgeon  majors,  one  in  each  regi- 
ment, one  in  command  of  the  field  hospital  and  one  as  secretary  to 
the  Surgeon  General ;  and  assistant  surgeons  ranking  as  captain  in 
each  regiment  and  battalion,  one  at  head  of  hospital  section  of  field 
hospital  and  one  at  head  of  ambulance  section  of  field  hospital ;  and 
assistant  surgeons  ranking  as  lieutenants,  two  for  each  regiment,  one 
for  each  battalion,  four  for  duty  in  field  hospital  and  one  for  duty 
in  signal  corps.  Medical  lieutenants  are  to  be  promoted  to  medical 
captains  after  three  years'  service.  Medical  officers  must  live  at  the 
station  of  their  troops. 

The  Hospital  Corps  consists  of  non-commissioned  officers  and 
privates  as  provided  in  United  States  Army  regulations.  The  hospital 
corps  detachments  are  attached  to  regimental  and  battalion  head- 
quarters. 

The  Medical  Reserve  Corps  consists  of  not  more  than  thirty 
assistant  surgeons  of  the  rank  of  first  lieutentant  appointed  by  the 
commander-in-chief.  They  are  privileged  to  wear  a  uniform  but  it  is 
not  compulsory. 

The  Naval  Reserve  is  provided  with  one  surgeon  ranking  as 
lieutenant  commander,  four  past  assistant  surgeons  ranking  as  lieu- 
tenants, two  pharmacists,  four  hospital  stewards,  and  twenty- four 
hospital  apprentices. 

The  duties  of  the  medical  corps  and  the  medical  reserve  corps 
are  to  perform  medical  examinations  at  the  direction  of  the  surgeon 
general  and  to  have  general  oversight  of  health  and  sanitation. 

5.   FINANCES. 

The  following  tables  of  appropriations  and  expenditures  on 
account  of  the  State  Militia  show  a  marked  increase,  especially  in 
the  past  few  years.  Before  the  passage  of  the  militia  code  of  1877, 
the  expenses  for  the  State  militia  were  insignificant.  From  that  time 
for  eighteen  years,  the  total  militia  expenditure  averaged  more  than 
$100,000  a  year,  or  nearly  $250,000  for  each  biennium.  In  1895  there 
was  a  large  increase  in  the  appropriations,  to  more  than  $700,000  for 
the  biennium;  and  while  the  amount  was  considerably  reduced  in 
1897,  the  appropriations  and  expenditures  for  the  following  twelve 


MILITARY  ADMINISTRATION.  885 

years  averaged  more  than  $400,000  a  year,  or  $800,000  a  biennium. 
The  appropriations  and  authorized  expenditures  in  1909  were  $928,- 
942;  in  1911  they  were  increased  to  $1,296,475;  and  in  1913  they  were 
increased  again  to  $1,808,495, — nearly  twice  the  amount  authorized 
in  1909.  Most  of  this  recent  increase  is  in  appropriations  for  armor- 
ies; and  it  should  be  noted  that  $318,000  of  the  appropriations  of 
1913  were  re-appropriations  of  amounts  lapsed  from  armory  appro- 
priations of  1911. 

MILITARY    APPROPRIATIONS    AND    EXPENDITURES. 


Warrants 

Total 

From  Apprns. 

Drawn  from 

Two-year 

Appropriations 

for  Nat.  Gd. 

Salaries  Appn. 

Periods 

Dec.     1, 

1872 

Nc^.  30, 

1874 

. 

$    6,129.08 

$  3.000.00 

$       9,129.08 

Dec.     1, 

1874 

Sept.  30, 

1876 

16,373.37 

2,875.00 

19,248.37 

Oct.     1, 

1876 

Sept.  30, 

1878 

39,229.51 

4,224.94 

43,454.45 

Oct.     1, 

1878 

$226,327.63 

213,881.80 

4,000.00 

217,881.80 

Sept.  30, 

1880-81 

69,701.86 

1,000.00 

1881 

142,000.00 

70,843.50 
77,966.07 

3,000.00 
2,000.00 

143,544.36 

1883 

168,000.00 

122,398.82 
45,901.09 

2,000.00 
2,200.00 

204,364.89 

1885 

265,922.54 

221,841.72 
42,512.05 

3,000.00 
3,000.00 

272,942.81 

1887 

371,604.07 

285,754.73 
85,619.01 

3,000.00 
2,250.00 

334,266.78 

1889 

173,600.00 

118,726.49 
54,873.51 

3,750.00 
2.250.00 

210,345.50 

1891 

278,600.00 

224,250.50 
54,349.50 

3,750.00 
2,250.00 

285,124.01 

1893 

266,500.00 

176,736.97 
89,597.33 

3,750.00 
3,000.00 

237,086.47 

1895 

724,421.98 

638,798.39 
85,623.55 

3,750.00 
3,000.00 

735,145.72 

1897 

468,880.00 

326,592.90 
132,462.10 

2.250.00 
3,000.00 

41^466.45 

1899 

1,052,878.02 

854,670.30 
164.359.95 

3.000.00 
3.750.00 

993,132.40 

1901 

803,480.00 

631,140.55 
129,355.44 

2,916.67 
3,125.00 

812,166.67 

1903 

875,117.00 

726,351.68 
206,704.11 

3,500.00 
4,874.98 

862,232.12 

1905 

633,905.00 

417,605.87 
216,339.13 

6,125.02 
5,333.30 

635,309.98 

1907 

1,021,435.00 

780,559.01 
231,525.57 

5,666.68 
4,183.33 

1,007,998.12 

1909 

904,942.00 

650,203.09 
248,180.21 

8,747.22 
12,000.00 

894,659.21 

1911 
1913 

1,272,475.83 
1,784,495.65 

629,437.45 

12,000.00 

901,617.66 

886  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

ANALYSIS    OF    MILITARY    APPROPRIATIONS. 

1909—1911—1913 

Illinois  National  Guard 
and 

Naval  Reserve                            1909  1911                        1913 

Ordinary   Expenses    $700,544.00  $    779,834.00        $    779,834.00 

Uniforms 81,495.00  11,534.30               12,000.00 

Armories 15,000.00  402,212.53           ^778,090.55 

Camp    Improvements 26,950.00 

Vessels  for  Naval  Reserve.  . .  ." 7,673.00  5,015.00 

Emergency  Fund 50,000.00  50,000.00              50,000.00 

Special  Appropriations 140,291.12 

Totals    881,662.00  1.248,595.83          1,760,215.67 

Adjutant  General's  Office 23,280.00  23,880.00               24,2^0.00 


Totals 904,942.00  1,272,475.83  1,784,495.77 

From    Salary   Appropriations 24,000.00  24,000.00  24,000.00 


Grand  Totals   $928,942.00        $1,296,475.83        $1,808,495.77 

a.    $318  reappropriated. 

ANALYSIS    OF    MILITARY    EXPENDITURES,     1910-12a 

Illinois  National  Guard. 

Total. 
Oct.  1,1910-       Oct.  1,1910-      Julv  1,1911-    July  1,1912- 
Sept.  30,  1912     June  30,  1911     June  30,  1912  Sept.  30,  1912 

Armory,  rent,  fuel,  light, 
etc $219,539.12        $  54,620.95        $110,323.81        $  54,594.36 

Camp  and  garrison  equip- 
age, clothing  and  equip- 
ment         28,164.98  9,312.01  12,536.66  6,316.31 

Pay  of  officers  and  troops    94,424.21  11,211.36  45,333.34  37,879.51 

Transportation  of  officers 
and  troops    75,716.96  37,700.61  26,707.08  11,009.27 

Subsistence    48,075.63  1,706.30  23,212.20  23,157.13 

Horse  hire  and  forage...     63,717.97  2,486.67  42.600.63  18,620.67 

Rifle,  practice    59,775.46  17,147.80  30,138.69  12,488.97 

Pay  of  permanent  sal- 
aried officers,  clerks,  en- 
listed men  and  civil 
employees    35,158.25  13,923.08  12,318.31  7,916.86 

Miscellaneous   expense    ..     34,323.44  10,595.57  17,185.82  6,542.05 

Totals,  Illinois  National 
Guard   $658,896.02        $158,704.35        $320,356.54        $178,835.13 

a.    From   Biennial   Report  of  the  Adjutant  General  of  Illinois,   1911-1912,  p.   141. 


MILITARY   ADMINISTRATION. 


887 


Illinois  Naval  Reserve. 

Total. 
Oct.  1,1910-       Oct.  1,1910-      July  1,1911-    July  1,  1912- 
Sept.  30,  1912      J  une  30,  191 1     J  unc  30,  1912  Sept.  30,  1912 

Armory,  rent,  fuel,  light, 
janitor,  etc $  26,290.22        $    6,692.47        $  12,386.68        $     7.211.07 

Pay  of  officers  and  men.     23,488.27  9,235.23  7,667.25  6,585.79 

Transportation   of   officers 

and   men    44.00  44.00 

Subsistence   7,993.45  4,151.91 

Dockage   and    repair 812.58  40.00  469.18  303.40 

Steam  engineering    378.85  378.85 

Guns  and  small  arms 
practice   15.00  15.00 

Pay  of  permanent  sal- 
aried officers,  clerks,  en- 
listed men  and  civil 
employees    1,231.02  607.50  1,223.52 

Miscellaneous  Expense   .  .       2,097.85  293.65  1,429.15  375.05 

Totals,  Illinois  Naval  Re- 
serve     $  62,951.24        $  16,261.35        $  26,780.15.        $  19,909.74 

Sf>ccial  F.xpcnscs. 

Total. 
Oct.  1,1910-       Oct.  1,1910-       Tulyl,  1911-   July  1,1912- 
Sept.30,  1912      June30,  1911     June  30,  1912  Sept.  30,  1912 
Office   expenses  and   clerk 

hire $  23,704.81        $    8,295.00        $  12,055.16        $    3,354.155 

Uniforms    37,048.50  27.782.00  9,204.05  62.45 

Camo    improvements    1,824.93  1,824.93 

Armories    65,511.38  64,712.53  798.85 

Emergency 41,616.48  7,520.36  33,615.00  481.12 

Total    Special   Expenses.. $  16,706.10        $45,422.29        $119,586.74        $    4,697.07. 

Grand  Totals    $890,553.36        $220,387.99        $466,723.43        $203,441.94 

6.    COMMENTS. 

The  Illinois  statutes  relating  to  the  militia  have  been  largely 
modeled  upon  the  Dick  Militia  Act  and  the  United  States  laws  which 
preceded  it,  in  many  cases  the  wording  being  identical.  The  Actual 
organization  of  the  militia  conforms  to  the  provisions  of  Circular  No. 
8,  of  the  United  States  War  Department  and  thus  is  in  harmony  with 
the  requirements  of  the  Dick  Militia  Act  even  where  there  is  not  an 
exact  conformity  in  the  Illinois  statutes. 

From  the  reports  of  the  United  States  officers  who  have  inspected 
the  Illinois  militia,  as  printed  in  the  Adjutant  General's  reports,  it 
appears  that  the  militia  of  Illinois  is  satisfactorily  organized  and  has 
an  excellent  personnel.  Reports  of  1907-08  indicated  a  need  of 
improvement  in  discipline  and  military  knowledge  on  the  part  of  both 
officers  and  men.  One  of  the  reports  objected  to  the  elective  sys- 
tem of  choosing  officers  on  the  ground  that  it  is  bad  for  discipline.* 
The  occupants  of  elective  offices,  however,  are  permitted  by  the  act 
of  1909,  to  hold  their  offices,  subject  to  courts  of  inquiry  and  courts 
martial  until  they  reach  the  retirement  age,  thus  the  lack  of  discipline, 
resulting  from  insecurity  of  the  tenure  of  officers,  is  largely  eliminated. 

^Vdjutant  General's  Report,  1907-08,  p.  289. 


bbb  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  reports  of  federal  inspecting  officers  of  1914,  indicate  material 
improvement  in  the  matters  previously  complained  of. 

The  general  impression  is  that  the  State  is  trying  to  bring  its 
militia  up  to  the  standard  set  by  the  United  States  law,  and  that 
progress  is  being  made  in  that  direction ;  but  that  the  task  of  properly 
disciplining  raw  men  in  the  comparatively  few  drills  prescribed  by 
law  is  a  very  difficult  matter.  The  reports  indicate  that  in  most  cases 
the  drill  and  encampment  requirements  are  being  observed. 

A  more  serious  criticism  of  the  Illinois  National  Guard  may  be 
found  in  its  low  enlistment  relative  to  the  population  as  compared  with 
other  states.  The  table  shown  elsewhere  indicates  that  Illinois  is  tenth 
among  the  states  in  proportional  National  Guard  enlistment.  While 
the  National  Guard  enlistment  for  the  whole  United  States  is  132  per 
100,000  population,  in  Illinois  it  is  only  109.  Illinois  is  surpassed  not 
only  by  the  larger  states  as  New  York  and  Pennsylvania,  but  also  by  a 
number  of  smaller  states,  such  as  Massachusetts,  New  Jersey,  Ohio, 
Iowa,  Wisconsin,  Alabama  and  California. 

The  tables  given  elsewhere  in  this  report  indicates  that  the  enlist- 
ment in  the  Illinois  National  Guard  has  declined  in  the  last  few  years. 
In  1912  the  number  of  enlisted  men  was  only  5,586,  as  compared  with 
6,524  in  1901  and  6,165  in  1909.  This  phenomenon  was  asserted  to 
be  general,  in  the  report  of  the  committee  in  the  United  States  House 
of  Representatives  upon  the  Pepper  Pay  Bill,  which  was  advocated 
in  1912,  among  other  reasons,  as  a  remedy  for  the  lack  of  enthusiasm 
for  militia  service.^  But  in  the  past  few  years  the  enlistments  in  other 
states  has  shown  an  increase,  while  in  Illinois  it  has  continued  to 
decline. 

The  enlistment  in  the  Naval  Reserve  has  not  shown  such  a 
decline,  though  its  enrollment  has  been  fluctuating  and  the  number 
enlisted  in  1912  was  not  so  great  as  from  1905  to  1908. 


»62nd  Congress,  2nd  Session,  1912.    House  Report  1117,  Part  i. 


MILITARY   ADMINISTRATION.  889 


II.  THE  UNITED  STATES  GOVERNMENT  AND  THE 
STATE  MILITIA. 

1.    NATIONAL  LEGISLATION. 

Constitutional  Provisions. 

Control  of  the  State  Militia  of  Illinois,  as  of  other  states,  is 
exercised  in  part  by  the  United  States  and  in  part  by  the  State;  and 
some  understanding  of  the  authority  of  the  national  government  is 
necessary  to  an  understanding  of  the  State  laws. 

Under  the  Constitution  of  the  United  States,  Congress  lias  power: 
To  provide  for  calling  forth  the  militia  to  execute  the  laws  of  the  Union, 

suppress  insurrections  and  repel  invasions ; 
To  provide  for  organizing,  arming,  and  disciplining  the  militia,  and  for 
governing  such  part  of  them  as  may  be  employed  in  the  service  of  the 
United  States,  reserving  to  the  States  respectively  the  appointment  of 
the  officers,  and  the  authority  of  training  the  militia  according  to  the 
discipline  prescribed  by  Congress. 

The  Constitution  of  the  United  States  also  provides  that : 
The.  President  shall  be  commander-in-chief  ...  of  the  militia  of  the  sev- 
eral states  when  called  into  the  actual  service  of  the  United  States. 

The  Supreme  Court  of  the  United  States  held,  in  the  case  of 
Houston  V  Moore''  that  the  states  may  exercise  a  concurrent  juris- 
diction with  the  United  States  Government  in  organizing  and  dis- 
ciplining the  militia,  and  governing  them  when  not  in  the  service  of 
the  United  States.  That  is,  the  states  may  act  in  matters  where  the 
National  Government  has  not,  or  in  harmony  with  the  legislation  of 
the  United  States ;  but  where  the  National  Government  has  acted,  its 
law  is  binding  upon  the  states.  In  the  legislation  enacted.  Congress 
appears  to  have  covered  the  ground,  and  in  the  main  the  State  legis- 
lation has  followed  the  law  there  determined." 

An  opinion  of  Secretary  Monroe^  in  1812  and  one  of  Attorney- 
General  Butler  in  1835,''  as  well  as  the  practice  of  the  Government, 
has  determined  that  the  right  of  the  states  to  appoint  officers  when 
the  militia  is  called  out  by  the  United  States  Government  does  not 
pi  event  the  president  as  commander-in-chief  of  the  militia  from 
appointing  general  officers  to  lead  them  'in  his  stead. 

In  the  cases  of  Martin  v  Mott  and  Luther  v  Borden^"  the  Supreme 
Court  of  the  United  States  has  held  that  the  power  of  determining 

«5  Wheaton,  1. 

'See  Supra,  p.  887. 

*Am.  State  Papers,  Military  Affairs,  1,  604. 

«2  Op.,  711. 

i»12  Wheaton,  19;  7  Howard,   1. 


890  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

whether  a  proper  exigency  exists    for   calling   forth   the   militia  lies 
entirely  within  the  discretion  of  the  President. 

Congressional  Legislation. 

In  pursuance  of  the  power  to  organize  the  militia,  Congress 
passed  an  Act  in  1792  "effectively  to  provide  for  the  national  defense 
by  establishing  a  uniform  militia  throughout  the  United  States."  The 
Act  provided  that  citizens  between  eighteen  and  forty-five  years  of  age 
be  enrolled  in  the  militia  and  arm  themselves  within  six  months  of 
such  enrollment.  It  provided  for  the  exemption  of  certain  public 
officers  and  stated  that  the  method  of  organization  was  to  be  left  in 
the  hands  of  the  states;  but  a  scheme  of  organization  was  provided 
which  the  states  might  adopt  "if  the  same  be  convenient,"  and  as 
a  matter  of  fact  that  scheme  was  practically  incorporated  into  the 
first  Illinois  Militia  Law  in  1819.  The  Act  also  provided  that  there 
be  an  Adjutant  General  in  each  state  whose  duty  it  should  be  to 
distribute  the  orders  of  the  commander-in-chief  of  the  states,  to 
receive  returns  of  inspections,  make  abstracts  of  them  and  lay  them 
annually  before  the  commander-in-chief  of  the  state  and  the  Presi- 
dent of  the  United  States.  The  militia  were  required  to  follow  the 
rules  of  discipline  of  the  United  States  army,  and  were  to  receive 
benefits  from  the  United  States  Government  if  wounded  in  the  federal 
service. 

This  Act  continued  in  force,  and  its  provisions  were  repeated, 
substantially  unchanged  in  the  revised  statutes  of  1878,  under  title 
16,  "The  Militia,"  sections  1625  to  1660  inclusive,  and  remained  the 
law  until  the  passage  of  the  Dick  Militia  Act  of  1903. 

In  1789  a  law  was  passed  giving  the  President  power  to  call  out 
the  militia  to  repel  Indian  invasions;  and  on  May  2,  1792  its  scope 
was  enlarged  so  as  to  include  the  other  cases  provided  in  the  Con- 
stitution. On  February  28,  1795  an  Act  was  passed  permitting  the 
President  to  call  out  the  militia  whenever  "the  United  States  shall 
be  invaded  or  be  in  imminent  danger  of  invasion  from  any  foreign 
nation  or  Indian  tribe;"  "whenever  the  laws  of  the  United  States 
shall  be  opposed  or  the  execution  thereof  obstructed  in  any  state  by 
combinations  too  powerful  to  be  suppressed  by  the  ordinary  course 
of  judicial  proceedings;"  and,  upon  application  of  the  legislature  of 
a  state  or  the  executive  when  the  legislature  cannot  be  convened,  "in 
case  of  an  insurrection  in  any  state  against  the  government  thereof" 
to  call  out  the  militia  of  other  states.  Thus  the  three  cases  provided 
for  in  the  Constitution  were  covered.  This  Act  remained  in  force 
until  the  passage  of  the  Dick  Militia  Act  in  1903. 

An  Act  of  1807  permitted  militia  companies  to  volunteer  as 
bodies  in  time  of  war  and  retain  their  own  officers.  This  should  be 
distinguished  from  the  power  of  the  President  to  call  out  the  militia 
as  such. 

An  Act  of  July  29,  1861,  amended  the  Act  of  1795  for  calling 
out  the  militia  so  as  to  confer  the  power  "whenever  by  reasons  of 
unlawful  obstructions,  combinations,  or  assemblages  of  persons  or 
rebellion  against  the  authority  of  the  government  of  the  United 
States,  it  shall  become  impracticable  in  the  judgment  of  the  Presi- 


MILITARY   ADMINISTRATION.  891 

dent  of  the  United  States  to. enforce,  by  the  ordinary  course  of 
judicial  proceedings,  the  laws  of  the  United  States  within  any  state 
or  territory  of  the  United  States." 

In  1871,  the  Act  of  1795  was  again  amended  so  as  to  give  the 
President  power  to  call  out  the  militia  to  protect  the  civil  rights  of 
negroes.  The  Revised  Statutes  of  1878  practically  repeated  these 
provisions.^^ 

Congressional  Appropriations. 

In  1808  an  annual  appropriation  of  $200,000  was  provided  to  be 
distributed  among  the  states  in  proportion  to  the  number  of  effective 
militia,  to  be  used  in  the  purchase  of  arms  and  military  equipment. 
This  provision  was  renewed  in  the  Revised  Statutes  of  1878.^^ 

In  1887,  the  militia  appropriation  of  $200,000  was  increased  to 
$400,000  to  be  distributed  among  the  states  in  proportion  to  the  num- 
ber of  senators  and  representatives  the  state  sent  to  Washington,  pro- 
vided the  organized  militia  contained  at  least  one  hundred  men  for 
each  senator  and  representative.  The  money  was  to  be  used  for  the 
purchase  of  arms,  ordnance  stores,  quartermasters'  stores,  and  camp 
equipage  which  were  to  be  furnished  under  the  direction  of  the  Secre- 
tary of  War  from  the  regular  United  States  Army  Supply.  Carrying 
out  the  doctrine  laid  down  in  an  opinion  written  by  Attorney-Gen- 
eral Williams  in  1874^^  the  statute  stated  that  title  to  this  property 
continues  to  vest  in  the  United  States  Government  and  consequently 
the  states  can  use  it  for  no  purpose,  other  than  that  for  which  it  is 
loaned.  The  Governor  must  make  an  annual  return  of  all  such  prop- 
erty to  the  Secretary  of  War,  and  that  becoming  unserviceable  may, 
at  the  discretion  of  the  Secretary  of  War,  be  sold  and  the  money 
returned  to  the  treasur}^  of  the  United  States. 

An  Act  of  1894  provided  that  the  militia  appropriation  was  not 
to  lapse ;  and  another  Act  of  the  same  year  authorized  the  Secretary 
of  the  Navy  to  loan  a  vessel  of  the  navy  to  any  state  on  the  applica- 
tion of  the  Governor  for  the  use  of  the  navab  militia. 

An  Act  of  1896  opened  the  national  military  parks  to  the  use 
of  the  militia  under  regulations  to  be  drawn  up  by  the  Secretary  of 
War.  The  Secretary  of  War  was  authorized  to  detail  officers  of 
the  regular  army  to  act  as  militia  instructors  at  such  times.  In  the 
following  year,  an  act  provided  that  Springfield  rifles  be  issued  to 
the  militia  in  exchange  for  the  old  arms  then  held.  It  also  author- 
ized the  Secretary  of  War  to  sell  the  state  government's  military 
stores  which  could  be  spared  in  excess  of  the  amount  given  by  the 
annual  militia  appropriation. 

In  1900  the  annual  militia  appropriation  was  increased  to  $1,000,- 
000.  In  compliance  with  a  provision  of  the  Dick  Act  of  1903,  an 
annual  appropriation  of  $2,000,000  for  arms  and  equipment  was  pro- 
vided, thus,  reserving  the  earlier  annual  appropriation  for  use  in  pro- 
moting camps  and  drills. 

"Sections  1642,  5297,  5298,  5299. 
i^Sectlon  1661. 
"14  Op.,  490. 


892  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

In  1906  the  regular  appropriation  was  increased  to  $2,000,000 
which  sum  was  not  to  lapse.  Thus  the  total  federal  aid  to  the  militia 
is  now  $4,000,000  annually.  The  Act  of  1906  also  provided  that  if 
the  United  States  property  in  the  hands  of  a  state  be  lost  or  destroyed 
an  examination  be  held  by  a  disinterested  surveying  officer  of  the 
militia.  His  report  is  to  be  forwarded  by  the  Governor  to  the  Secre- 
tary of  War.  If  the  latter  deems  the  loss  unavoidable,  no  change 
is  to  be  made,  but  if  it  appears  that  the  loss  could  have  been  avoided, 
the  value  is  to  be  debited  against  the  states  allotment  in  the  annual 
militia  appropriation. 

The  Dick  Act  and  Subsequent  Legislation. 

The  Act  of  January  21,  1903,  known  as  the  Dick  Act  is  largely 
based  on  the  Act  of  1792  repeating  large  sections  of  it  verbatim,  but 
makes  important  changes  designed  to  increase  the  efficiency  of  the 
militia  by  withholding  a  share  of  the  government  appropriation  from 
states  that  do  not  enforce  a  certain  standard  of  drill  and  rifle  practice 
and  by  endeavoring  to  make  the  militia  more  definitely  a  part  of  the 
national  forces. 

Before  the  passage  of  the  Act,  the  idea  of  the  militia  had 
changed,  from  that  of  a  force  composed  of  the  whole  citizenship  of 
a  state  capable  of  bearing  arms,  and  intended  primarily  as  a  posse 
comitatus  to  aid  the  state  in  the  execution  of  justice,  to  that  of  a 
select,  organized  body  of  the  citizens,  known  as  the  National  Guard, 
and  intended  not  only  as  an  auxiliary  police  force  of  the  state,  but 
also  as  a  "second  line  of  defense"  for  the  national  government.  It 
was  the  influence  of  those  who  wished  to  strengthen  our  national 
defense  that  secured  the  passage  of  the  Dick  Bill. 

This  Act  declared  the  militia  to  be  composed  of  all  able  bodied 
male  citizens  and  foreigners,  having  declared  their  intention  of  becom- 
ing such,  eighteen  to  forty-five  years  old.  These  are  divided  into 
two  classes,  the  organized  militia  known  as  the  National  Guard  and 
the  Reserve  Militia.  Specified  officers  and  employees  of  the  United 
States,  and  those  exempted  by  state  law,  and  persons  belonging  to 
religious  sects  opposed  to  war  are  exempt  from  militia  service. 

The  organization  and  discipline  of  the  National  Guard  is  to 
be  the  same  as  in  the  United  States  army.  In  time  of  peace  the 
President  may  fix  a  minimum  of  men  for  each  company,  battery, 
troop  or  corps. 

The  President  may  call  out  the  militia  for  a  specified  time  not 
to  exceed  nine  months  to  suppress  rebellion  or  repel  invasion,  and 
where  the  militia  of  more  than  one  state  is  called  out  may  at  his 
discretion  apportion  it  according  to  representative  population.  When 
called  out  by  the  President  every  militia  officer  and  man  is  to  be  mus- 
tered by  regular  United  States  mustering  officers,  and  may  be  tried 
by  court  martial  for  failure  to  appear  for  such  mustering  in.  Courts 
martial  for  the  trial  of  militia  are  to  be  conducted  by  militia  officers 
only. 

When  in  the  actual  service  of  the  United  States  the  militia  is 
subject  to  the  United  States  army  regulations  and  receives  the  same 


MILITARY   ADMINISTRATION.  893 

pay  as  regular  army  officers  and  men  of  the  same  rank,  from  the  time 
of  appearing  at  the  rendezvous. 

The  Adjutant  General  of  each  state  is  to  make  a  return  to  the 
Secretary  of  War  at  such  time  in  such  form  as  the  latter  may  pre- 
scribe and  the  Secretary  of  War  must  transmit  the  same  annually 
to  Congress. 

The  Secretary  of  War  is  authorized  to  issue  standard  United 
States  arms  and  accoutrements  to  states  in  sufficient  quantity  to  sup- 
ply all  the  organized  militia,  in  exchange  for  old  arms,  without  charg- 
ing it  against  the  state's  allotment  of  the  annual  militia  appropriation. 
This  remains  the  property  of  the  United  States  and  must  be  accounted 
for  annually  by  the  Governor.  An  appropriation  of  $2,000,000 
annually  for  this  purpose  was  included  in  the  army  appropriation  act 
of  1903. 

The  Secretary  of  War  must  have  all  the  militia  inspected  at  least 
once  a  year;  and  if  such  inspection  shows  that  the  militia  is  adequately- 
equipped  and  armed,  he  may  on  the  requisition  of  the  Governor  pay 
to  the  state  quartermaster  or  designated  officer,  a  portion  of  the 
state's  annual  allotment,  sufficient  to  pay  for  a  militia  encampment, 
including  transportation,  subsistence,  pay  of  men,  officers  and  instruc- 
tors. While  in  such  camps,  officers  and  men  are  to  receive  the  pay 
of  officers  and  men  of  the  same  grade  in  the  regular  army.  Expenses 
for  such  participation  are  to  be  paid  from  the  appropriation  for  the 
regular  army  and  not  from  the  state's  militia  allotment. 

Militia  officers  attending  military  schools  or  colleges  are  to 
receive  the  same  traveling  allowances,  and  commutation  of  quarters 
as  regular  army  officers. 

The  annual  militia  allotments  are  to  be  available  for  stores  sup- 
plies and  publications  issued  to  the  regular  army.  Additional  sup- 
plies in  excess  of  the  allotment  may  be  purchased  from  the  Govern- 
ment for  cash. 

All  states  receiving  a  portion  of  the  annual  militia  appropriation 
must  have  their  troops  participate  in  a  camp  of  instruction  for  at 
least  five  consecutive  days  during  the  year,  and  assemble  for  drill 
or  target  practice  at  the  regimental  armory  not  less  than  twenty- four 
times  a  year;  and  there  must  be  at  least  one  inspection  a  year  of  each 
company,  troop,  battery,  corps,  etc.,  by  a  militia  or  regular  army 
officer. 

Upon  application  of  any  Governor  of  a  State  sharing  in  the 
militia  appropriation  the  Secretary  of  War  must  detail  an  officer  of 
the  regular  army  to  attend  a  militia  encampment,  to  give  instruction 
and  information  and  make  a  report  to  the  Secretar}-  of  War  who 
will  furnish  a  copy  to  the  Governor.  Upon  the  request  of  the  Gov- 
ernor, the  Secretary  of  War  may  at  his  discretion  furnish  an  officer 
for  regular  duty  with  the  militia,  such  commission  to  be  revoked  at 
the  request  of  the  Governor  or  at  the  pleasure  of  the  Secretar>'^  of 
War. 

The  United  States  is  to  furnish  target  practice  ammunition  under 
direction  of  a  proper  military  officer.  Militia  men  wounded  or 
killed  in  the  service  of  the  United  States  are  to  be  entitled  to  the 
benefit  of  United  States  Pension  Laws. 


894  EFFICIENCY  AND   ECONOMY  COMMITTEE. 

The  Secretary  of  War  is  authorized  to  convene  Boards  of 
Officers  at  different  parts  of  the  country  to  ascertain  suitable  persons 
outside  of  the  miHtia,  to  take  command  of  volunteer  forces  in  case 
of  necessity,  considering  in  such  selection,  previous  experience,  train- 
ing, education,  etc.  The  board's  findings  are  to  be  certified  to  the 
\\'ar  Department  and  after  approval  by  the  President  of  the  United 
States,  such  names  are  to  be  entered  in  an  official  register  in  the  War 
Department.  Such  registered  persons  are  to  be  eligible  to  commis- 
sions in  time 'of  emergency;  and  the  President  may  authorize  any 
of  them  to  receive  military  training  at  a  military  academy  or  college, 
provided  no  one  may  under  such  conditions,  receive  a  commission, 
as  second  lieutenant  beyond  the  age  of  thirty,  first  lieutenant  beyond 
thirty-five,  captain  beyond  forty,  major  beyond  forty-five,  lieutenant 
colonel  beyond  fifty  or  colonel  beyond  fifty-five.  Names  on  this 
registered  list  are  to  be  distributed  as  nearly  as  possible  proportion- 
ately among  the  state.  Any  volunteer  forces  called  for  by  authority 
of  Congress  are  to  be  organized  according  to  the  War  Act  of  April 
22,  1898. 

Although  some  of  the  advocates  of  the  bill  thought  that  it  had 
done  much  to  nationalize  the  militia,  and  had  made  it  immediately 
available  in  case  of  war  as  a  "second  line  of  defense"^^  such  does  not 
appear  to  have  been  the  case.  The  Dick  Bill  altered  the  legal  rela- 
tion of  the  militia  to  the  national  government  yery  little.  It  did,  how- 
ever, offer  more  aid,  and  by  its  system  of  inspection  and  cooperative 
maneuvers  with  the  regular  army  undoubtedly  has  increased  the 
efficiency  of  the  National  Guard,  as  a  fightmg  force.^^ 

The  advocates  of  the  "second  line  of  defense"  idea  succeeded 
in  having  the  Dick  Act  amended  in  1908;  and  on  this  occasion 
secured  an  act  of  Congress  making  the  militia  available  for  war;  but 
unfortunately  for  their  purpose  this  act  has  been  declared  uncon- 
stitutional by  the  Attorney-GeneraP"  so  far  as  it  attempted  to  accom- 
plish this  end. 

The  amendment  of  May  27,  1908  states  that  the  previous  act 
applies  only  to  the  land  forces  of  the  militia. 

The  President  was  authorized  to  call  out  the  militia  for  a  speci- 
fied time  (the  nine  months'  limitation  being  eliminated)  "whenever 
the  United  States  is  invaded  or  in  danger  of  invasion  from  any  for- 
eign nation  or  of  rebellion  against  the  authority  of  the  government 
of  the  United  States,  or  the  President  is  unable  with  the  other  forces 
at  his  command  to  execute  the  laws  of  the  Union."  It  also  provided 
that  when  called  out  "the  militia  shall  continue  to  serve  during  the 
time  so  specified,  either  within  or  zvithout  the  territory  of  the  United 
States  unless  sooner  relieved  by  the  order  of  the  President."  This 
last  phrase  which  is  the  first  specific  authority  for  the  use  of  the 
militia  outside  of  the  territory  of  the  United  States,  was  thought  to 
be  permissible  by  an  opinion  of  Judge  Advocate  General  G.  B.  Davis 
in  1908^^  on  the  ground  that  Congress  in  declaring  war,  made  a  law 


i^See  North   Am.   Rev..  1903,   Vol.  177,  p.  278. 

i-'See  The  Nation,  1903,  Vol.  77,  p.  128. 

^'29  Op.  322. 

"See  Cong.  Record,  60tb  Congress,  1st  Session,  1908,  Vol.  42,  p.  CMS. 


MILITARY   ADMINISTRATION. 


895 


of  extra  territorial  effect,  for  the  execution  of  which  the  President 
could  call  out  the  militia  for  service  outside  of  the  country. 

Under  the  Act  of  1908  militia  officers  and  men  were  to  be  mus- 
tered into  service  of  the  United  States  without  further  enlistment 
or  medical  examination,  provided  the  states  have  organized  a  satis- 
factory examination  system,  and  must  present  themselves  for  such 
muster  under  penalty  of  court  martial  trial.  Courts  martial  for  such 
militia  must  have  a  majority  of  militia  officers,  where  the  act  of  1903 
provided  that  all  the  officers  of  such  courts  should  be  from  the 
militia. 

In  any  regular  encampment  officers  of  the  regular  army  are  to 
retain  command  in  spite  of  the  presence  of  militia  officers  of  higher 
rank. 

The  Secretary  of  War  may  appoint  a  board  of  five  officers  from 
the  militia,  representing  all  portions  of  the  country  to  meet  occasion- 
ally in  Washington  to  consult  with  him  respecting  the  needs  of  the 
militia.  The  board  holds  office  for  four  years,  or  at  the  discretion 
of  the  Secretary  of  War  and  receives  traveling  expenses  per  diem 
while  engaged  in  such  business.  This  expense  and  the  cost  of  the 
Division  of  Militia  affairs  in  the  War  Department  is  to  be  charged 
to  the  annual  militia  appropriation. 

This  act  appears  to  have  carried  out  fully  the  ideas  of  the 
nationalized  militia  adherents.  The  organized  militia  was  made  sub- 
ject to  service  either  within  or  without  the  country  and  might  be 
mustered  in  by  companies  without  further  examination  or  enlistment, 
as  provided  in  the  act  of  1898.  The  old  provision  dating  from  1792 
insuring  militia  courts  martial  for  militia  trials  was  abrogated;  and 
the  militia  was  thus  made  more  certainly  a  part  of  the  regular  army. 
The  consulting  board  of  militia  officers  added  to  the  national  char- 
acter of  the  militia.  We  find  in  this  act  an  attempt  to  preserve  the 
militia  as  a  militia  of  the  states,  while  at  the  same  time  making  it  in 
reality  a  distinct  branch  of  the  United  States  Army. 

In  1910  the  Act  of  1903  was  further  amended,  some  additional 
regulations  being  prescribed  for  militia  organizations  participating  in 
encampments. 

In  1912  Attorney-General  Wickersham^^  declared  the  Act  of 
1908  unconstitutional,  so  far  as  it  attempted  to  make  the  militia  liable 
for  service  in  foreign  war.  In  view  of  this  fact  a  bill  was  introduced 
known  as  the  Pepper  Pay  Bill,  which  proposed  to  offer  federal  pay 
to  members  of  the  militia  who  were  of  a  certain  standard  and  vol- 
unteered to  receive  such  pay.  These  persons,  whom  it  was  presumed 
would  constitute  practically  the  whole  National  Guard,  were  made 
liable  to  service  under  the  United  States  in  time  of  war,  through  the 
expedient  of  transferring  "to  the  army  of  the  United  States"  such 
organizations  of  militia.^'^     The  bill  was  not  passed. 

In  the  Volunteer  Act  of  April  25,  1914,  this  plan  is  abandoned; 
and  it  is  made  clear  that  the  militia  are  only  to  be  used  as  definitely 

1829   Op.  322. 

ifgee  House  Committee  Report,  62ncl  Cong.,  2nd  Session,  1912,  House  Report 
1117,  Parts  I,  II.  For  discussion  of  tliis  bill  see  Report  on  the  Organization  of  the 
Land  Forces  of  the  U.  S.  by  the  General  Staff,  1912,  p.  88. 


896  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

authorized  by  the   constitution   and   not     for    foreign   ofifensive   war. 
The  army  is  to  consist  of  regulars  and  volunteers  and  such  militia  • 
as  may  volunteer  either  individually  or   in   organizations  but  in  all 
cases  the  President  has  the  ultimate  appointment  of  officers. 

The  Volunteer  Act  of  1898  had  practically  repeated  the  Act  of 
1807  permitting  militia  companies  to  volunteer  as  bodies  in  time  of 
war  and  retain  their  own  officers,  the  right  being  reserved  to  the 
Governors  to  appoint  officers  of  militia  organizations  that  had  thus 
volunteered  as  bodies.  Assistant  Attorney-General  Boyd-°  interpreted 
this  as  meaning  that  such  militia  companies  remained  militia  eVen 
after  enlisting  in  the  service  of  the  United  States,  in  view  of  which 
fact  the  Governors  must  according  to  the  constitution  be  permitted  to 
appoint  officers.  This  view,  however,  has  not  been  generally  accepted ; 
and  in  the  Volunteer  Act  of  1914,^^  it  is  made  perfectly  clear  that 
such  militia  companies  are  not  militia,  but  volunteers,  and  while  the 
original  officers  may  be  retained,  it  is  always  at  the  discretion  of  the 
President  as  commander-in-chief  of  the  army  to  change  them. 

In  July,  1913,  the  Governors  of  each  of  the  states  participating 
in  the  national  allotments,  received  a  letter  from  the  secretary  of  war 
stating  that  the  state  militia  organizations  did  not  conform  in  all 
cases  to  the  requirements  of  national  law  and  that  such  conformity 
would  be  insisted  on  should  the  states  desire  to  participate  further  in 
these  allotments.  On  August  1,  1913  the  Department  issued  Circular 
No.  8,  from  the  office  of  the  Chief  of  Staff  of  the  division  of  militia 
affairs  specifying  the  organization  to  which  the  state  militia  partici- 
pating in  federal  allotments  must  conform.  The  order  outlined  the 
organization  of  the  regular  United  States  army,  which  was  prescribed 
for  the  militia  by  section  3  of  the  Dick  Act  as  amended  in  1910.  The 
organization  required  by  this  order  supersedes  the  organizations  pre- 
scribed by  any  state  law,  provided  the  state  desires  to  participate  in 
the  annual  militia  allotments  of  the  national  government.'^ 

On  February  16,  1914,  an  Act  of  Congress  was  passed  "to  pro- 
mote the  efficiency  of  the  naval  militia."  It  provides  that  in  three 
years  after  the  passage  of  the  act  the  organization  of  the  naval  militia 
shall  be  established  by  the  Secretary  of  the  Navy.  The  loan  of  ves- 
sels and  supplies  by  the  navy  department  is  provided  for.  The  Pres- 
ident is  authorized  to  call  out  the  naval  militia  for  the  service  of  the 
United  States  "in  the  event  of  war,  actual  or  threatened,  with  any 
foreign  nation,  involving  danger  of  invasion,  or  of  rebellion  against 
the  authority  of  the  government  of  the  United  States  or  whenever  the 
president  is  in  his  judgment,  unable  with  the  regular  forces  at  his 
command  to  execute  the  laws  of  the  United  States."  In  such  a  call 
the  period  of  service  may  be  specified  and  the  naval  militia  so  called 
"shall  continue  to  serve  during  the  term  so  specified  either  within  or 
without  the  terrtitory  of  the  United  States,"  unless  sooner  relieved  by 
order  of  the  President.  The  naval  militia  on  any  occasion  are  to  be 
used  in  advance  of  volunteer  forces. 


=022  Op.  228,  530. 

"lAct  of  Apr.  25,  1914. 

--Information  as  to  this  order  was  received  from  Col.  N.  W.  MacChesney,  Judpe 
Advocate  of  the  Illinois  National  Guard  and  from  Brig.-Gen.  F.  S.  Dickson,  Adjutant 
General  of  the  Illinois  National  Guard. 


,  MILITARY   ADMINISTRATION.  897 

Further  provisions  of  the  act  relate  to  conditions  precedent  to 
service,  pay,  issue  of  arms,  inspection,  participation  in  cruises  of  the 
regular  navy,  detail  of  officers  for  instruction,  etc.,  similar  to  those 
relating  to  the  National  Guard  in  the  Dick  act. 

The  Secretary  of  the  Navy  may  spend  up  to  $200,000  in  supply- 
ing arms  and  equipment,  and  may  also  apportion  allotments,  annually 
appropriated  by  Congress,  among  states  which  have  brought  their 
naval  militia  to  the  specified  standard. 

It  will  be  noted  that  this  act  provides  for  the  use  of  the  naval 
militia  in  foreign  war  and  outside  of  the  territory  of  the  United  States, 
a  use  which  appears  to  be  in  conflict  with  Attorney  General  Wicker- 
sham's  opinion  of  1912,  unless  a  distinction  can  be  drawn  between 
the  position  of  the  land  and  naval  militia. 

2.    ACTUAL  USE  OF  THE  MILITIA  BY  THE  UNITED  STATES  GOVERNMENT.^^ 
I789-1814. 

For  the  first  time  after  the  adoption  of  the  constitution  of  1794, 
the  militia  were  called  out  on  the  occasion  of  the  Whiskey  Rebellion 
in  Pennsylvania,  to  execute  the  laws  of  the  Union.  In  Fries'  Insur- 
rection of  1799,  the  President  called  out  the  militia  of  Pennsylvania 
to  enforce  the  revenue  laws.  In  the  Louisiana  frontier  troubles  with 
Spain  in  1806,  and  in  the  Burr  Conspiracy  which  followed  it,  con- 
siderable numbers  of  the  militia  of  the  frontier  states  were  called  out. 
In  the  Embargo  Insurrection  in  Vermont  in  1808  portions  of  the  militia 
of  that  state  were  called  out. 

In  the  war  of  1812  the  militia  were  largely  relied  upon  to  furnish 
forces  for  the  national  defense.  In  this  war,  militia  forces  serving  as 
such  furnished  seventy-nine  percent  of  the  total  forces  of  the  United 
States.  The  power  relied  upon  in  these  calls  for  militia  was  the  Act 
of  1795  giving  the  President  power  to  call  forth  the  militia  to  repel 
invasions.  Portions  of  the  militia  were  ordered  across  the  Canadian 
frontier;  but  it  was  claimed  and  the  claim  has  been  affirmed  by 
Attorney-General  Wickersham  in  1912,  that  the  repulsion  of  invasion 
would  justify  their  use  in  this  way,  under  the  circumstances. 

Connecticut  and  Massachusetts  objected  to  the  use  of  the  militia 
on  this  occasion.  Caleb  Strong,  Governor  of  Massachusetts,  upon 
receiving  a  requisition  from  the  President  for  his  quota  of  militia, 
refused,  basing  his  action  upon  the  view  of  his  council  which  thought 
the  request  unconstitutional  and  of  the  Massachusetts  Supreme  Court 
which  maintained  that  the  right  of  determining  upon  the  existence  of 
the  proper  exigency  for  calling  forth  the  militia,  lay  with  the  com- 
mander-in-chief of  the  state,  and  that  when  called  out  the  President 
of  the  United  States  as  commander-in-chief,  alone,  could  command 
them.2* 

The  Governor  of  Connecticut  refused  on  practically  the  same 
grounds,  and  the  Hartford  Convention  of  1814  took  a  similar  view  of 
federal  power  to  call  the  militia. 

=3This  material  is  largely  gathered  from  F.  T.  Walson,  Federal  Aid  in  Domestic 
Disturbances.  57th  Cong.,  2nd  Session,  1003.  Sen.  Doc.  209.  and  Emory  Upton,  the 
Military  Policy  of  the  U.  S.,  62nd  Cong.,  2nd  Session.     Senate  Doc.  494. 

2'8"Mass.  '549. 


6^6  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

President  Madison  submitted  the  case  to  his  Secretary  of  War, 
Monroe,  who  gave  an  opinion,-'  the  reverse  of  that  of  the  Massa- 
chusetts Court,  that  it  was  in  the  authority  of  the  President  of  the 
United  States  to  determine  the  existence  of  a  constitutional  exigency 
for  calUng  out  the  miUtia  and  that  he  could  deputize  officers  to  serve 
in  his  stead  in  leading  them.  This  view  was  subsequently  affirmed  by 
the  Supreme  Court  of  the  United  States  in  the  case  of  Martin  vs. 
Mott^-^ 

1814-1864. 

In  the  Seminole  War  of  1818,  in  the  Black  Hawk  War  of  1832, 
and  in  the  second  Seminole  War  of  1836,  the  state  militia  were  called 
cut  by  the  United  States  government,  to  aid  in  repelling  the  invasions 
of  Indian  tribes.  In  the  first  of  these  cases,  specific  authority  w^as 
given  to  cross  the  Florida  frontier  (which  was  then  Spanish  territory) 
in  case  of  necessity.  In  the  Black  Hawk  War  the  point  arose  as  to 
what  constituted  a  "legal"  calling  out  of  the  militia;  and  an  opinion 
of  Attorney-General  Taney  held  that  militia  summoned  by  local 
authority,  which  action  was  subsequently  ratified  by  the  President, 
were  "legally"  called  out.^^ 

In  the  Nat  Turner  Rebellion  in  Virginia  in  1831  the  militia  of 
that  state  were  called  out.  This  appears  to  have  been  a  case  of  insur- 
rection against  the  state  government  which  according  to  law  permits 
the  President  to  act  only  upon  application  of  the  state  legislature  or 
if  it  cannot  be  convened,  of  the  Governor.  Such  application  was  not 
made  and  there  appears  to  have  been  some  protest  on  this  ground 
from  North  Carolina,  where  some  troops  were  stationed. 

In  the  Sabine  affair  in  1836,  war  with  Mexico  was  expected  and 
General  Gaines  called  out  the  militia  expecting  his  action  to  be  rati- 
fied by  the  President.  The  President,  however,  refused  his  sanction, 
as  the  affair  had  already  blown  over  and  the  militia  were  not  used. 

In  the  Patriot's  War  of  1837,  portions  of  the  militia  of  New  York 
were  summoned  to  prevent  infractions  of  the  United  States  Neutrality 
Laws,  and  in  1839  the  call  of  the  territorial  Governor  of  Iowa  for 
militia  to  aid  him  in  the  Missouri-Iowa  boundary  dispute  was  sanc- 
tioned by  Congress  and  the  militia  paid,  though  they  had  not  been 
in  active  service. 

In  the  Dorr  Rebellion  in  Rhode  Island  in  1842,  King,  the  Gov- 
ernor, under  the  old  or  charter  government,  which  was  opposed  by 
Dorr  who  claimed  to  be  Governor  under  a  new  constitution,  three 
times  appealed  to  the  President  for  aid,  on  the  ground  that  there  was 
an  insurrection  against  the  state  government.  The  charter  legislature 
also  issued  such  an  appeal,  but  President  Tyler  appeared  very  reluc- 
tant to  act.  He  finally,  however,  authorized  the  militia  to  be  sum- 
moned. Dorr's  Rebellion  fell  before  any  militia  were  actually 
employed.  The  case  of  Luther  vs.  Borden-**  grew  out  of  this  rebellion 
and  was  decided  by  the  Supreme  Court  of  the  United  States.     Martin 

26Ain.  state  Papers.  Military  Affairs,  1,  604. 
=«12  Wlieat.  19  (1827). 
"2  Op.  536. 
2*7  Howard,  1. 


MILITARY   ADMINISTRATION.  899 

VS.  Mott-"  was  here  affirmed  and  it  was  held  that  the  President  had 
the  discretion  to  determine  the  existence  of  the  proper  exigency  for 
calUng  out  the  militia,  even  when  such  action  involved  the  deter- 
mination of  a  conflict  between  two  state  governments  both  of  them 
claiming  to  be  legal. 

Before  the  outbreak  of  the  Mexican  War,  General  Taylor  was 
authorized  to  call  out  certain  portions  of  the  militia,  but  he  actually 
called  out  only  a  few  thousand.  General  Gaines  called  out  more 
without  authorization.  The  President  refused  to  ratify  his  action 
and  recalled  him.  In  this  War,  Congress  expressly  gave  authority  to 
the  President  to  call  out  militia  to  serve  in  an  army  of  occupation,  an 
act  generally  considered  unconstitutional.  As  a  matter  of  fact,  only 
twelve  per  cent  of  the  forces  used  in  the  Mexican  War  were  militia, 
regulars  and  volunteers  being  largely  relied  upon. 

In  1856  a  serious  insurrection  arose  in  San  Francisco,  caused  by 
the  efforts  of  the  vigilance  committee  to  take  the  law  into  its  own 
hands.  The  Governor  appealed  to  the  President  of  the  United  States 
for  aid,  but  the  President  refused,  basing  his  act  upon  an  opinion  of 
Attorney-General  Gushing.^"  This  opinion  stated  that,  while  in  case 
of  very  serious  necessity,  the  President  might,  in  his  discretion  call 
out  the  militia  to  suppress  an  insurrection  against  a  state  government 
merely  on  knowledge  of  the  fact,  yet,  unless  there  was  such  pressing 
necessity  he  should  not  act  until  a  proper  legal  request  was  made.  The 
statute  required  the  legislature  to  make  the  request  if  it  could  be  sum- 
moned, and  as  the  Governor's  statement  indicated  no  reason  why  the 
legislature  could  not  be  convened,  the  President  should  wait  until  the 
conditions  of  the  statute  had  been  complied  with. 

The  first  call  for  troops  during  the  Civil  War  was  made  under  the 
act  of  1795,  President  Lincoln  calling  out  75,000  militia  to  aid  in  exe- 
cuting the  laws.  Further  legislation  (in  July,  1861),  provided  for 
calling  out  the  militia  in  case  "unlawful"  obstructions,  combinations,  or 
assemblages  of  persons  or  rebellion  against  the  authority  of  the  United 
States  "made  it  impracticable  to  execute  the  laws  through  ordinary 
iudicial  processes;"  but  as  a  matter  of  fact,  no  more  calls  were  made 
for  militia.  The  remaining  enlistments  were  of  volunteers,  employed 
in  the  service  of  the  United  States  under  the  power  to  raise  armies. 
The  militia  calls  proved  defective,  as  in  many  cases  the  Governors  of 
the  border  states  refused  the  requisitions,  whereas  future  calls  for 
volunteers  showed  that  there  were  many  persons  willing  to  enlist  for 
the  Union  cause  in  those  states.  The  Civil  War  was  fought  by  regu- 
lars and  volunteers.  After  their  defeat  at  Bull  Run  the  militia  were 
of  no  importance. 

1864-1914. 

Since  the  Civil  War  the  militia  have  not  been  used  by  the  United 
States  as  such,  unless  we  accept  Assistant  Attorney-General  Boyd's 
interpretation''^  of  the  position  of  the  volunteer  militia  regiments  in  the 
Spanish  War.  In  the  threatened  Fenian  invasion  of  Canada  in  1866, 
authority  was  given  to  call  out  the  militia  but  it  was  not  necessary. 

2''12  Wheaton,  29. 

308  Op.  8. 

»i22  Op.  228,  536. 


900  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

In  the  reconstruction  riots,  the  Ku  Klux  disturbances,  and  the  railroad 
strikes  of  1877  and  1894,  the  regular  army  was  used  in  preference  to 
the  militia. 

The  President  had  been  given  power  in  an  act  of  1807  to  use  the 
army  wherever  the  militia  might  be  used.  With  the  greater  develop- 
ment of  a  standing  army  after  the  Civil  War,  it  has  proved  a  much 
more  efficient  police  force  than  the  militia  and  the  use  of  the  militia 
by  the  federal  government  to  aid  in  executing  the  laws,  and  to  suppress 
insurrections  has  ceased. 

After  the  Civil  War  the  states  began  to  change  their  idea  of  the 
militia ;  and  in  spite  of  the  fact  that  the  obsolete  act  of  Congress 
of  1792  remained  law,  organized  bodies,  known  as  the  National 
Guard  composed  of  select  volunteers,  who  really  drilled  and  cultivated 
a  knowledge  of  warfare.  With  the  development  of  a  military  feeling 
the  National  Guard  came  to  look  upon  itself  as  a  reserve  force  of  the 
army,  and  this  spirit  has  been  cultivated  by  increased  assistance 
and  encouragement  from  the  United  States  government.  The  states 
have  made  more  and  more  use  of  their  militias  as  an  internal  police 
force.  F.  T.  Wilson  in  his  book,  Federal  Aid  in  Domestic  Disturb- 
ances, estimates  that  the  states  used  their  militia  no  less  than  500  times 
in  the  twenty-five  years  from  1878  to  1903. 

As  has  already  been  mentioned,  with  the  outbreak  of  the  Spanish 
War,  the  militia  were  looked  upon  as  a  reserve  force  for  the  army ; 
and  the  volunteer  act  of  1898  permitted  National  Guard  bodies  to  vol- 
unteer as  such  and  retain  their  own  officers.  While  the  opinions  of 
Assistant  Attorney-General  Boyd  indicate  that  in  his  view  these  volun- 
teer militia  bodies  remained  militia  of  the  states,  called  in  to  the  service 
of  the  United  States,  the  more  generally  accepted  view  is  that  they 
were  to  be  regarded  simply  as  volunteers.^^ 

Following  the  War,  efforts  were  made  to  make  it  possible,  through 
legislation,  for  the  militia  to  come  under  the  supervision  of  the  United 
States  and  be  ready  to  serve  as  a  second  line  of  national  defense, 
retaining  their  status  as  militia  with  their  own  officers  and  organiza- 
tion. The  Dick  Act  of  1903  was  directed  toward  this  purpose,  but 
does  not  appear  to  have  accomplished  it.  The  amendment  of  1908, 
however,  did  provide  for  making  the  militia  liable  to  federal  service 
even  in  foreign  war  without  losing  their  status  as  militia.  The  act 
was  declared  unconstitutional,  so  far  as  it  attempted  this  object,  by 
Attorney-General  Wickersham  in  1912,  and  the  policy  has  now  been 
revived  of  leaving  the  militia,  as  such,  a  militia  of  the  states,  subject 
to  call  by  the  United  States  only  in  the  three  cases  mentioned  in  the 
constitution  (which  under  present  conditions  means  that  they  are  not 
likely  to  be  called  out  at  all  by  the  United  States  government,)  and 
entirely  distinct  from  volunteers,  who  in  combination  with  the  regular 
army  are  looked  upon  as  the  force  of  national  defense. 

By  the  act  of  1914  specific  authority  has,  however,  been  given 
for  the  use  of  the  naval  militia  in  foreign  war. 

s^See  Report  on  the  Organization  of  the  Land  Forces  of  the  U.  S.,  by  the  General 
Staff,  1912,  p.  55. 


MILITARY   ADMINISTRATION, 


901 


3.      CONSTITUTIONAL  AND  LEGAL  CONCLUSIONS. 

The  Jurisdiction  of  the  United  States  Government  Over  the  Militia. 

The  United  States  Government  exercises  final  jurisdiction  in  or- 
ganizing, arming  and  disciplining  the  militia,  and  the  states  are  bound 
by  acts  of  Congress  on  these  points. 

The  general  principle  of  federal  supremacy  in  the  powers  granted 
by  the  constitution  is  sufficient  to  bear  out  this  point.  The  opinion  of 
the  Supreme  Court  in  Houston  vs.  Moore^^  is  also  authority  for  this 
view.  Whiting  in  "War  Powers  under  the  Constitution"^'*  offers  the 
statement  that  state  legislation  cannot  constitutionally  provide  for 
enrollment  in  the  militia  of  persons  other  than  those  enumerated  m 
the  United  States  law.  The  same  opinion  was  expressed  in  a  buUetm 
of  the  division  of  militia  affairs  of  1910;^^  and  the  opinion  of  the 
South  Carolina  Supreme  Court  in  State  vs.  Lewis  in  1837,2«  related 
somewhat  to  this  point,  when  it  said  that  in  a  call  of  the  militia  by 
the  President,  only  those  need  to  respond  who  were  included  in  the 
militia  as  organized  under  the  act  of  Congress.  The  recent  order  of 
the  War  department  directing  a  reorganization  of  the  State  militia.s 
participating  in  the  United  States  appropriations  is  another  exempli- 
fication of  this  principle. 

The  United  States  Government  has  jurisdiction  to  govern  the 
militia  in  the  service  of  the  United  States,  reserving  the  appointment 
of  officers  and  the  actual  training  to  the  states.  It  also  has  the  power 
of  calling  them  out  in  the  cases  described. 

Jurisdiction  of  the  States  Over  the  AJilitia. 

The  states  may  exercse  a  concurrent  jurisdiction  over  the  arming, 
organizing  and  disciplining  of  the  militia  legislating  where  the  U.  S. 
government  has  not  acted  or  so  as  not  to  conflict  with  U.  S.  laws. 

Justice  Story's  dissent  in  the  case  of  Houston  vs.  Moore"  is  op- 
posed to  this  view ;  but  the  prevailing  opinion  in  that  case  and  the 
practice  before  and  since  is  authority  for  the  statement.  The  early 
United  States  statutes  on  the  subject  expressly  left  to  the  states  the 
power  of  organizing  their  militia,  simply  giving  directory  rules  which 
the  state  might  follow  if  "convenient." 

Houston  vs.  Moore  also  appears  to  be  authority  for  the  view  that 
the  states  exercise  a  concurrent  jurisdiction  in  "governing  such  part 
of  the  militia  as  may  be  employed  in  the  service  of  the  United  States." 

It  is  clear  by  the  constitution  that  the  states  have  jurisdiction  to 
appoint  officers  of  the  militia  and  to  train  the  militia  according  to  the 
discipline  prescribed  by  Congress,  even  when  the  militia  are  called  into 
the  service  of  the  United  States. 

In  general,  the  states  have  power  to  employ  the  militia  as  they  see 
fit,  and  exercise  complete  jurisdiction  over  them,  subject  only  to  the 
rights  specifically  given  to  the  National  government  in  the  constitution. 

335  Wheaton,  1. 

3*P.  480.     He  refers  to  18  Am.  Law  Rep.,  167  and  22  Law  Rep.,  4<7. 

3ESee  Biennial  Report  of  the  Adjutant  General  of  Illinois,  1911-12,  p.  1(0. 

S93  Hill,  308. 

8^5  Wheaton,  1. 


902  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Cases  in  IV hie h  the  Militia  May  be  Called  Forth. 

The  militia  may  be  called  forth  by  the  President,  to  suppress  do- 
mestic violence  and  to  repel  invasion  or  imminent  danger  thereof. 
Under  the  suppression  of  domestic  violence  there  are  two  distinct 
cases.  1.  To  execute  the  laws  of  the  Union  and  suppress  combina- 
tions within  the  territory  of  the  United  States.  This  power  is  pro- 
vided for  in  Section  4,  of  the  Dick  Act  as  amended  in  1908  and  in  the 
Revised  Statutes. '^^  Under  it  the  militia  were  called  out  in  the 
Whiskey  Rebellion,  1794;  Fries  Insurrection,  1799;  the  Burr  Con- 
spiracy, 1806;  the  Embargo  Troubles,  1808;  the  Patriot's  War,  1837; 
the  Iowa-Missouri  boundary  dispute,  1839,  and  the  Civil  War,  1861. 
It  has  not  been  employed  since  the  Civil  War,  the  regular  troops 
having  proved  more  efficient  to  suppress  rebellion  against  the  national 
government,  and  unless  an  extraordinary  exigency  should  arise,  it  does 
not  appear  probable  that  they  will  be  used  again. 

2.  To  suppress  insurrections  against  the  government  of  any 
state.  This  power  is  provided  for  in  the  Revised  Statutes,  section 
5297,  and  can  only  be  exercised  by  the  President  upon  application  of 
the  legislature  or  the  executive  of  a  state  when  the  legislature  cannot 
be  convened.  It  has  been  employed  on  but  two  occasions  in  the  his- 
tory of  the  country,  the  Nat  Turner  Rebellion  of  1831,  and  the  Dorr 
Rebellion  of  1842.  Upon  the  occasion  of  the  Vigilance  Committee 
troubles  in  San  Francisco  in  1856,  the  aid  of  the  President  was  asked 
under  the  law  by  the  Governor,  but  was  refused  on  the  ground  that 
the  legislature  should  have  made  the  request.  Great  reluctance  has 
always  been  shown  to  exercise  this  power,  as  there  is  danger  of  un- 
warranted federal  interference  in  the  internal  affairs  of  a  state.  In 
the  two  cases  cited  regular  troops  were  used  in  addition  to  the  militia 
and  on  all  occasions  since  have  been  used  exclusively.  With  the 
increased  efficiency  of  the  National  Guards  it  is  probable  that  states 
will  be  better  able  in  the  future  to  settle  their  own  insurrections,  with- 
out calling  for  national  aid;  and  if  the  latter  is  called  for,  it  seems 
probable  that  regular  troops  will  be  sent  instead  of  calling  out  the 
militia. 

Under  the  power  to  repel  invasion  or  imminent  danger  thereof, 
there  are  also  two  cases,  at  least  as  expressed  in  the  early  statutes: 
1,  Foreign  Nations;  and' 2,  Indian  Tribes.  The  phrase  giving  the 
power  expressly  in  case  of  invasion  of  Indian  tribes  was  omitted  in 
the  Dick  Act  of  1903,  although  it  was  under  this  power  that  the 
militia  were  summoned  in  the  Seminole  War  of  1818,  the  Black  Hawk 
War  of  1832,  and  the  second  Seminole  War  of  1836.  An  Indian  up- 
rising, now,  would  partake  more  of  the  nature  of  domestic  violence, 
and  in  such  an  event  undoubtedly  the  regular  troops  would  be  sum- 
moned. The  power  to  repel  invasion  of  foreign  nations  is  conferred 
by  Section  4  of  the  Dick  Act  of  1903  as  amended  in  1908.  It  was 
employed  in  the  threatened  French  War  of  1799.  the  Louisiana  Fron- 
tier Dispute  with  Spain  in  1806.  the  War  of  1812,  the  Sabine  Affair 
of  1836.  when  War  with  Mexico  was  threatened,  and  the  Mexican 
War  of  1846.     The  War  of  1812  alone  is  important;  as  in  the  other 


»» Sections  5298,  5299. 


MILITARY   ADMINISTRATION.  903 

cases  either  there  was  no  active  service  or  other  troops  were  relied 
on  principally.  The  precedents  of  the  War  of  1812,  the  Seminole 
War  of  1818  and  the  Mexican  War  of  1846,  as  well  as  the  opinion  of 
Attorney-General  Wickersham  in  1912,  appear  to  be  authority  for  the 
view  that  militia  may  be  used  even  outside  of  the  country  if  necessary 
to  "repel  invasion."  In  case  of  a  foreign  invasion  it  is  probable  that 
the  regular  army  would  be  relied  upon  first,  and  then,  following  the 
precedents  of  the  Mexican  War,  the  Civil  War  and  the  Spanish  War 
of  1898,  National  Volunteers  would  be  called  for.  It,  therefore, 
appears  improbable  that  the  militia  will  be  called  out  for  this  purpose 
in  the  future. 

The  idea  of  embodying  the  militia  as  a  national  force  capable  of 
being  used  for  general  military  purposes  is  discussed  elsewhere.  It  is 
sufficient  to  note  here  that  the  attempt  to  exercise  such  a  power  is 
probably  unconstitutional,  and  is  considered  by  many  authorities, 
notably  Major  General  Upton,  as  unwise.^^ 

Cases  in  which  the  Militia  May  Not  be  Called  Forth. 

The  militia  cannot  be  called  into  the  service  of  the  United  States 
for  use  in  foreign  war,  unless  it  be  to  repel  an  actual  invasion. 

This  is  a  question  which  is  still  open  to  dispute  and  there  is  much 
legal  opinion  which  takes  the  opposite  view.  A  direct  judicial  settle- 
ment of  the  question  seems  to  be  prevented  by  the  fact  that  the  courts 
would  regard  any  "calling  out"  of  the  militia  by  the  President  as  valid. 
This  question  is  taken  up  later. 

The  meaning  of  "an  invasion"  and  of  "repelling"  are  capable  of 
varied  interpretations.  Any  foreign  war  might  be  regarded  as  an 
"invasion"  such  as  to  justify  a  calling  out  of  the  militia.  It  would 
seem,  however,  that  an  "invasion"  should  be  interpreted  rather  as  re- 
ferring to  an  immediate  military  operation  threatening  the  frontiers 
of  the  country,  in  which  case  a  foreign  war  in  distant  territory, 
whether  offensive  or  defensive  could  not  be  regarded  as  an  "invasion." 
But  admitting  the  existence  of  "an  invasion,"  what  acts  are  in- 
cluded in  "repelling"  it?  Attorney  General  Wickersham  indicated  a 
belief  that  the  phrase  could  permit  of  pursuing  the  invader  outside  of 
the  country.     He  says  :*° 

If  the  militia  were  called  into  the  service  of  the  General  government 
to  repel  an  invasion,  it  would  not  be  necessary  to  discontinue  their  use 
at  the  boundar\-  line,  but  they  might,  (within  certain  limits;  at  least)  pur- 
sue and  capture  the  invading  force,  even  beyond  that  line  .  .  .  This  may 
well  be  held  to  be  within  the  meaning  of  the  term  "to  repel  invasion." 
Pomeroy,  however,  thinks  that  while  the  militia  could  be  "called 
out"  before  the  invader  had  crossed  the  frontier  it  could  only  be  em- 
ployed within  the  territory.     He  says  i"*^ 

Insurrection  and  invasion  must  be  internal.     We  do  not   repel  an   in- 
vasion by  attacking  the  invading  nation  upon  its  own  soil.     Still,  there  can 
be  no  question  that  the  militia  may  be  called  out  before  the  invaders  have 
set  foot  upon  our  territory.     It  is  a   fair  construction  of  language  to  say 
that   one   means   of   "repelling"   an   invasion   is   to   have   a    force   ready  to 
receive  the  threatened  invaders  when  they  shall  arrive. 
3»Bmory  Upton,  The  Military  Policy  of  the  United  States,  Senate  Document,  494, 
62nd  Cong.,  2nd  Session,  1912.     See  also,  Report  on  Organization  of  the  Land   Forces 
of  the  United  States,  by  the  General  Staff,  1912,  and  articles  by  J.  M.  Palmer,  Infan- 
try Journal,   11;  336;   L.  R.  Naptzger,  Infantry  Journal,  11;  453. 
«>29   Op.    324. 
*iPomeroy,  Constitutional  Law,  p.  387. 


904  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

While  realizing  that  the  legal  opinion  is  divided  on  the  question, 
and  that  it  is  far  from  being  definitely  settled,  the  writer  believes  that 
the  view  expressed  above  is  justified  by  the  weight  of  opinion  and 
practice. 

Authority  for  the  contrary  view,  that  the  militia  may  be  used  in 
foreign  war,  may  be  found  in  the  use  of  the  militia  in  the  Mexican 
war  of  1846,  which  could  scarcely  be  considered  "an  invasion,"  al- 
though the  authority  to  use  the  militia  was  justified  on  the  ground  that 
it  was.  The  militia  on  this  occasion,  however,  saw  no  service,  and 
national  volunteers  and  regulars  were  relied  upon  in  the  prosecution 
of  the  war.  The  use  of  the  militia  in  the  war  of  1812  could  more 
clearly  be  justified  on  the  ground  of  invasion,  as  could  its  use  in  the 
Indian  wars  of  1818,  1832,  and  1836.  As  has  been  noted  the  militia 
used  in  the  Spanish  war  of  1898  have  been  generally  regarded  as 
volunteers  and  so  do  not  form  a  case  in  point  here.  The  best  authority 
for  the  use  of  the  militia  in  foreign  war  is  the  opinion  of  Judge  Advo- 
cate General  Davis  in  1908,*-  that  the  declaration  of  war  is  law  for 
the  execution  of  which  the  militia  may  be  called  out ;  and  the  statute 
of  1908  was  based  on  this  opinion,  specifically  giving  authority  to  use 
the  militia  "within  or  without  the  territory  of  the  United  States."  A 
similar  use  of  the  naval  militia  is  authorized  by  the  act  of  February, 
1914. 

Opposed  to  the  judge  advocate's  opinion  is  the  doctrine  of  the 
non-extraterritorial  character  of  the  United  States  Law,  as  expounded 
in  the  opinion  of  Attorney  General  Wickersham  in  1912,*^  in  which 
the  law  of  1908  was  declared  unconstitutional  so  far  as  it  contem- 
plated the  use  of  the  militia  in  foreign  war  other  than  "invasion." 
The  expressed  opinion  of  such  authorities  on  constitutional  law  as 
Daniel  Webster,**  J.  N.  Pomeroy,*^  Von  Holtz,**^  Ordronaux,*^  and 
the  opinion  of  the  Supreme  Court  of  Pennsylvania  in  the  case  of 
Kneedler  vs.  Lane,*^  also  indicate  that  the  militia  cannot  be  used  put- 
side  of  the  country,  at  least  in  foreign,  offensive  war. 

As  a  corollary  to  this  statement,  it  seems  that  the  militia  as  such 
cannot  be  compelled  to  enlist  in  the  service  of  the  U.  S.,  or  to  transfer 
their  services,  or  in  any  way  be  obliged  to  serve  in  foreign  ofifensive 
war.  If  the  militia  cannot  be  used  as  such  in  foreign  war,  they  can- 
not be  compelled  to  serve  by  a  simple  change  of  name  or  similar  sub- 
terfuge. According  to  the  theory  of  the  militia  they  are  a  state  body, 
to  which  the  state  has  a  right  except  in  the  cases  specifically  provided 
by  the  constitution.  If  the  United  States  government  seeks  to  put  an 
additional  burden  upon  the  militia  such  as  compelling  them  to  trans- 
fer to  the  United  States  army  in  case  of  war,  it  is  depriving  the  states 
of  this  right  to  their  militia. 

It  is  true  that  under  the  power  to  raise  armies  the  government 
may  resort  to  conscription  as  a  measure  "necessary  and  proper"  for 
that  purpose;  but  it  seems  doubtful  whether  the  militia  as  such  may 

"See  Congressional  Record,  60th  Congress.,  1st  Session,  1908,  Vol.  42,  p.  6943. 

"29  Op.  ;522. 

■•^Quoted  Ordronaiix,  Constitutional  Legislation,  p.  503. 

^'^Con^ititutional  Lijw,  p.  387. 

^"Constitutional  Law,  p.  170. 

^^Constitutional    Legislation,    p.   501. 

"45  Pa.   St.,  238.  276. 


MILITARY  ADMINISTRATION. 


905 


be  drafted  into  the  service  of  the  United  States,  since  Congress  is 
specifically  limited  by  the  constitution  in  its  treatment  of  them. 

Furthermore,  the  question  of  officers  would  oppose  a  dilemma 
to  any  such  arrangement.  If  the  militia  are  serving  as  such  the  gov- 
ernors must  appoint  officers,  but  if  they  are  made  a  part  of  the  United 
States  army  the  President  or  certain  specified  national  officials  must 
appoint  officers.  The  militia  cannot  (Assistant  Attorney-General 
Boyd  to  the  contrary)  be  both  at  the  same  time.  The  power  to  raise 
armies  is  one  thing,  and  the  power  to  call  out  the  militia  is  another. 
The  militia  as  such  cannot,  according  to  the  limitations  imposed  by 
the  constitution  be  included  in  a  system  of  raising  armies. 

As  a  further  extension  of  this  principle,  it  is  doubtful  whether 
the  organized  militia  can  voluntarily  place  itself  under  obligations  in- 
volving military  service  in  foreign  offensive  war  under  the  U.  S.  gov- 
ernment superior  to  the  rights  of  the  states.  This  is  the  point  raised 
by  the  proposed  militia  pay  bill  of  1912.  If  the  militia  are  a  state 
body  to  which  the  state  has  a  complete  right  of  use  except  under  the 
limitations  named  in  the  constitution,  it  seems  questionable  whether 
as  a  body  they  may,  voluntarily,  obligate  themselves  to  the  United 
States  government.  Such  an  action  would  in  fact  deprive  the  states 
of  a  portion  of  the  service  of  the  militia  guaranteed  them  by  the  con- 
stitution. While  it  may  be  said  that  such  an  act  is  justified  because 
the  states  have  given  their  consent,  It  would  seem  that  this  would  not 
prevent  a  state  legally  withdrawing  its  consent  on  any  occasion.  In 
such  a  case  the  national  government  would  find  its  military  arm 
paralyzed  as  happened  in  the  case  of  the  New  England  States  in  1812. 
The  minority  report  of  the  House  Committee  on  the  Pepper  Militia 
Pay  Bill  indicated  this  point." 
The  Discretionary  Power  of  the  President. 

The  propriety  of  calling  out  the  militia  on  any  particular  occasion 
is  entirely  at  the  discretion  of  the  President.  This  point  was  decided 
by  the  Supreme  Court  of  the  United  States  in  the  cases  of  Martin  vs. 
Mott,  and  Luther  vs.  Borden.  This  power  places  a  distinct  limitation 
upon  the  applicability  of  the  constitutional  principles  laid  down  in  the 
preceding  discussion  of  the  cases  in  which  the  militia  cannot  be  called 
out.  If  the  President  as  a  political  officer  calls  out  the  militia  for 
a  use  not  warranted  by  the  constitution,  the  courts  have  said  they  will 
not  inquire  into  his  action.  The  constitutional  limitations  upon  the 
use  of  the  militia  are  thus  made  simply  directory  upon  the  President. 
The  courts  cannot  apply  or  enforce  them. 

This  makes  it  impossible  for  the  courts  to  pass  upon  the  question 
of  what  constitutes  invasion,  insurrection,  or  obstruction  of  the  laws, 
for  the  President  having  acted,  the  court  will  presume  that  his  discre- 
tion was  honestly  exercised  and  that  he  observed  the  constitutional 
limitations  and  will  not  inquire  back  of  his  call  for  the  militia. 

The  Leadership  of  the  Militia. 

The  President  may  lead  the  mititia  in  person  when  called  into  the 
service  of  the  United  States  or  appoint  officers  to  lead  them.  Section 
^      ^nd  Coagress,  2nd  Session,  1912,  Houb«  Report  1117,  Part  2. 


906  EFFICIENCY   aND   ECONOMY   COMMITTEE. 

Two  of  Article  Two  of  the  constitution  clearly  makes  the  President 
"commander-in-chief  of  the  militia  of  the  several  states  when  called 
into  the  actual  service  of  the  United  States."  The  Massachusetts 
justices  in  1812''^'  affirmed  that  this  power  could  only  be  exercised 
by  the  President  in  person  but  the  opinion  of  Secretary  Monroe^^  in 
answer  to  the  Massachusetts  objection  and  of  Attorney-General  Butler 
in  1835"'-  as  well  as  the  practice  on  all  occasions  upon  which  the  militia 
have  been  used  by  the  United  States  government  would  seem  to  indi- 
cate that  the  President  may  appoint  officers  above  those  of  the  highest 
rank  in  the  state  militia.  Just  what  officers  the  President  may  appoint 
and  where  the  right  of  the  Governor  to  appoint  officers,  as  provided 
in  Section  8,  Article  1,  of  the  constitution,  ceases  has  not  been 
definitely  determined. 

General  Conclusion. 

The  general  conclusion  reached  is  that  the  use  of  the  militia  as 
such  by  the  United  States  government  is  no  longer  important.  For 
all  of  the  cases  for  which  it  may  be  called  out  under  the  constitution 
the  regular  army  is  likely  to  prove  sufficient,  and  if  so  is  better.  The 
militia  as  such  have  not  been  used  by  the  United  States  government 
since  the  Civil  War. 

The  use  of  the  militia  as  a  second  line  of  national  defense  has 
not  proved  successful  in  the  past,  is  of  doubtful  constitutionality,  and 
is  regarded  as  inexpedient  by  many  military  authorities.-^'' 

The  position  intended  for  the  militia  under  the  constitution  ap- 
pears to  be  that  of  a  strictly  state  institution,  the  final  force  backing 
the  executive  power  of  the  state,  to  be  called  out  by  the  United  States 
government  only  on  occasions  of  extraordinary  necessity.  The  militia 
as  an  organized  National  Guard  has  become  more  efficient,  and  is  a 
very  important  adjunct  of  the  police  force  of  the  states.  The  states 
are  making  increasing  use  of  their  militia  to  preserve  order  within 
their  borders.  The  organized  militia  also  serves  as  a  training  school 
for  the  soldier.  But  to  serve  as  such  as  an  arm  of  the  national  de- 
fense appears  to  be  beyond  its  province. 

The  Naval  Reserves  which  have  grown  up  in  many  states  un- 
doubtedly indicate  the  idea  that  the  militia  may  be  a  "second  line  of 
defense,"  as  in  inland  states  they  would  be  of  little  use  for  internal 
police.  If  the  Naval  Reserve  cannot  be  called  out  as  such  to  serve 
in  foreign  war,  under  the  United  States  government  which  alone  may 
engage  in  foreign  war,  its  use  as  an  organization  would  appear  to  be 
limited  to  that  of  furnishing  a  training  school  for  possible  recruits  in 
the  United  States  Navy,  and  of  course,  performing  such  police  service 
for  the  state  as  its  geographical  position  may  permit.  The  act  of 
February,  1914,  however,  specifically  authorizes  its  use  in  foreign  war. 
If  this  act  is  sustained  the  Naval  Reserves  of  the  states  will  occupy 
the  position  of  a  first  auxiliary  force  to  supplement  the  regular  navy. 

608  Mass.,  549. 

6>Am.   St.   PaF>ers.   Military    .\lTairs.   1,   60-J. 

'>-2  Op.  711. 

ii'See  Kniory  T'pton,  Tlio  Military  Polioy  of  the  United  States,  Senate  Doe.  494. 
62nd  ("onK.,  2nd  Spss..  1912:  Report  on  Orpanization  of  the  Land  Forces  of  the 
United  States,  by  the  General  Staff,  1912. 


A  REPORT 

ON 

CIVIL  SERVIC  LAWS 

BY 

A.  C.  HANFORD,  A.  M. 


CONTENTS 

CIVIL    SERVICE   LAWS    IN    ILLINOIS    911-918 

Historical  Note    911 

Early  Local  Laws  911 

State  Civil  Service  Law  of  1905   911 

Amendments  of  1907  912 

Movement  to  extend  the  law  912 

Extended  Law  of  1911   913 

Amendments  of   1913    914 

General  Features  of  the  Present  System  914 

The  Classified  Service  915 

Distinctive  Features  of  the  Illinois  Law  915 

Validity  of  the  Law    917 

CIVIL   SERVICE  LAWS   OF  THE   UNITED   STATES   AND   OTHER   STATES 919-931 

History  and  Development    919 

Scope  of  State  Laws  920 

General  Character  of  State  Laws 921 

Schedule  of  State  Civil  Service  Laws 926 

COMMENTS    AND   SUGGESTIONS    932-938 

Selection  of  the  Commission   932 

Exemptions  from  the  competitive  service   934 

Number  of  names  to  be  certified  ' 935 

Removals  and  Discipline    935 

Miscellaneous    936 

Relation  of  State  to  Local  Commissions 936 


A  REPORT  ON  CIVIL  SERVICE  LAWS. 

I.    CIVIL  SERVICE  LAWS   IN    ILLINOIS. 

Historical  Note. 
Early  Local  Lazvs. 

The  first  Civil  Service  Law  in  Illinois  was  the  Optional  Civil  Serv- 
ice Act  for  Cities,  enacted  and  in  force  March  20,  1895,  entitled  "An 
Act  to  regulate  the  Civil  Service  of  Cities."  The  cities  of  Chicago, 
Springfield,  Waukegan  and  Evanston  have  taken  advantage  of  the  pro- 
visions of  this  law. 

By  an  amendment  of  1895  to  the  Cook  County  Commissioners' 
Act  of  1893,  about  800  employees  of  Cook  County,  who  had  formerly 
been  appointed  by  the  County  Board,  were  placed  under  the  merit 
system. 

An  Optional  Act  of  1903,  providing  for  the  appointment  of  a 
Board  of  Fire  and  Police  Commissioners  in  cities  from  7,000  to  100,000 
population,  has  established  a  merit  system  of  appointment  for 
employes  in  the  fire  and  police  departments  of  those  cities  which  have 
adopted  the  system.  The  cities  operating  under  this  Act  are  Aurora, 
Alton,  Champaign,  Elgin,  Peoria,  Joliet,  Rock  ford  and  Streator. 

In  1911  an  Act  was  passed  by  the  General  Assembly  providing 
for  a  Civil  Service  System  in  park  districts  with  a  population  of  150,- 
000  or  more.  Also  in  1911  there  was  passed  an  Act  providing  for 
Civil  Service  in  Cook  County,  but  this  was  subsequently  declared 
invalid  by  the  Illinois  Supreme  Court.  (McAulifife  vs.  O'Connell,  258, 
111.  186.) 

State  Civil  Service  Law  of  1905. 

In  1900  the  demand  for  a  State  Civil  Service  System  was  made  a 
political  issue,  but  no  action  was  taken  thereon  in  the  42d  General 
Assembly.  In  1902  both  of  the  leading  parties  declared  themselves  for 
Civil  Service,  and  Governor  Richard  Yates  appointed  a  Commission  to 
draw  up  a  bill,  which  passed  the  House  but  was  defeated  in  the  Senate. 
Finally  on  January  25,  1905  a  Civil  Service  Law,  entitled,  "An  Act  to 
regulate  the  Civil  Service  of  the  State  of  Illinois,"  passed  both  Houses 
of  .  .the  General  Assembly,  was  approved  on  May  11,  1905,  and  went 
into  effect  November  1,  1905. 

The  Civil  Service  Law  as  originally  enacted  in  1905  applied  the 
merit  system  of  appointment  only  to  such  persons  as  were  employed 
in  the  charitable  institutions  of  the  State,  excluding  all  members  of 
Charitable  Boards,  trustees  and  commissioners,  superintendents  of 
charitable  institutions,  one  chief  clerk  and  one  stenographer  for  each 
institution.  In  its  general  provisions,  the  law  followed  almost  identi- 
cally the  Optional  Act  of  1895  for  the  regulation  of  Civil  Service  in 


912  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

cities,  and  vested  the  administration  of  the  system  in  a  Commission 
of  three  members,  appointed  by  the  Governor  with  the  consent  of  the 
Senate. 

The  principal  objections  to  the  early  system  were  that  it  was 
not  broad  enough  in  its  application,  that  only  citizens  of  Illinois  could 
take  the  examinations,  that  the  places  for  holding  examinations  were 
limited  to  the  seven  largest  cities  in  the  State,  and  that  one  Commis- 
sioner had  to  be  present  at  each  examination.^  Some  of  these  objec- 
tions were  met,  and  other  changes  made,  by  an  amendment  to  the  law 
enacted  by  the  44th  General  Assembly  in  1907. 

Amendments  of  ipoy. 

The  most  important  changes  made  in  the  law  by  the  amending 
Acts  of  1907  were:  (1)  the  removal  of  certain  restrictions  as  to  place, 
etc.,  (2)  the  abolition  of  the  probationary  period;  and  (3)  greater  con- 
trol over  removals. 

1.  Restrictions  Removed: — The  Civil  Service  Commission  was  no 
longer  confined  to  the  seven  largest  cities  in  giving  examinations,  and 
the  provision  requiring  a  member  of  the  Commission  to  be  present  at 
each  examination  was  removed. 

2.  Probationary  period  of  six  months  done  away  with. 

3.  Removals  and  Supervisions : — Section  12  of  the  Civil  Service 
Act  was  amended  so  as  to  give  the  Commission  power  to  investigate 
any  removal,  and  reinstate  any  one  wrongfully  discharged,  whereas, 
the  original  law  permitted  the  head  of  the  department  to  remove  an 
officer  or  employe  for  cause,  after  a  statement  of  the  reasons  had  been 
served  upon  the  appointee  and  he  had  been  given  an  opportunity  to 
answer  the  same.  According  to  the  terms  of  the  original  law,  the 
appointing  officer  was  required  to  file  a  statement  of  his  reasons  with 
the  Commission,  but  it  was  specifically  stated  that  the  law  should  not 
be  construed  as  to  require  an  examination  of  witnesses,  a  trial  or  a 
hearing. 

By  the  amendment  of  1907,  however,  the  Commission  was  given 
power  if  it  so  desired  to  investigate  any  charge,  and  its  approval  or 
disapproval  of  every  removal  was  made  necessary.  Thus  the  power  of 
the  Civil  Service  Commission  over  removals  was  enlarged,  and  while 
the  discharged  person  could  not  demand  an  investigation  as  of  right, 
the  Commission  could,  in  its  discretion,  grant  such. 

Movement  to  extend  the  law. 

In  1906  both  leading  political  parties  pledged  their  support  to  an 
extension  of  the  provisions  of  the  Civil  Service  Act  to  the  other  depart- 
ments of  the  State,  while  bills  providing  for  such  extension,  and  giv- 
ing the  State  Commission  control  over  all  city  and  county  commissions 
were  prepared  by  the  Civil  Service  Commission,  but  failed  of  passage. 
Senator  Logan  Hay  introduced  a  bill  in  the  45th  General  'Vssembly 
permitting  cities  to  adopt  the  Optional  Civil  Service  Law  for  cities,  but 
with  the  provision  that  the  State  Civil  Service  Commission  should 
enforce  the  same.    This  failed  also  in  the  General  Assembly.- 

lAnnual  Reports  of  Civil  Service  Commission,  1905-06;  1906-07. 
^Second  Annual  Report  of  Civil  Service  Commission,  1906-07;  p.  16-17. 


CIVIL    SERVICE   LAWS.  913 

In  1909,  with  the  establishment  of  the  State  Board  of  Adminis- 
tration, forty-seven  new  positions  came  under  the  merit  system,  all 
employes  of  the  Board  of  Administration  and  of  the  Charities  Com- 
mission being  placed  under  its  provision.^  With  the  year  1910  (Jan.  1, 
1910)  there  were  2,559  persons  in  the  classified  service,  including  the 
employes  of  the  seventeen  charitable  institutions,  and  involving  an 
annual  pay  roll  of  $1,165,658.'' 

Extended  Law  of  ipii. 

From  the  time  of  its  organization  in  1905,  the  Civil  Service  Com- 
mission continually  advocated  an  extension  of  the  merit  system  to 
the  entire  State  service,  and  in  1910  made  a  detailed  study  of  that 
part  of  the  service  not  under  civil  service,  a  review  of  which  was 
incorporated  in  the  annual  report  of  the  Commission  for  1910.^  In 
this  same  year  both  leading  political  parties  declared  in  favor  of  civil 
service  extension,  and  a  public  policy  vote  on  the  proposition  resulted 
in  a  popular  vote  of  411,676  to  121,137  in  favor  of  a  further  applica- 
tion of  the  merit  system.*^  As  a  consequence  of  this  agitation,  an 
amending  Act  was  passed  by  the  47th  General  Assembly  (An  Act  to 
amend  Sections  3,  4,  6,  9,  10,  11,  12  and  14  of  an  Act  entitled  "An  Act 
to  regulate  the  Civil  Service  of  the  State  of  Illinois"  and  by  addmg  two 
new  sections  to  be  known  as  Sees.  3a  and  3  b),  whereby  the  provisions 
of  the  Civil  Service  Act  of  1905,  as  amended  in  1907,  were  extended 
to  apply  to  all  positions  and  places  of  employment  in  the  State  service 
with  certain  exemptions.  As  a  result  of  this  extension  about  2,000 
new  employees  were  brought  under  civil  service  rules,  or  80%  of  the 
entire  service  of  the  State,  making  a  total  of  4,479  employes  under 
civil  service  as  compared  with  2,559  during  the  previous  year.^ 

Following  is  a  table  showing  the  number  of  employees  under  civil 
service,  the  number  of  examinations  and  the  number  of  appointments, 
etc.,  for  each  year  since  1905-06,  together  with  a  brief  firibncial  state- 
ment as  to  the  expenses  of  the  Civil  Service  Commission  :^ 

WORK   OF    STATE   CIVIL    SERVICE   COMMISSION,    1905-13. 


No. 

No. 

No. 

No.  Appli- 

• No.  Ex- 

No. 

Appoint- 

Resig- 

No. Re- 

Year 

Employees 

cations 

amined 

Passed 

ments 

nations 

movals 

1905-06-"i 

2,168 

3,212 

1,625 

1,269 

1,468 

954 

295 

1907 

2,251 

3,193 

1,541 

1,155 

1,854 

1,299 

344 

1908 

2,343 

3,540 

1,799 

1,511 

1,335 

1,054 

307 

1909 

2,416 

3,419 

2,582 

2,110 

1,471 

1,292 

272 

1910 

2,559 

3,980 

2,336 

1,942 

1,860 

1,499 

299 

1911 

4,479 

4,685 

2,896 

2,262 

1,474 

1,724 

727 

1912 

4,838 

6,672 

3,811 

2,746 

2,213 

1,680 

433 

1913 

8,839 

4,390 

3,336 

2,624 

2,008 

359 

Total 

37,540 

20,980 

16,331 

14,299 

11,510 

3036 

aNov. 

1,  1905  to  Dec. 

,  21.  1906. 

^Fourth  Annual  Report  of  Civil  Service  Commission,  1909;  p.  8. 
*Fifth  Annual  Report  of  Civil  Service  Commission,  1910;  p.  15. 
^Fifth   Annual   Report  of  Civil   Service  Com.  of  111.;   p.  8-36. 
«Blue  Book  of  Illinois,   1911;  p.  358. 

'Sixth  Annual  Report  of  Civil  Service  Commission  of  Illinois. 
sAnnual  Reports  of  Civil  Service  Commission,  111.;  1905-1913. 


914  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

TABLE    SHOWING   EXPENDITURES   OF    COMMISSION,    1905-1911. 

Year  Expenditures  for  Administration  (not  including  salaries  of 

Commissioners) 

1905-06b  $12,945.72 

1907  8,036.39 

1908  10,195.98 

1909  9,984.76 

1910  11,445.67 

1911  16,172.67 

1912  17,818.98 

1913  25,791.21 


bAug.  3,  1905  to  Dec.  21,  1906. 

Not  only  was  the  Civil  Service  Act  extended  so  as  to  apply  to  a 
larger  number  of  employees  by  the  amendments  of  1911,  but  im- 
portant changes  were  made  in  the  administrative  provisions  of  the  Act. 
(1)  The  Civil  Service  Commission  was  required  to  certify  to  the 
appointing  officer  the  highest  name  on  the  eligible  list,  instead  of  the 
names  of  the  three  persons  receiving  the  highest  grade;  (2)  A  pro- 
bationary period  of  three  months  was  provided;  (3)  The  Commission 
was  given  a  greater  degree  of  supervision  over  removals,  while  the 
person  sought  to  be  removed  was  g-iven  a  hearing  before  the  Comrnis- 
sion  or  investigating  officer;  and  (4)  The  Commission  was  required 
to  keep  efficiency  records  and  to  standardize  the  employment  in  all 
grades  of  the  classified  service. 

Amendments  of  191 3- 

In  1913  the  48th  General  Assembly  amended  the  Civil  Service 
Code  so  as  to  allow  the  President  of  the  Commission  $1,000  per  year, 
in  addition  to  his  regular  salary  of  $3,000  as  a  member  of  the  Com- 
mission. The  maximum  salary  that  might  be  allowed  the  Secretary 
was  fixed  at  $4,000  and  the  minimum  at  $2,500,  whereas,  the  original 
law  provided  for  a  fixed  sum  of  $2,500  per  year. 

General  Features  of  the  Present  System. 

As  it  now  stands  the  Civil  Service  Law  of  Illinois  provides  that 
all  places  in  the  public  service  (with  certain  exemptions)  shall  be  filled 
only  after  an  examination  and  vests  the  administration  of  the  Act  in 
the  hands  of  a  Civil  Service  Commission. 

The  more  essential  provisions  of  the  Civil  Service  Code  are  that 
it  authorizes  the  appointment  by  the  Governor,  with  the  consent  of 
the  Senate,  of  a  Commission  of  three  members,  not  more  than  two  of 
whom  shall  be  members  of  the  same  political  party,  whose  duty  it  shall 
be  to  classify  and  grade  all  offices  and  places  of  employment  in  the 
State  service  with  specified  exemptions ;  that  the  Commission  shall  pro- 
vide for  the  examination  of  all  applicants  for  offices  or  places  so  classi- 
fied, and  shall  prepare  a  register  of  such  applicants  as  shall  have 
successfully  passed  the  examination  according  to  the  rules  of  the  Com- 
mission ;  that  when  appointments  are  to  be  made  the  Commission  shall 
certify  to  the  head  of  the  department  the  name  highest  on  the  list,  and 
the  head  of  the  department  shall  appoint  the  person  so  certified. 


CIVIL    SERVICE   LAWS. 


915 


The  Classified  Service. 

The  part  of  the  public  service  to  which  the  law  applies  is  known 
as  the  classified  service,  and  includes  all  offices  and  places  of  employ- 
ment in  the  state  service  (including  the  chief  examiner,  and  all  em- 
ployes of  the  Civil  Service  Commission  with  the  exception  of  special 
examiners)  except: 

1.  All  elective  officers. 

2.  All  officers,  boards  and  commissions  appointed  by  the  Governor  with 
the  consent  of  the  Senate. 

3.  All  officers  and  employes  of  the  General  Assembly  or  of  either  house. 

4.  Judges  and  officers  appointed  by  judges  in  any  court,  clerks  of  courts; 
notaries  public. 

5.  Persons  employed  in  the  military  service  of  the  State. 

6.  Teaching  and  scientific  staff  of  the  University  of  Illinois  and  Normal 
Schools. 

7.  Employes  at  Executive  Mansion. 

8.  All  regular  and  special  assistant  Attorney-Generals,  including  the  in- 
heritance tax  attorneys  of  Cook  County  and  all  special  attorneys  em- 
ployed by  the  Attorney-General  or  by  any  Board,  Superintendent  or 
officer. 

9.  Building  and  loan  and  bank  examiners. 

10.  Superintendents,  wardens  and  chaplains  of  the  State  Charitable,  Cor- 
rectional and  Penal  Institutions. 

11.  One  private  secretary  or  stenographer  to  each  of  the  elective  officers, 
and  in  the  offices  of  the  President  of  the  University  of  Illinois  and  the 
Normal  Schools. 

12.  All  clerks  and  watchmen  in  the  respective  offices  of  the  Governor,  Lieu- 
tenant-Governor, Secretary  of  State,  State  Treasurer,  Auditor  of  Pub- 
lic Accounts,  Superintendent  of  Public  Instruction. 

13.  In  the  University  of  Illinois  and  the  Normal  Schools,  students  may  be 
employed  without  examination  or  certification,  and  a  private  secretary 
or  stenographer  in  the  offices  of  the  Dean  of  Men  and  Dean  of  Women 
respectively  is  not  included. 

The  exemption  of  persons  appointed  by  the  Governor  with  the 
consent  of  the  Senate  has  been  construed  by  the  Attorney-General  to 
exempt  a  number  of  positions  as  to  which  appointment  is  by  law  vested 
in  the  Governor  without  any  express  requirement  of  the  consent  of  the 
Senate  to  such  appointment. 

The  Commission  is  directed  to  classify  all  offices  and  places  of 
employment  with  the  above  exceptions ;  the  offices  and  places  so  classi- 
fied constitute  the  classified  service,  and  no  appointment  may  be  made 
thereto  save  under  the  provisions  of  the  law. 

Distinctive  Features  of  the  Illinois  Law. 

The  most  distinctive  features  of  the  Illinois  Civil  Service  Law  are : 
(1)  The  rigidity  of  the  law  so  far  as  exemptions  are  concerned;  (2) 
the  restrictions  on  removals;  (3)  the  certification  of  only  the  highest 
name  on  the  eligible  list  instead  of  the  names  of  the  three  persons 
standing  highest;  and  (4)  the  requirement  that  efficiency  records  be 
kept,  and  the  service  standardized. 

(1)  Rigidity  of  Law.  One  special  feature  of  the  Illinois  law  is 
its  rigidity  so  far  as  exemptions  are  concerned.  Those  offices  and 
places  of  employment  which  are  exempt,  are  specifically  stated  in  the 
law,  and  the  Commission  has  no  power  to  make  other  exceptions  from 
the  competitive  classified  service. 


916  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

(2)  Certification  of  highest  name  on  eligible  list.  According"  to 
the  provisions  of  the  original  law  of  1905,  the  three  highest  names  on 
the  eligible  list  were  certified  to  the  appointing  officer  in  case  pf  a 
vacancy  to  be  filled  by  original  examination.  According  to  the  pro- 
visions of  the  law  as  amended  in  1911,  and  as  it  now  stands,  only  the 
highest  name  on  an  eligible  list  is  certified  to  the  appointing  officer. 

(3)  Probationary  Period.  •  As  originally  passed,  the  Civil  Service 
Act  provided  that  there  should  be  a  probationary  period  of  six  months 
before  any  appointment  in  the  Civil  Service  should  become  permanent. 
Later  by  an  amendment  of  1907,  this  probationary  period  was  removed, 
because  many  had  the  mistaken  idea  that  it  meant  a  period  of  uncertain 
employment  without  pay.  When  in  1911  the  law  was  so  amended  that 
only  the  highest  name  on  the  eligible  list  should  be  certified,  it  was 
thought  best  to  provide  for  a  probationary  period  of  three  months. 
The  Civil  Service  Law,  therefore,  in  its  present  form,  requires  a  term 
of  three  months  probation  before  an  appointment  becomes  final,  during 
which  period  the  appointing  officer  may  discharge  an  appointee. 

(4)  Restriction  of  Removals.  Another  special  feature  of  the 
Illinois  Civil  Service  Law  is  the  provision  giving  the  Commission  power 
to  investigate  all  charges  in  cases  of  removal,  and  granting  to  the  dis- 
charged person  in  all  cases,  the  right  to  be  heard  before  the  Commis- 
sion or  some  authority  appointed  thereby.  This  work  is  carried  on 
larg;ely  by  local  investigating  officers  selected  by  the  Commission,  of 
which  there  were  twenty  in  1911.  Not  only  must  a  hearing  by  the 
Commission  be  had  in  all  cases  of  charges  filed  against  an  appointee  in 
the  classified  service,  but  the  Commission  may  investigate  suspensions, 
and  in  case  of  disapproval  may  restore  the  pay  lost  by  the  person  so 
suspended. 

In  the  original  law  of  1905,  the  officer  in  charge  of  any  institution 
or  office  was  given  a  rather  wide  power  to  make  removals,  and  the 
Commission  had  little  control  over  the  same.  No  removal  was  to  be 
made  except  for  cause  and  for  reasons  given  in  writing  to  the  Com- 
mission, and  the  person  to  be  removed  was  to  be  given  notice,  furnished 
with  a  copy  of  such  reasons,  and  allowed  a  reasonable  time  to  answer 
the  same.  What  should  constitute  just  cause  was  defined,  but  nothing 
in  the  Act  was  to  be  construed  as  requiring  the  examination  of  wit- 
nesses, a  trial  or  hearing.  In  1907,  the  law  was  amended  so  as  to  give 
the  Commission  power  to  investigate  removals  if  it  so  desired.  All 
orders  for  removals  and  suspensions  were  required  to  be  filed  with 
the  Commission,  and  no  removal  or  reduction  of  any  one  in  the  classi- 
fied service  was  effective  if  disapproved  by  the  Commission.  In  1911 
the  restriction  on  removals  was  further  extended,  and  the  law  now 
requires,  that  no  one  in  the  classified  service  shall  be  discharged,  ex- 
cept for  cause  and  after  an  opportunity  to  be  heard  in  his  own  defense, 
while  all  charges  shall  be  investigated  before  the  Civil  Service  Com- 
mission, and  the  findings  certified  to  the  appointing  officer.  The  ap- 
pointing officer,  however,  is  allowed  to  make  suspensions  for  a  reason- 
able time,  not  to  exceed  30  days,  but  the  Commission  is  given  power 
to  investigate  all  suspensions  and  disapprove  of  the  same.     It  should 


CIVIL   SERVICE   LAWS. 


917 


be  noted,  however,  that  such  charges  are  not  required  in  the  case  of 
laborers,  or  persons  having  the  custody  of  funds  for  the  safe  keeping 
of  which  another  has  given  bond. 

(5)  Efficiency  Records—Standardization  of  Employment.  The 
responsibiUty  of  the  Commission  does  not  end  with  the  certification  of 
an  ehgible,  but  it  must  follow  him  into  the  service  and  verify  or  with- 
draw the  classification.  The  Commission  is  first  given  the  power  to 
investigate  the  conditions  of  the  classified  service  in  regard  to  efficiency, 
and  is  authorized  to  make  recommendations  for  improving  the  service 
to  the  officer  in  charge,  and  in  case  such  are  not  carried  out  to  report 
the  fact  to  the  Governor.  The  Commission  is  also  authorized  to 
standardize  the  employment  in  all  grades  of  the  public  service.  The 
48th  General  Assembly  appropriated  for  the  biennial  period  of  1913-15, 
the  sum  of  $5,000  per  year,  for  carrying  on  the  investigation  of  effi- 
ciency in  the  classified  service. 

(6)  Means  of  Enforcement.  The  Commission  is  given  authority 
to  make  rules  in  pursuance  of  the  provisions  of  the  Civil  Service  Law, 
and  may  investigate  the  enforcement  of  the  Act  and  of  its  rules,  the 
conduct  of  the  appointees  in  the  classified  service,  and  the  method  of 
administration  therein,  and  may  investigate  the  nature,  tenure  and 
compensation  of  all  places  in  the  Civil  Service  of  the  State.  The 
Commission  is  vested  with  quasi-judicial  power  in  making  investiga- 
tions and  enforcing  its  rules;  frauds  in  examinations  are  made  mis- 
demeanors; political  influences  are  prohibited;  while  the  violation  of 
the  provisions  of  the  Civil  Service  Act  and  the  rules  made  in  pur- 
suance thereof,  is  made  a  misdemeanor  and  punishable  by  fine  or  im- 
prisonment. The  Auditor  of  Public  Accounts  is  forbidden  to  issue 
warrants  for  the  payment  of  any  one  in  the  classified  service  except 
upon  a  pay  roll  certified  by  the  Civil  Service  Commission. 

Validity  of  Law. 

In  1911,  following  the  amendment  of  the  Civil  Service  Act  so  as 
to  apply  its  provisions  to  all  state  departments,  the  Secretary  of  State 
and  State  Treasurer  claimed  that  certain  officials  in  their  offices,  such 
as  the  Chief  Clerk,  Chief  Corporation  Clerk,  etc.,  were  exempted  from 
the  classified  service  under  the  provision  that  "all  watchmen  and  clerks" 
in  the  respective  offices  of  the  State  Treasurer  and  Secretary  of  State 
should  not  be  included  in  the  classified  service.  Acting  under  its 
authority  to  classify  all  positions  (with  certain  exceptions)  according 
to  duties  and  not  title,  the  Commission  determined  that  the  Chief 
Clerks,  Corporation  Clerks,  Inheritance  Tax  Attorneys,  etc.,  in  the 
offices  of  the  Secretary  of  State  and  State  Treasurer  were  not  "clerks" 
within  the  meaning  of  the  law,  and  notified  the  State  Auditor  that  such 
positions  were  in  the  classified  service.  The  matter  was  finally  brought 
into  the  courts  for  adjudication,  the  State  Treasurer  and  Secretary  of 
State  contesting  the  decision  of  the  Civil  Service  Commission,  and 
refusing  to  send  the  i)ay  rolls  of  their  offices  to  the  Commission  for  cer- 
tification, while  the  Auditor  of  Public  Accounts,  in  accordance  with 
the  provisions  of  the  law,  refused  to  issue  warrants  for  the  payment 
of  the  employes  not  certified.* 

•Sixth  Annual  Report  of  Civil  Service  Commission,  Illinois,  1911;  p.  12-13. 


918  EFFICIENCY  AND   ECONOMY  COMMITTEE. 

The  validity  of  the  Civil  Service  Act  as  applying  to  certain  em- 
ployes in  the  offices  of  the  elective  officials  of  the  State  w^as  attacked 
in  the  case  of  "People  vs.  McCullough."^°  This  was  a  suit  of  man- 
damus to  force  the  Auditor  to  issue  to  the  relators,  who  were  employes 
in  the  office  of  tlie  Secretary  of  State,  warrants  on  the  State  Treas- 
urer for  amounts  due  them,  without  the  certification  of  the  Civil 
Service  Commission  as  required  by  law.  The  relators  contended  that 
the  certificate  of  the  Civil  Service  Commission  was  unnecessary  for 
the  reason  that  the  Civil  Service  Act  as  applied  to  officers  whose 
offices  were  created  by  the  Constitution  was  null  and  void :  first,  be- 
cause it  violated  Article  III  of  the  Constitution  of  Illinois  which 
declares  that  the  powers  of  government  are  divided  into  three  distinct 
departments — the  legislative,  executive  and  judicial — and  prohibits  any 
department  from  exercising  any  power  belonging  to  either  of  the 
others.  In  regard  to  this  the  Supreme  Court  of  Illinois  declared  that 
the  Civil  Service  Act  as  applied  to  the  office  of  the  Secretary  of  State 
was  not  in  violation  of  Article  III,  because  the  appointment,  whether 
made  by  the  Secretary  of  State  or  by  the  Civil  Service  Commission, 
was  made  by  the  executive  department.  In  the  second  place,  it  was 
contended  that  the  Civil  Service  Law  in  limiting  the  power  of  the 
Secretary  of  State  to  make  appointments  was  in  violation  of  Section 
I  of  Article  V  of  the  Illinois  Constitution,  which  provides  that  the 
executive  department  shall  consist  of  a  Governor,  Lieutenant-Gov- 
ernor, Secretary  of  State,  Auditor  of  Public  Accounts,  etc.,  and  that 
the  Secretary  of  State,  together  with  other  executive  state  officers 
shall  perform  such  duties  as  may  be  prescribed  by  law.  To  this  con- 
tention, the  court  replied  that  the  Civil  Service  Act  applied  to  the  posi- 
tions of  Assistant  Chief  Clerk,  Corporation  Clerk,  and  Book-keeper  in 
the  office  of  the  Secretary  of  State  and  was  not  an  unlawful  interfer- 
ence by  the  legislative  department  with  the  constitutional  powers  and 
duties  of  such  office. 

As  to  the  principle  upon  which  the  Act  is  based,  the  Supreme 
Court  declared  that  the  underlying  idea  of  the  merit  system  is  that 
"positions  in  the  public  service  are  not  the  personal  or  political  per- 
quisites of  any  officer  or  party  and  should  not  be  divided,  after  a 
political  campaign,  as  so  much  loot  of  actual  warfare,  but  that  com- 
petency, merit  and  fitness  ought  to  be  the  standard  for  all  appoint- 
ments or  promotions  in  the  public  service."  The  effect  of  the  Civil 
Service  Law,  said  the  Court,  is  "to  take  away  the  uncontrolled  discre- 
tion of  the  officers,  and  with  the  object  of  increasing  the  efficiency  of 
the  public  service,  provides  another  method  for  the  selection  of  per- 
sons in  that  service." 


oThe  People  vs.  McCullough,  254  111.;  9. 


II.       CIVIL  SERVICE   LAWS   OF  THE     UNITED    STATES     AND   OTHER   STATES. 

History  and  Development. 

Civil  Service  legislation  on  a  comprehensive  scale  had  its  begin- 
ning in  the  United  States  Civil  Service  Act  of  1883,  which  was  closely 
followed  by  the  New  York  Act  of  the  same  year,  and  by  the  Massa- 
chusetts Statute  of  1884.  Fifteen  years  later,  or  in  1899,  New  York 
revised  and  reenacted  her  Civil  Service  Code ;  in  1905  the  two  middle 
western  states  of  Illinois  and  Wisconsin  adopted  Civil  Service  Laws; 
in  1907  Colorado  established  the  merit  system  for  appointments  in  the 
penal  and  charitable  institutions ;  New  Jersey  enacted  a  Civil  Service 
Law  in  1908;  Illinois  in  1911  extended  the  scope  of  its  law  to  the 
whole  state  service ;  and  Colorado  took  similar  action  by  initiative  and 
referendum  during  1912,  while  in  1913  Connecticut,  California  and 
Ohio  enacted  Civil  Service  Statutes. 

Four  of  the  nine  State  Civil  Service  Laws  apply  to  cities  and 
counties  and  other  local  divisions  of  the  State,  while  the  merit  system 
has  been  established  in  various  counties  and  cities  throughout  the 
United  States  by  special  law  and  charter  provisions.  At  the  present 
time,  therefore,  not  far  from  600,000,  or  about  two-thirds  of  the  total 
number  of  public  employes  in  the  United  States,  National,  State  and 
local  are  withdrawn  .from  the  spoils  system  and  appointed  upon  a 
merit  basis."  Two  of  the  nine  states  have  assured  the  permamency 
of  their  Civil  Service  laws  by  providing  for  their  establishment  in  the 
State  Constitution — namely  New  York  and  Ohio;  while  Colorado  ac- 
complished the  same  purpose  by  providing  through  initiative  and  refer- 
endum for  a  continuous  appropriation  which  can  neither  be  ignored  or 
decreased  by  the  legislature. 

All  of  the  State  Civil  Service  laws  are  more.or  less  similar  in  their 
general  provisions,  and  follow  the  essential  principles  of  the  United 
States  Acts  and  rules.  The  early  statutes — the  United  States  law  of 
1883  and  the  New  York  law  of  the  same  year  were  executive  in  char- 
acter, in  that  the  administration  of  the  system,  the  classification  of 
positions  to  be  filled,  etc.,  were  left  to  the  chief  executive,  and  the  Civil 
Service  Commission  was  merely  to  assist  him  as  he  might  request. 
Massachusetts,  however,  did  not  follow  this  plan,  but  placed  the  con- 
trol of  her  system  in  the  hands  of  the  Civil  Service  Commission,  which 
was  made  more  or  less  independent  of  the  Governor  in  administering 
the  provisions  of  the  Civil  Service  law.  The  Massachusetts  plan  has 
been  followed  in  all  of  the  laws  subsequently  enacted,  so  that  at  the 
present  time,  the  United  States  Government  is  alone  in  maintaining  a 
Civil  Service  system  which  is  more  or  less  under  the  direction  of  the 
Chief  executive. 

"29tli  Annual  Report  of  United  States  Civil  Service  Commission;  1911-12;  p.  38. 


920  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

The  United  States  Act,  the  New  York  Law  of  1883,  and  the 
Massachusetts  Law  of  the  following  year,  were  rather  brief,  and  left 
the  general  details  of  the  system  to  be  worked  out  by  the  Commission, 
acting  under  general  statutory  directions.  With  the  enactment  of  the 
New  York  Law  of  1889,  however,  there  begins  a  tendency  to  specify 
rather  fully  the  classification  of  the  service,  the  method  of  examination, 
appointment,  etc.,  and  to  leave  very  little  to  the  discretion  of  the  Civil 
Service  Board.  Each  new  Act  has  embodied  not  only  the  essential 
statutory  provisions,  but  also  the  most  important  rules  established  in 
the  earlier  systems,  and  new  features  have  been  added  from  time  to 
time  so  that  the  recent  Civil  Service  laws  of  California  and  Ohio 
present  a  marked  contrast  in  length  and  completeness  of  detail,  as 
compared  with  the  laws  of  twenty-five  years  ago. 

Scope  of  State  Laws. 

The  State  Civil  Service  Laws  of  the  United  States  may  be  divided 
into  two  groups  on  the  basis  of  their  scope :  The  first  group  con- 
taining those  acts  \vhich  apply  only  to  the  state  services,  and  the 
second  comprising  those  which  extend  to  both  the  state  and  local  serv- 
ices. The  laws  applying  to  both  state  and  local  services  may  in  turn 
be  sub-divided  into  those  which  centralize  the  administration  of  the 
entire  system  in  the  hands  of  a  single  Commission,  and  those  which 
divide  the  control  between  State  and  Local  Civil  Service  Boards.  The 
Civil  Service  Laws  of  Wisconsin,  Illinois,  California  and  Connecticut 
cover  only  the  State  service,  and  comprise  the  first  group ;  while  the 
Colorado  law,  which  applies  directly  to  positions  in  the  employ  of  the 
State  with  the  vague  statement  that  its  provisions  may  be  adopted  by 
any  city  of  the  second  or  third  class,  belongs  more  properly  in  this 
group  than  in  the  second  group  of  State  laws.  The  Civil  Service  laws 
of  New  York,  New  Jersey,  Massachusetts  and  Ohio,  on  the  other 
hand,  include  not  only  the  State  service,  but  positions  in  cities  and 
counties  as  well.  It  should  be  noted  that  in  the  four  states  first  men- 
tioned. Civil  Service  Commissions  had  already  been  established  in  the 
larger  cities,  and  they  were  left  to  continue  their  work  without  change 
upon  the  enactment  of  the  state  law. 

Turning  to  the  state-wide  laws  of  New  York,  Massachusetts,  New 
Jersey  and  Ohio,  one  notices  two  distinct  types  of  administration.  In 
New  York  the  law  applies  directly  to  the  state,  counties,  cities  and 
villages,  with  the  State  Civil  Service  Board  in  charge  of  the  system  in 
the  state,  counties  and  villages;  In  each  of  the  forty-seven  cities 
the  law  is  administered  by  a  municipal  Civil  Service  Commission  ap- 
pointed by  the  Mayor,  but  subject  to  a  slight  supervisory  control  of 
the  State  Board,  which  has  power  to  disapprove  of  and  rescind  any 
rule  established  by  the  municipal  commissioners,  may  remove  a  city 
civil  service  commissioner  under  certain  conditions,  and  may,  if  the 
local  authorities  fail  to  act,  provide  for  the  appointment  of  commis- 
sioners and  the  enactment  of  rules.  The  city  commission  is  also 
required  to  file  a  copy  of  the  roster  of  its  classified  service  with  the 
State  Board,  and  must  report  to  the  latter  upon  request.  In  Ohio — 
the  most  recent  state  to  adopt  a  Civil  Service  Act — practically  the  same 
plan  of  administration  is   followed.     The  law  applies  directly  to  the 


CIVIL    SERVICE   LAWS.  921 

State  service  and  to  all  counties,  cities  and  city  school  districts,  with 
the  State  Board  administering  the  law  in  the  state  and  counties,  and  a 
municipal  commission  having  control  of  the  system  in  each  city  and 
city  school  district.  The  supervisory  authority  of  the  State  Commis- 
sion over  the  local  boards  is  less  than  in  New  York,  however,  as  the 
rules  do  not  have  to  be  approved  by  the  former  body,  and  the  State 
Commission  has  power  only  to  recommend  the  removal  of  a  local 
commissioner. 

In  the  States  of  Massachusetts  and  New  Jersey  there  is  a  further 
variation  in  scope,  and  a  difiference  in  the  administration  of  the  Civil 
Service  system.  The  Massachusetts  law  applies  directly  to  the  state 
service  and  to  all  cities,  and  may  be  adopted  in  any  town  of  over 
12,000,  but  the  work  is  centralized  and  the  single  state  commission  has 
charge  of  the  whole  system. 

In  addition  to  its  general  power  to  provide  for  examinations  and 
appointment  to  subordinate  municipal  posts,  the  State  Commission  of 
Massachusetts  has  been  given  the  extraordinary  authority  to  approve 
the  appointment  of  heads  of  departments  and  members  of  municipal 
boards  made  by  the  Mayor  of  Boston.  In  selecting  heads  of  depart- 
ments and  members  of  municipal  boards,  the  mayor  is  required  to 
sign  a  certificate  stating  that  the  appointee  is  a  recognized  expert  and 
fitted  by  education,  training  and  experience  to  perform  the  duties  of 
his  office.  All  such  appointments  must  be  made  without  regard  to 
political  affiliations  or  residence,  and  the  certificate  above  mentioned 
must  be  filed  with  the  State  Civil  Service  Commission,  which  proceeds 
immediately  to  inquire  into  the  qualifications  of  the  nominee.  If  the 
State  Commission  concludes  that  the  appointee  is  a  recognized  expert 
and  competent,  a  certificate  to  this  effect  is  issued  and  filed  with  the 
City  Clerk,  and  his  appointment  is  thereby  approved,  but  if  the  Com- 
mission does  not  file  the  required  certificate  within  thirty  days  the 
appointment  becomes  void.  If  charges  of  dishonesty  or  crime  are 
filed  against  a  nominee,  the  Commission  is  required  to  notify  him  in 
writing  and  grant  him  a  public  hearing.  In  case  a  vacancy  occurs  in 
the  position  of  a  head  of  a  department  or  commission,  the  mayor  is 
authorized  to  direct  some  other  public  official  to  discharge  the  duties 
temporarily,  until  a  person  may  be  appointed  according  to  the  pro- 
visions of  the  law. 

The  New  Jersey  system  is  similar  to  that  of  Massachusetts,  but 
embodies  an  entirely  new  feature  in  its  "home  rule"  provision.  The 
law  applies  directly  to  the  state,  but  takes  effect  only  in  such  cities, 
counties  and  towns  and  other  local  divisions  as  may  adopt  the  same 
by  popular  vote.  But  as  in  Massachusetts,  a  single  State  Commission 
has  complete  control  over  the  administration  of  the  state  and  local 
civil  service. 

General  Character  of  State  Laws. 

The  purpose  of  each  of  the  State  Civil  Service  laws  is  the  same — 
the  appointment  of  subordinate  public  employees  on  the  basis  of  merit 
and  competition,  and  without  reference  to  politics.  Also  the  organiza- 
tion of  the  several  Commissions  and  their  powers  and  duties;  the 
methods  of  examination  and  appointment  to  the  classified  service;  pro- 


922  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

bation;  temporary  appointments;  the  regulation  of  promotions  and 
transfers;  the  certification  of  pay  rolls;  the  various  penalties  and  pro- 
hibitions to  present  appointments  contrary  to  law,  and  the  provisions  in 
regard  to  corrupt  practices  are  very  similar  in  the  several  laws.  The 
principal  variations  in  state  civil  service  legislation  have  been  in  regard 
to:  (1)  the  scope  of  the  laws;  (2)  the  classification  of  the  service,  and 
the  power  of  the  Commission  to  declare  positions  exeijipt  or  non-com- 
petitive;  and  (3)  the  regulation  of  removals  from  the  classified 
service.  The  later  laws  contain  features  of  more  or  less  interest  with 
respect  to  the  keeping  of  efficiency  records  and  the  standardization  of 
the  service. 

(1)  On  the  basis  of  scope,  the  State  Civil  Service  Acts  may  be 
divided  into  two  groups :  first,  those  of  Wisconsin,  Illinois,  Colorado, 
California  and  Connecticut  which  apply  only  to  positions  in  the  state 
service;  and  secondly  those  of  New  York,  Massachusetts,  New  Jersey 
and  Ohio  which  apply  to  cities,  counties  (except  Massachusetts)  and 
other  local  divisions  as  well  as  to  the  state  service.  The  New  Jersey 
law  of  1908  is  doubtless  the  most  efficient  of  the  Civil  Service  laws 
from  the  standpoint  of  scope  and  the  centralization  of  the  administra- 
tion and  in  all  other  respects  save  its  elasticity  in  permitting  exemp- 
tions from  examination.  It  extends  directly  to  the  state  service,  and 
contains  a  "home  rule"  feature,  which  makes  possible  its  adoption  by 
any  city,  county  or  school  district;  but  the  control  of  the  entire  sys- 
tem is  given  to  the  State  Board.  Such  a  plan  involves  not  only  a 
concentration  of  administration,  but  has  a  decided  advantage  in  elim- 
inating the  influence  of  local  politics  over  the  personnel  of  the  Com- 
mission, and  in  producing  economy  by  doing  away  with  an  unnecessary 
duplication  of  administrative  machinery.  The  "horrte  rule"  feature 
is  also  more  in  keeping  with  the  modern  idea  as  to  the  proper  relation 
between  state  and  local  government. 

In  connection  with  the  scope  of  civil  service  laws,  especial  atten- 
tion should  be  called  to  the  fact  that  in  Wisconsin  legislative  employees 
are  under  the  civil  service  rules. 

(2)  Turning  to  the  classification  of  positions  under  civil  service, 
one  finds  a  difference  of  practice.  The  civil  service  laws  divide  all 
of  the  positions  in  the  public  service  into  the  unclassified  and  the  classi- 
fied, the  former  containing  those  places  which  are  not  under  the  civil 
ser\dce  rules,  and  the  latter  such  as  are  filled  according  to  the  pro- 
visions of  the  civil  service  law.  Under  the  New  York,  Wisconsin,  Illi- 
nois, Colorado,  New  Jersey  and  Ohio  acts,  the  classified  service  in- 
cludes all  positions  in  the  public  service,  except  those  which  are  spe- 
cifically mentioned  in  the  statute  as  being  unclassified.  In  Massachu- 
setts on  the  other  hand,  the  Civil  Service  Board  exercises  considerable 
discretion  in  determining  what  positions  shall  be  classified,  although  it 
has  extended  the  rules  to  practically  all  important  places,  while  in 
California,  the  Commission  may  by  unanimous  resolution  place  any 
position  in  the  unclassified  service. 

In  general,  appointments  to  positions  in  the  classified  service  are 
made  from  among  the  three  persons  graded  highest  as  the  result  of  a 
competitive  examination,  or  by  the  appointment  of  the  highest  person 


CIVIL    SERVICE   LAWS. 


923 


only,  as  in  Illinois  and  Colorado.  There  are  certain  places,  however, 
of  a  technical  or  confidential  character  for  which  competition  has  not 
been  regarded  as  practicable,  and  in  most  of  the  laws  the  Civil  Service 
Board  has  been  given  considerable  power  to  exempt  a  position  from 
examination  or  provide  for  its  filling  upon  a  non-competitive  test.- 
In  this  respect  the  laws  of  New  York,  Wisconsin  and  New  Jersey  are 
the  most  liberal,  as  they  divide  the  service  into  exempt,  competitive  and 
non-competitive  classes,  and  give  the  Commissioners  authority  to 
exempt  additional  positions  from  examination,  or  declare  them  non- 
competitive, on  the  grounds  that  competition  is  impracticable.  _  In  New 
Jersey  and  Wisconsin,  however,  the  Commission  must  provide  for  a 
hearing  in  making  such  additional  exemptions.  In  California  the 
Board  may  exempt  any  position  from  the  classified  service  by  unani- 
mous resolution;  and  the  Colorado,  Massachusetts  and  Ohio  laws, 
while  more  strict  in  regard  to  exemptions  do  not  prohibit  the  filling  of 
positions  without  competition.  Besides  such  general  exemptions,  the 
laws  of  New  York,  Wisconsin,  Massachusetts,  Colorado  and  Ohio  also 
permit  the  Civil  Service  Commission  to  suspend  the  rules  in  the  case 
of  a  designated  person,  so  as  to  allow  his  appointment  without  exam- 
ination. The  Illinois  statute,  on  the  other  hand,  is  very  rigid  so  far  as 
exemptions  are  concerned;  all  positions  in  the  classified  service  without 
exception,  are  filled  after  competitive  examinations,  and  the  Comrnis- 
sion  has  no  power  to  classify  a  place  as  exempt  or  non-competitive. 
In  this  respect  the  Illinois  plan  presents  certain  advantages  over  the 
New  York  system,  where  the  number  of  exempted  positions_  is  dis- 
proportionate to  the  total  number  of  offices  in  the  classified  service,  and 
where  the  elasticity  of  the  scheme  makes  political  raids  upon  the  civil 
service  possible  with  every  change  of  administration.  On  the  other 
hand,  the  rigidity  of  the  Illinois  law  has  disadvantages  as  there  are 
some  places  of  a  highly  technical  character  which  can  best  be  filled  after 
a  proper  non-competitive  test. 

(3)  In  regard  to  removals  from  the  classified  service,  we  find 
that  all  of  the  laws  in  some  form  or  other,  contain  a  prohibition  of 
dismissals  for  political  reasons,  but  the  similarity  ends  here ;  and  there 
is  a  difference  of  practice  in  restricting  the  removal  power  of  appoint- 
ing officers.  The  early  laws  did  not  contain  any  limitations  except  that 
an  employee  was  not  to  be  dismissed  for  political  reasons,  the  theory 
being  that  if  the  method  of  appointment  was  carefully  guarded  there 
was  no  need  to  restrict  the  discretionary  power  of  the  appointing  of- 
ficer in  discharging  a  subordinate.  But  recently  the  tendency  has 
been  in  the  opposite  direction,  and  today  the  New  York  law  is  the  only 
one  without  a  positive  restriction  upon  removals.  In  Wisconsin,  New 
Jersey,  Colorado  and  Ohio,  the  only  limitations  are  that  an  employee 
in  the  classified  service  shall  not  be  removed  except  for  cause,  that  he 
shall  be  furnished  with  a  written  notice  and  given  an  opportunity  to 
answer  the  same,  and  that  a  copy  of  the  notice,  etc.,  must  be  filed  with 
the  Civil  Service  Commission.  In  these  four  states  the  appointing 
power  is  given  rather  wide  discretion  to  remove  a  subordinate,  so  long 
as  hd  does  not  make  the  dismissal  for  political  reasons  and  follows  the 
general  procedure  outlined  in  the  statute.     In  California,  removals  are 


924  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

not  to  be  made  except  for  cause  and  after  a  hearing,  but  the  Civil 
Service  Board  is  given  concurrent  power  with  the  appointing  officer 
to  discharge  an  employe,  and  the  decision  of  either  against  the  em- 
ploye is  made  final.  The  California  system  does  not  limit  the  dis- 
cretionary power  of  the  appointing  officer  to  dismiss  an  incompetent 
person  any  further  than  do  the  Wisconsin  and  New  Jersey  plans,  but 
from  the  standpoint  of  discipline,  it  involves  a  division  of  responsibil- 
ity. Turning  to  the  laws  of  Massachusetts  and  Illinois  one  finds  a  still 
greater  restriction  upon  removals.  Under  the  Massachusetts  Act,  no 
classified  employe  is  to  be  removed  except  for  cause  and  after  a  hear- 
ing, but  the  decision  of  the  removing  officer  is  not  final  and  is  subject 
to  review  by  the  courts.  In  Illinois,  the  discretionary  power  of  the 
appointing  officer  is  almost  completely  taken  away  and  the  sole  re- 
sponsibility for  the  discharge  of  an  employee  rests  with  the  Civil 
Service  Commission,  as  a  hearing  is  granted  before  the  Commission  in 
all  cases,  and  the  decision  of  the  Board  is  made  binding  upon  the 
superior  officer.  If  it  is  necessary  to  provide  for  an  appeal  from  the 
action  of  the  appointing  officer,  the  Illinois  practice  is  much  better 
than  that  of  Massachusetts,  for  the  question  of  removal  is  an  admin- 
istrative one,  and  can  be  more  satisfactorily  decided  by  a  Board  than 
by  the  courts. 

Provisions  in  the  several  laws  of  more  or  less  interest  from  an 
administrative  standpoint  are,  briefly:  those  of  the  Illinois  and  Ohio 
laws  for  the  appointment  of  the  Chief  Examiner  upon  competitive 
examination ;  the  division  of  the  state  into  civil  service  districts  in  Ohio, 
with  an  assistant  in  charge  of  each ;  the  special  authorization  of  the 
New  Jersey  Board  to  bring  such  suits  as  may  be  necessary  to  secure 
the  enforcement  of  the  law  and  rules,  and  the  duty  of  the  Commis- 
sion in  Ohio  to  report  to  the  Governor,  or  the  Mayor,  as  the  case  may 
be,  any  abuse  of  power  by  a  public  officer  in  making  appointments  and 
removals,  with  provision  that  such  abuse  shall  be  sufficient  cause  for 
the  dismissal  of  the  official. 

One  of  the  problems  of  a  Civil  Service  Commission  is  to  induce 
competent  persons  to  compete  for  positions  in  the  classified  service,  and 
to  provide  prospective  employes  with  information  as  to  how  they  may 
enter  such  service.  Most  of  the  laws  prescribe  that  the  rules  of  the 
Commission  shall  be  published  for  distribution,  the  acts  of  New  York 
and  Illinois  being  most  complete  in  this  respect.  The  Illinois  statute 
provides  that  notice  of  the  places  where  copies  of  the  rules  may  be  ob- 
tained shall  be  given  in  all  the  newspapers  of  the  seven  largest  cities, 
and  that  copies  of  the  rules  shall  be  sent  to  each  County  Clerk  to  be 
kept  for  public  reference.  In  New  York,  the  Commission  is  author- 
ized to  publish  and  sell,  at  a  nominal  price,  a  pamphlet  setting  forth 
such  information  as  may  be  of  assistance  in  preparing  a  candidate  for 
competition  and  illustrating  the  method  of  examination.  A  problem 
of  similar  character  is  to  provide  for  the  holding  of  examinations  at 
such  times  and  in  such  places  as  will  be  most  convenient  for  the  largest 
number  of  applicants.  Most  of  the  laws  leave  this  matter  to  the  Civil 
Service  Board,  but  in  New  York  it  is  provided  that  examinations  shall 
be  held  at  least  once  a  year  in  twenty-nine  designated  centers ;  and  in 


CIVIL    SERVICE   LAWS.  925 

Wisconsin  they  must  be  held  simultaneously  in  each  county.  The  Illi- 
nois and  New  Jersey  laws  further  make  it  the  duty  of  the  Commission 
to  give  notice  of  examinations  in  the  newspapers  of  general  circula- 
tion, and  to  provide  for  the  posting  of  such  notices  by  the  County 
Clerk  in  each  county. 

Other  special  features  in  State  Civil  Service  legislation  which  need 
further  mention  are:  (1)  the  provisions  of  the  New  York  and  Ohio 
laws  that  the  rules  of  the  Commission  shall  have  the  force  of  the  law; 
(2)  the  provision  in  the  Wisconsin  Act  that  examinations  of  a  tech- 
nical and  special  character  be  prepared  by  the  incumbent  of  the  office, 
by  the  head  of  the  department,  or  by  some  one  having  experience  and 
knowledge  in  sipiilar  employment;  (3)  the  provision  of  the  California 
law  that  the  appointing  officer  may  fill  any  position  in  the  unclassified 
service  according  to  civil  service  rules  if  he  so  desires;  (4)  the  certi- 
fication of  only  the  highest  name  on  the  eligible  list  in  Illinois  and 
Colorado;  (5)  the  prohibition  in  the  California  Act  of  political  assess- 
ments from  persons  on  an  eligible  list,  as  well  as  froni  those  already 
appointed;  (6)  the  provisions  of  the  Colorado  and  Ohio  statutes  for- 
bidding classified  employes  to  take  active  part  in  political  organization 
and  campaigns;  and  (7)  the  provisions  of  the  Illinois,  California  and 
Ohio  laws  regarding  the  keeping  of  efficiency  records  and  the  standard- 
ization of  the  service. 

The  keeping  of  efficiency  records  as  required  in  Illinois,  California 
and  Ohio ;  the  duty  of  the  Commission  under  the  Illinois  and  Ohio  laws 
to  report  to  the  officer  in  charge  of  any  department  its  recommenda- 
tions for  increasing  the  efficiency  of  such  department  or  for  the 
removal  of  an  employe  who  fails  to  maintain  the  proper  standard; 
and  the  power  of  the  California  Board  to  make  such  removals,  itself, 
are  the  most  important  of  the  above  mentioned  features  from  the 
standpoint  of  increasing  the  efficiency  of  the  work  in  the  public  service. 
These  provisions,  if  made  use  of  to  their  fullest  extent,  would  not  only 
enable  the  Commission  and  the  appointing  officer  to  gauge  the  output 
of  an  employe  and  to  discharge  such  as  do  not  maintain  the  proper 
standard,  but  would  also  enable  the  Civil  Service  Board  to  determine 
the  relative  effectiveness  of  its  selective  methods,  to  study  the  entire 
public  service  as  a  unit,  and  to  give  valuable  advice  to  administrative 
authorities  in  regard  to  the  organization  and  supervision  of  their 
employes. 

The  above  review  of  Civil  Service  legislation  shows  that  the  chief 
tendency  has  been  toward  the  development  of  devices  to  prevent  ap- 
pointments contrary  to  law,  to  secure  the  general  enforcement  of  the 
Act,  and  to  elimmate  political  influence,  and  that  little  attention  has 
been  paid  to  the  working  out  of  methods  for  securing  high  grade 
experts. 

The  chief  need  of  Civil  Service  reform  at  the  present  time  is  the 
embodiment  of  such  features  as  the  keeping  of  efficiency  records,  which 
look  toward  greater  efficiency  in  the  public  service.  As  a  recent  au- 
thority has  expressed  it,  "the  watch  dog  type  of  civil  service  must  give 
way  to  a  constructive  cooperation  with  officials  to  secure  high  grade 
experts  who  are  at  once  both  efficient  and  responsive." 


926 


EFFICIENCY  AND   ECONOMY   COMMITTEE. 


SCHEDULE   OF    STATE   CIVIL    SERVICE   LAWS. 


STATE    COMMISSIONS    AND    SCOPE    OF    LAWS. 


New  York: 
(1883,   1899) 


Massachusetts: 
(1884) 


Connecticut: 
(1913) 

New  Jersey: 
(1908) 

Wisconsin: 
(1905) 

Illitw  is : 
(1905,    1911) 

Ohio: 
(1913) 


Colorado: 
(1907,    1912) 

California: 

ri9i3) 

CLASSIFICATION. 

New  York. 
New    York. 


Massachusetts. 


Connecticut. 


New  Jersey. 


Wisconsin. 


Illinois. 


Three  commissioners  appointed  by  Governor,  for  six 
year  term,  at  $5000  per  year.  This  Commission  has 
jurisdiction  over  County  as  well  as  the  State  service, 
and   supervision   over  city  commissions. 

Three  members  appointed  by  Governor  for  three  year 
term,  at  $2000  per  year.  This  Commission  has  juris- 
diction over  County  and  City  Civil  Service  as  well 
as  the  State  service.  Provisions  of  State  law  may 
be  adopted  by  towns. 

Three  members  appointed  by  Governor  for  six  year 
term,  no   salarj-.     State  service.        * 

Four  persons  appointed  by  the  Governor  for  four 
year  term,  at  $2000  per  year.  State  ser\ice.  Law 
may  be  adopted  by  any  county,  city  or  local  division. 

Three  commissioners  appointed  by  Governor  for  six 
year  term,  at  $10  per  diem,  not  to  exceed  $1000  per 
year.     State    service.     Local   law   in   Milwaukee. 

Three  members  appointed  by  Governor   for  six  year 
term.     President    $4000,     other     members    $3000    per 
year.     State   service.     Optional   law   for  cities. 
Three  members   for  six  year  term.     President  $4000, 
other  members  $2500  per  year.     This  Commission  has 

jurisdiction  over  County  as  well  as  the  State  service, 
and    supervision   over  municipal   commissions. 
Three  commissioners  appointed  by  Governor  for  six 
year  term,   no   salan,-.     Law  may  be  adopted   by  any 
city. 

Three  commissioners  appointed  by  Governor  for 
four  year  term, .  at  $3000  per  year.  State  service. 
Local  commissions  in  some  cities. 


State  service  divided  into  unclassified  and  classified. 
Commission  has  power  to  classify  positions  as  exempt 
or  non-competitive.  In  cities  provision  for  a  labor 
class. 

Commission  to  prepare  rules  covering  classifications, 
examinations,  promotions.  Non-competitive  examina- 
tions not  prohibited. 

Commission  classifies  positions  in  accordance  with 
duties. 

Unclassified  and  classified  service.  Commission  may 
classify  positions  as  exempt,  competitive,  non-compet- 
itive, non-competitive  or  labor;  but  must  give  hearing 
on  making  exemptions. 

State  service  divided  into  unclassified  and  classified. 
Commission  classifies  positions  as  exempt,  competitive, 
non-competitive,  labor  and  legislative  employes. 

State  service  divided  by  law  into  unclassified  and 
classified  service.  Commission  has  power  to  prescribe 
titles,  maximum  and  minimum  pay,  and  methods  to 
determine  efficiency  of  classified  service;  no  power  to 
classify  positions  as. exempt  or  non-competitive. 


CIVIL    SERVICE    LAWS. 


927 


Ohio. 


Colorado. 


California. 


exemptions: 

New  York: 


Massachusetts: 


Connecticut: 


Nezv  Jersey: 


Wisconsin: 


Illinois: 


State  service  divided  into  unclassified  and  classified. 
Commission  tnav  bv  unanimous  resolution  exernpt 
positions  from  classified  service.  No  provision  for 
non-competitive  examinations.  Commission  to  make 
rules  for  classification  of  offices,  and  for  appoint- 
ments, promotions,  transfers,  removals,  etc.,  and  for 
keeping  a  record  of  efficiency  of  employes. 
Unclassified  and  classified  service.  Commission  may 
provide  for  non-competitive  examinations  and  suspend 
rules  in  particular  cases.  All  rules  to  be  approved  by 
the  Governor. 

Unclassified  and  classified  service.  Commission  to 
classifv  positions  v^Ath  regard  to  duties,  and  grade  all 
positions  with  regard  to  salaries.  No  provision  for 
non-competitive   examinations. 

Deputies  of  principal  elective  officers;  one  secretary 
for  each  officer  or  Board,  except  Civil  Service  Com- 
mission; two  clerks  in  each  court;  other  positions 
which  the  Commission  classifies  as  exempt,  or  non- 
competitive. 

Judicial  officers;  officers  elected  by  people  or  City 
Council;  heads  of  principal  departments;  employes 
of  theTreasurv;  savings  bank  board  ;  teachers;  secre- 
taries of  Mayor,  police  and  fire  commissioners  shall 
be  exempt.  Commission  determines  what  positions 
shall  be  classified. 

The  Commission  may,  if  it  desires,  exempt  deputies 
of  principal  elective  officers,  one  secretary  or  clerk 
in  each  board ;  one  private  secretary  or  stenographer 
of  each  judge  or  principal  officer;  all  officers  who 
must  be  physicians  and  any  other  positions  which  the 
Commission  shall  find  impracticable  to  fill  by  test. 
Elected  officers,  officers  appointed  by  Governor;  of- 
ficers and  employes  of  the  Legislature  ;  heads  of  de- 
partments ;  attorneys ;  persons  in  the  military  service ; 
teachers  in  schools  and  state  institutions;  County 
superintendents;  first  assistant  of  principal  officers; 
one  private  secretary  or  stenographer  to  each  prin- 
cipal officer;  all  officers  who  must  be  physicians  and 
any  other  positions  which  the  Commission  exempts 
because  filling  by  examination  has  been  found  imprac- 
ticable, after  a  hearing. 

One  deputy  of  each  of  the  officers  and  the  Chief  Clerk 
of  any  Board  or  Commission;  one  stenographer  to 
each  officer,  board  or  Commission ;  employees  of  the 
Supreme  Court;  any  other  positions  which  the  Com- 
mission may  find  impracticable  to  fill  by  examina- 
tion, after  a  hearing. 

Elective  officers;  persons  appointed  by  the  Governor; 
emploves  of  General  Assembly;  Judges  and  officers 
appointed  judges;  clerks  of  court;  persons  m  the 
military  service;  instructors  of  scientific  staff  and 
students  assisting  at  the  University  of  Illinois  and 
Normal  schools.  Special  Attorneys;  building  and 
loan  and  bank  examiners;  assistants  to  the  Attorney 
General;  superintendents,  wardens  and  chaplains  of 
State  institutions;  secretary  or  stenographer  in  each 
elective  office,  and  a  few  other  places;  clerks  and 
watchmen  in  the  elective  offices. 


928 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


Ohio: 


Colorado: 


California: 


PKF.SENT   EMPLOYES  : 

New  York: 

Massachusetts: 

Connecticut: 


New  Jersey: 
Wisconsin: 
Illino  is : 
Ohio: 

Colorado: 
California: 

EXAMINATIONS  : 

New  York: 


Massachusetts: 


AH  officers  elected  by  popular  vote ;  heads  of  depart- 
ments appointed  by  Governor;  all  officers  of  the  Gen- 
eral Assembly,  persons  in  military  service ;  faculty  and 
librar\-  staff  in  public  schools,  universities  and  librar- 
ies supported  wholly  or  in  part  at  public  expense ; 
two  secretaries,  assistants,  clerks  for  each  elective  of- 
ficer, board  or  Commission,  except  Civil  Service  Com- 
mission; Deputes  authorized  by  law  to  act  for  their 
principles.  Commission  has  some  discretion  in  deter- 
mining whether  a  position  shall  be  classified,  and  may 
suspend  ndes  in  particular  cases. 

Judges;  Boards  appointed  by  the  Governor;  Gover- 
nor's private  secretary ;  elective  officers ;  one  deputy 
for  each  elective  officer;  teachers;  private  assistants 
of  Attorney  General;  employes  of  the  Legislature. 

Employees  of  the  Legislature  and  one  assistant  for 
each  person  employed  ;  appointees  of  the  Governor  and 
one  confidential  assistant,  first  deputy  of  each  elective 
officer,  assistants  to  the  Attorijej-  General  and  special 
attorneys;  wardens,  Superintendents  and  parole  of- 
ficers for  State  institutions;  persons  employed  by  the 
General  Assembly,  Universities  and  Normal  schools; 

the  State  Librarian  and  two  assistants;  employees  of 
the  State  Railroad  Commission ;  superintendents  and 
heads  of  departments.  By  unanimous  vote  commis- 
sion may  exempt  positions  from  the  classified  service. 


No  provision 
No  provision. 

Emplo3'es  in  the  service  more  than  six  months  before 
the  Act  took  effect  were  covered  in.  Employes  in  the 
service  less  than  six  months  required  to  take  non- 
competitive test  as  a  condition  of  remaining. 

All  present  employes  covered  in  without  examination. 

Persons  employed  covered  in  without  examination. 

Covered  in  without  original  examination. 

Not  covered  in  but  are  required  to  take  examination 
within  twelve  months  as  a  condition  of  continuing  in 
the  service. 

No  provision. 

No  provision. 


The  Commission  to  specify  qualifications.  Appoint- 
ments to  persons  shall  so  far  as  practicable  be  made 
from  residents  of  the  judicial  district  including  the 
locality  of  the  appointment.  Where  there  is  no  list 
of  persons  eligible  for  appointment,  the  appointing 
officer  may  nominate  a  person  for  non-competitive 
examination  who  may  be  appointed  after  such  non- 
competitive examination  but  such  appointment  shall 
not  continue  for  a  longer  period  than  two  months. 

No  provision  except  that  examinations  shall  be  prac- 
tical and  that  no  corrupt  practices  shall  be  used. 


CIVIL    SERVICE   LAWS. 


929 


Connecticut: 

New  Jersey: 

Wisconsin: 
lllino  is : 


Ohio: 
Colorado: 


California: 

appointment: 

New  York: 

Massachusetts: 

Connecticut: 

New  Jersey: 

Wisconsin: 


Illinois: 


Ohio: 


Colorado : 
California: 

PROMOTIONS  : 

Nezv   York: 
Massachusetts: 


Advertise  in  the  usual  way.  Examinations  to  be 
practical. 

Commission  to  specify  by  rule  recommendations  as  to 
rating,  age,  sex,  health,  etc.  Examinations  to  be 
practical.     Open  only  to  residents  of  New  Jersey. 

Examinations  to  be  practical  and  open  to  citizens  of 

Wisconsin. 

Open  to  citizens  of  Illinois,  except  for  technical  posi- 
tions which  may  be  opened  to  non-residents.  Com- 
mission to  prescribe  rules  as  to  rating,  age,  sex,  health, 
habits,  moral  character  and  qualifications  to  perform 
duties. 

Same  as  in  Illinois. 

Examinations  shall  be  impartial  and  practical  in  char- 
acter.    Qualifications,  etc.,  to  be  fixed  by  rule. 

Examinations  shall  be  practical  in  character.  Appli- 
cants for  trade  positions  may  be  rated  solely  on  ex- 
perience and  physical  condition. 


Certify  the  three  highest  on  list. 

Certify  the  three  highest  on  list. 

A  "limited"  number  shall  be  certified  of  whom  one 
shall  be  selected.  A  candidate  certified  three  times 
without  being  selected  may  be  stricken  from  the  list. 

Highest  three  shall  be  certified  and  a  person  certified 
three  times  and  not  appointed  shall  be  stricken  from 
the  list. 

Certify  three  at  head  of  list.     After  certification  three 

times   without    being    appointed     the    name   may  be 

dropped    from   the  list. 

Temporary  appointments  may  be  made  for  a  period 

not   longer  than   two   months   when   there   is   urgent 

need. 

Certify  the  one  highest.  Make  temporary  appoint- 
ment if  no  eligible  list  exists.  Temporary  appoint- 
ments for  thirty  day  periods  also  permitted. 

Certify  three  highest  on  list.  A  person  certified  more 
than  three  times  to  the  same  appointing  officer  may 
be  omitted  from  future  certification  to  sujh  officer. 
Temporary  appointments  may  be  made  as  under  the 
Illinois  law 

Certify  the  one  highest  on  the  list. 

Certify  the  three  highest  persons. 


Vacancies  shall  be  filled  so  far  as  possible  by  promo- 
tion from  a  position  in  a  lower  grade  in  the  same 
department. 

Promotion  on  basis  of  merit  in  examinations,  and 
seniority  of  service. 


930 


EFFICIENCY  AND   ECONOMY   COMMITTEE. 


Connecticut: 
New  Jersey: 
Wisconsin: 

Illino  is : 

Ohio: 

Colorado: 

California: 

REMOVALS  : 

Nezv  York: 
Massachusetts: 

Connecticut: 

New  Jersey: 
Wisconsin: 

Illinois: 


Ofiio: 


Colorado: 


California: 


Rules  shall  provide  for  promotions  on  a  basis  of 
merit,  seniority  and  special  tests. 

Vacancies  to  be  filled  by  promotion  from  positions  in 
lower  grades  in  same  department. 

Promotion  as  far  as  possible  from  positions  in  lower" 
grades  in  the  same  department,  based  on  merit  and 
seniority  to  be  affected  by  Commission. 

Commission  to  fix  lines  of  promotion ;  examinations  to 
be  promotional  only  or  open  to  general  public  as 
deemed  advisable. 

Same  as  in  Illinois  service. 

Not  specified  by  law. 

Vacancies  to  be  filled  as  far  as  possible  by  promotion 
of  persons  in  the  same  department  where  vacancy 
exists. 


Department  head  has  right  to  remove. 

Veterans  of  the  Civil  War  shall  not  be  removed  ex- 
cept after  a  hearing  before  the  State  Board  of  Arbi- 
tration where  he  shall  have  right  to  be  present  with 
counsel. 

Appointing  officer  has  right  of  removal  without  hold- 
ing a  hearing.  Person  removed  may  file  an  answer 
to  the  reasons  given  for  the  discharge. 

A  written  statement  of  reasons  for  removal  shall  be 
filed.     No  hearing  provided  for. 

Appointing  officer  can  remove,  but  must  furnish 
reasons  for  removal  to  the  subordinate,  who  may 
make  a  reply  thereto.  Suspension  shall  not  be  for 
more  than  fifteen  days. 

Provides  a  period  of  three  months  in  which  discharge 
may  be  made  without  the  filing  of  charges.  After 
that  time  charges  are  necessary-  and  a  hearing  must 
be  held.  No  charges  necessary  in  case  of  laborer  or 
of  persons  having  custody  of  public  money  for  safe 
keeping,  for  which  another  person  has  given  bond. 

Department  head  to  furnish  the  subordinate  dis- 
charged, laid  off  or  suspended  with  a  copy  of  the 
order  of  discharge  and  his  reasons  for  same,  giving 
the  subordinate  a  reasonable  time  to  file  an  explana- 
tion. 

Department  heads  can  remove,  but  must  furnish  the 
person  discharged  with  a  written  statement  of  his 
reason  and  allow  a  reasonable  time  for  the  filing  of 
an  answer. 

The  Department  head  must  furnish  the  employee  with 
a  written  statement  setting  forth  cause  for  removal, 
allowing  suitable  time  for  filing  of  an  answer  of  the 
employee  with  the  commission.  The  appointing  of- 
ficer shall  then  hold  a  public  hearing,  and  if  charges 
are  preferred  to  the  Commission  it  shall  hold  a  hear- 
ing. The  judgment  of  removal  by  the  appointing 
power  shall  be  final. 


CIVIL    SERVICE   LAWS. 


931 


INVESTIGATIONS  : 

New   York: 
Massachusetts: 
New  Jersey: 

Connecticut: 
PVisconsin: 

Illino  is : 


Ohio: 


Colorado: 
California: 


No  provision. 

No  provision. 

Commission  shall  investigate  all  matters  touching  on 
the  enforcement  of  the  Act  and  rules. 

No  provision. 

Make  investigations  concerning  all  matters  pertaining 
to  enforcement,  of  the  Act  and  rules. 

Commission  shall  investigate  efficiency  of  officers  and 
employes  and  report  to  department  heads  findings  and 
recommendations  relating  to  same.  In  case  recom- 
mendations are  not  put  into  effect  within  a  reason- 
able time,  a  report  shall  be  transmitted  to  the  Gov- 
ernor. 

Commission  shall  investigate  the  duties  imposed  by 
law   and  prescribe  the  manner  of  performing  duties, 

and  cost  thereof  and  shall  require  reports  concerning 
employes ;  a  report  by  the  Commission  to  a  depart- 
ment  head   or   failure   of   an   employe   to   maintain   a 

satisfactory     efficiency     record,     shall     be     sufficient 

ground  for  dismissal. 

No  provision. 

Manner  of  conducting  investigations  and  procuring 
attorneys  or  witnesses  fixed  by  the  Act. 


III.       COMMENTS   AND  SUGGESTIONS. 

The  Civil  Service  laws  of  Illinois  compare  favorably  with  similar 
laws  to  be  found  in  other  parts  of  the  country.  Experience  in  the  ad- 
ministration of  the  present  laws,  however,  brings  to  light  from  time 
to  time,  possibilities  of  change  and  improvement.  Economy  and  ef- 
ficiency in  the  administration  of  the  state  government  cannot  be  secured 
without  trained  and  competent  men  in  the  Civil  Service ;  and  the 
gradually  increasing  extent  of  the  functions  performed  by  the  state 
government  render  it  continually  more  important  that  the  merit  sys- 
tem of  securing  public  servants  should  be  extended  into  all  branches 
of  the  public  service  where  it  is  feasible. 

Selection  of  the  Commission. 

In  the  United  States  government  and  in  all  of  the  nine  states  now 
having  Civil  Service  Commissions,  the  law  provides  that  the  members 
of  the  Commission  shall  be  appointed  by  the  Governor.  Practically 
no  restrictions  are  placed  upon  the  Governor's  choice,  through  quali- 
fications required  of  the  Commissioners,  except  that  it  is  usually  pro- 
vided that  not  more  than  two  of  the  three  members  of  the  Commission 
shall  belong  to  the  same  political  party. 

The  requirement  that  not  more  than  two-thirds  of  the  Commission 
shall  belong  to  the  same  political  party  seems  to  have  been  adopted 
in  Civil  Service  laws,  as  in  other  cases,  with  a  view  to  eliminating  so 
far  as  practicable,  political  considerations  in  the  selection  of  the  Com- 
mission. In  practice,  however,  such  a  provision  has  the  opposite  ten- 
dency, since  it  carries  with  it  the  implication  that  the  members  of  the 
Commission  shall  all  bear  a  party  label,  although  not  more  than  two- 
thirds  shall  bear  the  same  label.  The  result  of  this  provision  is  to 
make  the  apparent  intention  of  the  law  to  be  that  the  Commission  shall 
be  party  men,  and,  with  some  exceptions,  this  condition  is  produced  in 
practice.  Bi-partisan  combinations  in  favor  of  a  lax  administration 
of  the  law  are  rendered  possible.  At  the  same  time,  the  bi-partisan 
character  of  the  Commission  prevents  the  concentration  of  definite 
responsibility  for  such  lax  administration  upon  the  party  in  power. 

Such  provisions  in  regard  to  party  appointments  on  Civil  Service 
Commissions  are  still  upheld  by  those  who  recognize  that  in  other 
fields  they  do  not  serve  the  purpose  for  which  they  were  intended. 
The  general  tendency  at  the  present  time  in  public  administration  is 
towards  placing  definite  responsibility  in  the  hands  of  the  chief  execu- 
tive for  the  higher  appointments,  and  at  the  same  time  removing  other 
positions  from  all  political  influence.  The  question  may  fairly  be 
raised  whether  the  appointment  of  Civil  Service  Commissioners  should 
not  be  placed  definitely  in  one  or  the  other  of  these  classes,  or  whether 
such  positions  have  peculiar  characteristics  which  justify  an  excep- 


CIVIL    SERVICE   LAWS.  933 

tional  treatment.  And  it  should  be  recognized  that  the  present  meth- 
ods of  appointing  these  officers  does  not  definitely  fix  responsibility 
nor  does  it  ensure  the  elimination  of  political  influences,  but  rather 
tends  towards  a  divided  partisan  control. 

A  proposed  plan  for  the  selection  of  Civil  Service  Commissioners 
on  a  non-political  basis  is  contained  in  the  draft  of  a  model  Civil  Serv- 
ice law  prepared  by  a  committee  of  the  National  Assembly  of  Civil 
Service  Commissioners.  This  draft  provides  that  Civil  Service  Com- 
missioners shall  in  the  first  place  be  appointed  by  the  Governor,  but 
any  vacancy  in  the  Commission  shall  be  filled  by  competitive  examina- 
tion, held  by  a  board  of  special  examiners  composed  of  (a)  a  person 
who  has  been  for  at  least  two  years  a  member,  secretary  or  chief  ex- 
aminer of  a  federal,  state,  county  or  municipal  Civil  Service  Commis- 
sion;  (b)  a  person  who  has  for  at  least  two  years  been  engaged  in 
selecting  trained  employees  for  positions  involving  professional  or 
technical  skill;  and  (c)  a  person  who  has  been  for  at  least  two  years 
a  judge  of  a  court  of  record  within  the  state.  Under  this  plan  the 
members  of  the  Commission  should  serve  not  for  a  fixed  term,  but 
during  good  behavior  or  until  retirement  at  a  given  age.  Trials  for 
removal  of  a  Commissioner  for  cause  should  be  conducted  before  a 
board  constituted  in  a  manner  similar  to  that  of  the  appointing 
board.^2 

This  plan  is  urged  on  the  ground  that  the  Civil  Service  Comrnis- 
sion  is  not  a  part  of  the  administration  which  is  engaged  in  carrying 
out  the  special  policies  of  such  administration  and  should,  therefore, 
be  so  far  as  possible  free  from  political  control.  The  Commission,  it 
is  said  should  not  be  subject  to  the  control  of  those  against  whose  in- 
terests it  may  sometimes  be  its  duty  to  enforce  the  law ;  but  should  be 
an  independent  body  of  employment  experts  removed  as  far  as  possible 
from  all  political  control. 

In  considering  this  proposal,  attention  should  be  called  to  the  fact 
that  it  is  the  work  of  the  National  Assembly  of  Civil  Service  Com- 
missioners; and  is  open  to  the  objection  that  it  represents  the  views  of 
a  class  of  public  officers,  with  a  natural  tendency  to  emphasize  and 
strengthen  their  own  positions.  An  attempt  was  made  to  prepare  a 
model  Civil  Service  law  by  the  joint  action  of  this  organization  and 
the  National  Civil  Service' Reform  League,  which  has  taken  the  lead, 
in  the  sgeneral  movement  in  this  country  for  Civil  Service  laws  based 
on  the  merit  system.  But  after  several  meetings  of  Committees  of 
both  associations,  the  bill  as  prepared  is  the  work  of  one  Committee, 
for  which  the  League  and  its  Committee  have  assumed  no  respons- 
ibility. 

Two  points  of  criticism  may  be  made  against  the  proposal  itself. 
In  the  first  place  it  is  based  on  the  same  confusion  between  political 
and  party  control  which  is  evident  in  the  existing  laws.  While  it  may 
well  be  urged  that  a  Civil  Service  Commission  ought,  if  possible,  to  be 
a  non-partisan  body,  it  may  be  seriously  questioned  whether  it  should 

i^in  this  connection  may  be  mentioned  the  suggestion  of  Mr.  Robert  Catherwood, 
formerly  a  member  of  the  Cook  County  Commission,  that  the  Commissioners  be  se- 
lected by  competitive  examination  conducted  by  a  Board  appointed  by  the  Chief 
Justice  of  the  State  Supreme  Court  and  the  President  of  the  State  University. 


934  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

be  removed  from  all  political  control,  in  the  better  sense  of  the  word 
political.  If  the  ultimate  control  of  appointments  to  the  public  service 
were  entirely  removed  from  popular  control,  there  would  be  good 
grounds  for  the  charge  often  made  against  the  present  Civil  Service 
laws,  that  this  would  lead  to  a  permanent  bureaucracy,  which  could 
easily  acquire  control  over  the  properly  political  organs  of  govern- 
ment.  ♦ 

In  the  second  place,  the  plan  proposed  definitely  has  in  mind  that 
Civil  Service  Commissioners  should  be  technically  trained  employment 
experts.  This  is  a  decided  change  from  the  ideas  of  the  early  leaders 
in  the  Civil  Service  reform  movement.  The  purpose  in  most,  if  not 
all.  Civil  Service  laws  has  been  that  the  Civil  Service  Commis- 
sioners should  be  public  spirited  citizens  with  a  large  knowledge  of 
affairs,  who  could  formulate  a  proper  system  of  rules  and  regulations 
for  the  selection  of  public  officers  and  employes ;  but  that  the  tech- 
nical work  of  preparing  suitable  examinations  and  passing  on  the  quali- 
fication of  applicants  should  be  carried  on  by  technically  qualified  ex- 
aminers, under  the  direction  of  the  Commission.  The  proposed  plan 
points  towards  a  Commission  whose  members  shall  themselves  be  com- 
petent examiners. 

If  these  criticisms  are  sound,  it  should  be  frankly  recognized  that 
Civil  Service  Commissions  should  be  subject  to  political  control;  and 
that  the  selection  should  be  made  by  the  chief  executive. ^^  It  is  not 
altogether  clear  whether  that  power  and  responsibility  should  be  com- 
plete and  unrestricted ;  or  whether  in  view  of  the  patronage  system 
which  has  prevailed  in  this  country,  it  may  be  advisable  to  continue  for 
a  time  the  limitation  on  party  appointments.  But  it  should  be  recog- 
nized that  this  limitation  does  not  ensure  non-partisan  appointments, 
but  rather  tends  towards  bi-partisan  Commissions. 

Exemptions  from  the  Competitive  Service. 

The  Illinois  Civil  Serv'ice  Commission  has  no  power  to  cover  into 
the  classified  service  any  positions  now  exempt,  nor  to  make  any  ex- 
emptions from  the  positions  in  the  classified  service,  as  the  exempt 
classes  are  specified  in  the  law.  This  may  relieve  the  Commission 
from  some  troubles  and  responsibility ;  but  it  would  seem  that  a  greater 
degree  of  discretion  might  well  be  authorized,  both  to  grant  exemp- 
tions and  to  cover  into  the  classified  service  certain  positions  now 
exempt.  Either  of  these  actions  might  be  made  to  require  a  unani- 
mous vote  of  the  Commission  after  a  hearing. 

At  the  time  of  the  passage  of  the  law  of  1911.  the  Illinois  Civil 
Service  Reform  Association  recommended  that  the  unclassified  service 
be  restricted  to  elective  officers,  persons  appointed  by  the  Governor 
subject  to  confirmation  by  the  Senate,  judges  and  their  appointees, 
court  clerks,  notaries  public,  teachers  and  administrative  officers  in 
state  educational  institutions  and  servants  at  the  executive  mansion. 
The  exemption  in  the  law  as  to  appointments  made  by  the  Governor 
with  the  consent  of  the  Senate  is  now  construed  to  exempt  a  number 

'»Tlie  local  adiiiiiilstration  of  civil  service  laws  may,  however,  be  effectively  nan- 
aged  by  an  offlcer  chosen  by  competitive  examination,  who  should  act  under  the 
supervision  of  the  general  rules  and  regulations  of  the  State  commission. 


CIVIL    SERVICE   LAWS.  935 

of  appointments  which  are  by  law  to  be  made  by  the  Governor  without 
an  express  requirement  of  Senate  action.  Under  this  construction, 
mine  inspectors  and  state  factory  inspectors  are  exempt.  There  is  no 
good  reason  why  such  officers  should  be  exempted. 

The  exemption  of  bank  and  building  and  loan  examiners  and  of 
clerks  and  watchmen  under  the  elective  state  officers  seems  to  have 
been  due  to  political  considerations,  and  it  is  difficult  to  see  why  they 
should  be  excepted.  The  experience  of  Wisconsin  in  placing  legis- 
lative employes  under  the  merit  system  indicates  that  this  might  also 
be  done  with  advantage  in  Illinois.  Such  a  change  would  have  the 
eiifect  of  relieving  the  members  of  the  General  Assembly  from  much 
disagreeable  importunity,  and  afford  them  more  time  for  their  regular 
duties.  ■  . 

On  the  other  hand,  it  is  difficult  and  sometimes  impossible  to  fill 
some  positions  now  included  in  the  competitive,  classified  service  by 
the  methods  of  the  Civil  Service  Commission.  With  the  growth  of 
the  State  service  this  difficulty  will  increase.  Moreover  the  specifica- 
tion of  exempt  positions  is  more  properly  an  administrative  than  a 
legislative  function;  and  if  exemptions  are  determined  in  the  statutes, 
they  are  likely  to  be  made  in  many  cases  from  considerations  of  poli- 
tical patronage.  A  discretionary  authority  to  authorize  exemptions 
or  non-competitive  examinations,  either  for  specified  classes  of  posi- 
tons  or  for  particular  places,  would  introduce  a  useful  flexibility  in 
the  system,  such  as  is  provided  in  the  civil  service  laws  of  the  United 
States  and  in  most  other  states. 

Number  of  names  to  be  certified. 

The  Illinois  Civil  Service  laws  dift'er  from  the  earlier  laws  of  the 
United  States  and  other  states  in  limiting  the  certification  and  appoint- 
ment to  the  single  name  which  stands  first  on  the  appropriate  eligible 
list;  while  most  other  laws  provide  for  the  certification  of  the  three 
names  first  on  the  eligible  list  from  which  the  appointment  may  be 
made.  The  Illinois  provision  deprives  the  appointing  officer  of  any 
discretion,  and  practically  places  the  appointing  powder  in  the  hands  of 
the  Civil  Service  Commission.  In  operation,  too,  this  provision  at 
times  causes  delay  in  filling  vacancies — as  if  the  first  person  certified 
declines  the  appointment,  it  is  necessary  to  ask  for  another  certifica- 
tion— and  this  procedure  may  have  to  be  repeated  several  times.  The 
certification  of  three  names  would  seem  to  be  sufficient  limitation  to 
ensure  the  selection  of  candidates  technically  qualified ;  and  at  the  same 
time  to  give  the  appointing  officer  a  reasonable  discretion  in  consider- 
ing questions  of  adaptability  to  a  particular  position  which  it  is  difficult 
to  test  by  a  general  system  of  examination. 

Removals  and  Discipline. 

It  may  also  be  questioned  whether  the  requirement  of  a  formal 
investigation  to  authorize  any  removal  from  the  classified  service  is 
not  unduly  restrictive.  This  provision  protects  the  officer  or  employe 
rather  than  the  public  service,  and  may  be  said  to  give  a  special  and 
unnecessary  privilege  to  those  in  the  classified  service.  It  is  probable 
that  in  operation  the  investigations  of  the  Civil  Service  Commission 


936  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

have  not  prevented  the  removal  of  any  person  against  whom  proper 
complaint  has  been  made.  But  the  provision  is  likely  to  encourage 
lax  and  inefficient  service  which  falls  short  of  the  point  where  formal 
charges  can  be  sustained.  A  provision  requiring  removals  to  be  re- 
ported to  the  Civil  Service  Commission  and  autliorizing  that  body  to 
investigate  any  cases  which  it  deemed  necessary,  with  a  power  to  rein- 
state after  investigation,  where  conditions  warrant  such  action,  should 
be  sufficient  to  prevent  removals  without  proper  cause. 

All  of  the  Civil  Service  laws  in  the  United  States  are  defective  in 
failing  to  provide  for  a  system  of  discipline  over  subordinates  in  the 
public  service  for  minor  shortcomings  which  are  not  sufficient  to  jus- 
tify removal.  With  a  proper  system  of  discipline  the  efficiency  of  the 
public  service  could  be  much  improved. 
Miscellaneous. 

Some  provision  should  probably  be  made  to  obviate  the  abuses 
which  have  grown  up  in  connection  with  the  probationary  period  of 
three  months  for  new  appointees,  and  also  in  connection  with  the 
privilege  of  making  temporary  thirty  day  appointments. 

Some  consideration  should  also  be  given  to  the  question  of  a  re-  . 
tirement  fund  for  superannuated  employes.  Any  existing  funds  for 
pensioning  public  employes  should  be  consolidated  and  some  plan 
should  be  evolved,  preferably  a  contributory  plan,  along  the  lines 
recommended  by  the  United  States  Commission  which  has  investigated 
this  subject. 

Civil  Service  laws  proceed  upon  the  basic  idea  that  for  entry  into 
the  public  service  merit  and  fitness  can  be  tested  by  examination ;  but 
to  accomplish  this  end  the  preparation  of  examination  questions  and 
the  grading  of  papers  must  be  entrusted  to  expert  examiners,  who  are 
specialists  in  their  particular  fields,  and  not  to  a  few  general  examiners 
in  the  office  of  the  Commission.  The  Illinois  Civil  Ser^dce  Commission, 
and  the  Commissions  in  other  states,  have  secured  the  cooperation  of 
such  specialists  in  examining  applicants  for  a  few  of  the  more  impor- 
tant positions,  but  there  is  need  for  a  further  extension  of  the  use  of 
expert  examiners.  Written  examinations  are  not  in  all  cases  suf- 
ficient to  test  the  practical  knowledge  of  candidates  and  should  be 
supplemented  by  oral  tests,  and  by  a  paper  upon  some  special  topic 
which  will  test  the  ability  of  the  applicant  to  apply  his  knowledge,  and 
by  weighing  the  experience  of  the  several  applicants.  After  a  person 
has  once  entered  the  state  employ  it  is  possible  to  test  efficiency  in  a 
more  definite  manner. 

Much  good  may  also  result  from  the  duty  imposed  upon  the  State 
Civil  Service  Commission  "to  investigate  the  efficiency  of  all  officers 
and  employes  and  of  all  groups  of  officers  and  employes  in  the  classi- 
fied service." 
Relation  of  State  to  Local  Commissions. 

The  fact  that  the  Illinois  Civil  Service  laws  have  grown  up  in 
piece-meal  fashion  doubtless  accounts  in  part  for  the  lack  of  coordina- 
tion between  them.  A  State  Commission  and  several  local  commis- 
sions have  been  established  under  these  laws.     The  relations  between 


CIVIL    SERVICE   LAWS.  937 

these  commissions,  however,  have  not  been  defined,  and  the  commis- 
sions are  entirely  separate  and  distinct.  There  would  seem  to  be  no 
adequate  reason  why  the  laws  should  not  be  revised  so  as  to  bring 
about  the  consolidation  of  the  various  Commissions  in  Cook  County — 
county,  city  and  park — into  one  commission  having  powers  similar 
in  a  general  way  to  those  now  exercised  by  the  separate  Commissions. 

A  simple  consolidation  of  local  commissions  would  not,  however, 
entirely  remedy  the  faults  of  the  present  system.  Some  degree  of 
supervision  should  be  exercised  over  the  local  commissions  by  the  state 
commission,  for  the  sake  of  uniformity  and  efficiency  of  administra- 
tion. Some  provisions  of  the  New  York  law  might  point  the  w^ay  to  the 
character  of  supervision  which  should  be  exercised  over  the  local  by 
the  state  commission.  The  rules  adopted  by  the  local  commissions 
might  be  subject  to  the  approval  of  the  State  commission.  The  ap- 
pointment of  members  of  local  commissions  might  be  made  subject  to 
the  approval  of  the  state  commission;  and  the  former  might  be  sub- 
ject to  removal  on  charges  and  after  a  hearing  by  the  central  body. 

The  strong  sentiment  in  Illinois  in  favor  of  home  rule  would 
oppose  any  attempt  at  placing  the  local  administration  of  Civil  Service 
laws  entirely  in  the  control  of  the  State  Commission  as  in  Massachu- 
setts. But  there  should  be  no  serious  objection  to  the  adoption  of  the 
New  Jersey  provision,  whereby  any  city  may  by  popular  vote  adopt 
the  state  law,  as  an  alternative  to  the  adoption  of  the  law  providing 
for  local  commissions.'*  A  similar  plan  might  well  be  adopted  with 
respect  to  counties.  The  creation  of  separate  local  commissions  for 
each  of  the  cities  or  counties  in  the  state  will  lead  to  an  unnecessary 
multiplication  of  machiner}-'  and  additional  expense,  which  can  be 
avoided  by  coming  under  the  jurisdiction  of  the  State  Commission. 
At  the  same  time  the  larger  cities  which  can  more  easily  maintain  a 
local  commission  may  well  continue  under  the  present  system.  For 
Cook  County  there  is  now  a  Civil  Service  law.  The  other  larger 
counties  might  well  be  given  the  opportunity  either  to  adopt  an  op- 
tional law  administered  by  themselves  or  to  come  under  the  State 
Commission. 

Under  an  Optional  Act  of  1903,  a  number  of  cities  have  adopted 
Civil  Service  rules  for  their  police  and  fire  departments,  and  have  ap- 
pointed boards  of  police  and  fire  commissioners.  As  enacted,  the  po- 
lice and  fire  commissioners'  act  provided  that  from  the  orders  of  the 
city  boards  created  thereby,  appeals  might  be  taken  to  the  circuit  court 
by  any  interested  person.  This  provision  for  appeal  was  declared 
unconstitutional  in  the  case  of  City  of  Aurora  v.  Schoeberlein,  (230, 
III.,  496,  1907)  ;  and  since  that  time  there  has  been  no  supervision  over 
these  local  boards.  Some  supervision  over  these  bodies  should  be 
conferred  upon  the  State  Civil  Service  Commission, 

i*In  the  45th  General  Assembly  a  bill  was  introduced  by  Senator  Logan  Hay  to 
permit  cities  to  adopt  the  law  in  force  in  Chicago,  to  be  enforced  through  the  State 
Commission.    See  Second  Annual  Report  of  the  Illinois  Civil  Service  Commission,  p. 


938  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

The  supervision  of  local  commissions  and  direct  administration 
by  the  State  Commission  will  not  only  lead  tp  greater  harmony  in 
the  operation  of  the  Civil  Service  laws,  but  will  also  reduce  the  in- 
fluence of  local  factors  opposed  to  the  vigorous  enforcement  of  the 
merit  system,  and  thus  lead  to  greater  economy  and  efficiency  in  the 
local  services. 


A  REPORT 

ON 

THE   SECRETARY  OF  STATE 
AND   LAW  OFFICERS 


CONTENTS 

THE  SECRETARY  OF   STATE 943-952 

Keeper  of  Records 943 

Custodian  of  Buildings  and  Grounds 943 

Furniture  and  Supplies 944 

Elections 944 

Supervision  of  Corporations 945 

Automobile  Department 945 

Miscellaneous  Functions  946 

Ex-Officio  Boards  and  Offices 947 

Appropriations,  1913 947 

Ex-Officio  Boards  950 

Election  Boards  950 

Comments  and  Suggestions 951 

LAW  OFFICERS  953-970 

The  Attorney  General  953 

Auditor  of  Public  Accounts 955 

Attorneys  in  other  State  Offices 956 

Counsel  to  State  Public  Utilities  Commission 956 

Attorney  for  the  Insurance  Department 956 

Attorney  to  the  Factory  Inspection  Department 956 

Attorney  to  the  Food  Commissioner 956 

Aitotney  to  the  State  Board  of  Health 957 

Opinion  of  the  Attorney  General  on  Special  Attorneys 957 

Supervision  of  Local  Attorneys 960 

The  United  States  Department  of  Justice 968 

Comments  and  Suggestions  969 

Commissioners  of  Uniform  Laws 970 


I.  THE  SECRETARY  OF  STATE 

The  Secretary  of  State  is  provided  for  by  the  State  Constitution 
as  one  of  the  officers  of  the  executive  department,  elected  at  the  same 
time  as  the  Governor,  for  a  term  of  four  years.  By  statute  he  is 
required  to  give  bonds  for  $100,000,  to  be  approved  by  the  Governor 
and  two  justices  of  the  Supreme  Court,  for  the  faithful  discharge  of 
the  duties  of  his  office.    He  receives  a  salary  of  $7,500  a  year. 

Constitutional  provisions  deal  with  some  of  the  powers  and  duties 
of  the  Secretary  of  State :  The  election  returns  for  officers  of  the 
executive  department  must  be  transmitted  to  the  Secretary  of  State, 
directed  to  the  Speaker  of  the  House  of  Representatives.  The  Secre- 
tary of  State  is  required  to  call  the  House  of  Representatives  to  order 
at  the  opening  of  each  new  assembly,  and  preside  over  it  until  a 
temporary  presiding  officer  has  been  chosen  and  has  taken  his  seat. 
The  Great  Seal  of  the  State  shall  be  kept  by  the  Secretary  of  State 
and  used  by  him  officially  as  directed  by  law. 

Beit  most  of  the  functions  performed  by  the  Secretary  of  State 
are  authorized  by  the  statute, — some  in  the  Act  dealing  with  the 
Secretary  of  State  and  others  in  many  other  Acts.  These  cover  a 
wide  variety  of  different  matters,  while  in  many  affairs  the  functions 
of  the  Secretary  of  State  are  closely  related  to  those  of  other  officers 
and  boards.  The  various  services  as  performed  by  the  Secretary  of 
State  may  be  classified  as  follows : 

Keeper  of  Records. 

All  public  acts,  laws,  and  resolutions  passed  by  the  General 
Assembly  must  be  deposited  in  the  office  of  the  Secretary  of  State; 
who  is  charged  with  the  safe  keeping  of  the  office  and  of  all  laws, 
acts,  resolutions,  bonds,  papers,  and  records  deposited  therein.  At  the 
close  of  each  session  of  the  General  Assembly  the  Secretary  of  the 
Senate  and  Clerk  of  the  House  of  Representatives  must  deliver  to 
the  Secretary  of  State  all  books,  bills,  documents,  and  papers  and  the 
Secretary  of  State  is  required  to  preserve  them  in  his  office. 

It  is  the  duty  of  the  Secretary  of  State  to  keep  a  fair  register 
of  all  the  official  acts  of  the  Governor  and  to  furnish  a  certified  copy 
when  required  to  either  house  of  the  General  Assembly;  to  counter- 
sign and  affix  the  seal  of  the  State  to  all  commissions  required  by 
law  to  be  issued  by  the  Governor  and  to  keep  a  register  of  such  com- 
missions ;  to  make  and  keep  proper  indexes  to  the  executive  records 
and  all  public  Acts,  resolutions,  papers,  and  documents  in  his  office; 
and  to  give  certified  copies  of  any  law.  Act,  resolution,  or  record  in 
his  office  to  any  person  on  paying  the  lawful  fees. 
Custodian  of  Buildings  and  Grounds. 

It  is  his  duty  to  take  charge  of  and  preserve  from  waste  and  keep 
in  repair  the  houses,  lots,  grounds,  and  appurtenances  in  the  city  of 


944  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

Springfield  and  belonging  to  or  occupied  by  the  State,  the  care  of 
which  is  not  otherwise  provided  for  by  law. 

The  Secretary  of  State  and  State  Treasurer  are  authorized  and 
required  to  employ  watchmen  to  guard  and  preserve  from  fire  the 
public  buildings  in  the  city  of  Springfield. 

A  Superintendent  of  Buildings  and  Grounds  and  a  force  of  jani- 
tors, policemen,  and  other  employees  in  the  State  Capitol  are  provided 
for  in  the  appropriations  for  the  Secretary  of  State.  In  addition 
there  are  nine  watchmen  provided  for  in  the  appropriations  for  the 
State  Treasurer;  eleven  janitors  are  provided  for  in  the  appropriations 
for  the  several  bureaus  having  offices  in  the  State  Capitol;  and  a 
separate  force  of  janitors  for  the  Supreme  Court  building  is  provided 
for  in  the  appropriation  for  the  Supreme  Court  and  the  Attorney 
General. 
Furniture  and  Supplies. 

It  is  his  duty  to  take  charge  of  the  furniture  of  the  two  houses 
of  the  General  Assembly,  and  to  take  charge  of  and  keep  in  repair 
and  replenish  the  furniture  of  the  State  House,  except  as  otherwise 
provided.  He  is  also  required  to  receive  and  take  charge  of  all  fuel, 
stationery  and  printing  paper  furnished  for  the  use  of  the  State;  to 
furnish  fuel  and  stationery  from  the  stores  in  his  possession  to  the 
General  Assembly  and  to  the  several  State  officers ;  to  furnish  pr*inting 
paper  for  public  printing  to  the  public  printer,  to  supervise  the  printing 
and  distribution  of  the  laws,  journals,  reports  and  public  documents; 
to  examine  and  approve  bills  for  printing;  and  to  keep  an  accurate 
account  of  fuel,  stationery  and  printing  furnished  to  the  State,  and 
to  the  officers,  general  assembly  or  contractors.  These  duties  in 
regard  to  fuel,  stationery  and  printing  are  closely  related  to  the  work 
of  the  State  Board  of  Contracts,  of  which  the  Secretary  of  State 
is  a  member,  and  of  the  Printer  Expert. 

Appropriations  are  made  to  the  Secretary  of  State  for  four  ship- 
ping  clerks,   two   supply   clerks   and   two   messengers   in   the    Supply 
Department. 
Elections. 

Under  the  primary  election  and  election  laws  many  duties  are 
imposed  on  the  Secretary  of  State.  He  receives  primary  petitions 
from  primary  candidates  for  State  offices  and  applications  for  with- 
drawal, and  certifies  the  names  of  primary  candidates  to  the  county 
clerks ;  he  serves  on  the  State  primary  canvassing  board,  issues  certifi- 
cates of  nomination  to  successful  candidates  for  State  offices,  publishes 
a  certified  statement  of  primary  election  results,  and  receives  notice 
of  primary  election  contests  for  State  offices.  He  receives  nominating 
petitions  for  State  offices  and  requests  for  withdrawal ;  he  serves  on 
the  board  to  hear  objections  to  nominating  petitions;  and  he  certifies 
to  the  county  clerks  all  nominations  for  State  offices,  publishes  pro- 
posed constitutional  amendments,  su|pmits  questions  of  public  policy 
petitioned  for  by  ten  per  cent  of  the  voters,  and  prepares  and  certi- 
fies to  the  county  clerks'  statements  as  to  proposed  constitutional 
amendments  and  questions  of  public  policy. 


SECRETARY   OF   STATE,  945 

Abstracts  of  votes  for  State  officers,  members  of  Congress,  mem- 
bers of  the  General  Assembly,  constitutional  amendments  and  ques- 
tions of  public  policy  are  sent  to  the  Secretary  of  State  who  serves 
on  the  State  Canvassing  Board,  and  decides  by  lot  in  case  of  a  tie 
vote  for  certain  offices.  He  also  receives  notices  and  depositions 
relating  to  contests  for  seats  in  the  General  Assembly,  and  sends  them 
to  the  proper  house.  He  is  a  member  of  the  board  of  voting  machine 
commissioners. 

After  an  election  on  a  proposition  to  unite  two  or  more  counties, 
certified  copies  of  the  vote  are  sent  to  the  Secretary  of  State;  and  if 
a  majority  of  the  vote  is  in  favor  thereof,  the  Secretary  notifies  the 
Governor,  who  issues  a  proclamation  announcing  and  declaring  the 
result. 

Supervision  of  Corporations. 

Under  the  laws  for  the  organization  and  regulation  of  corporations, 
the  Secretary  of  State  is  charged  witii  supervising  the  organization 
of  most  classes  of  corporations,  and  the  admission  of  foreign  cor- 
porations ;  and  he  has  a  limited  supervision  over  general  corporations 
not  subject  to  any  other  State  officer  or  board.  The  control  over  the 
organization  and  admission  of  corporations  includes,  in  addition  to 
general  corporations,  also  title  guarantee  companies,  trust  companies, 
farmers'  societies,  railways,  educational  and  religious  corporations, 
cemetery  associations  and  cooperative  associations.  The  character  and 
extent  of  this  supervision  over  corporations  is  discussed  in  another 
section  of  this  report.  In  connection  with  the  issue  of  corporation 
charters  and  certifificates,  annual  reports,  and  anti-trust  affidavits, 
the  Secretary  of  State  receives  a  large  amount  in  fees,— $1,125,832 
for  the  two  years  ending  September  30th,  1914. 

Automobile  Department. 

An  Act  to  regulate  the  speed  of  automobiles  was  passed  by  the 
General  Assembly  in  1903.  This  was  replaced  in  1907  by  an  Act  for 
the  registration  of  motor  vehicles  and  for  regulating  their  use  and 
speed.  In  1911,  another  Act  relating  to  motor  vehicles  was  passed, 
repealing  the  Act  of  1907. 

Under  the  present  law,  every  owner  of  a  motor  vehicle  is 
required  to  register  with  the  Secretary  of  State  and  to  pay  a  regis- 
tration fee  for  each  calendar  year  ranging  from  $2.00  for  each  motor 
bicycle  to  $10.00  for  each  motor  vehicle  of  more  than  50  horse  power. 
The  Secretary  of  State  issues  and  supplies  each  owner  paying  the  fee 
a  certificate  of  registration,  a  seal  with  the  registration  number  and 
number  plates  to  be  attached  to  the  vehicle.  The  Secretary  of  State 
is  required  to  keep  a  record  of  the  motor  vehicles  registered,  and  at 
the  end  of  each  month,  but  December,  to  print  and  mail  to  the  county 
clerk  a  complete  list  of  all  vehicles  registered  with  the  names  of  the 
owners. 

The  Secretary  of  State  also  has  charge  of  the  examination  and 
licensing  of  chauffeurs  to  operate  motor  vehicles.  Applications  are 
made  to  the  Secretary  of  State,  accompanied  by  a  fee  of  $5.00;  and 


946  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

the  Secretary'  of  State  appoints,  examines,  holds  examinations  and 
issues  licenses  and  metal  badges  to  those  who  pass.  Licenses  are 
renewed  annually  on  payment  of  a  fee  of  $3.00;  and  no  person  may 
operate  a  motor  vehicle  on  a  public  highway  without  a  license. 

All  moneys  received  from  these  registration  and  license  fees,  less 
certain  expenses,  are  required  to  be  set  apart  as  a  special  Road  Fund 
in  the  State  Treasury;  and  these  now  form  an  important  source  of 
revenue. 

The  expenses  collected  with  the  collection  of  these  fees  appear 
to  be  paid  out  of  the  general  revenue  fund ;  and  these  amount  to  a 
large  proportion  of  the  revenue.  The  receipts  and  expenses  for  the 
last  two  biennial  periods  are   shown  below : 

Receipts  into 
State  Treasury-.  Expenses. 

October  1,  1910  to  September  30,  1912...*. $   401,162.22  $  95,494.31 

October  1,  1912  to  September  30,  1914 1,182,400.11  213,929.37 

The  clerical  force  connected  with  the  automobile  department  is 
not  large;  but  the  expenses  for  supplies  and  transportation  charges 
come  to  a  considerable  amount.  Most  of  the  appropriations  made  for 
these  purposes  in  1911  had  been  exhausted  by  September  30  ,1912,  and 
emergency  and  deficiency  appropriations  were  made  in  1913  for  $104,- 
703.83,  in  addition  to  appropriations  of  $215,000  for  the  two  succeed- 
ing fiscal  years.  The  expense  for  administering  these  automobile  fees 
is  thus  about  twenty  per  cent  of  the  amount  collected. 

In  most  of  the  American  states  the  registration  of  motor  vehicles 
and  licensing  of  chauffeurs  is  placed  in  charge  of  the  Secretary  of 
State,  as  in  New  York,  Ohio,  Indiana,  Michigan,  Missouri,  Oregon 
and  Connecticut.  In  New  Jersey  there  is  a  department  of  Motor 
Vehicle  Registration  and  Regulation  in  connection  with  the  department 
of  state ;  and  the  Assistant  Secretaiy  of  State  is  ex  officio  Commis- 
sioner of  Motor  Vehicles. 

A  few  states  have  placed  this  work  in  other  hands.  In  Massa- 
chusetts, Pennsylvania  and  California  it  is  in  charge  of  the  State 
Highway  authorities.  In  California  applications  and  fees  are  sent  to 
the  State  Treasurer,  who  notifies  the  department  of  engineering.  In 
Maryland  there  is  a  commissioner  of  motor  vehicles  appointed  by  .the 
Governor. 
Miscellaneous  Functions. 

Under  the  Weights  and  Measures  Act  (revised  in  1913),  the 
Secretary  of  State  is  ex  officio  State  sealer  of  Weights  and  Measures 
and  has  the  care  and  custody  of  the  authorized  public  standards  of 
weights  and  measures.  He  is  required  to  try  and  prove  by  such  stan- 
dards any  weights  and  measures  belonging  to  any  county,  city  or  other 
municipal  corporation  sent  to  him  by  the  county  or  municipal  sealer 
of  weights  and  measures ;  and  to  execute  and  deliver  certificates  that 
such  weights  and  measures  are  accurate. 

By  an  Act  of  1911  to  regulate  and  prevent  frauds  in  sales  by 
itinerant  venders,  such  venders  are  required  to  deposit  $500  with  the 
Secretary  of  State  and  to  pay  $25.00  as  a  fee  for  a  State  license 
for  one  year  to  be  issued  by  the  Secretary  of  State.     The  deposit  is 


SECRETARY  OF  STATE.  947 

to  be  held  for  60  days  after  the  expiration  or  cancellation  of  the 
license,  subject  to  attachment  on  behalf  of  creditors. 

The  Secretary  of  State  also  records  trade-marks ;  and  he  issues 
instructions  and  forms  to  commissioners  of  deeds,  and  certificates  of 
magistry  to  notary  publics. 
Ex  Officio  Boards  and  Offices. 

The  Secretary  of  State  is  ex  officio  a  member  of  the  following 
boards : 

Board  of  Commissioners  of  State  Contracts, 

Primary  Canvassing  Board, 

Board  to  hear  objections  to  nominating  petitions. 

State  Canvassing  Board, 

Board  of  Voting  Machine  Commissioners, 

Board    of    Commissioners    of    the    State    Library, — also    State 
Librarian, 

Board  of  Trustees  of  the  National  History  -Museum, 

Board  of  Trustees  of  the  Lincoln  Homestead, 

Board  of  Trustees  of  Fort  Massac. 

APPROPRIATIONS   FOR   THE   SECRETARY  OF   STATE,    1913-15. 

No.  of      Salaries         Expenses  Totals 

Empl.    per  annum      per  annum  Two  Years 

Secretary  of   State $  7,500.00        $  $  15,000.00 

General  Expenses. 

Chief  Clerk  and  Assistant 2        $  6,600.00  $  13,200.00 

Executive   Clerks    2           3,300.00  6,600.00 

Index  Clerks   4           6,100.00  12,200.00 

Clerks  3           2,700.00  5,400.00 

Private  Secretary   1            2,100.00  4,200.00 

Stenographers    11           18,480.00  24,960.00 

Bookkeeper    1            2,000.00  4,000.00 

Porters  and  Messengers  3            2,700.00  5,400.00 

Extra  Clerk  Hire  1,500.00  3,000.00 

Office    5,000.00  10,000.00 

Postage  (emergency)    3,000.00 

Incidentals    5,000.00  10,000.00 

Blue  Book  '. 2,000.00 

27        $45,480.00        $10,000.00  $103,960.00 
Buildings  and  Grounds. 

Superintendent  and  Assistant 2        $4,300.00        $  $    8,600.00 

Carpenters   2            2,000.00  4,000.00 

Policemen    6            4,800.00  9,600.00 

Elevator  Conductors    4            3,600.00  7,200.00 

Janitors    11            8,800.00  17,600.00 

Flagman   1               800.00  1,600.00 

Engineers    3            4,440.00  8,880.00 

Firemen    9            8,100.00  16,200.00 

Weigher    1            1,000.00  2,000.00 

Electricians    4            5,200.00  10,400.00 

Helper    1               900.00  1,800.00 

Heating  and  Lighting  13,000.00  26,000.00 

Emergency  5,000.00 

Repairing  State  House  1,000.00  2,000.00 

Flags  200.00 

Elevators  and  Toilets   30,000.00 

44        $43,940.00        $14,000.00  $151,080.00 


948 


EFFICIENCY  AND  ECONOMY   COMMITTEE. 


Supply  Department. 

Supply  Clerks    2        $  3,900.00 

Messengers    2  1,800.00 

4        $  5,700.00 
Shipping  Department. 

Shipping  Clerks   4        $6,720.00 

No.  of       Salaries 
Empl.     per  annum 
Corporation  Department. 

Clerks    4        $  7,200.00 

Anti-Trust   Clerks 5  7,300.00 

Expenses   

Foreign  Corp.  Investigators 

(emergency)  —      

9        $14,500.00 
Automobile  Department. 

Clerks    4        $  4,640.00 

Investigators    3  3,600.00 

Extra  Clerk  Hire   2,500.00 

Clerks  (emergency)    

Numbers  and  Tags  

Traveling  Expense    

Freight  and  Parcel  Post 

Freight  and  Parcel  Post  (emrgcy) 
Deficiency  and  Exp.   (emergency) 

7        $10,740.00 
Chicago  Office. 

Deputy    1       '$  2,250.00 

Examiner    1  1,500.00 

Stenographer  and  Clerk  1  1,000.00 

Rent    

Light  and  Telephone  

Typewriter  and  Adding  Machine. 

3        $  4,750.00 
No.  of       Salaries 
Empl.     per  annum 
State  Library. 

Librarian    6        $  6,400.00 

Janitor   1  900.00 

For  Purchase  of  Books  and   Ex- 
penses   

Postage  

Tools,  etc 

Shelving  and  Furniture    

7        $  7,300.00 
Library  Extension  Commission. 

Organizer  1        $  1,200.00 

Asst.  Librarian   1  900.00 

Stenographer    1  720.00 

Extra  Help 150.00 

Traveling  Expenses   

Expenses  of  Commissions 

3        $  2,970.00 


7,800.00 
3,600.00 


$   11,400.00 

$  13,240.00 

Expenses 

Totals 

per  annum 

Two  \  ears 

$ 

$  14,400.00 

14,600.00 

1,500.00 

3,000.00 

1,000.00 

$  1,500.00 

$  33,000.00 

$ 

$    9,280.00 

7,200.00 

5.000.00 

2,500.00 

75,000.00 

150,000.00 

1,800.00 

3,600.00 

20,000.00 

40,000.00 

15,000.00 

87,203.83 

$96,800.00 

$319,783.83 

$ 

$    4,500.00 

3,000.00 

2,000.00 

1,200.00 

2,400.00 

200.00 

400.00 

1,000.00 

$  1,400.00 

$  13,300.00 

Expenses 

Totals 

per  annum 

Two  Years 

$ 

$  12,800.00 

1,800.00 

2,000.00 

4,000.00 

200.00 

400.00 

200.00 

400.00 

1,000.00 

$  2,400.00 

$  20.400.00 

$ 

$    2,400.00 

1,800.00 

1,440.00 

300.00 

600.00 

1.200.00 

1,700.00 

$     600.00        $    8,840.00 


SECRETARY   OF   STATE. 


949 


Museum  of  Natural  History. 

Curator   1 

Asst.   Curator   1 

Janitor    1 

Catalogers,      Carpenters,      Stenog- 
raphers    

General  Expense   

Books  and  Specimens   

Purchase  and  Repair  of  Cases.  ..  . 


Lilt  coin  Home. 

Custodian  1 

Improvements  and  Repairs   

Heating  and  Lighting   

Incidental  Expenses   


Fort  Massac  Trustees. 

Custodian    

Care  and  Improvement  

Extension  of  Retaining  Walls. 


$  3,000.00 
1,200.00 
1,000.00 

$ 

$  6,000.00 
2,400.00 
2,000.00 

600.00 

1,000.00 
500.00 

1,200.00 
2,000.00 
2,000.00 
1,000.00 

$  5,800.00 

$  1,500.00 

$  16,600.00 

$  1,500.00 

300.00 
350.00 
300.00 

$  3,000.00 
600.00 
700.00 
600.00 

$  1,500.00 

$  950.00 

$  4,900.00 

$  600.00 

$ 
2,500.00 

$  1,200.00 
5,000.00 
1,500.00 

600.00        $  2,500.00        $    7,700.00 
Total         Number 
Salaries        Appropriation       of 
per  annum       Two  Years  Employes 


Stimmary. 

The  Secretary  of  State $  7,500.00 

General   Expenses    39,480.00 

Building   and    Grounds 43,940.00 

Supply   Department    5,700.00 

Shipping  Department  6,720.00 

Corporation  Department   14,500.00 

Automobile  Department   10,740.00 

Chicago  Office    4,750.00 

$133,330.00 

State  Library  $  7,300.00 

Library  Extension  Commission 2,970.00 

Museum  of  Natural  History 5,800.00 

Lincoln  Home  1,500.00 

Fort  Massac  Trustees 600.00 


$  15,000.00 

103,960.00 

27 

151,080.00 

44 

11,400.00 

4 

13,240.00 

4 

33,000.00 

9 

319.783.83 

7 

13.300.00 

3 

$660,763.83 

98 

$  20,400.00 

7 

8,840.00 

3 

16.600.00 

3 

4,900.00 

1 

7,700.00 

1 

$  18,170.00        $  58.440.00 


Emergency  Appropriations,  1913. 

General    Expenses — Postage 

Buildings  and  Grounds — Heating  and 
Lighting 

Corporation  Department — Investigators 

Automobile  Department — Clerks 

Automobile  Department— Freight  and  Par- 
cel  Post    

Automobile  Department— Deficiency  and 
Expenses   


$    3,000.00 

5,000.00 
1,000.00 
2,500.00 

15,000.00 

87.203.83 

$113,703.83 


950  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

EX  OFFICIO  BOARDS. 

Gov.     Lieut.  Gov.  Secy.  Auditor  Treas-  Atty.  Supt.  Pres. 


of 

urer 

Gen.  Pub.      St. 

State 

Instr.  Board 
Ag. 

Commissioners  of  State 
Contracts  x        x        x        x 

State   Canvassing  Board.  x        x        x        x 

Primary  Canvassing 
Board   x  x  x 

Board  on  Objections  to 
Nominations    x  x        x  x 

Commissioners  of  State 
Library   x  x  x 

Trustees  National  His- 
tory Museum   x  x  x 

Trustees  Lincoln  Home- 
stead            X  x        X         X  X 

Trustees  Lincoln  Monu- 
ment       X  X  X 

Fort  Massac  Trustees...         x  x        x 

Commissioners  of  the 
Department  of  Justice.         x        x        x        x         x        x 

ELECTION   BOARDS. 

The  board  of  voting  machine  commissioners,  established  in  1903, 
consists  of  the  Secretary  of  State  and  two  persons  who  must  be 
mechanical  experts  and  not  members  of  the  same  political  party, 
appointed  by  the  Governor  for  a  term  of  four  years,  but  removable  at 
his  pleasure.  The  board  examines  and  reports  on  the  accuracy, 
efficiency,  capacity  and  safety  of  voting  machines ;  and  voting  machines 
not  approved  by  this  board  cannot  be  used  at  any  election.  Each  of 
the  mechanical  experts  is  entitled  to  $100  for  his  compensation  and 
expenses  in  making  such  examination  and  report,  to  be  paid  by  the 
persons  or  corporation  applying  for  such  examination. 

The  State  Primary  Canvassing  Board  consists  of  the  Governor, 
Secretary  of  State  and  State  Treasurer.  This  board  canvasses  the 
returns  of  primary  elections  for  State  officers  and  decides  tie  votes  by 
lot;  it  makes  proclamation  of  the  results  of  primary  elections  for 
State  offices  and  files  certificates  of  nominations  in  the  office  of  the 
Secretary  of  State. 

Objections  as  to  certificates  of  nomination  and  as  to  nomination 
papers  in  the  case  of  State  officers  are  considered  by  the  Secretary 
of  State,  the  Auditor  and  the  Attorney  General;  and  a  decision  of 
a  majority  of  these  officers  is  final. 

What  is  commonly  known  as  the  State  Canvassing  Board,  con- 
sists of  the  Secretary  of  State,  Auditor,  Treasurer  and  Attorney 
General,  or  any  two  of  them  in  the  presence  of  the  Governor.  This 
body  canvasses  the  vote  for  United  States  Senators  and  members  of 
Congress,  Judges  and  Clerk  of  the  Supreme  Court,  Judges  of  the 
Circuit  Court,  Senators  and  Representatives  to  the  General  Assembly, 
members  of  the  State  Board  of  Equalization  and  trustees  of  the 
University  of  Illinois. 

It  is  difficult  to  explain  on  any  rational  bases  the  existence  of 
these  several  boards  for  election  purposes.  The  statutes  and  admin- 


SECRETARY   OF   STATE.  951 

istrative  machinery  would  be  simplified  by  placing  the  several  func- 
tions in  the  hands  of  one  State  board  of  elections,  to  pass  on  voting 
machines  and  objections  to  nominations,  and  to  canvass  the  returns 
for  both  primary  and  final  elections.  TKis  board  should  include  the 
Governor,  Secretary  of  State  and  Attorney  General.  Provision  could 
be  made  for  appointing  mechanical  experts  to  report  on  voting 
machines  to  the  State  board  of  elections. 

COMMENTS    AND   SUGGESTIONS. 

The  powers  and  duties  of  the  Secretary  of  State  in  Illinois  form 
a  heterogenous  group  of  functions  not  closely  related  to  each  other. 
Many  of  these  matters  have  no  necessary  connection  with  the  office 
of  Secretary  of  State,  and  instances  may  be  found  in  other  states 
where  most  of  his  functions,  except  that  of  keeper  of  certain  official 
records,  is  given  to  some  other  officer  or  board.  In  Illinois  the  powers 
of  the  Secretary  of  State,  in  some  matters  partially  under  his  control, 
are  limited  by  the  authority  of  other  officers  and  boards,  such  as  the 
commissioners  of  contracts  and  the  printer  expert. 

Some  of  the  functions  of  the  Secretary  of  State  are  closely  re- 
lated to  those  of  other  independent  officers  and  boards ;  and  have  been 
considered  in  other  reports  prepared  for  the  Efficiency  and  Economy 
Committee.  In  a  general  re-organization  of  the  state  service  such 
positions  might  well  be  transferred  from  the  Secretary  of  State  and 
associated  with  other  authorities  dealing  with  the  same  general  sub- 
ject. Thus  the  supervision  over  corporations  could  be  combined  with 
the  supervision  over  banks,  insurance  companies  and  public  utilities, 
in  a  Department  of  Trade  and  Commerce  as  proposed  in  another  part 
of  this  survey.  So  too,  the  registration  of  motor  vehicles  and  licensing 
of  chauffeurs  and  the  collection  of  fees  is  largely  a  revenue  matter  and 
might  well  be  organized  in  the  proposed  department  of  Finance. 

The  functions  of  the  Printer  Expert  should  be  increased,  so  that 
he  could  exercise  full  control  over  public  printing  and  binding  in  addi- 
tion to  the  present  technical  duties.  This  work  should  further  be  com- 
bined with  that  of  a  purchasing  agent  for  stationery  and  office  sup- 
plies ;  and  the  title  of  the  office  changed  to  that  of  Superintendent  of 
Printing.  The  printing  and  supplies  for  each  office  should  also  be 
charged  to  such  office;  though  a  record  should  also  be  kept  of  the 
total  amount  expended  by  all  offices  for  such  purposes. 

The  State  Board  of  Contracts  should  be  abolished ;  and  contracts 
for  printing,  'binding  and  office  supplies  should  be  made  by  the  Super- 
intendent of  Printing,  subject  to  the  approval  of  the  proposed  State 
Comptroller,  and  also  of  the  Governor  as  required  by  the  Constitution. 
Such  contracts  should  include  more  nearly  than  at  present  all  of 
such  supplies  for  the  various  State  officers  and  boards. 

The  Superintendent  of  Buildings  and  Grounds  should  be  appointed 
by  the  Governor ;  he  should  have  supervision  over  all  state  buildings 
and  grounds  in  Springfield,  including  the  Capitol,  Supreme  Court 
Building,  the  Armory,  the  Executive  Mansion,  and  the  Lincoln  Home 
and  Lincoln  Monument. 

The  several  election  boards  should  be  consolidated  into  one  elec- 


952  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

tion  board,  consisting  of  the  Governor,  Secretary  of  State  and  Attor- 
ney-General. 

If  the  Secretary  of  State  were  made,  as  he  should  be,  an  officer 
appointed  by  the  Governor,  the  loss  of  some  of  his  present  functions 
could  be  offset  by  the  transfer  to  his  department  of  other  services  and 
by  giving  this  department  more  complete  control  over  some  matters, 
over  which  it  has  now  only  a  partial  control.  Thus  the  Secretary  of 
State,  in  addition  to  his  primary  function  as  Keeper  of  Records,  could 
continue  his  duties  in  relation  to  elections ;  and  the  Superintendent  of 
Buildings  and  Grounds,  the  Superintendent  of  Printing,  and  the  Civil 
Service  Commission  could  appropriately  be  attached  to  this  depart- 
ment. \\'hile  this  would  not  make  a  coherent  department  of  closely 
related  functions,  it  would  make  a  department  of  some  importance, 
uniting  a  number  of  services  not  easily  assignable  to  other  departments. 

This  plan,  however,  involves  an  amendment  of  the  state  constitu- 
tion as  to  the  method  of  selecting  the  Secretary  of  State.  Under  the 
existing  provisions,  the  concentration  of  responsibility  can  best  be 
secured  by  placing  the  Superintendent  of  Buildings  under  the  proposed 
department  of  Public  \\'orks,  and  by  making  the  Superintendent  of 
Printing  directlv  responsible  to  the  Governor. 

It  may  be  noted  that  the  investigators  for  the  Committee  on  Re- 
trenchment and  Reform  of  the  Iowa  General  Assembly  have  recom- 
mended in  their  plan  for  reorganizing  the  state  administration  that  the 
duties  of  the  Secretary  of  State  as  Keeper  of  the  Seal  and  records  be 
combined  with  those  of  the  Attorney-General,  in  one  department. 


II.     LAW  OFFICERS. 

THE  ATTORNEY-GENERAL. 

Statutes  of  the  Territory  of  Illinois  prescribed  duties  for  the 
Attorney  for  the  Territory,  but  did  not  create  the  office  of  Attorney- 
General.  An  y\ct  of  the  first  General  Assembly  of  the  State,  in  1819, 
provided  for  the  duties  of  the  Attorney-General ;  to  be  elected  by  the 
General  Assembly  for  a  term  of  two  years.  From  time  to  time  other 
Acts  were  passed  relating  to  this  office. 

The  Constitution  of  1848  made  elective  the  previously  existmg 
state  officers,  except  the  Attorney-General,  for  whom  no  provision 
was  made,  and  the  office  was  discontinued.  By  Act  of  1867,  the  office 
of  Attorney-General  was  again  created,  to  be  filled  first  by  appoint- 
ment by  the  Governor,  for  a  term  of  two  years,  and  afterwards  to  be 
elected  by  popular  vote. 

The  Constitution  of  1870  names  the  Attorney-General  as  one  of 
the  officers  of  the  executive  department,  to  be  elected  by  popular  vote 
for  a  term  of  four  years.  Vacancies  are  filled  by  the  appointment  of 
the  Governor. 

Before  entering  on  the  duties  of  his  office,  the  Attorney-General 
is  commissioned  by  the  Governor,  takes  an  oath  or  affirmation,  and 
must  execute  a  bond  of  $10,000  for  the  faithful  discharge  of  the  duties 
of  the  office.     He  receives  a  salary  of  $10,000  a  year. 

The  duties  of  the  Attorney-General  are  defined  by  statute.  His 
general  duties  are  provided  in  an  Act  of  1874  in  regard  to  the  Attorney- 
General  and  State's  Attorneys ;  while  other  specific  powers  and  duties 
are  provided  in  various  laws.  His  principal  functions  may  be  classi- 
fied under  two  main  divisions- -as  attorney  for  the  State  and  State 
Officers  in  proceedings  before  the  courts;  and  as  legal  advisor  to  the 
Governor,  other  State  Officers  and  the  General  Assembly. 
Attorney  for  the  State  and  State  Officers. 

In  the  first  capacity,  it  is  his  duty : 

To    appear    for    and    represent    the    People    of    the    State    before    the 

Supreme  Court,  in  all  cases  in  which  the  State  or  the  People  of  the  State 

are   interested. 

To  institute  and  prosecute  all  actions  and  proceedings  in  favor  or  for 

the  use  of  the  State  which  may  be  necessary  in  the  execution  of  the  duties 

of  any  State  officer.  . 

To  defend  all  actions  and  proceedings  agamst  any  State  officer  m  his 

official  capacity,  in  any  of  the  courts  of  this  State  or  of  the  United  States. 
To  consult  with  'and  advise  the   several   State's  Attorneys  in  matters 

relating  to  the  duties  of  their  office;  and  when  in  his  judgment  the  interest 

of   the   People   of   the   State    requires   it,   he   shall   attend   the   trial   of   any 

person  accused  of  crime  and  assist  in  the  prosecution. 

To  enforce  the  proper  applicaton  of  funds  appropriated  to  the  public 

institutions  of  the  State,  prosecute  breaches  of  trust  in  the  administration 

of   such   funds,   and,   when  necessary,   prosecute   corporations    for    failure 

or  refusal  to  make  the  reports  required  by  law. 


954  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

Legal  Advisor. 

As  legal  advisor,  it  is  his  duty : 

To  consult  with  and  advise  the  Governor  and  other  State  officers,  and 
give,  when  requested,  written  opinions  upon  all  legal  or  constitutional  ques- 
tions relating  to  the  duties  of  such  officers  respectively. 

To  prepare,  when  necessary-,  proper  drafts  for  contracts  and  other . 
writings  relating  to  subjects  in  which  the   State  is  interested. 

To  give  written  opinions,  when  requested  by  either  branch  of  the 
General  Assembly,  or  any  committee  thereof,  upon  constitutional  or  legal 
questions. 

Other  General  Duties. 

It  is  also  the  duty  of  the  Attorney-General: 

To  keep  in  proper  books  a  register  of  all  cases  prosecuted  or  defended 
b\-  him,  in  behalf  of  the  State  or  its  officers,  and  of  all  proceedings  had 
in  relation  thereto,  and  to  deliver  the  same  to  his  successor  in  office. 

To  keep  in  his  office  a  book  in  which  he  shall  record  all  official  opinions 
given  by  him  during  his  term  of  office,  which  book  shall  be  by  him  delivered 
to  his  successor  in  office. 

To  pay  into  the  State  Treasury  all  moneys  received  by  him  for  the  use 
of  the  State. 

To  attend  to  and  perform  any  other  duty  which  may  from  time  to 
time  be  required  of  him  by  law. 

Specific  Duties. 

A  number  of  statutes  provide  specifically  for  action  by  the  Attorney- 
General  for  their  enforcement;  though  in  some  cases  these  provisions  add 
little  or  nothing  to  his  duties  as  prescribed  in  general. 

Quo  Warranto  Proceedings. 

It  is  the  duty  of  the  Attorne3--General  to  file  any  information  in  the 
nature  of  a  quo  warranto  against  any  person  holding  office  illegally  and 
against  any  corporation  holding  or  exercising  any  franchise  or  license  in 
violation  to  law. 

Against  Corporations. 

More  specifically  it  is  the  duty  of  the  Attorney-General  to  institute 
proceedings  for  the  dissolution  of  corporations  which  have  ceased  to  act, 
and  for  the  dissolution  of  insolvent  homestead  loan  associations,  to  bring 
actions  against  foreign  corporations  for  violations  of  the  law,  and  to 
proceed  against  violations  of  the  anti-trust  Act. 

Other  Laws. 

The  Attorney-General  is  authorized  to  institute  prosecutions  for  vio- 
lations of  the  civil  service  laws  and  the  law  regulating  the  sale  of  fer- 
tilizers. 

Court  of  Claims. 

It  is  his  duty  to  represent  the  State  in  cases  before  the  court  of  claims. 

Inheritance  Tax. 

Under  the  amendment  of  1913  to  the  Inheritance  Tax  Law,  it  is  made 
the  dutj-  of  the  Attorney-General  to  exercise  general  supervision  over  the 
assessment  and  collection  of  the  inheritance  tax,  with  the  authority  to 
apply  to  the  county  court  for  the  appointment  of  appraisers  and  to  appeal 
from  any  appraisement  or  assessment.  Provision  is  also  made  in  the 
appropriation  JKci  for  an  Assistant  Attorney-General  and  other  assistants 
and  clerks  in  the  inheritance  tax  office  in  Cook  County,  and  for  assistant 
investigators  and  expenses  in  collecting  inheritance  tax  outside  of  Cook 
County. 


i^AVV    OFFICERS.  955 

The  following  statement  gives  the  expenses  of  the  Attorney-Gen- 
eral's office,  as  shown  by  the  warrants  drawn  for  the  two  years  1910-12, 
and  the  appropriations  made  in  1911  and  1913. 

Warrants  Appropri-         Appropri- 

Dra>A^n  ations  ations 

1910-12  1911  1913 

Attorney-General    $  20,833.34        $  20,000.00        $  20,000.00 

Chief  Assistant    {     45  375  qq  48,000.00  JS.OOO.OO 

Other  Assistants   j  '  d3,000.00 

Brief  Maker,  Stenographers  and  Clerks     28,415.00  32,000.00  42,200.00 

Total    Salaries    $  94,623.34  $100,000.00        $130,200.00 

Office  Expenses   $  11,391.71  $  14,000.00        $  16,000.00 

I.  C.  Suits  8,953.85  73,464.47  136,615.20^ 

U.  S.  Courts  21,120.76  48,000.00  35,000.00 

Submerged  Land  Inv 8,007.59  25,000.00  38,548.01b 

Economy    Light    and    Power    Company 

Suit  9,008.12  40,000.00 

Tax  on  Idaho  Lands 4,513.25 

Attorneys  and   Expenses 30,000.00 

$183,105.37  $304,977.72  $356,363.21 
Inheritance  Tax  Office. 

Assistant  Income  Tax  Attorneys $     7,800.00  $    9,600.00  $33,000.00 

Clerks    and    Stenographers 11,550.00  15,600.00  20,400.00 

Rent  and  Expenses  6,958.59  10,300.00  10,290.00 

Special  Investigation    6,719.22  12,000.00  16,000.00 

Furniture    1,078.97  1,600.00  3,000.00 

$  34.106.78  $  49,100.00  $  82,690.00 
Inheritance    Tax    Investigation    Outside 

of  Cook  County  . $  20,000.00 

Courts — Expenses,  Disbarment  Proceed- 

ceedinigs   4,000.00 

Totals    $217,212.15        $354,077.72        $463,053.21 

a$36,615.20  re-appropriated. 
b$ll,048.H  re-appropriated. 

Auditor  of  Public  Accounts. 

Section  15  of  the  Act  in  relation  to  the  Auditor  of  Public  Accounts 
provides  that:  "The  Auditor  shall  be  deemed  the  proper  officer  to 
institute  all  suits,  motions  and  other  proceedings  in  law  and  equity, 
in  which  the  State  is  plaintiff  except  in  cases  otherwise  provided  by 
law."  This  provision  has  come  down  from  the  Revised  Statutes  of 
1845 ;  and  is  perhaps  a  survival  of  tlie  period  when  the  office  of  At- 
torney-General was  discontinued.  This  provision  now  seems  to  be 
practically  a  dead  letter,  so  far  as  any  active  exercise  of  the  power  by 
the  Auditor  is  concerned.  For  many  years  an  appropriation  of  $500 
a  year  has  been  regularly  made  to  the  Auditor  "for  costs  and  expenses 
of  state  suits ;"  but  for  twenty  years  this  appropriation  has  usually 
lapsed.  The  appropriation  made  in  1893  was  nearly  all  expended;  but 
since  then  the  only  payments  have  been  as  follows : 

Warrant   Drawn  Unexpended 

1898-1900   $56.08  $944.00 

1902-1904   2.00  998.00 

1906-1908   58.04  941.96 


956  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

ATTORNEYS  IN   OTHER  STATE  OFFICES. 

While  the  Attorney-General  is  the  official  legal  advisor  to  all  state 
officers,  and  is  charged  with  a  general  responsibiilty  for  the  enforce- 
ment of  all  state  laws,  in  a  number  of  instances  provision  has  been 
made  in  the  laws  or  appropriations  for  certain  state  offices  for  attor- 
neys or  legal  services  not  connected  with  the  Attorney-General's  office. 
Thus  there  is  a  Counsel  to  the  Public  Utilities  Commission,  and  there 
are  attorneys  for  the  Insurance  Department,  the  Factory  Inspection 
Department  and  the  State  Food  Commissioner. 

Counsel  to  State  Public  Utilities  Commission. 

The  Public  Utilities  Law  provides  that  the  commission  shall  ap- 
point as  counsel  to  the  commission  an  attorney  at  law  of  the  State  of 
Illinois,  who  shall  hold  office  at  the  pleasure  of  the  commission.  The 
counsel  to  the  commission  has  power,  subject  to  the  approval  of  the 
commission,  to  appoint  and  at  pleasure  remove  attorneys  at  law  to 
assist  him  in  the  performance  of  his  duties. 

Attorney  for  the  Insurance  Department. 

The  Act  creating  the  Insurance  Department  provides  that  the  In- 
surance Superintendent  shall  have  all  the  powers  and  may  perform  all 
the  duties  in  regard  to  the  business  of  insurance  formerly  attached  to 
the  office  of  Auditor  of  Public  Accounts  and  the  Attorney-General. 
He  is  to  exercise  the  same  control  over  insurance  companies,  and  may 
institute  and  prosecute  in  his  name  all  suits  and  all  things  formerly 
required  to  be  done  by  the  Auditor  of  Public  Accounts  or  Attorney- 
General  ;  and  the  said  Auditor  of  Public  Accounts  and  Attorney-Gen- 
eral are  relieved  from  any  duty  in  relation  thereto. 

Another  section  of  the  bill  provides  that  the  Insurance  Superin- 
tendent, whenever  he  deems  it  necessary,  may  call  upon  the  Attorney- 
General  of  the  State  for  legal  counsel  and  such  assistance  as  may  be 
required  to  enforce  the  provisions  of  the  law.  Under  this  section,  the 
Attorney-General  might  be  called  on  to  act  as  legal  advisor  for  the 
department ;  but  in  practice  the  Insurance  Superintendent  has  not  asked 
his  assistance.  An  appropriation  of  $4,000  a  year  is  made  to  the 
Insurance  Department  for  legal  services ;  and  this  is  used  to  pay  the 
salary  of  an  attorney  appointed  for  the  department. 

Attorney  to  the  Factory  Inspection  Department. 

Under  the  Act  of  1907  for  the  department  of  factory  inspection, 
the  Governor  is  required  to  appoint  an  Attorney  for  said  department, 
at  a  salary^  of  $1,500  per  annum.  It  is  the  duty  of  the  Attorney 
for  such  department  to  prosecute,  when  requested  by  the  Chief  Fac- 
tory Inspector,  any  infractions  or  violations  of  law  which  is  now  or 
may  be  hereafter  made  the  duty  of  the  Factory  Inspector  to  enforce. 
In  practice  the  Attorney  handles  prosecutions  in  Chicago;  and  outside 
of  that  city  prosecutions  are  managed  by  the  inspectors,  either  alone 
or  with  the  assistance  of  the  State's  Attorneys. 
Attorney  to  the  Food  Commissioner. 

The  Food  and  Drugs  Act  provides  for  an  Attorney  to  be  appointed 
by  the  Food  Commissioner,  with  the  advice  and  consent  of  the  Gov- 


LAW   OFFICERS.  957 

ernor,  at  a  salary  of  $1,800  per  annum  and  expenses  incurred  in  the 
discharge  of  his  official  duties. 

Attorney  to  the  State  Board  of  Health. 

The  appropriation  bill  for  the  State  Board  of  Health  makes  an 
appropriation  of  $2,500  per  annum  for  services  of  Attorney,  and 
$900  for  a  law  clerk. 

The  State  Civil  Service  Law  provides  that  prosecutions  for  viola- 
tions of  the  Act  may  be  instituted  by  the  Attorney-General,  by  a  State's 
Attorney  or  by  the  commission  acting  through  special  counsel. 

SALARIES  AND  APPROPRIATIONS  FOR  ATTORNEYS  AND  LEGAL  SERVICES. 

Auditor  o£  Public  Accounts,  State  Suits $     500 

Public  Utilities  Commission  19,000 

Insurance  Department   7,000 

Factory  Inspection  Department   1,500 

Food  Commissioner  2,300 

State  Board  of  Health..... 2,500 

Rivers  and  Lakes  Commission 1,800 

$34,600 


OPINIONS   OF   ATTORNEY-GENERAL   ON    SPECIAL   ATTORNEYS. 

In  1901  Attorney-General  Hamlin  rendered  to  the  Auditor  of 
Public  Accounts  an  opinion  on  the  practice  of  employing  special  at- 
torneys by  the  separate  state  departments  and  offices.  This  practice 
was  at  that  time  more  common  than  at  present.  In  this  opinion  it  was 
pointed  out  that  it  is  the  duty  of  the  Attorney-General — both  at  com- 
mon law  and  by  statute — to  represent  the  several  departments  of  the 
State  in  all  matters  where  the  State  or  the  People  are  interested ;  and 
as  no  necessity  exists  for  the  employment  of  special  attorneys  by  the 
several  departments,  unless  there  is  some  statutory  provision  authoriz- 
ing such  employment  the  power  does  not  exist.  Special  consideration 
was  given  to  the  situation  in  respect  to  the  canal  commissioners,  the 
railroad  and  warehouse  commissioners  and  the  insurance  superin- 
tendent; and  it  was  held  that  in  the  latter  case  there  was  statutory 
authority  authorizing  the  employment  of  special  attorneys,  though  the 
constitutionality  of  this  provision  was  doubtful.^ 

Following  this  opinion,  the  practice  of  employing  special  attorneys 
without  statutory  authority  was  largely  discontinued.  In  his  report 
for  1907-08,  Attorney-General  Stead  referred  to  the  opinion  of  At- 
torney-General Hamlin,  in  which  he  concurred ;  and  called  attention  to 
the  statutory  provisions  for  special  attorneys  for  the  State  Food  Com- 
missioner and  Chief  Factory  Inspector.  These  provisions  he  considered 
of  doubtful  constitutionality,  and  it  was  urged  that  such  provision 
must  "result  in  conflict  and  disorder  in  the  practice  of  the  State's  legal 
business."^ 

These  opinions  are  endorsed  by  Attorney-General  P.  J.  Lucey,  in 
the  following  letter  to  the  Efficiency  and  Economy  Committee : 

^Report  of  th«  Attomey-G«ii«ral,  1901-12,  pp.  7,  801,404. 

-Report  of  the  Attorney-General,  1907-08,  p.  Ix. 


958  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

October  6th,  1914. 
To  the  Efficiency  and  Economy  Committee,  State  of  Illinois. 
Gentlemen : 

As  requested  by  you,  I  herewith  submit  in  writing  some  recom- 
mendations relative  to  the  right  of  the  various  State  boards,  commis- 
sions and  departments  to  employ  or  be  provided  with  special  counsel, 
and  therein  of  the  right  of  the  Attorney-General's  office  to  represent 
the  State  boards,  commissions  and  departments  as  contemplated  by  the 
constitutional  provisions  creating  the  Attorney-General's  department. 
In  this  connection  I  would  refer  to  an  opinion  of  my  predecessor, 
Honorable  H.  J.  Hamlin,  as  reported  in  his  opinions  for  1901-1902,  on 
page  7  thereof,  and  referred  to  again  with  approval,  by  Mr.  Hamlin, 
in  his  report  for  1903-1904,  on  page  10  thereof,  to  which  opinions  the 
Committee  is  respectfully  referred. 

In  the  first  opinion  herein  referred  to  by  General  Hamlin  he  sum- 
marizes the  matter  as  follows,  and  I  cannot  express  it  any  better  than 
by  quoting  his  language : 

In  my  opinion  the  Constitution  of  this  State  contempkites  that  the 
office  of  Attorney  General  shall  be  as  broad  in  its  jurisdiction  and  that 
the  duties  belonging  to  that  office  shall  be  as  extensive  as  those  belonging 
to  the  Attorney  General  in  England  at  common  law.  This  view  was 
expressed  in  the  opinion  rendered  to  the  Auditor  of  Public  Accounts. 

It  is  certainly  contemplated  by  the  Constitution  and  the  organization 
and  form  of  government  prevailing  in  the  State  of  Illinois,  that  the 
Attorney  General  shall  be  the  chief  law  officer  of  the  State,  and  there  is 
no  necessity  whatever  for  the  appointment  of  special  attorneys  to  represent 
any  board,  department  or  trustees  of  any  institution.  The  practice  of 
appointing  special  attorneys  is  not  only  exceedingly  extravagant  and 
expensive,  but  results  in  conflict  and  disorder  in  the  administration  of  the 
State's  legal  business.  I  would,  therefore,  recommend  that  the  legislature 
pass  such  laws  as  shall  be  necessary  to  dispose  of  all  special  attorneys 
and  which  will  result  in  placing  the  business  of  the  State  in  the  hands 
of  the  duly  elected  law  officers  thereof,  where,  under  the  constitution 
it  belongs. 

Attorney  General  Stead,  in  an  opinion  reported  in  his  opinion  for 
year  1908,  on  page  ix,  quoted  with  approval  the  previous  opinion  of 
General  Hamlin  and  reaffirmed  the  opinion  of  General  Hamlin  that 
the  State  boards  and  commissions  were  without  authority  to  hire 
special  counsel,  and  in  the  last  report  of  General  Stead,  viz. :  report  for 
1912,  on  the  first  page  thereof,  he  expresses  his  opinion  of  such  special 
counsel  as  follows : 

It  will,  in  my  judgment,  be  an  unwise  provision,  should  the  legislature, 
in  the  creation  of  additional  boards  and  commissions,  or  in  extending  the 
powers  of  present  boards  and  commissions,  make  provision  whereby  an 
attorney   for   such   boards    and   commissions    is   created    an   officer   of   the 
State  Government.     Moreover,  in  view  of  the  expressions  of  the  Supreme 
Court    in   passing   upon   the   validity   of   the    civil    service   act,    it   may   be 
doubted   if  the  legislature  has  any  power  to  create  an  attorney   for  any 
of  the  departments,  institutions,  or  officers  of  the  State  Government. 
I  concur  in  the  opinions  of  my  predecessors  and  believe  that  At- 
torney-General Stead's  opinion  last  above  quoted  is  good  law,  and  that 
the  practices  which  have  been  followed  for  many  years  and  acquiesced 
in  by  the  last  Legislature,  of  creating  special  counsel  for  boards  and 
commissions,  such  as  the  Public  Utilities  Commission,  and  permitting 
special  counsel  to  other  State  boards  and  commissions,  such  as  the 


LAW   OFFICERS.  959 

Pure  Food  Commission,  the  Grain  Inspector's  office,  etc.,  is  wholly 
without  warrant  of  law.  If  this  practice  should  be  carried  to  all  the 
State  boards  and  commissions,  it  would  dispense  with  the  duties  of 
the  Attorney  General's  department,  a  constitutional  officer,  and  as  sug- 
gested in  the  foregoing  by  Attorney  General  Stead,  I  am  of  the  opinion 
that  the  Legislature  is  without  authority  to  so  act. 

At  different  times  and  for  special  purposes  special  counsel  is  re- 
quired, but  such  special  counsel  should  only  be  attached  to  the  Attorney 
General's  department  and  retained  by  him  and  the  Attorney  General 
made  responsible  therefor. 

At  the  present  moment  the  attorney  for  the  Insurance  Superin- 
tendent has  started  one  hundred  and  ten  or  one  hundred  and  twenty 
suits  in  the  Circuit  Court  of  Sangamon  County,  against  certain  insur- 
ance companies,  not  for  violation  of  provisions  of  the  insurance 
statute,  but  for  violations  of  the  common  law,  and  the  Insurance  Sup- 
erintendent, through  his  special  counsel,  not  the  counsel  of  the  Insur- 
ance Department,  but  counsel  retained  by  himself,  is  proceeding  to 
litigate  public  policy  questions  which  he  is  wholly  without  authority, 
under  the  statute  creating  his  department,  to  litigate.  I  cite  this  simply 
as  an  illustration  of  the  extent  to  which  the  different  boards  and  de- 
partments may  go  in  what  they  think  their  rightful  province.  The 
total  cost  of  the  special  counsel  retained  through  the  State  by  the 
special  boards  and  commissions,  I  have  not  had  time  to  ascertain.  The 
Auditor's  office  will  furnish  that  information  to  the  Committee  should 
it  desire  to  have  it  in  detail.  The  appropriations  for  this  department 
■  are  shown  in  the  so-called  Omnibus  Bill  as  passed  by  the  last  Legisla- 
ture. 

This  department  stands  ready  to  take  charge  of  the  legal  business 
required  by  the  State  of  Illinois,  and  I  will  recommend  that  no  ap- 
propriation be  made  for  special  counsel  for  any  board,  commission  or 
department  in  the  future. 

Inheritance  Tax  Attorneys.  The  last  Legislature  saw  fit  to  ap- 
propriate to  this  department  the  sum  of  $10,000  for  collecting  the 
inheritance  tax  outside  of  Cook  County,  and  to  the  Treasurer's  depart- 
ment the  sum  of  $25,000  for  like  services.  Through  the  co-operation 
of  the  State  Treasurer,  Hon.  William  Ryan,  Jr.,  these  funds  were 
consolidated  and  the  State  divided  into  sixteen  districts  on  the  basis 
of  population  and  the  amount  of  business  reasonably  to  be  expected 
from  each  division,  and  attorneys  were  regularly  placed  in  charge  of 
each  district.  They  average  in  number  of  counties  from  fourteen 
counties,  in  charge  of  Mr.  Parish  of  Carmi,  Illinois,  to  four  counties  in 
charge  of  Mr.  Mooney  of  Joliet,  Illinois,  which  latter  counties  are  the 
counties  of  McHenry,  Kane,  DuPage  and  Will. 

This  system  has  worked  very  satisfactorily  and  in  my  opinion  has 
more  than  justified  the  expenditure  of  that  money.  It  has  resulted  in 
a  regularity  in  handling  inheritance  tax  matters  throughout  the  State 
and  has  promoted  the  efficiency  as  well  as  economy  in  the  conduct  of 
inheritance  tax  cases.  Formerly  there  was  no  check  on  the  fees 
which  might  be  allowed  appraisers,  or  the  expense  accounts  which  they 
might  turn  in.  but  under  this  system  we  require  the  attorney  to  be 
present  and  investigate  the  services  of  the  appraiser  and  have  been 


960  EFFICIENCY   AND   ECONOMY    COMMITTEE. 

obliged  more  than  once  to  threaten  an  appeal  to  the  court  against  the 
charges  made  or  attempted  to  be  made  by  the  appraisers,  and  in  one 
instance  such  an  appeal  was  taken,  resulting  in  a  settlement  on  more 
satisfactory,  or  I  might  even  say  decent  terms.  On  my  recommenda- 
tion, the  Legislature  passed  an  act  limiting  the  fees  of  appraisers  to  a 
sum  not  to  exceed  fifteen  per  cent  of  the  tax  in  any  event,  thus  pre- 
venting the  absorption  of  a  moderate  tax  as  -has  more  than  once  been 
the  experience  in  the  past. 

Inasmuch  as  the  services  performed  by  these  attorneys  are  strictly 
legal  services,  I  am  of  the  opinion  that  the  system  should  be  con- 
tinued and  really  might  be  added  to,  rather  than  reduced,  and  I  am 
satisfied  that  it  is  money  well  invested  for  the  State.  The  figures  for 
the  inheritance  tax  collected  in  the  past  two  years  and  in  the  preceding 
years  may  be  had  from  the  Auditor's  office  and  the  report  of  the 
State  Treasurer. 

I  discussed  with  the  Committee  when  I  spoke  to  them  last  week, 
the  question  of  enlarging  the  authority  of  the  Attorney  General  rela- 
tive to  the  State's  attorneys  in  the  State  of  Illinois.  I  still  think  that 
there  is  no  reason  why  the  law  department  of  the  State,  namely  the 
Attorney  General's  department,  should  not  exercise  a  directory  in- 
fluence over  the  actions  af  the  State's  attorneys  throughout  the  State. 
The  State's  attorney  is  an  officer  mentioned  in  the  Constitution  and 
his  election  provided  for,  but  that  will  not  prevent  the  Legislature 
from  giving  the  Attorney  General  supervisory  power  over  the  State's 
attorneys  by  vesting  in  him  the  power  of  removal  for  incompetency, 
misdemeanor,  neglect,  etc.,  and  further  giving  to  the  Attorney  General 
the  right  of  directing  the  State's  attorneys  in  the  conduct  of  the  busi- 
ness of  their  office.  Should  this  plan  be  followed,  as  I  believe  it 
ultimately  will,  by  the  Legislature,  it  will  simplify  the  matter  of  minor 
prosecutions  now  conducted  by  the  several  State  boards  and  commis- 
sions and  would  give  to  the  Attorney  General  the  right  to  instruct  and 
order  the  State's  attorney  of  any  county  to  handle  any  matter  that 
might  be  pending  in  his  county.  No  hardship  would  thereby  be  en- 
tailed upon  the  State's  attorneys  as  under  the  present  system  they  are 
all  on  salary  and  not  dependent  upon  fees  and  commissions  for  their 
compensation.  I  believe  this  statute  would  be  a  desirable  one  and 
have  the  further  effect  of  centralizing  authority  and  fixing  respon- 
sibility. Much  might  be  said  in  furtherance  of  the  foregoing  recom- 
mendation but  I  think  there  is  sufficient  for  the  Committee  to  consider 
at  the  present  time. 

Very  respectfully, 

P.  J.  LUCEY, 

Attorney  General 

SUPERVISION  OF  LOCAL  ATTORNEYS. 

November  23,  1914. 
Efficiency  and  Economy  Committee, 

State  of  Illinois. 
Gentlemen : 

Inquiry  has  been  made  as  to  the  methods  adopted  by  the  various 
states  in  unifying  and  supervising  the  work  of  the  State's  Attorneys, 
and  I  hereto  attach  some  memoranda  taken  from  the  statutes  and  de- 


LAW   OFFICERS.  961 

cisions  of  the  various  states  in  regard  to  this  subject  and  in  regard  to 
the  power  of  the  Attorney  General  of  the  State. 

I  desire  to  call  attention  to  the  manner  in  which  this  is  achieved 
in  Iowa,  and  I  herewith  send  you  a  pamphlet  prepared  by  the  Attorney 
General  of  Iowa  in  1911,  entitled  "Statutes  of  Iowa  affecting  the  gen- 
eral enforcement  of  the  Criminal  Laws  of  the  State."  The  General 
Assembly  of  the  State  of  Iowa  passed  an  act  in  1909  entitled  "Duties 
of  County  Attorney."  The  act  consists  of  two  sections — the  second 
section  being  divided  into  twelve  paragraphs,  of  which  the  first,  second 
and  eleventh  are  as  follows  : 

1.  To  diligentl>  enforce  or  cause  to  be  enforced  in  his  county,  all 
of  the  laws  of  the  state,  actions  for  a  violation  of  which  may  be  com- 
menced or  prosecuted  in  the  name  of  the  State  of  Iowa,  or  by  him  as 
county  attorney,  except  such  laws,  the  enforcement  of  which  is  exclusively 
enjoined  upon  others  by  statute. 

2.  To  appear  for  the  state  and  county  in  all  cases  and  proceedings 
in  the  courts  of  his  county,  to  which  the  state  or  county  is  a  party,  and 
in  the  supreme  court  in  all  cases  in  which  the  county  is  a  party. 

11.  To  make  reports  relating  to  the  duties  and  the  administration  of 
his  office  to  the  governor  or  the  attorney  general  whenever  called  upon 
by  the  governor  or  the  attorney  general  so  to  do. 

At  the  same  time,  the  General  Assembly  passed  an  act  entitled, 
"Removal  from  Office,"  consisting  of  ten  sections,  the  first  section  of 
which  provides  that  any  county  attorney,  supervisor,  etc.,  may  be  re- 
moved from  office  by  the  district  court  or  judge  upon  charges  filed  for 
the  causes  enumerated,  among  which  are,  wilful  or  habitual  neglect 
or  refusal  to  perform  the  duties  of  his  office,  and  also,  wilful  miscon- 
duct or  maladministration  in  office.  The  act  further  provides  that  the 
complaint  may  be  filed  on  the  relation  of  any  five  qualified  electors  of 
the  county  or  by  the  county  attorney  or  by  the  Attorney  General,  and 
shall  be  filed  by  the  Attorney  General  when  directed  so  to  do  by  the 
Governor. 


ALABAMA. 

The  Attorney  General  must  attend,  on  the  part  of  the  state,  to  all 
criminal  cases  in  Supreme  Court  and  to  all  civil  cases  to  which  state 
is  a  party  in  same  court. 

Article  5,  sec.  635,  Code  of  Alabama. 


It  is  the  duty  of  all  circuit  and  county  solicitors  of  city  and  crim- 
inal courts  to  certify  to  the  Attorney  General  the  character,  number  of 
cases  disposed  of,  number  of  convictions,  number  of  acquittals,  number 
of  nolle  prosequies  entered,  etc.  Criminal  Code  of  Alabama,  7785. 
Penalty  is  provided  for  failure  to  report,  7786.  District  attorney  is  a 
constitutional  officer. 


ARIZONA. 

Attorney  General  must  attend  the  Supreme  Court  in  all  cases  to 
which  State  or  State  officer,  in  official  capacity,  if  a  party. 

He  must  exercise  supervisory  powers  over  the  county  attorneys 
in  all  matters  pertaining  to  the  duties  of  their  offices,  and  require  re- 
ports from  them  as  to  the  condition  of  public  business  in  their  charge. 
Chapter  1,  paragraph  107,  State  of  Arizona. 


962  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

ARKANSAS. 

If  prosecuting  attorney  prays  an  appeal  the  Attorney  General  on 
inspecting  the  same,  may  file  transcript  in  office  of  Clerk  of  Supreme 
Court.     Sec.  2617  of  Arkansas  Stat. 


CALIFORNIA. 

Duty  of  Attorney  General  to  assist  district  attorneys  in  counties 
when  required  so  to  do  by  public  service  or  by  Governor.  Article 
VIII,  paragraph  470,  clause  7. 

Exercises  supervisory  powers  over  district  attorneys  in  all  matters 
relative  to  their  offices  and  requires  reports  of  them.  Article  VIII, 
paragraph  470,  clause  5. 


COLORADO. 

Attorney  General  appears  for  State  in  all  civil  and  criminal  cases 
before  Supreme  Court. 

CONNECTICUT. 

Attorney  General  has  general  supervisor)^  power  over  all  matters 
in  which  State  is  interested,  except  those  matters  over  which  the  prose- 
cuting attorneys  have  direction. 


DELAWARE. 

Attorney  General — No  state's  attorney. 


FLORIDA. 

Attorney  General  exercises  a  general  superintendence  and  direc- 
tion over  State's  Attorneys  as  to  the  manner  of  discharging  their  re- 
spective duties. 

Chapter  2,  Article  III,  Section  93,  Florida  Stat. 


GEORGIA. 

Duty  of  Attorney  General  to  represent  state  in  Supreme  Court 
and  in  all  civil  and  criminal  cases  in  any  court  when  required  by  the 
governor. 


IDAHO. 

Attorney  General  exercises  supervisory  powers  over  prosecuting 
attorneys  in  all  matters  pertaining  to  their  offices.     Chapter  8,  sec.  142. 
Prosecuting  attorney  is  constitutional  officer. 
Sec.  18,  article  5,  Constitution. 


INDIANA. 

Attorney  General  required  to  attend  to  all  cases  in  Supreme  Court 
to  which  state  is  a  party. 
Art.  12,  section  9269. 


lOWA. 


Attorney  General  must  represent  state  in  Supreme  Court. 
Chapter  3,  paragraph  208. 


LAW   OFFICERS.  963 

'Section  13  of  article  5  of  the  constitution  of  Iowa  provides: 
The  qualified  electors  of  each  county  shall,  at  the  general  election  in  the 
year  1895  and  every  two  years  thereafter,  elect  a  county  attorney  who  shall 
be  a   resident  of  the  county   for  which  he  is  elected   and   shall   hold  office   for 
two  years  and  until  his  successor  shall  have  been  elected  and  qualified. 

The  act  of  the  general  assembly  of  the  State  of  Iowa  providing 
for  the  removal  of  county  attorneys,  among  other  officers,  upon  com- 
plaint filed  in  the  district  court  by  the  State's  attorney,  was  held  con- 
stitutional in  the  case  of  State  v.  Henderson,  145  la.,  657.  However, 
the  question  of  the  right  of  the  attorney  general  to  remove  a  county 
attorney  in  the  manner  provided  in  the  act  was  not  passed  upon  by  the 
court. 


KANSAS. 

Attorney  General  shall  consult  with  and  advise  county  attorneys 
in  matters  pertaining  to  their  duties. 
Art.  7,  paragraph  3908. 


KENTUCKY. 

Attorney  General  to  appear  for  State  in  all  cases  except  where 
commonwealth  attorney  is  required  to  appear.     Paragraph  4766A1. 

County  attorney  must  assist  commonwealth  attorney.  Paragraph 
4750. 


LOUISIANA. 

Duty  of  Attorney  General  to  consult  and  advise  district  attorneys. 
Sec.  131,  Revised  Statutes.  Duty  to  appoint  district  attorneys  in 
certain  cases.     Act  No.  123,  1906. 

District  attorneys  are  constitutional  officers.  Constitution,  art. 
125. 


MAINE. 

Attorney  General  must  attend  all  trials  of  persons  indicated  for 
treason  or  murder  and  give  instructions  to  county  attorney  when  ab- 
sent.    Sec.  60,  ch.  79. 

County  attorney  must  act  with  Attorney  General  in  all  cases.  Ch. 
81,  section  17. 

MARYLAND. 

Attorney  General  has  no  authority  over  State's  Attorneys. 


MASSACHUSETTS. 

Attorney  General  has  no  authority  over  district  attorneys. 


MICHIGAN. 

Prosecuting  attorney  is  constitutional  officer.   Article  VIII,  Sec.  3. 

Must  assist  Attorney  General  in  Supreme  Court,  Sec.  1161,  An- 
notated Statutes.     Must  report  to  Attorney  General. 

The  Governor  may  remove  all  county  officers  for  incompetence 
or  misconduct,  based  on  charges  in  writing  and  an  opportunity  of  being 
heard.    Compiled  Laws  1897.    Sec.  1159. 


964  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

MINNESOTA. 

Upon  request  of  county  attorney,  Attorney  General  must  appear 
in  district  court  in  such  criminal  cases  as  he  may  deem  proper.  Sec. 
100. 


MISSISSIPPI. 

District  attorney  is  constitutional  officer.  Sec.  174.  Const.  At- 
torney General  must  advise  and  assist.  Sec.  189,  190.  Code  of  Mis- 
sissippi. 


MONTANA. 

Attorney  General  exercises  supervisory  powers  over  county  at- 
torneys. Art.  VIII.    Sec.  193. 

County  attorneys  are  constitutional  officers.     Sec.   19,   Const. 


NEBRASKA. 

Attorney  General  may  require  assistance  of  county  attorney.    Sec. 
1187  and  5538. 


NEW    JERSEY. 

No  relation  between  Attorney  General  and  Prosecutor  of  Pleas. 


NEW  YORK. 

District  Attorney  exercises  only  such  powers  and  duties  as  are 
required  of  him  by  Attorney  General  in  cases  attended  by  Attorney 
General.     Art.  9,  Sec.  62. 

The  Governor  may  remove  any  district  attorney,  within  the  term 
for  which  he  shall  have  been  elected ;  giving  such  officer  a  copy  of  the 
charges  against  him  and  an  opportunity  of  being  heard  in  his  defense. 
Art.  10,  Sec.  1. 


NORTH  CAROLINA. 

No  relations. 


NORTH  DAKOTA. 

Duty  of  Attorney  General  to  consult  and  advise  State's  Attorneys. 


OHIO. 

Attorney  General  required  to  advise  prosecuting  attorneys.     Sec. 
343,  Code. 


OREGON. 

No  relation  between  Attorney  General  and  either  district  or  prose- 
cuting attorney. 


PENNSYLVANIA. 


Attorney  General  appointed  by  Governor.     Page  370.     Sec.  1. 

RHODE  ISLAND. 

Attorney  General  and  prosecuting  attorney  have  no  relations. 


LAW   OFFICERS. 


965 


SOUTH  DAKOTA. 

Attorney  General  advises  State's  Attorneys  and  consults  with 
them.     Sec.  98,  Political  Code,  N.  D. 

SOUTH    CAROLINA. 

Attorney  General  consults  and  advises  solicitors. 

TENNESSEE. 

Has  District  Attorney  General  and  Attorney  General  and  Re- 
porter. 

TEXAS. 

Attorney  General  advises  county  and  district  attorneys  and  directs 
them  to  sue  in  certain  cases.     Art,  4414,  4415. 

UTAH. 

Attorney  General  exercises  supervision  over  county  attorneys  and 
requires  reports  of  them.     Sec.  438.  ,         a        q 

County  attorney  is  constitutional  officer.  Constitution,  Art.  », 
Sec.  10. 

VERMONT. 

Attorney  General  has  same  powers  in  State  as  State's  Attorneys 
have  in  counties.     Sec.  305.     Public  Statutes. 


VIRGINIA. 

No  relations. 


WASHINGTON. 

Attorney  General  assists  prosecuting  attorney.  Sec.  8988,  Wash- 
ington Code. 

WEST  VIRGINIA. 

Attorney  General  and  prosecuting  attorney  are  separate  officers. 

WISCONSIN. 

Attorney  General  consults  with  and  advises  district  attorneys.  _ 
The  Governor  may  remove  from  office  any  district  attorney,  givmg 
to  such  officer  a  copy  of  the  charges  against  him  and  an  opportunity 
of  being  heard  in  his  defense.     Statutes  (1913)  Sec.  968. 

WYOMING. 

Attorney  General  is  legal  advisor  of  prosecuting  attorneys. 

JUDICIAL  DECISIONS. 

In  the  case  of  People  v.  Miner,  2  Lane  (N.  Y.),  396,  the  court 
discusses  at  some  length  the  common  law  powers  of  the  attorney  gen- 
eral and  holds  that  the  office  of  attorney  general  is  a  common  law 
office  and  that  the  attorney  general  possesses  all  the  powers  he  had 
under  the  common  law  unless  the  same  have  been  expressly  abolished 
by  statutory  enactment. 


966  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

In  the  case  of  State  v.  Robinson,  101  i\Iinn.  277,  at  page  288,  the 
court  says : 

The  office  of  attorney  general  has  existed  from  an  early  period,  both 
in  England  and  in  this  countr>-,  and  he  is  vested  by  the  common  law  with 
a  great  variety  of  duties  in  the  administration  of  the  government.  The 
duties  are  so  numerous  and  varied  that  it  has  not  been  the  policy  of  the 
legislatures  of  the  states  of  this  country  to  attempt  specifically  to  enumerate 
them.  Where  the  question  has  come  up  for  consideration,  it  is  generally 
held  that  the  office  is  clothed,  in  addition  to  the  duties  expressly  defined 
by  statute,  with  all  the  power  pertaining  thereto  at  the  common  law.  State 
V.  Village  of  Kent,  96  Minn.  255,  104  X,  W.  948,  I.  L.  R.  A.  (X.  S.)  826;  4 
Cyc.  1028 ;  Hunt  v.  Chicago,  20  111.  App.  282 ;  Parker  v.  May,  5  Cush.  336 ; 
People  V.  Miller,  2  Lans.  396;  People  v.  Tweed,  13  Abb.  Pr.  25.  From 
this  it  follows  that,  as  the  chief  law  officer  of  the  State,  he  may,  in  the 
absence  of  some  express  legislative  restriction  to  the  contrary,  exercise  all 
such  power  and  authority  as  public  interests  may  from  time  to  time 
require.  He  may  institute,  conduct,  and  maintain  all  such  suits  and  pro- 
ceedings as  he  deems  necessar\-  for  the  enforcement  of  the  laws  of  the 
state,  the  preservation  of  order,  and  the  protection  of  public  rights. 

ILLINOIS. 

Clause  22  of  Article  VI  of  the  Constitution  of  1870  provides : 

At  the  election  for  members  of  the  General  Assembly  in  the  year  of 

our  Lord,   1872,  and  everj-  four  years  thereafter,  there   shall  be  elected  a 

State's  Attorney  in  and   for  each  county  in  lieu  of  the   State's  Attorneys 

now  provided  by  law,  whose  term  of  office  shall  be  four  years. 

Instances  in  which  the  several  State's  Attorneys  are  now  subject 
to  direction  of  the  Attorney  General  are  as  follows : 

The  last  clause  of  par.  376  ch.  120,  H.  R.  S.  1913.  the  same  being 
section  11  of  the  Illinois  transfer  tax  law,  makes  it  the  duty  of  the 
Attorney  General  to  institute  proceedings  for  the  collection  of  inheri- 
tance taxes  and  it  is  also  made  the  duty  of  the  several  State's  Attorneys 
to  render  assistance  when  requested  to  do  so. 

Clause  8  par.  5,  ch.  14,  H.  R.  S.  1913,  requires  the  Attorney  Gen- 
eral to  prosecute  corporations  for  failure  or  refusal  to  make  reports 
required  by  law.  Par.  269h  requires  the  State's  Attorney  to  give 
notice  to  corporations  before  any  suit  for  the  collection  of  the  penalty 
for  failure  to  report  to  the  Secretary  of  State  is  instituted. 

Clause  8,  par.  7,  ch.  14,  H.  R.  S.,  requires  the  State's  Attorneys  to 
assist  the  Attorney  General  whenever  it  may  be  necessary. 

The  supervisory  powers  of  the  Attorney  General  over  State's 
Attorneys  can  be  increased  by  requiring  the  latter  to  act  under  the 
direction  of  the  Attorney  General.  It  has  been  suggested  that  this 
power  of  supervision  be  made  more  effective  by  authorizing  the  At- 
torney-General to  remove  any  State's  attorney  for  incompetency  or 
misfeasance  or  malfeasance  in  office.  In  support  of  this  proposed 
reference  is  made  to  the  provisions  of  law  for  the  removal  of  county 
treasurers  and  sheriffs,  which  have  been  upheld  by  the  Supreme  Court, 
in  the  cases  of  Donahue  v.  County  of  Will  (100  111..  94)  and  People 
v.  NelHs  (249  111.,  12). 

John  T.  Donahue  was  elected  county  treasurer  of  Will  County, 
qualified  and  was  commissioned  as  such.  It  was  later  resolved,  by  the 
county  board  of  Will  County  that  Donahue  "ought  to  be  and  is  hereby 
removed  from  his  said  office."  This  resolution  was  based  upon  the 
provisions  of  par.  15,  ch.  36,  Kurd's  Revised  Statutes,  which  provide: 


LAW   OFFICERS.  967 

If  any  county  treasurer  shall  neglect  or  refuse  to  render  an  account, 
or  make  settlement  at  any  tiime  when  required  by  law,  or  by  the  county 
board,  or  refuse  to  answer  any  question  propounded  to  him  by  the  county 
board  or  is  a  defaulter  and  is  in  arrears  with  the  county,  or  is  guilty  of 
any  other  misconduct  in  his  office,  the  county  board  may  remove  him  from 
office,  and  may  appoint  some  suitable  person  to  perform  the  duties  of 
treasurer  until  his  successor  is  elected,  or  appointed  and  qualified ;  or  if 
by  reason  of  the  death  or  resignation  of  the  county  treasurer,  or  other 
cause,  the  said  office  shall  become  vacant,  then  the  county  board  may  appoint 
some  suitable  person  to  perform  the  duties  of  treasurer  until  a  county 
treasurer  is  elected  or  appointed  and  qualified.  The  person  so  appointed 
shall  give  bond  and  security  as  required  by  law  of  the  county  treasurer. 
It  was  urged  on  behalf  of  Donahue  that  the  paragraph  above 
quoted  was  unconstitutional  and  void. 

The  Court  held  that  there  was  no  provision  of  the  Constitution 
which  either  prohibits  the  county  board  from  the  exercise  of  the 
power  of  removal  in  such  cases  or  provides  for  the  removal  of  such 
officers  for  nonfeasanse,  misfeasance  or  malfeasance. 

The  court  further  held  the  provisions  of  Section  15,  Art.  5,  which 
provide  that, 

the  Governor,  and  all  civil  officers  of  the  State,  shall  be  liable  to  impeach- 
ment for  any  misdemeanor  in  office. 

did  not  apply  for  the  reason  that  by  the  provisions  of  Section  8,  Ar- 
ticle 10  of  the  Constitution,  the  county  treasurer  is  a  county  officer. 

The  Court  also  held,  in  the  Donahue  case  that  the  second  section 
of  the  Bill  of  Rights  did  not  apply  for  the  reason  that  a  person  could 
not  have  title  to  or  property  in  a  governmental  office. 

In  the  case  of  People  v.  Nellis  (249  111.,  12),  the  Governor,  under 
the  authority  vested  in  him  by  paragraph  256x,  chapter  38,  Hurd's  Re- 
vised Statutes,  1913,  removed  the  sheriff  of  Alexander  County  from 
office,  and  the  Court  held  that : 

The  constitution  of  this  State  is  ordinarily  held  to  be  a  limitation 
upon  the  power  of  the  legislature  and  not  a  grant  of  power  to  that  body, 
and  there  being  found  in  the  constitution  no  limitation  upon  the  power  of 
the  legislature  to  provide  for  the  removal  of  a  county  officer  in  case  of 
misfeasance  or  malfeasance  in  office,  there  is  nothing  in  the  constitution 
to  prevent  the  legislature  from  providing  by  statute  that  the  Governor 
shall,  in  a  case  like  the  one  at  bar,  have  the  right  to  remove  a  sheriff  from 
office,  and  declare  his  office  vacant. 

The  Court  followed  the  precedent  established  in  the  Donahue 
case. 

In  both  of  the  cases  above  referred  to  considerable  importance 
attaches  as  to  whether  the  officer  sought  to  be  removed  was  a  county 
officer. 

In  the  case  of  Butzow  ex  rel  v.  Kern,  decided  at  the  October, 
1914,  term  of  the  Supreme  Court  of  this  State,  the  court  held  that 
the  State's  Attorney  was  a  county  officer  but  that  he  did  not  belong 
to  that  class  of  county  officers  whose  compensation  was  fixed  by  the 
county  board. 

On  the  other  hand,  it  should  be  noted,  that  while  county  treas- 
urers and  sheriffs  are  provided  for  in  Article  10  of  the  Constitution, 
relating  to  counties,  state's  attorneys  are  provided  for  in  Article  6,  on 


968  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

the  judicial  department.     Section  30  of  Article  6,  after  providing  for 
the  removal  of  judges,  adds: 

All  other  officers  in  this  article  mentioned  shall  be  removed  from  office 
on  prosecution  and  final  conviction  for  misdemeanor  in  office. 

UNITED  STATES  DEPARTMENT  OF  JUSTICE. 

In  the  organization  of  the  United  States  Department  of  Justice, 
provision  is  made  for  a  number  of  Assistant  Attorneys-General  and 
Solicitors  for  several  of  the  Executive  departments  and  certain  bu- 
reaus, who  exercise  their  functions  under  the  supervision  and  control 
of  the  Attorney-General.  This  arrangement  provides  separate  of- 
ficials for  the  departments  and  bureaus  and  at  the  same  time  organizes 
most  of  the  legal  services  of  the  national  government  in  one  depart- 
ment. A  brief  analysis  of  the  organization  of  the  United  States 
Department  of  Justice  will  be  of  service  in  considering  a  possible  re- 
organization of  the  legal  services  of  the  State. 

The  Attorney-General  is  the  head  of  the  Department  of  Jiistice 
and  chief  law  officer  of  the  national  government.  He  is  appointed 
by  the  President,  with  the  advice  and  consent  of  the  Senate,  and  is  a 
member  of  the  President's  unofficial  cabinet.  He  has  similar  duties 
to  the  Attorneys-General  of  the  States  as  legal  advisor  and  attorney 
in  the  courts  for  the  government  and  its  officers  but  is  not  required  to 
give  legal  opinions  to  Congress.  He  has  moreover  a  general  superin- 
tendence over  the  United  States  attorneys  and  marshals  in  all  the 
judicial  districts  of  the  United  States,  and  also  over  the  Superintendent 
of  Prisons  and  applications  for  pardons.  The  Assistant  Attorneys- 
General,  Solicitors  and  special  counsel  connected  with  the  department 
of  justice  include  all  the  legal  staff  connected  with  the  national  admin- 
istration except  the  Judge  Advocate  General  in  the  departments  of 
War  and  the  Navy. 

Other  officials  in  the  department  of  Justice  include : 

The  Solicitor  General. 

The  Assistant  to  the  Attorney-General. 

Five   Assistant   Attorneys-General   assigned   to   general   duties,    and   to   the 
defense  of  suits  in  the  Court  of  Claims  and  Indian  depredation  claims. 

Assistant  Attorney-General   for  the   Interior  Department. 

Assistant  Attorney-General  for  the  Post  Office  Department. 

Assistant  Attorney-General   for  Customs  Division. 

Assistant  Attorney-General  for  Public  Lands  Division. 

Solicitor  for  the  Department  of  State. 

Solicitor  of  the  Treasury. 

Solicitor  of   Internal   Revenue. 

Solicitor  of  the  Department  of  Commerce. 

Solicitor  of  the  Department  of  Labor. 

Attorney  in  charge  of  Pardons. 

Attorney  in  charge  of  Titles. 

Superintendent  of  Prisons  and  Prisoners. 

Cliief  Examiner  (of  offices  and  records  of  U.  S.  courts). 

The  officials  provided  for  separate  departments  and  bureaus  indi- 
cates that  some  advantage  is  recognized  in  having  separate  officials 
for  branches  of  the  public  service  which  need  a  considerable  amount 
of  legal  services.  These  officials  too  have  their  offices  in  connection 
with  the  department  or  bureau  for  which  they  act.  At  the  same  time, 
in  most  cases  these  officials  are  appointed  by  the  President  and  Senate, 


SECRETARY   OF  STATE.  969 

an  arrangement  which  permits  both  the  Attorney-General  and  the  de- 
partment or  bureau  concerned  to  be  consulted  in  making  appointments. 
The  provision  by  which  these  special  officials  are  classed  as  in  the 
department  of  Justice  and  made  subject  to  the  supervision  and  con- 
trol of  the  Attorney-General  furnishes  a  means  for  securing  greater 
harmony  and  co-operation  in  the  legal  advice  given  to  the  several 
departments  and  bureaus. 

This  arrangement  is  more  complicated  than  if  the  special  attor- 
neys-general and  solicitors  were  subordinated  entirely  either  to  the 
Attorney-General  or  to  the  heads  of  the  several  departments  and  bu- 
reaus. But  this  complication  is  one  which  arises  out  of  the  dual  char- 
acter of  their  duties — on  the  one  hand  to  the  department  of  bureau 
directly  concerned,  and  on  ,the  other  to  the  general  law  office  of  the 
government.  The  existing  organization  recognizes  this  dual  char- 
acter, and  furnishes  means  for  closer  inter-relations  than  would  be 
possible  if  either  the  principle  of  departmental  autonomy  or  of  unity 
of  legal  services  were  applied  to  the  exclusion  of  the  other. 

The  Judge  Advocate  General  of  the  Army  and  Navy  are  not 
officially  related  to  the  department  of  Justice.  This  is  probably  due  to 
their  duties  as  the  heads  of  the  system  of  military  and  naval  discip- 
linary courts,  whose  methods  of  procedure  differ  widely  from  those 
of  the  regular  judicial  courts.  At  the  same  time,  these  officials  are 
also  the  advisors  of  their  departments  as  to  their  legal  rights  and  obli- 
gations in  matters  governed  by  the  decisions  of  the  regular  courts  of 
law.  In  such  matters  the  fact  that  these  officials  are  independent  of 
the  Attorney-General  might  lead  to  conflicting  legal  opinions  to  dif- 
ferent departments  of  the  government. 

COMMENTS  AND  SUGGESTIONS. 

The  present  arrangements  for  the  law  officers  of  the  State  do  not 
provide  a.  coherent  and  efficient  organization.  The  most  serious  dif- 
ficulty is  the  election  of  the  Attorney-General,  who  is  thus  independent 
of  the  Governor  and  whose  powers  seriously  limit  the  effective  autho- 
ity  of  the  Governor  as  the  chief  executive  of  the  State.  The  lack  of 
coherence  is  increased  by  the  provisions  for  counsel  and  attorneys 
for  certain  boards  and  officials, 

A  satisfactory  organization  of  the  State's  law  officers  should  fol- 
low the  general  principles  of  the  United  States  department  of  Justice. 
The  Attorney-General  should  be  appointed  by  the  Governor,  with  the 
advice  and  consent  of  the  Senate.  Attorneys  for  boards  and  officers, 
where  needed,  should  be  appointed  by  the  Governor,  with  the  under- 
standing— and  perhaps  express  provision — that  the  Attorney-General 
and  head  of  the  particular  office  should  both  be  consulted;  and  such 
attorneys  should  be  under  the  general  supervision  of  the  Attorney- 
General. 

This  plan  of  organization  cannot  be  carried  out  without  a  change 
in  the  State  Constitution  as  to  the  method  of  selecting  the  Attorney- 
General.  In  the  meantime,  it  may  be  provided  that  attorneys  for  par- 
ticular offices  and  boards  shall  be  appointed  by  the  Attorney-General 


970  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

with  the  approval  of  the  Governor.  Such  attorneys  should  also  be 
required  to  report  to  the  Attorney-General,  who  should  be  authorized 
to  give  legal  opinions  in  cases  of  conflict  in  their  opinions. 

The  consolidation  and  reorganization  of  departments  and  bureaus 
recommended  by  the  Efficiency  and  Economy  Committee  should  also 
make  possible  some  reduction  in  the  number  of  such  attorneys  for 
particular  offices  and  more  efficient  legal  advice  to  such  offices.  Thus 
a  single  attorney  for  a  department  of  health  and  food  inspection  paid 
a  reasonable  salary,  should  be  better  than  the  present  arrangement  of 
separate  attorneys  for  the  State  Board  of  Health  and  the  State  Food 
Commissioner.  An  attorney  for  the  proposed  reorganized  depart- 
ment of  Labor  could  replace  the  attorney  for  the  Factory  Inspection 
service. 

More  definite  powers  of  supervision  over  the  State's  Attorneys 
should  also  be  vested  in  the  Attorney-General. 

The  supervision  over  the  administration  of  the  Inheritance  Tax 
by  the  Attorney-General  is  not  a  normal  function  of  this  office;  and 
belongs  more  appropriately  to  the  offices  having  to  do  with  financial 
matters.  This  supervision  should  be  transferred  either  to  the  Auditor 
of  Public  Accounts  or  to  the  proposed  Revenue  Commissioner. 

COMMISSIONERS    OF    UNIFORM    LAWS. 

An  Act  of  1907  created  a  "Commission  for  the  Uniformity  of 
Legislation  in  the  United  States,"  consisting  of  five  persons  to  be 
appointed  by  the  Governor  for  the  term  of  four  years  and  until  their 
successors  are  appointed.  It  is  the  duty  of  the  commission  to  examine 
the  subjects  of  marriage  and  divorce,  commercial  paper,  insolvency, 
form  of  notarial  certificates,  discount  and  distribution  of  property, 
acknowledgement  of  deeds,  execution  and  probation  of  wills,  and  all 
other  subjects  on  which  uniformity  is  desirable  with  the  laws  of  other 
states,  to  represent  the  state  of  Illinois  in  meetings  of  like  commission- 
ers from  other  states  to  consider  and  draft  uniform  laws  for  the  ap- 
proval and  adoption  by  the  several  states,  and  to  recommend  such 
other  course  of  action  as  shall  best  accomplish  the  purpose  of  the  Act. 
The  commissioners  are  to  report  to  the  Governor  at  least  thirty  days 
before  the  convening  of  the  biennial  session  of  the  legislature;  and 
the  Governor  is  to  submit  such  report  to  the  General  Assembly,  with 
his  recommendations. 

This  commission  has  met  with  similar  commissions  from  other 
states;  and  drafts  of  proposed  uniform  laws  have  been  prepared  and 
submitted  to  the  several  states ;  and  several  such  laws  have  been 
adopted  in  a  number  of  states. 

The  members  of  the  Illinois  Commission  receive  no  salaries ;  and 
no  appropriation  has  been  made  for  their  expenses  or  for  any  share 
of  the  joint  expenses  of  the  conferences  on  uniform  laws. 


A  REPORT 

ON 


ECONOMY  AND  EFFICIENCY 
COMMISSIONS  IN  OTHER  STATES 


BY 


A.  C.  HANFORD,  A.  M. 


CONTENTS 

Introduction    _  ^'^ 

THE  MASSACHUSETTS  COMMISSION  OF  ECONOMY  AND  EFFICIENCY 975-981 

Report  on  State  Institutions  9/7 

Report  on  Executive  Organization   9/9 

Other  Plans  for  Reorganization    980 

THE  NEW  JERSEY  ECONOMY  AND  EFFICIENCY  COMMISSION 981-985 

The  Department  of  Health  982 

The  Department  of  Taxation  983 

The  Department  of  Shell  Fisheries 983 

The  Department  of  Conservation  and  Development  984 

The  Department  of  Commerce  and  Navigation 984 

The  Department  of  Prison  Control  984 

THE    NEW    YORK    COMMITTEE    OF    INQUIRY    AND    DEPARTMENT    OF    EFFICIENCY 

AND    ECONOMY     985-988 

Committee  of  Inquiry' 985 

Commissioner  of  Efficiency  and  Economy  987 

THE   PENNSYLVANIA  ECONOMY  AND   EFFICIENCY   COMMISSION    988-990 

THE   MINNESOTA  ECONOMY   AND   EFFICIENCY   COMMISSION    990-993 

THE  IOWA  COMMITTEE  ON  RETRENCHMENT  AND  REFORM    993-997 

Report  of  Efficiency  Engineers 993 

Report  of  the  Committee 994 

REFERENCES     998 


ECONOMY  AND  EFFICIENCY  COMMISSIONS 
IN  OTHER  STATES 

INTRODUCTION. 

In  Other  states  of  the  American  Union,  the  executive  branch  of 
the  state  government  has  in  the  main  developed  in  much  the  same 
way  as  in  IlHnois ;  and  there  has  been  the  same  lack  of  efficient 
organization  and  consequent  lack  of  economy.  In  recent  years,  how- 
ever, there  have  been  definite  efforts  in  a  number  of  states  towards 
a  more  efficient  organization,  by  the  consolidation  and  co-ordination 
of  related  services  under  one  general  control.  Isolated  steps  in  this 
direction  first  appeared  in  certain  states  with  reference  to  some  par- 
ticular group  of  services..  Thus  the  management  of  the  charitable  and 
correctional  institutions  was  centralized  under  a  single  board  of  con- 
trol in  Jifcasas  as  early  as  1873,  and  later  in  Wisconsin,  Minnesota 
and  I(^^^B^  definite  tendency  towards  a  more  correlated  and  concen- 
trated^J^^f  organization  gradually  developed  in  regard  to  a  number 
of  important  groups  of  state  services,  including  charitable  and  cor- 
rectional institutions,  and  more  recently  agricultural  agencies,  labor 
authorities  and  tax  administration.  As  a  result,  in  a  few  "States  there 
have  been  organized  several  important  executive  departments, — 
notably  in  New  York,  Pennsylvania,  Ohio  and  Wisconsin. 

Within  the  past  few  years  more  comprehensive  plans  for  the  reor- 
ganization of  state  administration  have  been  undertaken  in  a  number 
of  states.  Commissions  to  make  investigations  and  to  prepare  definite 
plans  were  organized  in  Massachusetts  and  New  Jersey  in  1912 ;  and 
committees  or  commissions  for  the  same  purposes  were  authorized  in 
1913  by  New  York,  Pennsylvania,  Iowa  and  South  Dakota  as  well  as 
in  Illinois.  A  review  of  the  organization  and  work  of  these  bodies 
in  other  states  is  presented  herewith.  Plans  for  similar  investigations 
have  been  proposed  in  a  number  of  states  during  the  legislative  ses- 
sions of  1915 — including  Alabama,  Nebraska,  Colorado,  Idaho  and 
California. 

THE    M.-VSSACHUSETTS   COMMISSION    ON    ECONOMY   AND   EFFICIENCY. 

Of  the  states  under  consideration,  Massachusetts  alone  has  pro- 
vided for  a  permanent  commission  to  investigate  and  give  advice  in 
regard  to  public  expenditures  and  the  centralization  of  state  adminis- 
tration. In  1912,  the  legislature  of  that  state  passed  an  act  establish- 
ing a  Commission  on  Economy  and  Efficiency  to  consist  of  three  mem- 
bers— the  State  Auditor  and  two  other  persons  appointed  by  the 
Governor.  By  an  amendment  of  1914,  however,  the  Auditor  is  no 
longer  an  ex-officio  member,  and  the  Commission  is  made  up  of  three 
persons  appointed  by  the  chief  executive  for  three  year  terms,  one 
commission  being  chosen  each  year.  One  of  the  members  is  desig- 
nated by  the  Governor  as  chairman  of  the  Commission  and  receives 
a  salarv  of  $5,000  per  year,  while  the  other  commissioners  receive 
$4,500  each. 


976  EFFICIENCY  AISD   ECONOMY   COMMITTEE. 

The  functions  of  the  Commission  are  to  make  investigations 
and  give  advice:  (1)  in  the  matter  of  appropriations,  and  (2) 
in  regard  to  legislation  looking  toward  a  more  efficient  organiza- 
tion of  the  various  departments,  and  boards  which  have  to  do  with  the 
expenditure  of  public  funds.  The  law  makes  it  the  duty  of  every 
officer  in  charge  of  a  department  which  receives  an  annual  appropri- 
ation from  the  state,  to  submit  a  report  to  the  state  auditor,  showing 
the  appropriation  of  the  department  for  the  current  year,  the  esti- 
mated amounts  required  for  the  ensuing  year,  and  the  reasons  for  any 
increases,  as  well  as  a  list  of  the  departmental  expenditures  for  the 
current  year  and  the  two  preceding  annual  periods.  Upon  receipt  of 
these  items  from  the  auditor,  it  is  made  the  statutory  duty  of  the 
Economy  and  Efficiency  Commission  to  analyze  them  carefully  and  to 
report  to  the  legislature  annu'ally,  and  at  other  times  in  its  discretion, 
whatever  recommendations  it  may  have  as  to  the  appropriations 
requested,  or  as  to  the  methods  of  raising  money  for  the  same.  The 
Commission  not  only  performs  such  advisory  functions  in  the  matter 
of  appropriations,  but  upon  request  from  either  house  of  the  legis- 
lature, the  ways  and  means  committee  of  either  branch,  or  from  the 
Governor  or  the  Governor's  Council,  it  is  required  to  make  special 
examinations  in  regard  to  the  financial  management  of  any  department 
or  institution,  and  in  its  own  discretion  may  make  such  investigations, 
and  report,  its  findings  to  the  legislature  and  to  the  Governor. 

The  second  important  function  of  the  Massachusetts  Commission 
on  Economy  and  Efficiency,  and  the  one  which  is  of  most  importance 
from  the  standpoint  of  the  reorganization  of  state  government,  is  its 
statutory  duty  to  inquire  into  Jthe  laws  regarding  the  financial  trans- 
actions of  the  state  and  to  devise  means  for  producing  greater  economy 
and  efficiency  in  state  administration  by  any  changes  in  the  laws,  by 
the  reorganization  or  the  consolidation  of  departments  and  institutions; 
by  the  adoption  of  difi^erent  methods  of  administration,  through  the 
establishment  of  a  central  purchasing  agency,  or  the  budget  system 
of  making  appropriations;  or  by  any  other  appropriate  plan.     In  order 
that  it  may  effectively  exercise  its  investigatory  functions,  the  com- 
mission is  given  power  to  require  the  attendance  of  witnesses  and  the 
production  of  evidence;  its  members  may  administer  oaths  and  take 
testimony ;  disobedience  to,  or  failure  to  comply  wath,  the  orders  of 
the  commission   is  made  punishable  by  fine  and  imprisonment;  and 
obedience  to  its  demands  may  be  compelled  upon  petition  to  the  courts. 
The  Economy  and  Efficiency  Commission  was  appointed  by  the 
(Governor  of  Massachusetts  in  November,  1912,  and  immediately  began 
a  general  study  of  the  various  state   departments,   commissions  and 
institutions,  by  sending  out  questionnaires  and  making  personal  investi- 
gations.    A  large  number  of  special  examinations  were  also  made  in 
regard  to  requests  for  salary  increases  from  the  various  state  officials 
and  employes ;  the  demands  for  larger  appropriations  and  new  build- 
ings by  the  state  normal  schools  and  agricultural  college  were  analyzed ; 
and  legislation  was  recommended  looking  toward  a  closer  supervision 
by  the  state  board  of  education  over  the  expenditure  of  appropriations 
in  the  several  educational  institutions.     As  the  result  of  the  disclosure 


IN  OTHER  STATES.  977 

of  certain  irregularities  in  the  Middlesex  County  prison,  the  commis- 
sion made  a  survey  of  the  methods  of  administration  employed  in 
county  institutions,  and  recommended  the  enactment  of  legislation 
which  would  do  away  with  the  existing  division  of  responsibility 
between  the  prisons  committee  and  controller  of  county  accounts  in 
regard  to  the  examination  of  the  financial  records  of  houses  of  correc- 
tion. 

The  administration  of  the  labor  laws  of  the  state,  in  particular, 
was  found  to  be  c^vided  between  two  boards, — the  state  board  of  labor 
industries  and  the  industrial  accidents  board, — with  a  resultant  dupli- 
cation of  functions  and  an  overlapping  of  powers  in  the  enforcement 
of  statutory  regulations  for  the  protection  of  workmen.  The  Com- 
mission on  Economy  and  Efficiency  recommended  that  the  board  of 
labor  industries  be  abolished  and  that  its  duties  be  transferred  to  the 
industrial  accidents  board. 

It  was  also  found  that  the  administration  of  the  fisheries  and  game 
department  by  a  commission  of  three,  resulted  not  only  in  a  division 
of  responsibility  and  an  unreasonable  delay  in  the  transaction  of 
important  business,  but  that  there  was  more  or  less  rivalry  between 
the  various  parts  of  the  state  for  representation  on  the  board  and  for 
a  share  in  its  benefits.  It  was,  therefore,  suggested  that  the  com- 
mission on  fisheries  and  game  be  abolished  and  that  its  functions 
and  powers  be  delegated  to  a  single  commissioner. 

Report  on  State  Institutions. 

In  February,  1914,  the  Massachusetts  Commission  on  Economy 
and  Efficiency  submitted  to  the  Governor  a  preliminary  report  on  the 
reorganization  of  the  various  boards  and  commissions  having  super- 
vision and  control  of  state  institutions, — the  first  of  its  proposed  recom- 
mendations of  a  comprehensive  character  looking  toward  the  consoli- 
dation of  departments  and  bureaus  performing  inter-related  functions. 
After  a  careful  investigation  of  existing  conditions,  the  commission 
found  that  the  immediate  control  of  each  of  the  thirty-two  charitable 
and  penal  institutions  of  the  state  was  vested  in  a  separate  board  of 
trustees,  that  the  general  supervision  of  all  of  the  institutions  was 
scattered  among  three  boards,- — the  prisons  commission,  the  state  board 
of  insanity,  and  the  state  board  of  charity, — and  that  the  consequence 
was  a  conflict  of  authority  and  a  lack  of  coordination  in  the  manage- 
ment of  one  of  the  most  important  phases  of  state  administration.  To 
remedy  these  conditions,  the  commission  on  Economy  and  Efficiency 
recommended  the  reorganization  and  combination  of  the  various  penal 
and  charitable  commissions  so  as  to  centralize  the  administrative  work 
for  all  institutions  in  the  hands  of  a  single  state  organization.  Two 
plans  for  carrying  these  recommendations  into  effect,  together,  with 
drafts  of  bills  for  the  same,  were  presented  to  the  legislature. 

The  first  of  the  plans  for  reorganizing  the  penal  and  charitable 
work  of  the  state,  provided  for  an  appointive  board  with  power  to 
vest  the  duties  of  administration  in  a  single  director.  At  the  head  of 
the  system  was  proposed  a  commission  on  public  institutions,  to  con- 
sist of  five  members  appointed  by  the  Governor  for  a  term  of  five 
years  at  an  annual  salary  of  $1,000  each,  who  should  devote  as  much 


978  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

time  to  their  duties  as  might  be  necessary,  and  who  should  be  directly! 
responsible  to  the  Governor  for  the  supervision  of  the  department. 
The  functions  of  this  board  would  be  to  select  the  director  of  the 
department  and  to  confirm  the  appointments  of  the  latter;  to  give  the 
larger  problems  of  the  department  proper  consideration;  to  provide 
means  for  the  separation  of  the  medical  administration  from  the  busi- 
ness administration;  and  to  see  that  the  director  carries  out  the 
required  plans  and  policies. 

While  the  commission  on  public  institutions  ^lould  be  directly 
responsible  for  the  administration  of  the  department,  the  detailed  man- 
agement of  its  affairs  is  to  be  vested  in  a  director  appointed  by  the 
commission  (with  the  approval  of  the  Governor)  for  an  indefinite 
term.  The  director  acting  under  the  supervision  of  the  departmental 
board,  should  have  control  of  the  penal  and  charitable  institutions, 
including  all  matters  of  administration,  operation  and  maintenance, 
with  the  limitation  that  general  policies  should  not  be  adopted  by  him 
until  approved  by  the  Commission  on  public  institutions ;  he  should 
have  power  to  appoint  the  executive  secretaries,  the  business  agent 
of  the  department  and  the  superintendents  of  institutions,  subject  to 
the  approval  of  the  commission;  and  in  general  should  have  complete 
responsibility  to  the  commission  on  public  institutions,  to  the  Gov- 
ernor and  to  the  legislature  for  the  proper  administration  of  the  entire 
department  and  of  the  several  institutions. 

As  assistants  in  the  general  supervision  of  the  department,  the 
first  Massachusetts  plan  made  provision  for  four  executive  secretaries 
to  be  appointed  by  the  director  subject  to  the  confirmation  of  the  com- 
mission— one  to  be  secretary  for  the  insane,  another  for  hospitals,  a 
third  for  prisons  and  correctional  institutions,  and  the  fourth  for  chari- 
ties. These  officials  should  have  complete  authority  in  their  respective 
divisions ;  they  should  consult  with  the  superintendents  of  the  several 
institutions;  and  should  be  responsible  to  the  director  for  the  care  of 
the  inmates  in  their  charge.  Provision  was  also  made  for  the  employ- 
ment of  a  busness  agent  by  the  director  of  the  department,  who  should 
have  power  to  appoint  a  purchasing  agent  and  other  necessary  assis- 
tants with  the  approval  of  the  director,  and  whose  duty  should  be  to 
establish  improved  methods  of  purchasing  and  storing  equipment,  of 
keeping  accounts,  and  of /:onstructing  buildings. 

In  addition  to  the  commission  on  public  institutions,  the  director 
of  the  department,  and  the  executive  secretaries,  the  Commission  on 
Economy  and  Efficiency  recommended  that  the  Governor  appoint  an 
unpaid  board  of  visitors  for  each  institution,  which  should  give  advice 
in  regard  to  medical  and  correctional  features  of  administration,  hear 
complaints  from  inmates,  and  report  its  findings  to  the  "commission  on 
public  institutions  and  to  the  Governor,  and  which  should  have  a 
right  of  appeal  to  the  Governor  and  Council  in  support  of  all  charges 
of  mismanagement. 

An  alternative  plan  recommended  by  the  Massachusetts  Commis- 
sion on  Economy  and  Efficiency  was  to  vest  the  entire  administrative 
control  of  the  penal  and  charitable  institutions  in  the  hands  of  a 
central  board,  to  consist  of  experts  in  the  several  fields  of  penal  and 


IN  OTHER  STATES. 


979 


charitable  work.  The  powers  and  duties  delegated  to  the  director 
under  the  first  plan  would  be  conferred  upon  the  central  board,  and 
it  was  contemplated  that  such  a  division  of  the  work  would  be  made, 
that  the  duties  of  the  executive  secretaries  provided  for  in  the  first 
system  of  reorganization  would  be  taken  over  by  the  various  members 
of  the  departmental  board. 

Of  the  two  plans  submitted,  the  Commission  on  Economy  and 
Efficiency  favored  the  adoption  of  the  first,  and  prepared  a  complete 
bill  for  the  enactment  of  its  principles  into  law.  The  adoption  of 
e'ther  system,  it  was  suggested,  would  establish  a  centralized  oversight 
of  the  penal  and  charitable  work  of  the  state,  and  by  eliminating  the 
present  conflict  of  authority,  duplication  of  services  and  the  wrong 
classification  of  patients,  make  possible  a  more  economical  and  efficient 
method  of  caring  for  the  delinquent  and  dependent  wards  of  the  state. 

The  recommendations  of  the  Commission  in  regard  to  the  penal 
and  charitable  work  of  the  state  were  referred  to  a  joint  committee  of 
the  state  legislature  in  April  1914,  and  during  the  summer  of  that  year 
an  act  was  passed  providing  for  the  reorganization  of  the  former  board 
of  insanity  and  of  the  board  of  trustees  of  the  several  insane  hospitals,  - 
and  centralizing  the  control  of  these  institutions  in  the  hands  of  a 
newly  created  Board  of  Insanity  of  three  members.  By  this  legislation 
the  control  of  the  thirteen  institutions  for  the  care  of  the  insane  and 
feeble-minded  is  now  coordinated  to  a  large  extent  under  the  new  state 
Board  of  Insanity,  although  in  a  few  instances  there  yet  remains  a 
slight  division  of  authority  between  the  central  board  and  the  local 
boards  of  trustees,  and  provision  has  not  been  made  for  a  proper 
separation  of  policy-making  functions  from  purely  executive  work. 
On  the  other  hand  it  should  be  noted,  that  while  the  legislature  has 
not  adopted  the  comprehensive  program  of  reorganizing  the  entire 
penal  and  charitable  administration  as  proposed  by  the  Commission  on 
Economy  and  Efficiency,  the  new  legislation  does  vest  considerable 
authority  and  responsibility  over  the  state  insane  hospitals  in  the  hands 
of  a  central  board,  and  provides  a  more  effective  method  of  dealing 
with  insanity  and  feeble-mindedness  than  was  possible  under  the  old 
plan  of  divided  and  decentralized  control  by  some  eighty-nine  unpaid 
trustees.^ 
Report  on  Executive  Organization. 

In  November,  1914,  the  Massachusetts  Commission  on  Economy 
and  Efficiency  submitted  to  the  Governor  a  comprehensive  report  of 
502  pages  on  "The  Functions,  Organization  and  Administration  of  the 
Departments  in  the  Executive  Branch  of  the  State  Government."^ 
In  this  report,  the  Commission  has  collected  information  regarding  the 
work  performed  by  each  state  department,  board,  commission  and 
institution;  the  powers  and  duties  of  the  various  officials  and 
employes,  their  compensation  and  the  system  of  organization  within 
each  department  or  board.  The  first  chapters  are  taken  up  with  a 
description  of  the  most  important  features  of  the  functions  and  organ- 

lAnnual'  Report  of  the  Commission  on  Economy  and  Efficiency,  1914;  p.  12-15. 

-A  Report  on  the  Functions,  Orjianization  and  Administration  of  the  Depart- 
ments in  the  Executive  Branch  of  the  State  Government,  prepared  by  the  Commission 
on  Economy  and  Efficiency,  Nov.  25,  1914. 


980  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

ization  of  the  state  department,  and  contain  a  chart  of  the  executive 
branch  of  the  state  government  as  a  vi^hole,  and  a  map  showing  the 
location  of  state  institutions,  reservations,  etc.,  while  the  larger  portion 
of  the  report  is  devoted  to  a  detailed  description  of  the  activities  and 
organization  of  the  several  departments. 

The  purpose  of  the  report  is:  (1)  to  provide  the  members  of 
the  Commission  with  the  information  necessary  to  carry  out  their 
statutory  duty  "to  study  into  the  possibilities  of  promoting  greater 
economy  and  efficiency  and  utility  in  the  transaction  of  the  business 
of  the  state.  . .  .by  the  reorganization,  consolidation,  and  co-ordination 
of  departments,  etc.,"^  and  (2)  "to  make  available  to  the  Governor, 
Council,  Legislature,  State  officials  and  general  public,  essential  infor- 
mation about  each  department  in  the  state  service."  The  report  does 
not  attempt  any  criticism  or  comment,  but  is  a  presentation  of  facts, 
the  intention  being  to  follow  it  up  with  constructive  reports  based  upon 
a  part  of  the  information  contained  therein.  "In  its  subsequent 
reports,"  it  is  stated,  "the  commission  will  bring  out  instances  of  defec- 
tive organization  and  administration  either  in  the  relations  of  certain 
departments  to  each  other,  or  within  single  departments,  and  will  pro- 
pose measures  designed  to  remedy  the  defects  described."* 

Other  Plans  for  Reorganisation. 

On  December  31st,  1914,  the  Commission  transmitted  to  the  Gov- 
ernor and  to  the  state  legislature  a  summary  of  its  work  for  the  pre- 
ceding twelve  months,  which  included  some  ten  special  reports  as  to 
the  salaries  of  state  officials  and  employes;  two  reports  as  to  vacat'on 
allowances ;  thirteen  special  reports  having  to  do  with  appropriation 
estimates  and  state  revenue,  and  a  number  of  recommendations  for 
reorganizing  certain  branches  of  the  state  administration.^.  The  three 
most  important  of  these  proposals  are  described  below  and  include : 
(1)  the  reorganization  of  the  business  administration  of  the  state 
militia;  (2)  the  reorganization  of  the  administration  of  the  State 
Normal  Schools;  and  (3)  the  transfer  of  the  functions  of  the  Depart- 
ment of  Animal  Industry  to  the  Department  of  Health  or  to  the  Board 
of  Agriculture. 

As  a  result  of  its  investigations,  the  Commission  found  that  under 
the  present  plan  of  organization,  the  business  of  the  state  militia  is 
conducted  by  four  separate  authorities — the  adjutant  general,  the 
quartermaster  general,  the  surgeon  general  and  the  armory  commission 
- — involving  the  employment  of  some  ninety  civilian  officers  and  em- 
ployes. The  Commission  on  Economy  and  Efficiency  therefore 
recommended  that  the  business  affairs  of  the  militia  be  centralized  by 
the  consolidation  of  these  four  offices,  so  as  to  make  the  adjutant  gen- 
eral the  chief  executive  of  the  business  administration.  Such  a  con- 
solidation would  not  afifect  the  military  status  of  the  several  officials 
involved,  since  they  are  already  subordinate  to  the  adjutant  general 
as  chief  of  staff,  but  would  simply  involve  a  combination  of  the  sepa- 

"Acts  of  Massachusetts,  1912,  Chapter,  719. 

^Report  of  the  Massachusetts  Economy  and  Efficiency  Commission,  Nov.  25,  1914, 
on  "The  Functions,  Organization  and  Administration  of  the  Departments  in  the 
Executive  I?ranch  of  the  State  Government,"  pp.  5-6. 

''Annual  Keport  of  the  Commission  on  Economy  and  Efficiency,  1914. 


IN  OTHER  STATES.  981 

rate  office  forces  and  make  the  adjutant  general  the  head  of  the  ad- 
muaistrative  as  well  as  of  the  military  branches  of  the  department. 

At  the  present  time  there  are  some  ten  Normal  Schools  in  Mas- 
sachusetts, and  the  number  of  these  institutions,  together  with  the  fact 
that  they  are  located  in  different  parts  of  the  state,  has  given  rise  to 
certain  peculiar  administrative  problems  which  are  not  found  else- 
where. For  several  years  these  schools  were  conducted  merely  under 
the  direction  of  the  State  Board  of  Education  but  for  a  much  longer 
period  of  time  they  have  been  maintained  under  the  direct  control  of 
that  Board.  At  first  each  institution  was  managed  by  a  subcommittee 
of  the  Board  of  Education  acting  in  conjunction  with  the  principal,  but 
this  system  of  control  resulted  in  marked  differences  in  both  the  acad- 
emic and  financial  administration,  so  that  in  1909  the  management  of 
the  Normal  Schools  was  centralized  more  directly  in  the  hands  of  the 
chief  executive  of  the  state  Board  of  Education.  The  Commission  on 
Economy  and  Efficiency  found,  however,  that  this  change  in  the 
standard  of  control  had  not  as  yet  removed  all  of  the  defects  of  the 
old  system,  and  recommended  on  the  academic  side  that,  (1)  there 
should  be  greater  uniformity  of  instruction  in  the  fundamental 
branches  throughout  the  normal  school  system,  and  (2)  that  the  dupli- 
cation of  special  courses  offered  in  certain  schools  should  be  removed ; 
and  on  the  administrative  side  the  Commission  urged,  (1)  that  a  uni- 
form and  centralized  system  of  accounting  should  be  adopted  for  all 
of  the  Normal  Schools,  and  (2)  that  the  business  administration  of 
all  of  the  institutions  be  centralized  exclusively  in  the  hands  of  the 
business  agent  of  the  Board  of  Education. 

Under  the  existing  plan  of  organization  there  is  in  the  state  of 
Massachusetts  a  Department  of  Animal  Industry,  whose  duty  it  is  to 
make  inspections  of  live  stock  and  barns  in  order  to  stamp  out  con- 
tagious diseases  among  animals.  Also  the  State  Board  of  Health  and 
the  local  health  boards  inspect  animals  and  barns  with  reference  to 
the  health  of  dairy  cattle  and  the  sanitation  of  buildings,  while  the 
Dairy  Bureau  of  the  Board  of  Agriculture  has  certain  police  powers 
relating  to  the  enforcement  of  the  state  dairy  laws.  The  result  is 
naturally  a  duplication  of  effort  on  the  part  of  the  two  state  depart- 
ments of  health  and  animal  industry  and  the  local  boards  of  health  ; 
and  the  commission  on  Economy  and  Efficiency  recommended  that  the 
duties  of  the  Department  of  Animal  Industry  should  be  transferred 
either  to  the  Board  of  Health  or  to  the  Board  of  Agriculture  and  that 
whichever  department  should  take  over  these  functions  should  also 
be  given  broader  powers  over  the  local  authorities. 

THE    NEW    JERSEY   ECONOMY   AND   EFFICIENCY    COMMISSION. 

The  New  Jersey  Legislature  in  1912  provided  by  joint  resolution 
for  the  appointment  of  a  "Commission  to  consider  the  best  means  for 
consolidating  state  agencies."  This  committee,  which  subsequently 
adopted  the  name  of  the  New  Jersey  Economy  and  Efficiency  Com- 
mission, consists  of  two  members  of  the  Senate,  two  members  of  the 
lower  House,  and  three  other  persons  appointed  by  the  Governor.  In 
the  words  of  the  joint  resolution,  the  purpose  of  the  Commission  is  to 
study  the  most  suitable   means   for  consolidating  the  various  state 


982  EFFICIENCY  AND   ECONOMY  COMMITTEE. 

departments  whose  duties  are  closely  related,  to  broaden  the  powers 
of  government  in  each  division  of  the  state  administration  into  one 
central  board  or  boards,  and  to  report  its  recommendations  on  this 
general  subject  to  the  legislature. 

Early  in  the  year  1913,  the  New  Jersey  Economy  and  Efficiency 
Commission  submitted  a  report  to  the  legislature  containing  the  fol- 
lowing specific  recommendations:  (1)  the  consolidation  of  the  state 
board  of  assessors  and  the  board  of  equalization;  (2)  the  abolition  of 
the  separate  shell  fish  commissions,  and  their  consolidation  under  a 
central  bureau  of  game  and  fisheries;  (3)  the  combination  of  the 
department  of  labor,  the  bureau  of  labor  statistics,  and  the  employers 
liability  commission;  (4)  the  consolidation  of  the  offices  of  comp- 
troller of  the  treasury  and  the  department  of  accounts;  and  (5)  the 
union  of  the  department  of  inland  w^aterways  and  the  New  Jersey 
Canal  Commission. 

In  making  an  investigation  of  the  auditing  agencies  of  the  state, 
the  Economy  and  Efficiency  Commission  found  that  the  work  was 
divided  between  the  comptroller  of  the  treasury,  whose  duty  it  was 
to  examine,  audit  and  certify  all  state  accounts,  and  the  department 
of  accounts  whose  functions  were  to  establish  a  uniform  system  of 
accounting,  to  make  a  semi-annual  audit  of  the  accounts  of  all  depart- 
ments'and  institutions  and  to  audit  and  verify  the  financial  transactions 
of  state  and  county  officers.  The  result  was  very  naturally  a  conflict 
of  powers  and  a  duplication  of  services,  and  to  remedy  these  defects 
the  Commission  urged  that  the  department  of  accounts  be  combined 
with  the  comptroller's  office.  The  legislature  passed  a  law  providing 
for  the  consolidation  of  these  two  departments  (the  only  one  of  the 
consolidations  recommended  to  be  adopted),  and  also  provided  an 
appropriation  for  the  continuance  of  the  work  of  the  Economy  and 
Efficiency  Commission  during  the  ensuing  session. 

In  submittmg  its  report  to  the  legislature  during  the  1914  session, 
the  Economy  and  Efficiency  Commission  proposed  a  more  compre- 
hensive plan  for  reconstructing  certain  branches  of  the  state  admin- 
istration than  that  presented  at  the  previous  session.  The  Commission 
recommended  the  creation  of  six  new  departments, — each  to  be  formed 
by  the  reorganization  and  consolidation  of  boards  and  commissions, 
which  at  the  present  time  are  performing  functions  of  a  similar  nature 
largely  independent  of  one  another.  Following,  is  a  brief  statement 
of  the  proposed  consolidations  together  wuth  a  reference  to  the  existing 
organization  and  methods. 

The  Department  of  Health. 

The  health  administration  of  New  Jersey  is  at  present  directed 
by  a  single  board,  but  the  Commission  of  Economy  and  Efficiency  finds 
that  the  department  is  weak  in  its  internal  organization  and  in  its  con- 
trol over  local  health  matters.  To  remedy  these  conditions,  the  Com- 
mission recommended:  (a)  that  the  Governor  appoint  an  expert  in 
sanitation  and  hygiene  as  commissioner  of  health  for  a  term  of  five 
years,  at  an  annual  salary  of  $6,000,  to  have  direct  charge  of  the 
administration  of  the  health  law  and  of  the  rules  and  regulations 


IN  OTHER  STATES.  983 

established  by  the  board  of  health,  as  well  as  the  management  of  all 
details,  and  (b)  that  the  state  board  of  health  be  reorganized  to  consist 
of  seven  members  including  the  commissioner  of  health  as  the  pre- 
siding officer,  and  six  other  persons  appointed  by  the  Governor,  all  to 
serve  for  terms  of  six  years  each  without  compensation,  and  whose 
duty  it  will  be  to  enact  health  ordinances  and  give  advice  to  the 
commissioner.  The  Economy  and  Efficiency  Commission  further 
recommended  that  the  health  department,  as  reconstituted,  be  given 
power  to  act  in  all  cases  where  the  local  authorities  fail  to  perform 
their  duties  after  due  notice,  and  that  the  state  board  of  health  be 
empowered  to  enact  a  uniform  health  code  for  the  entire  state. 

The  Department  of  Taxation. 

,  Under  present  conditions,  the  administration  of  the  New  Jersey 
taxing  system  is  divided  between  the  state  board  of  assessors  of  four 
members,  whose  duty  it  is  to  assess  and  ascertain  the  amount  of  taxes 
due  from  railroad  and  canal  companies  and  to  compute  the  franchise 
tax  upon  public  utilities,  and  the  state  board  of  equalization,  consisting 
of  a  president  and  four  assistants,  with  power  to  equalize,  review 
and  enforce  taxes.  The,  Economy  and  Efficiency  Commission  has  also 
discovered  that  in  appraising  and  valuing  the  property  of  public  serv- 
ice corporations,  the  engineering  force  of  the  board  of  public  utilities 
is  performing  much  the  same  functions  as  are  required  of  the  engineer- 
ing staff  in  the  office  of  the  state  board  of  assessors.  The  Economy 
and  Efficiency  Commission,  therefore,  recommended  that  the  state  board 
of  assessors  and  the  board  of  equalization  be  consolidated  into  a  new 
bi-partisan  commission  of  five  members  appointed  by  the  Governor 
at  an  annual  salary  of  $3,500  each  (one  commissioner  being  chosen 
each  year),  and  that  the  engineering  stafif  of  the  board  of  assessors  be 
transferred  to  the  board  of  public  utility  commissioners,  with  the  right 
of  the  department  of  taxation  to  inspect  all  of  the  books  and  records 
in  the  possession  of  the  other.  These  changes,  it  was  estimated  by 
the  Economy  and  Efficiency  Commission,  would  result  in  a  net  yearly 
saving  of  over  $40,000  as  compared  with  a  total  present  cost  of  $70,580, 
or  a  decrease  of  over  one-half  in  the  expense  of  tax  administration. 

The  Department  of  Shell  Fisheries. 

At  present,  the  oyster  industry  in  New  Jersey  is  controlled  by 
five  independent  boards  and  bureaus  with  some  seventeen  salaried 
commissioners,  superintendents  and  secretaries  in  charge.  The 
Economy  and  Efficiency  Commission  recommended  that  these  separate 
bureaus  and  commissions  be  abolished  and  that  in  their  place  a  depart- 
ment of  shell  fisheries  should  be  established  to  consist  of:  (1)  a  com- 
missioner appointed  by  the  Governor  for  a  term  of  three  years  at  an 
annual  salary  of  $2,500,  to  have  direct  charge  of  the  administrative 
work,  and  (2)  an  unpaid  board  of  six  citizens  actually  engaged  in 
the  shell  fish  industry,  to  be  appointed  by  the  Governor  for  a  period 
of  three  years  each,  one  member  being  chosen  each  year.  The 
function  of  the  departmental  board  should  be  to  enact  such  rules  as 
are  deemed  necessary,  to  give  advice  to  the  commissioner,  and  to 
determine  the  general  policy  of  the  department.    To  prevent  a  possible 


984  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

abuse  of  power  and  to  secure  responsibility,  it  was  proposed  that  the 

Governor  be  given  power  to  remove  the  chief  commissioner  of  the 

department  after  a  hearing,  upon  charges  signed  by  a  majority  of  the 

departmental    board,    providing    he    finds    such    charges    to    be    well 

founded. 

The  Department  on  Conservation  and  Development. 

Under  the  existing  organization,  the  State  of  New  Jersey  has  six 
important  commissions  engaged  in  conservation  and  developmental 
works,  namely:  the  state  water  supply  commission,  the  Forest  Park 
Reservation  Commission,  the  state  riparian  commission,  the  geological 
survey,  two  park  commissions,  and  the  state  architect's  bureau.  The 
Commission  on  Economy  and  Efficiency  urged  that  these  bureaus  and 
boards  be  abolished,  and  that  a  new  department  of  conservation  and 
development  should  be  established  to  consist  of  a  chief  commissioner 
and  an  unpaid  advisory  board,  appointed  in  the  same  manner  and 
clothed  with  powers  similar  to  those  provided  for  in  the  Department 
of  Shell  Fisheries— the  chief  commissioner  to  be  appointed  by  the 
Governor  for  a  period  of  five  years  at  an  annual  salary  of  $6,000. 

The  Department  of  Commerce  and  Navigation. 

In  accordance  with  the  general  plan  proposed  for  the  reorgani- 
•  zation  of  the  other  departments,  the  Economy  and  Efficiency  Com- 
mission recommended  that  the  department  of  inland  waterways,  the 
New  Jersey  Ship  Canal  Commission  of  five  members,  the  commission 
to  investigate  port  conditions,  the  six  commissioners  of  pilotage  and 
the  inspectors  of  power  vessels  be  consolidated  to  form  a  department 
of  commerce  and  navigation,  to  consist  of  a  chief  commissioner 
appointed  by  the  Governor  for  five  years  at  a  salary  of  $3,000,  and  an 
unpaid  board  of  six  members  to  direct  and  give  advice. 

The  Department  of  Prison  Control. 

The  Economy  and  Efficiency  Commission  of  New  Jersey  also 
found  that  the  control  of  the  state  prison  was  scattered  among  five 
different  authorities:  the  keeper;  the  supervisor  who  looks  after  the 
work  and  employment  of  prisoners;  a  board  of  prison  inspectors  of 
six  members,  with  power  to  make  rules  and  regulations  for  the  gov- 
ernment of  the  prison;  a  prison  labor  commission  and  the  board  of 
parole.  The  result  of  such  a  system  has  been  a  conflict  of  authority 
and  a  lack  of  responsibility.  For  the  betterment  of  these  conditions, 
the  Economy  and  Efficiency  Commission  recommended  that  the  man- 
agement of  the  state  prison  be  transferred  to  an  unpaid  board  of  direc- 
tors with  power  to  guide,  direct  and  legislate  in  regard  to  the  same, 
and  proposed  that  the  warden,  who  is  a  constitutional  officer,  be  made 
the  chief  executive  of  the  prison,  with  authority  to  enforce  the  law 
and  the  rules  made  by  the  departmental  board ;  to  hive  direct  charge 
of  all  administrative  details;  and  to  appoint  all  subordinates  and 
employes  subject  to  the  right  of  the  board  to  fix  salaries. 

The  above  review  of  the  recommendations  of  the  New  Jersey 
Economy  and  Efficiency  Commission  shows  that  the  same  general 
plan  is  proposed  for  the  reorganization  of  all  of  the  divisions  of  the 


IN  OTHER  STATES.  985 

administration,  except  the  department  of  taxation.  Each  is  to  be 
formed  by  the  grouping  together  of  two  or  more  bureaus  and  com- 
missions which  are  now  performing  related  functions  largely  inde- 
pendent of  one  another,  and  with  the  exception  of  the  department  of 
taxation,  each  is  to  be  governed  by  a  single  commissioner  in  direct 
charge  of  the  administration  and  by  an  advisory  board  to  direct  and 
guide.  The  chief  commissioner  of  each  department  is  to  be  an  expert 
appointed  by  the  Governor  for  a  term  of  from  three  to  five  years,  and 
at  such  salary  as  will  attract  persons  of  recognized  ability;  he  is  to 
have  control  of  the  executive  work  of  his  particular  department, 
including  the  power  to  appoint  all  subordinates  subject  to  the  approval 
of  the  departmental  board  in  some  cases,  and  is  charged  with  the 
enforcement  of  the  provisions  of  the  law  and  of  the  rules  enacted  by 
the  advisory  board.  In  order  to  make  the  chief  commissioners  properly 
responsible,  the  Governor  is  given  authority  to  remove  them  after  a 
hearing  and  upon  charges  signed  by  a  majority  of  the  departmental 
board.  For  each  of  the  departments  there  is  also  an  unpaid  board, 
appointed  by  the  Governor,  which  acts  much  as  a  board  of  directors 
in  working  out  the  general  problems  of  administration,  in  the 
determination  of  policies,  and  in  giving  advice  to  the  comrnissioner  in 
charge.  The  advisory  boards  are  to  be  bi-partisan,  and  their  members 
are  chosen  for  overlapping  terms.  The  organization  of  the  department 
of  taxation  is  somewhat  different  from  that  proposed  for  the  other 
divisions,  as  the  Commission  of  Economy  and  Efficiency  recommends 
its  direct  management  by  a  commission  of  five  members  instead  of  by 
a  single  commissioner. 

The  proposed  plan  of  the  New  Jersey  Economy  and  Efficiency 
Commission,  if  adopted,  will  effect  no  legal  changes  other  than  in  ad- 
ministration, and  the  laws  will  remain  the  same  so  far  as  defining  the 
powers  and  duties  of  the  various  state  officials.  The  number  of  public 
officers  and  employes,  however,  will  be  materially  decreased  as  a  result 
of  the  proposed  consolidation  of  the  twenty-five  or  more  existing  com- 
missions ;  work  of  a  similar  character,  instead  of  being  scattered,  will 
be  brought  together  under  one  head ;  and  it  is  estimated  that  an  annual 
saving  of  $146,811  will  be  made  possible,  as  compared  with  a  total 
present  cost  of  $897,674,  for  the  performance  of  the  same  functions 
by  a  larger  number  of  authorities. 

THE  NEW  YORK  COMMITTEE  OF  INQUIRY  AND  DEPARTMENT  OF 
EFFICIENCY  AND  ECONOMY. 

Committee  of  Inquiry. 

Early  in  the  year  1913,  Governor  Sulzer,  of  New  York,  in  the 
exercise  of  his  general  executive  authority  appointed  three  citizens  as 
a  Committee  of  Inquiry  to  make  an  investigation  into  the  expenditures 
of  the  state.  On  March  21  of  the  same  year,  the  Committee  sub- 
mitted a  report  to  the  Governor,  analyzing  the  appropriations  of  the 
state  for  the  current  year  as  well  as  the  estimates  for  the  ensuing  year, 
and  suggesting  the  reduction  of  certain  estimates.  The  Committee 
also  recommended  a  number  of  legislative  measures  for  the  establish- 
ment of  a  group  of  new  central  financial  agencies,  for  the  consolidation 
of  certain  related  bureaus,  and  for  the  organization  of  a  permanent 
Commission  on  Economy  and  Efficiency. 


986  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

In  an  investigation  as  to  the  financial  administration  of  the  various 
departments  and  commissions,  information  was  secured  as  to  their 
respective  appropriations  for  the  current  year,  the  amounts  requested 
for  the  ensuing  year,  and  a  statement  of  any  increases  or  decreases  in 
the  same.  From  this  data  the  Committee  presented  a  report  contain- 
ing: (1)  its  findings  and  recommendations  in  regard  to  each  separate 
department,  with  particular  attention  to  the  demands  for  increased 
appropriations  and,  (2)  a  revision  of  the  estimates  for  which  appro- 
priations were  requested.  Also  a  new  appropriation  and  supply  bill 
for  the  entire  state  was  prepared,  setting  forth  the  items  recommended 
by  the  Committee  of  Inquiry  and  involving  a  net  reduction  of  $772,000 
as  compared  with  the  actual  appropriations  of  the  preceding  year. 

Although  the  primary  function  of  the  New  York  Committee  of 
Inquiry  w^as  to  examine  the  expenditures  of  the  different  departments, 
an  analysis  was  also  made  of  the  financial  methods  employed  by  the 
various  state  agencies,  in  order  to  devise  means  for  securing  economy 
and  efficiency  in  the  public  service.  As  a  result  of  this  general  study 
of  state  administration,  the  Committee  found  that  the  so-called  busi- 
ness methods  of  the  state  were  anything  but  efficient,  and  that  there 
was  immediate  need  for  a  complete  change  in  the  exisiting  system  of 
making  appropriations  and  in  the  administrative  machinery  for  con- 
trolling and  safeguarding  the  expenditure  of  such  appropriations  after 
they  have  been  made.  With  this  end  in  view,  the  Committee  of 
Inquiry  recommended:  (1)  that  the  fiscal  year  be  altered  so  as  to 
correspond  more  closely  to  the  legislative  session;  (2)  that  general 
appropriations  be  made  available  only  during  the  year  for  which  they 
are  made;  (3)  that  all  unexpended  balances  lapse  at  the  close  of  each 
year;  (4)  that  it  should  be  unlawful  for  departmental  officers  to  incur 
liabilities  in  excess  of  appropriations,  and  that  under  no  circumstances 
should  they  be  empowered  to  make  such  expenditures;  and  (5)  that 
supply  bills  should  be  discontinued. 

The  Committee  of  Inquiry  was  also  of  the  opinion  that  in  order 
to  secure  the  economical  and  efficient  expenditure  of  money,  it  would 
be  necessary  to  make  an  extensive  reorganization  of  certain  depart- 
ments and  boards.  This  was  found  to  be  especially  true  in  the  control 
of  the  penal  institutions  and  of  the  conservation  work  of  the  state. 
The  conservation  department  has  been  organized  under  the  control  of 
three  commissioners,  who  receive  a  salary  of  $10,000  each ;  the  com- 
mission itself  has  been  divided  into  three  divisions,  each  division  in 
turn  with  various  bureaus,  thus  making  necessary  a  large  number  of 
assistants  and  involving  a  payroll  of  $77,300  exclusive  of  the  salaries 
of  a  large  number  of  subordinate  employes.  In  the  opinion  of  the 
Committee  of  Inquiry,  the  conservation  department  had  too  great  an 
overhead  charge,  and  it  was  estimated  that  a  saving  of  at  least  $45,000 
per  year  could  be  effected  by  placing  the  work  in  charge  of  a  single 
commissioner,  with  one  deputy  for  each  important  division,  and  a 
general  secretary  and  advisory  counsel  for  the  entire  department. 

The  Committee  also  found  that  the  administration  of  the  penal 
institutions  was  divided  between  five  different  authorities, — the  state 
superintendent  of  prisons;  the  commission  of  prisons,  consisting  of 


IN  OTHER  STATES.  987 

seven  persons,  and  provided  for  in  the  state  constitution;  the  board 
of  parole;  the  board  of  classification,  of  twelve  members;  and  the 
commission  on  new  prisons.  Each  of  these  officers  has  certain  official 
duties  connected  with  the  state  prisons,  and  the  committee  recom- 
mended, that  all  of  them,  except  the  state  superintendent  of  prisons  and 
the  prisons  commission  should  be  abolished,  and  that  their  respective 
powers  and  duties  should  be  delegated  to  the  prisons  commission, 
which  should  be  reduced  from  seven  to  three  members. 

The  need  for  reorganization  and  consolidation  of  other  services 
was  also  pointed  out;  but  the  above  mentioned  plans  were  the  only 
ones  for  which  definite  proposals  were  made,  and  for  which  the  Com- 
mittee submitted  complete  drafts  of  bills.  The  various  recommen- 
dations made  by  the  Committee  of  Inquiry  to  the  Governor  were  trans- 
mitted to  the  legislature;  but  nothing  definite  has  been  accomplished 
in  the  way  of  constructive  legislation  for  carrying  the  same  mto  effect. 
An  Act  of  the  legislature,  however,  provided  for  continuing  the  work 
of  the  Committee  of  Inquiry  by  a  Commissioner  of  Economy  and 
Efficiency;  and  Governor  Glynn  appointed  one  of  the  members  of  the 
original  committee  to  this  office. 

The  Commissioner  of  Economy  and  Efficiency  has  devoted  his  en- 
tire attention  to  the  matter  of  state  appropriations  and  expenditures, 
and  on  March  16,  1914,  submitted  a  complete  budget  report  to  the  Gov- 
ernor, setting  forth  his  recommendations  in  regard  to  tlie  financial 
needs  of  the  state  for  the  fiscal  year  beginning  October  1,  1914.  The 
items  of  appropriation  recommended  in  this  report,  were  determined 
after  a  careful  examination  of  the  requests  for  appropriations  as  filed 
by  the  various  departmental  officers,  and  every  item  was  presented  in 
comparison  with  the  amounts  appropriated  the  previous  year,  thus 
bringing  into  relief  each  new  position  in  the  state  service,  every 
increase  in  salary,  and  every  proposed  addition  to  miscellaneous 
expense.  With  this  data  as  a  basis,  the  Commissioner  of  Economy 
and  Efficiency  prepared  a  completely  segregated  form  of  appropriation 
bill  or  budget,  presenting  all  positions  under  their  proper  departmental 
titles,  and  subdividing  every  large  item  of  miscellaneous  expense  into 
smaller  units  so  as  to  prevent  the  concealment  of  unnecessary  positions 
and  expense  accounts  under  the  heading  of  office  expense  and  other 
deceptive  titles.  Nearly  every  estimate  submitted  by  the  heads  of 
departments  was  revised  and  materially  decreased,  and  the  amounts 
recommended  by  the  Commissioner  of  Economy  and  Efficiency  were 
set  forth  in  itemized  form  and  in  parallel  columns  along  side  of  the 
appropriation  requests  submitted  by  the  departmental  heads  in  the 
usual  unitemized  form,  while  the  whole  report  was  supplemented  by 
explanatory  notes  from  the  departments  concerned  and  from  the  Com- 
missioner of  Economy  and  Efficiency. 

The  total  amount  of  appropriations  recommended  by  the  Com- 
missioner of  Economy  and  Efficiency  amounted  to  $33,854,680  as 
compared  with  a  total  of  $39,773,371  requested  by  the  departmental 
heads,  or  a  reduction  of  about  one-seventh.  Although  most  of  the 
data  contained  in  the  budgetary  report  was  available  at  the  time  of  the 
passage  of  the  annual  appropriation  bill  on  March  21,  1914,  the  recom- 


988  EFFICIENCY  AND   ECONOMY  COMMITTEE. 

mendations  of  the  Commissioner  of  Economy  and  Efficiency  were 
passed  over  by  the  ways  and  means  committee,  and  the  assembly  com- 
mittee prepared  the  annual  appropriation  measure  in  the  customary 
manner  and  form.  The  report  has  been  published,  however,  and  is 
of  much  value  in  presenting  a  careful  and  intelligent  analysis  of  the 
financial  needs  of  the  state,  and  in  showing  the  necessity  for  a  more 
systematic  method  of  making  appropriations  so  as  to  secure  greater 
efficiency  and  economy  in  the  financial  administration  of  the  state. 

Under  date  of  January  1,  1915,  the  New  York  State  Department 
of  Efficiency  and  Economy,  in  cooperation  with  the  New  York  Bureau 
of  Municipal  Research,  has  published  a  detailed  survey  (of  768  pages) 
of  the  organization  and  functions  of  the  Government  of  the  State  of 
New  York,  prepared  for  the  use  of  the  Constitutional  Convention  to 
be  held  in  that  state  in  1915.  This  like  the  Massachusetts  Report  on 
Executive  Organization  is  descriptive,  and  is  accompanied  by  a  large 
number  of  charts. 

THE  PENNSYLVANIA  ECONOMY  AND  EFFICIENCY  COMMISSION.^ 

In  1913,  Pennsylvania  also  took  up  the  matter  of  increasing  the 
efficiency  of  the  state  administration  and  of  bringing  about  a  greater 
economy  in  government.  In  July  of  that  year  the  General  Assembly 
of  Pennsylvania  provided  by  joint  resolution  that  the  Governor  should 
appoint  an  Economy  and  Efficiency  Commission  of  three  members  at 
salaries  of  $3,000  each.  It  was  made  the  power  and  duty  of  the 
Commission  to  investigate  the  number,  the  character  of  the  duties  and 
the  compensation  of  all  persons  in  the  employ  of  the  state,  and  to 
ascertain  what  changes  were  necessary  to  secure  greater  economy  and 
efficiency  in  the  work  of  the  various  departments,  bureaus  and  com- 
missions. An  appropriation  of  $25,000  was  made  by  the  general 
assembly  for  carrying  on  this  work,  but  the  governor  cut  the  amount 
to  $10,000,  because  of  insufficient  state  revenues.  The  joint  resolu- 
tion creating  the  Commission  of  Economy  and  Efficiency  provided  that 
it  should  make  a  report  of  its  findings  not  later  than  November,  1914, 
and  that  upon  the  presentation  of  such  a  report  its  work  should  cease. 

In  accordance  with  the  above-mentioned  legislation,  the  Pennsyl- 
vania Economy  and  Efficiency  Commission  entered  upon  its  work  of 
investigation,  and  in  December,  1914,  submitted  to  the  governor  a  re- 
port of  its  recommendations,  together  with  an  appendix  which  sets 
forth  the  name,  duties  and  compensation  of  every  person  employed  by 
the  state.  The  Commission  did  not  attempt  to  propose  a  comprehen- 
sive and  coordinated  plan  of  reorganizing  the  entire  state  administra- 
tion as  has  been  done  by  the  Economy  and  Efficiency  Commission  in 
Illinois,  Minnesota,  and  Iowa,  but  its  work  has  been  more  in  the  nature 
of  a  preliminary  sur^^ey.  Special  inquiry  was  made:  (1)  as  to  the 
statutes  creating  and  regulating  the  various  departments  and  commis- 
sions; (2)  as  to  the  names,  compensation  and  duties  of  all  persons 
employed  by  the  state,  and  whether  or  not  their  positions  were  created 
by  statute  or  were  temporary  appointments  made  by  appropriation; 
and  (3)  in  regard  to  the  duplication  of  services  or  the  conflict  of  au- 

"Report  of  the  Pennsylvania  Economy  and  Efficiency  Commission,  December  24, 
1914. 


IN  OTHER  STATES.  989 

thority  in  the  administrative  branches  of,  the  state  government.  In 
case  a  department  or  commission  was  found  to  be  performing  its 
functions  with  a  fair  degree  of  efficiency,  the  Economy  and  Efficiency 
Commission  usually  offered  suggestions  for  making  the  work  more 
effective,  and,  wherever  necessary,  recommended  that  increased  ap- 
propriations be  provided,  while  in  other  instances  it  proposed  the  aboli- 
tion or  reorganization  of  certain  departments,  offices  and  commissions. 
Following  is  a  review  of  the  more  important  recommendations  which 
the  Pennsylvania  Commission  made  for  improving  the  administrative 
work  of  the  state. 

(1)  The  Governor:  Tlie  Commission  recommended  that  the  gover- 
nor be  relieved  of  the  routine  work  of  auditing  and  approving  certain 
expenditures — a  function  which  has  greatly  interfered  with  his  general 
executive  duties  and  which  properly  belongs  to  the  fiscal  officers  of  the 
state. 

(2)  Department  of  Justice:  The  Economy  and  Efficiency  Commis- 
sion found  that  the  attorney  general  had  performed  his  duties  in  an  effi- 
cient manner,  but  it  disapproved  of  teh  practice  of  employing  individual 
counsel  and  attorneys  by  certain  departments,  as  being  unnecessary  and 
expensive.  The  Commission,  therefore,  proposed  that  all  of  the  legal 
forces  of  the  state  should  be  centralized  in  a  newly  created  department 
of  justice,  similar  to  the  department  of  justice  in  the  United  States  gov- 
ernment. This  department  should  be  under  the  control  of  the  attorney 
general  and  should  include  also  a  solicitor  general  and  a  staff  of  assistant 
attorneys  general. 

(3)  Auditor  General's  Department:  Under  the  existing  organiza- 
tion, the  auditing  of  public  accounts  in  Pennsylvania  is  performed  by  the 
Auditor  General  and  the  State  Treasurer,  and  these  same  officers  have 
also  been  invested  with  the  authority  to  assess  and  collect  taxes.  By  this 
arrangement,  the  Treasurer  and  Auditor  General  are  placed  in  the  anom- 
alous position  of  assessing  and  collecting  the  state  taxes,  disbursing  them, 
and  then  auditing  the  assessments  and  disbursements  which  they  have 
themselves  authorized.  In  order  to  relieve  the  confusion  of  duties  which 
should  be  kept  separate,  the  Commission  recommended  that  a  state  tax 
commission  of  three  persons  should  be  created  which  should  take  over 
the  functions  of  assessing  and  collecting  state  taxes,  and  indicated  that 
tlie  auditing  of  all  accounts  should  be  centralized  in  the  hands  of  the 
Auditor  General  alone,  although  its  recommendations  on  this  latter  point 
were  not  altogether  clear. 

(4)  Conservation  Department:  At  present  the  conservation  work 
of  the  state  is  divided  between  three  different  authorities: — (a)  the  for- 
estry department;  (b)  the  department  of  fisheries;  and  (3)  the  depart- 
ment of  game  commissioners.  In  order  to  eliminate  the  duplication  of 
services  and  to  provide  greater  efficiency,  the  Economy  and  Efficiency 
Commission  recommended  that  a  department  of  conservation  be  estab- 
lished under  the  direction  of  a  single  commissioner  at  $7,500  per  N'ear,  and 
that  the  existing  departments  of  forestry,  fisheries  and  game  be  made  sub- 
divisions of  the  department  of  conservation,  with  a  director  in  charge  of 
each  division.  The  Commission  further  recommended  that  an  advisory 
commission  should  be  created,  to  be  composed  of  one  recognized  forester, 
one  expert  fish  culturist,  and  one  recognized  game  protectionist  to  act  in 
an  advisory  capacity  to  the  conservation  commission. 

(5)  Public  Buildings  and  Grounds:  The  Economy  and  Efficiency 
Commission  also  found  that  the  present  system  of  purchasing  supplies  by 
the  commissioners  of  public  grounds  and  buildings  and  by  the  separate 
state  departments,  and  the  erection  of  buildings  by  numerous  temporary 
boards,  resulted  in  extravagance  and  a  lack  of  uniformity.  Consequently 
it  recommended  that  a  new  board  of  public  property  should  be  created 
which  should  supervise  the  planning  and  erection  of  all  state  institutions 
and  which  should  also  purchase  supplies  for  all  of  the  state  departments. 


990  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

In  order  to  prevent  the  ^buse  of  these  rather  large  powers,  the  Commis- 
sion proposed  that  all  contracts  entered  into  by  the  board  of  property 
should  be  invalid  until  ratified  by  the  Governor,  the  Auditor  General  and 
the  State  Treasurer. 

(6)     Civil  Service  and  Board  of  Examiners:     The  Economy  and  Effi- 
ciency  Commission   has   also   urged   that   all   appointments   to    subordinate 
positions  be  made  according  to  the  merit  system,  which  should  be    admin- 
istered  by   a   state   board   of   examiners.     The    state   board   of   examiners 
should  not  only  administer  the  provisions  of  the  civil   service  law,  but   it 
should  also  take  over  the  functions  of  the  miscellaneous  examining  boards 
such   as   the   board    for  the   examination   of   accountant,   the    state   dental 
board,  the  state  board  of  undertakers,  etc.,  which  at  the  present  time  are 
performing  their  duties  independently  of  one  another. 
In  addition  to  the  above-mentioned  recommendations  for  the  re- 
organization of  certain  existing  state  departments   and   commissions 
and  for  the  creation  of  several  new  services,  the  Pennsylvania  Eco- 
nomy and  Efficiency  Commission  urged  the  adoption  of  a  uniform 
system   of  bookkeeping  and  accounting,   and   pointed   out   numerous 
specific   improvements    which    might    be    introduced  in   the   various 
branches  of  the  administration.     In  a  number  of  instances  the  Com- 
mission recommended  that  increased  appropriations  should  be  made 
for  the  carrying  on  of  important  functions  such  as  are  performed  by 
the  department  of  health  and  the  geological  survey,  which  are  at  pres- 
ent greatly  hampered  by  the  lack  of  sufficient  funds.     Perhaps  one 
of  the  most  novel  and  interesting  suggestions  of  the  Commission  was 
that  the  legislature  should  provide  for  a  bureau  of  publicity  which 
should  advertize  the  state  and  keep  the  public  continually  informed  as 
to  what  the  commonwealth  was  accomplishing. 

Appended  to  the  formal  report  of  the  Commission,  is  a  detailed 
summary  setting  forth  the  names,  duties  and  compensation  of  all  per- 
sons employed  by  the  state.  These  names  are  classified  according  to 
departments,  and  are  accompanied  by  complete  references  to  those 
statutes  which  relate  to  the  various  departments  and  positions. 

THE  MINNESOTA  ECONOMY  AND  EFFICIENCY  COMMISSION. 

In  October,  1913,  the  Governor  of  Minnesota  on  his  own  initiative 
appointed  an  Economy  and  Efficiency  Commission  of  thirty  rnembers, 
representing  all  parts  of  the  state  and  every  important  political  and 
industrial  point  of  view,  to  consider  plans  for  the  reorganization  of 
the  state  administration.  The  commissioners  have  served  without 
compensation,  and  have  paid  their  individual  expenses,  while  the  other 
funds  necessary  for  carrying  on  the  work  have  been  derived  from 
private  subscriptions.  The  Commission  did  not  confine  its  efforts  to 
the  reorganization  of  only  a  few  important  departments,  but  pro- 
posed to  work  out  a  broad  and  fundamental  plan  of  reorganization 
for  the  entire  state  administration. 

As  a  guiding  principle,  the  commission  adopted  a  resolution  that 
it  would  not  recommend  any  changes  in  state  functions,  but  would 
restrict  itself  to  the  methods  of  performing  existing  functions,  with 
the  object  of  formulating  a  plan  for  carrying  on  the  state  adminis- 
tration as  it  now  is,  or  may  be  in  the  future,  with  the  highest  degree 
of  efficiency;  that  general  and  not  detailed  defects  should  be  con- 
sidered, and  that  the  plan  of  reorganization  should  be  from  the  top 


IN  OTHER  STATES.  991 

down.  In  November  of  1913  the  membership  of  the  Commission  was 
divided  into  subcommittees,  a  staff  was  appointed,  and  Professor  E. 
D.  Durand,  former  director  of  the  United  States  Census,  was  placed 
in  charge  of  the  investigation,  as  chief  statistician. 

In  its  prehminary  report  submitted  to  the  Governor,  the  Minne- 
sota Economy  and  Efficiency  Commission  has  presented  an  outline 
of  the  plan  which  it  proposes  to  follow  in  providing  for  the  reorgani- 
zation of  the  state  administration, — the  three  main  features  of  the  plan 
being:  (Ij  the  reorganization  of  the  executive  service;  (2)  the  estab- 
hshment  of  the  merit  system  in  the  civil  service;  and  (3)  the  adoption 
of  a  budget  system  for  appropriating  money. 

As  the  result  of  its  prehminary  investigation,  the  commission 
found  a  state  of  affairs  much  the  same  as  has  been  discovered  in 
other  states  where  similar  surveys  have  been  made,  namely, — the 
impossibility  of  fixing  responsibility ;  a  lack  of  coordination  between 
agencies  performing  related  functions;  and  the  employment  of  a  large 
number  of  unnecessary  officials.  The  Economy  and  Efficiency  Com- 
mission has  proposed  to  remedy  these  conditions  by  grouping  similar 
agencies  under  a  few  great  executive  departments,  thus  providing  for 
a  single  state  administration  in  place  of  control  by  some  sixty  inde- 
pendent departments.  In  order  to  prevent  a  possible  abuse  of  the 
extensive  power  lodged  in  the  hands  of  the  Governor  and  the  heads  of 
departments  by  this  proposed  plan,  the  Economy  and  Efficiency  Com- 
mission recommends  the  establishment  of  a  civil  servrce  commission 
and  the  appointment  of  all  employes  except  the  heads  of  departments 
according  to  the  merit  system.  The  commission  further  recommends 
the  establishment  of  a  budget  system  which  will  make  possible  the  con- 
sideration of  state  expenditures  as  a  whole,  and  which  will  substitute 
a  study  of  relative  needs  for  guess  work  in  the  appropriation  of  money. 
Following  is  an  outline  of  the  proposed  reorganization  of  the  state 
executive  department  as  recommended  by  the  commission : — 

The  Economy  and  Efficiency  Commission  finds  that  the  greatest 
defect  in  the  general  organization  of  the  state  executive  department 
is  the  multiplicity  of  independent  branches ;  the  diversity  in  forms 
of  organization ;  and  the  predominance  of  the  board  system.  At  pres- 
ent there  are  about  seventy-five  independent  agencies  in  charge  of 
the  administrative  work  of  the  state,  the  majority  of  which  are  boards 
largely  independent  of  one  another,  and  over  which  the  Governor  has 
very  little  control.  In  order  to  centralize  the  entire  state  administra- 
tion, the  commission  proposes  a  plan  which  is  a  novel  one  from  the 
standpoint  of  state  government,  but  which  is  in  general  similar  to 
the  organization  of  the  national  administration.  The  main  feature 
of  this  plan  is  the  grouping  of  the  various  state  services,  at  present 
largely  independent  of  one  another,  under  six  great  departments. 

At  the  head  of  the  entire  system  is  the  Governor,  while  the  legal 
department  under  the  Attorney  General,  the  recording  office  in  charge 
of  the  Secretary  of  State,  the  Civil  Service  Commission,  the  account- 
ing department  in  charge  of  the  State  Auditor,  and  the  Tax  Commis- 
sion will  constitute  what  is  known  as  the  "general  administration." 
This  is  not  a  department  strictly  speaking,  but  rather  a  group  of  offices 


992  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

whose  work,  such  as  the  legal  affairs  of  the  state,  the  keeping  of 
records,  and  the  auditing  of  accounts,  is  related  to  all  of  the  depart- 
ments. Such  an  arrangement  will  not  only  serve  to  centralize  the 
auditing  of  accounts  and  the  equalization  of  taxes,  but  will  also  relieve 
the  elective  state  officers  of  membership  on  executive  boards  and  free 
them  from  the  burden  of  miscellaneous  duties.  The  other  functions 
of  government  will  be  distributed  among  one  of  the  following  divis- 
ions:  (1)  the  department  of  finance;  (2)  the  department  of  pubHc 
domain;  (3)  the  department  of  public  welfare;  (4)  the  department 
of  education;  (5)  the  department  of  commerce  and  labor,  and  (6) 
the  department  of  agriculture. 

Each  of  the  departments  so  established,  with  the  exception  of 
the  finance  department  and  the  department  of  education,  will  be  in 
charge  of  a  director,  to  be  appointed  by  the  Governor,  and  who  shall 
serve  during  the  pleasure  of  the  latter,  while  the  departments  in 
turn  are  to  be  sub-divided  into  bureaus,  each  of  which  will  be  under 
the  control  of  a  commissioner-  to  be  appointed  after  a  competitive  or 
non-competitive  examination.  The  finance  department,  however,  will 
be  in  charge  of  the  state  treasurer,  while  for  the  department  of  edu- 
cation the  commission  proposes  two  boards,  the  board  of  regents  for 
the  state  university  and  a  new  board  of  education  to  have  control  of 
all  other  educational  work, — with  power  to  select  the  president  of  tlie 
university  and  the  director  of  education  respectively.  With  these  two 
exceptions  the  general  plan  of  organization  is  the  same  in  all  depart- 
ments. It  is  intended  that  the  directors  shall  be  laymen  and  not 
experts,  and  they  may  change  with  the  Governor,  but  provision  is 
made  that  the  bureau  chiefs  shall  be  persons  of  expert  ability,  thus 
combining  practical  technical  service  with  popular  control.  The 
directors  as  heads  of  their  respective  departments  will  be  responsible 
to  the  Governor  and  to  the  people  for  the  administration  of  the  same, 
and  will  constitute  a  Governor's  cabinet  similar  to  the  cabinet  of  the 
President  of  the  United  States.  In  this  manner  the  whole  adminis- 
tration is  expected  to  become  a  unit. 

Although  the  Economy  and  Efficiency  Commission  has  recom- 
mended the  placing  of  all  executive  functions  in  the  hands  of  the 
various  departmental  directors,  it  recognizes  the  need  of  certain  boards 
for  advisor>%  sub-legislative  and  quasi- judicial  functions,  and  has  pro- 
posed such  a  board  for  each  department.  In  some  of  the  departments, 
existing  boards  and  commissions  may  be  made  use  of,  while  for  each 
of  the  other  divisions  the  commission  recommends  that  a  board  of 
from  five  to  nine  members  be  appointed  by  the  Governor.  Some  of 
these  boards,  such  as  the  board  of  railroad  commissioners  in  the  depart- 
ment of  commerce  and  labor,  and  the  advisory  board  for  the  depart- 
ment of  public  welfare,  will  possess  sub-legislative  power  to  make 
rules  and  regulations  in  regard  to  the  rights  and  duties  of  public 
service  corporations  and  in  regard  to  health  matters,  and  all  the  boards 
will  have  advisory  functions  and  powers,  will  make  suggestions  to 
the  director  upon  request,  and  may  offer  recommendations  in  their 
own  discretion. 


IN  OTHER  STATES.  993 

The  Minnesota  Economy  and  Efficiency  Commission  is  of  the 
opinion  that  the  adoption  of  such  a  plan  of  reorganization  will  unify 
the  administration  and  make  the  Governor  the  true  head  of  the  gov- 
ernment, in  which  capacity  he  may  be  properly  held  responsible  for 
any  inefficiency  or  misconduct  throughout  the  state.  It  is  further  sug- 
gested that  an  increase  in  responsibility  and  power  will  tend  to  make 
tlie  office  of  Governor  one  of  greater  importance  and  dignity,  with  the 
probable  result  that  more  attention  will  be  paid  to  the  selection  of  its 
incumbent. 

In  November,  1914,  the  Minnesota  Economy  and  Efficiency  Com- 
mission submitted  its  final  report  to  Governor  Eberhart  in  the  form  of 
a  proposed  bill  for  reorganizing  the  civil  administration  of  the  state, 
together  with  provisions  for  the  merit  system  of  appointment  and  a 
budget  system  of  making  appropriations.  The  report  contains  several 
charts  showing  the  present  and  proposed  plans  of  administrative  or- 
ganization, and  the  draft  of  the  bill  is  accompanied  by  a  number  of 
analytical  and  explanatory  notes  which  will  provide  the  legislature 
with  intelligent  data  when  it  considers  the  recommendations  of  the 
commission. 

THE   IOWA   COMMITTEE  ON    RETRENCHMENT  AND  REFORM, 

In  Iowa,  under  an  Act  of  the  General  Assembly  of  March  17, 
1913,  the  "Joint  Committee  on  Retrenchment  and  Reform"  was 
authorized  to  employ  "expert  accountants  and  efficiency  engineers" 
and  to  "institute  such  changes  in  the  administration  of  public  affairs 
as  would  promote  the  efficiency  and  economical  administration  of  the 
affairs  of  the  state  in  its  various  departments."^  The  firm  of  Quail, 
Parker  and  Company,  which  was  appointed  by  the  Committee  to 
examine  into  the  conduct  and  expenditures  of  the  various  state  offices, 
boards  and  commissions,  presented  a  report  on  the  Department  of 
Agriculture  on  March  25,  1913,  and  a  preliminary  report  on  the  heat- 
ing plant  at  the  State  Capitol  in  May  of  the  same  year,  while  the  final 
report  of  its  findings  was  submitted  under  the  date  of  December  21, 
1913.^ 
Report  of  Efficiency  Engineers. 

In  this  report,  the  efficiency  engineers  not  only  recommended  the 
adoption  of  more  efficient  methods  and  greater  economy  in  the  work 
of  the  various  state  offices  and  departments,  but  also  presented  a  plaii 
for  reorganizing  the  executive  branch  of  the  state  government  which,  it 
was  suggested,  would  bring  about  the  concentration  of  authority  and 
the  location  of  responsibility  and  also  introduce  the  short  ballot,  the 
merit  system  of  appointments,  a  scientific  budget  and  general  busi- 
ness efficiency. 

■'Laws  of  Iowa  1913,  p.  23.  It  should  be  noted  that  the  Committee  on  Retrench- 
ment and  Reform  had,  by  authorization  of  a  joint  resolution  of  the  General  Assem- 
l)ly,  employed  experts  to  make  an  investigation  into  the  administration  of  the  agri- 
cultural departments  prior  to  the  enactment  of  the  law  of  March  17,  1913. 

**The  following  account  of  the  final  report  of  Quail,  Parker  and  Co.,  Efficiency 
Engineers,  was  obtained  from  a  monograph  in  the  Applied  History  Series  of  the 
Iowa  State  Historical  Society.  See:  "Reorganization  of  State  Government  in  Iowa," 
by  Mr.  F.  E.  Horack ;  Iowa  Applied  History  Series,  Volume  II,  Number  2,  especially 
pages  58  to  62. 


994  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

The  proposed  plan  recommends  in  the  first  place  the  consolidation 
of  the  offices  of  the  State  Treasurer  and  State  Auditor  by  the  creation 
of  a  new  Department  of  Finance,  which,  under  the  direction  of  the 
above  named  officials,  would  control  the  entire  accounting  of  the  state 
government,  and  make  possible  the  adoption  of  a  scientific  method  of 
budget  control,  an  efficient  accounting  system  and  an  independent  audit 
of  public  funds.  In  the  second  place,  it  is  proposed  that  the  offices 
of  the  Secretary  of  State  and  Attorney-General  be  combined  to  con- 
stitute a  new  Legal  Department,  with  supervision  over  all  matters  of 
legal  record  and  justice,  the  Secretary  of  State  to  "have  charge  of 
the  executive  and  legislative  records,  and  the  Motor  Vehicle  Bureau ; 
while  the  Attorney-General  will  conduct  his  branch  on  similar  lines 
to  those  at  present  existing."  As  necessary  features  of  the  general 
administration,  the  efficiency  and  economy  engineers  employed  by  the 
Iowa  committee,  also  recommend  the  establishment  of:  (1)  the  office 
of  State  Purchasing  Agent;  (2)  the  position  of  Chief  Accountant; 
and  (3)  a  Civil  Service  Commission  to  administer  the  merit  system, 
through  which  are  to  be  filled  all  administrative  positions  except  the 
constitutional  officers  and  the  heads  of  departments. 

The  Finance  Department  and  Legal  Department,  as  described 
above,  are  to  be  formed  by  the  consolidation  or  redistribution  of  the 
functions  of  the  general  administrative  offices,  w^'ile  the  other  execu- 
tive functions  and  activities  of  the  state  government  are  to  be  grouped 
under  one  of  the  following  seven  departments : 

1.  Department  of  Agriculture 

2.  Department  of  Commerce  and   Industries 

3.  Department  of  Public  Works 

4.  Department  of  Public  Safety 

5.  Department  of  Public  Health 

6.  Department  of  Education 

7.  Department  of  Charities  and   Correction^ 

It  is  proposed  that  the  Governor  shall  act  as  Director  of  the 
Department  of  Public  Safety;  and  each  of  the  other  departments  is 
to  be  under  the  immediate  control  and  supervision  of  a  Director-Gen- 
eral, to  be  appointed  by  the  Governor  with  the  consent  of  the  Senate. 

The  plan  of  reorganization  as  proposed  by  the  Efficiency 
Engineers  provides  not  only  for  the  unification  of  the  general  admin- 
istrative functions  under  the  control  of  the  four  elective  officers  of 
the  state  and  the  distribution  of  the  other  functions  of  government 
among  seven  departments,  but  the  present  Executive  Council  (com- 
posed of  the  elective  executive  officers)  is  to  be  displaced  by  a  new 
Council  consisting  of  the  Directors-General  of  the  various  departments 
with  the  Governor  as  its  Chairman,  thus  making  the  chief  executive 
the  real  head  of  the  state  administration.  None  of  these  reforms,  it 
is  pointed  out,  necessitates  the  amendment  of  the  state  constitution, 
but  are  in  the  main  such  as  it  is  possible  to  secure  tlirough  ordinary 
legislation. 

Report  of  the  Committee. 

On  November  12,  1914,  the  Committee  on  Retrenchment  and 
Reform  published  a  preliminary  report  regarding  its  own  recommenda- 


IN  OTHER  STATES.  995 

tions  for  reorganizing  the  state  administration,  wliich  differs  somewhat 
from  the  plan  proposed  by  the  efficiency  engineers,  as  well  as  from 
the  several  plans  proposed  by  similar  committees  in  other  states."  The 
members  of  the  Committee  on  Retrenchment  and  Reform  do  not 
recommend  the  creation  of  new  departments  under  the  Secretary  of 
State,  the  State  Treasurer  and  Auditor,  as  do  the  efficiency  engineers, 
but  propose  to  relieve  the  above  mentioned  officials  of  their  miscellan- 
eous executive  functions  and  thus  restore  them  to  the  status  originally 
contemplated  at  the  time  the  constitution  was  adopted,  with  the  pur- 
pose ultimately  of  abolishing  these  offices  by  constitutional  amendment 
and  transferring  their  remaining  functions  to  the  three  great  depart- 
ments to  be  described  later.  Such  a  policy,  the  Committee  suggests, 
would  not  only  "concenrate  authority  in  the  Governor  as  the  appointing 
power,"  and  eliminate  "the  division  of  authority  now  prevailing,  but 
would  shorten  a  badly  encumbered  ballot,  thus  making  for  simplified 
government.^" 

The  plan  contemplates  the  creation  of  three  great  divisions  of 
administration  by  the  grouping  together  of  related  departments  and 
offices,  namely : 

I.  The  Department  of  Social  Progress,  to  include  and  have  super- 
vision over  the  following  existing  departments : 

Superintendent  of  Public  Instruction 

Educational  Board  of  Examiners 

State  Library 

Geological  Survey  '    , 

Historical  Department 

Historical  Society  of  Iowa 

Academy  of  Science 

Public  Archives 

Library  Commissions 

Board  of  Control 

Board  of   Parole. 

Board  of  Education 

II.  The  Department  of  Industries,  to  include  and  have  supervision 
over  the  following  existing  departments : 

Department  of  Agriculture 
Weather  and  Crop  Bureau 
State  Veterinary  Surgeon 
Commission  of  Animal  Health 
Horticultural  Society 
Inspector  of  Bees 
State  Entomologist 
Dairy  Association 
State  and  County  Fairs 
Railroad  Commission 
Commerce  Counsel 
Commissioners  of  Insurance 


"Preliminary  Report  of  the  Iowa  Comniittee  on  Retrenchment  and   Reform,  pub- 
lished in  the  Des  Moines  Register  and  Leader,  Nov.  16,  1914. 
"Ibid. 


996  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

Industrial  Commissioner 

Bureau  of  Labor  Statistics 

Banking 

Bank  Examiner 

County  Examiner 

City  Examiner 

Public  Accountant 
III.  Department  of  Public  Safety,  to  include  and  have  supervis- 
ion over  the  following  existing  departments : 

Attorney  General 

Adjutant  General 

State  Militia 

Fish  and  Game  Warden 

State  Highway  Commission 

Custodian  of  Public  Buildings  and  Property 

Capitol  Extension 

Land  Office 

Fire  Marshal 

Board  of  Health 

Board  of  Medical  Examiners 

Board  of  Law  Examiners 

Board  of  Dental  Examiners 

Commission  of  Pharmacy 

Dairy  and  Food  Commission 

All  examiners  of  this  division 

Oil  Inspectors 

Mine  Inspectors 

Board  of  Voting  Machine  Commissioners 
At  the  head  of  each  of  the  above  divisions  would  be  a  chief 
officer,  appointed  by  the  Governor,  to  have  general  supervision  over 
the  several  departments  placed  under  him.  The  Committee  does  not 
at  this  time  set  forth  any  detailed  system  for  the  appointment  or 
control  of  the  various  departmental  officers  under  the  three  great 
divisions,  but  suggests  that'  there  would  be  a  direct  line  of  responsibil- 
ity, the  subordinate  officials  being  immediately  answerable  to  the  head 
of  one  of  the  three  great  divisions,  who  is  in  turn  responsible  to  the 
Governor.  "Instead  of  each  department  being  left  to  pursue  its  own 
course  wholly  or  substantially  independent  of  all  other  departments,  all 
would  be  welded  together  in  coordinate  activity,  minor  department 
heads  under  the  great  department  leader,  the  three  department  leaders 
laboring  together  and  all  in  cooperation  with  the  Governor  as  supreme 
head,  becoming  in  fact  the  cabinet  of  the  Governor  and  responsive  to 
his  policies. "^^ 

Thus  it  is  evident  that  the  plan  of  administrative  reorganization, 
as  recommended  by  the  Iowa  Committee  on  Retrenchment  and 
Reform,  presents  several  features  which  differentiate  it  from  proposals 
of  a  similar  nature  in  other  states.  The  most  important  features  are : 
(1)    the  grouping  of  the  state  activities  into  three  great  divisions, 

iiprelirainary  Report  of  the  Iowa  Committee  on  Retrenchment  and  Reform,  pub- 
lished in  the  Des  Moines  Register  and  Leader,  Nov.  16,  1914. 


IN  OTHER  STATES.  997 

whereas  in  Illinois  and  Minnesota  it  is  proposed  to  consolidate  the 
existing  functions  under  six  or  more  departments;  and  (2)  the  pro- 
posal that  ultimately  the  offices  of  the  Secretary  of  State,  State 
Treasurer  and  Auditor  shall  be  abolished  by  constitutional  amendment, 
and  their  respective  duties,^and  functions  transferred  to  one  of  the 
three  proposed  divisions.  2The  basic  principle  of  the  lov^a  plan  of 
reorganization  is,  therefore,  the  complete  centralization  of  adminis- 
trative control  in  the  hands  of  the  Governor, 

In  addition  to  recommending  a  general  unification  and  consolida- 
tion of  the  state  adminis'tration,  the  Committee  on  Retrenchment  and 
Reform  makes  a  number  of  general  suggestions  for  increasing  economy 
and  efficiency  in  carrying  on  the  public  business  of  the  state.  In  the 
first  place,  it  is  recommended  that  all  appointments  should  be  made 
on  the  basis  of  ability,  that  the  political  activity  of  public  employes 
should  be  curtailed,  that  public  employees  should  work  approximately 
the  same  number  of  days  and  hours  per  day  as  are  demanded  in  other 
business  enterprises,  and  that  the  time  clock,  universally  adopted  in 
large  industrial  establishments,  should  be  installed  by  the  state.  In 
the  second  place,  the  Committee  recommends  that  the  Governor  should 
make  up  a  budget  showing  the  needs  of  the  state,  and  place  the  same 
in  the  hands  of  the  legislature  immediately  upon  convening.  In  the 
third  place,  the  suggestion  is  made  that  the  duties  of  the  purchasing 
agent,  now  employed  by  the  board  of  control,  should  be  extended  to 
include  the  purchase  of  all  state  supplies,  and  that  the  excessive 
expense  of  published  reports  be  reduced  by  eliminating  unnecessary 
duplications. 

Although  the  preliminary  report  of  the  Committee  on  Retrench- 
ment and  Reform  is  directed  primarily  towards  outlining  a  plan  of 
administrative  reorganization,  it  also  contains  several  general  recom- 
mendations for  increasing  the  economy  and  efficiency  of  legislation, 
namely:  (1)  the  adoption  of  some  method  whereby  the  status  of  any 
bill  introduced  may  be  ascertained  at  any  time,  thus  preventing  the  loss 
or  neglect  of  bihs;  (2)  a  reduction  of  the  number  of  legislative  clerks, 
doorkeepers,  janitors,  etc;  (3)  a  reduction  in  the  size  of  Committees; 
and  (4)  the  prohibition  by  rule,  of  the  dictation  of  correspondence, 
etc.,  to  the  members'  clerks  in  open  session  as  disconcerting  and 
destructive  of  business  efficiency. 


998  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

REFERENCES. 
Massachusetts. 

Report  of  the  Commission  on  Economy  and  Efficiency,  December  31,  1912. 

Annual  Report  of  the  Commission  on  Economy  and  Efficiency  for  the  year 
ending  December  31,  1913. 

Report  of  the  Commission  on  Economy  and  Efficiency  on  the  Reorganiza- 
tion of  Boa.ds  and  Commissions  having  supervision  and  control  of  State  Insti- 
tutions, submitted  February  7,  1914. 

Report  of  the  Commission  on  Economy  and  Efficiency,  on  Functions, 
Organization  and  Administration  of  the  Departments  in  the  Executive  Branch 
of  the  State  Government,  November,  1914. 

Annual  Report  of  the  Commission  on  Economy  and  Efficiency,  1914. 

Rhode  Island. 

State  Commissions  on  Economy  and  Efficiency,  compiled  by  Chester  C. 
Waters,  Ph.  D.  Legislative  Reference  Bulletin  No.  7,  Rhode  Island  State 
Library. 

New  Jersey. 

Message  of  the  Governor  transmitting  Report  of  the  Commission  to  con- 
sider the  best  means  to  consolidate  State  Agencies,  February  8,  1913. 

Message  of  the  Governor  transmitting  to  the  Legislature  the  Second  Report 
of  the  Commission  upon  the  Reorganization  and  Consolidation  of  different 
Departments  of  the  State  Government  whose  functions  are  interrelated,  Feb- 
ruary 16,  1914. 

Third  Report  of  the  Economy  and  Efficiency  Commission,   1915. 

New  York. 

Report  of  the  Committee  on  Inquiry  to  Governor  Sulzer,  transmitted  to 
the  New  York  Legislature,  March  24,   1913. 

State  Budget  Report  by  the  New  York  Department  of  Efficiency  and  Econ- 
omy transmitted  to  the  Governor,  March  16,  1914. 

Government  of  the  State  of  New  York,  a  Survey  of  its  Organization  and 
Functions.  Prepared  for  the  Constitutional  Commission  by  the  New  York 
State  Department  of  Efficiency  and  Economy  and  New  York  Bureau  of  Munici- 
pal Research,  January  1,  1915. 

Pennsylvania. 

Report  of  the  Economy  and  Efficiency  Commission  of  the  Commonwealth 
of  Pennsylvania,  1915. 
Minnesota. 

Preliminary  Report  of  the  Economy  and  Efficiency  Commission,  1914. 

Final  Report  of  the  Economy  and  Efficiency  Commission. 

Iowa. 

Senate  Journal,— April  4,  1913,  pp.  1646  ff. 

Reorganization  of  State  Government  in  Iowa,  by  F.  E.  Horack,  Iowa 
Applied  History  Series,  Vol.  II,  No.  2. 

Report  of  the  Committee  on  Retrenchment  and  Reform,  Des  Moines  Reg- 
ister and  Leader,  November  16,  1914. 


A  REPORT 


ON 


FIRE  INSURANCE  RATES 
IN  ILLINOIS 


BY 


MAURICE  H.  ROBINSON,  Ph.  D.    • 

PROFESSOR  OF  INDUSTRY  AND  TRANSPORTATION 
UNIVERSITY  OF  ILLINOIS 

PREPARED  FOR  THE 

EFFICIENCY  AND  ECONOMY  COMMITTEE 

CREATED  UNDER  THE  AUTHORITY  OF  THE 
FORTY-EIGHTH  GENERAL  ASSEMBLY 

STATE  OF  ILLINOIS 


CONTENTS 


Introduction     • .  1003 

Historical  Development  1005 

Methods  of  Conducting  the  Fire  Insurance  Business 1007 

The  Mutual   Plan 1007 

The  Stock  Company  Plan 1007 

State  Insurance 1008 

How  Rate  Are  Made 1008 

Competitive  Rates  1008 

Schedule  Rating  1009 

Co-operative  Agencies  1010 

State  Regulation  of  Insurance lOH 

In   Illinois 1011 

In  Other  States  1012 

Anti-discrimination    1013 

Rates  to  Be  Filed   1013 

Hearing  Complaints   1013 

Rate-making    Associations    Authorised  1013 

State  Fire  Insurance  Rate-making 1014 

Rates   in   Illinois 1015 

Building  Construction  and  Fire  Protection    1017 

The  Moral  Hazard   1017 

Co-insurance    1024 

Summary  and   Conclusions 1026 


INTRODUCTION 

During  the  investigation  by  the  Efficiency  and  Economy  Com- 
mittee of  the  administration  of  the  laws  for  the  supervision  of  cor- 
porations and  business  under  pubHc  regulation,  and  w^hile  considering 
plans  for  the  organization  of  the  several  State  offices  and  commissions 
dealing  with  these  several  matters  into  a  single  executive  department, 
there  arose  the  question  of  the  powers  that  the  Commissioner  should 
be  clothed  with  over  insurance  companies  and  the  further  question  as 
to  whether  the  present  State  laws  were  adequate.  In  this  general  dis- 
cussion many  questions  arose,  among  them  the  question  of  fire  in- 
surance rates.  Properly  to  arrive  at  a  just  conclusion,  the  Committee 
determined  to  have  prepared  a  general  survey  of  the  fire  insurance 
business,  including  the  matter  of  fire  insurance  rates.  The  Committee 
did  not  have  funds  sufficient  to  make  any  extended  investigation  of 
insurance  companies ;  and  it  was  therefore,  suggested  that  the  reports 
of  the  various  State  commissions  and  commissioners  of  insurance  be 
used  in  the  preparation  of  the  paper.  In  accord  with  this  suggestion, 
the  Committee  requested  Professor  Maurice  H.  Robinson  to  prepare 
a  short  history  of  lire  insurance  and  also  a  brief  report  on  fire  insur- 
ance rates.  The  study  made  in  accordance  with  this  request  and  the 
suggestions  of  the  Committee  is  herewith  presented. 

Therefore,  this  study  of  Professor  Robinson's  is  not  an  exhaustive 
original  investigation  of  the  subject.  As  the  Committee  had  sug- 
gested, he  has  used  the  data  set  forth  in  the  reports  made  by  special 
commissions  and  State  Insurance  Commissioners  in  other  states.  While 
this  report  was  prepared  some  months  previous  to  the  report  of  the 
present  Insurance  Superintendent  of  this  State,  and  was  founded  on 
the  reports  as  suggested,  it  is  in  full  accord  with  the  special  findings 
of  Superintendent  Potts  that  fire  insurance  rates  in  this  State  are 
inequitable  and  excessive;  that  fire  insurance  rates  are  controlled  bya 
combination  of  insurance  companies ;  and  that  such  rates  should_  in 
some  way  be  regulated  and  controlled  by  the  State.  On  the  question 
of  how  to  deal  with  insurance  companies  in  the  matter  of  rates  there 
is  ample  room  for  a  just  difference  of  opinion.  It  should  be  noted, 
however,  that  the  recommendations  in  the  report  herewith  appended 
are  in  direct  agreement  with  the  recommendations  of  the  Special  Com- 
mittee of  State  Insurance  Commissioners  appointed  by  the  Insurance 
Commissioners  of  the  United  States  in  their  annual  convention,  of 
which  Committee  Insurance  Commissioner  Ekern  of  Wisconsin  was  a 
member.  .    . 

As  a  result  of  its  investigations,  the  Committee  decided  to  limit 
its  recommendations  to  changes  in  administrative  organization  under 
existing  laws  and  not  to  propose  changes  in  the  substantive  law.  Tliis 
determination  was  reached,  not  only  because  of  the  question  as  to  its 
authority  in  the  latter  class  of  matters,  but  also  because  the  plans  for 
administrative  reorganization  involved  as  much  as  could  be  carefully 


1004  EFFICIENCY  AND   ECONOMY   COMMITTEE 

considered  in  time  for  the  Committee  to  report  to  the  Forty-ninth  Gen- 
eral Assembly.  The  recommendations  in  this  paper  were  not  in  all 
respects  concurred  in  by  all  the  members  of  the  Committee.  However, 
they  do  meet  with  the  approval  of  some  of  the  members.  This  report 
is  printed  and  submitted  for  the  valuable  information  it  contains  on 
the  subject  of  fire  insurance  and  fire  insurance  rates. 

Walter  I.  Manny. 


A   REPORT   ON   FIRE   INSURANCE   RATES   IN    ILLINOIS. 

BY  PROFESSOR  MAURICE  H.  ROBINSON,  UNIVERSITY  OF  ILLINOIS. 


HISTORICAL  DEVELOPMENT. 

Fire  Insurance  as  an  important  factor  in  business  affairs  dates 
from  the  great  fire  in  London,  in  1666,  when  over  eighty-five  per  cent 
of  the  buildings  in  that  city  were  destroyed.  The  next  year,  one 
Nicholas  Barbon  opened  an  office  for  the  purpose  of  insuring  buildings 
against  fire.  This  venture  was  so  successful  that  in  1680  the  business 
was  enlarged  and  a  partnership  formed  under  the  name  of  "The  Fire 
Office."  In  1681  an  attempt  was  made  to  establish  a  department  of 
the  city  government  for  the  purpose  of  underwriting  risks  by  the  city. 
This  project  was  abandoned  after  two  years  experience.  The  business 
steadily  grew  in  importance,  and  in  1681,  the  first  of  the  mutual 
companies  was  formed  and  began  operations  under  the  name  of  "The 
Friendly  Society,"  an  organization  which  lasted  for  one  hundred  years. 
Thus  it  will  be  noticed  that  within  a  period  of  fifteen  years,  1666-1681, 
all  the  important  methods  of  carrying  on  fire  insurance,  viz. — stock, 
state  and  mutual  were  operated  in  London  side  by  side  as  a  direct 
result  of  the  greatest  conflagration,  relatively  speaking,  which  history 
records.  For  the  first  one  hundred  years  after  the  great  fire,  the 
growth  of  fire  insurance  was  slow.  Beginning  about  1800,  the  busi- 
ness of  insuring  buildings  against  the  ravages  of  fire  began  to  develop 
more  rapidly  and  during  the  last  seventy-five  years  the  growth  has 
been  both  extensive  and  intensive,  until  at  the  present  time  every  civ- 
ilized country  has  a  fairly  well  developed  fire  insurance  system  cover- 
ing a  large  proportion  of  the  fire  risks. 

It  is  not  possible  to  determine  the  exact  amount  of  insurance  in 
force  in  the  United  States  at  the  present  time.  This  results  from  two 
conditions:  (1)  Only  a  part  of  the  insurance  actually  carried  is 
reported  to  the  various  state  insurance  departments,^  and  (2)  there 
is  no  organization  that  makes  it  a  business  to  collect  and  publish  all  the 
insurance  actually  in  force  in  the  several  states. 

It  is,  however,  possible  to  reach  an  approximation  that  is  fairly 
accurate.  Each  state  published  the  total  amount  of  the  insurance  car- 
ried by  the  several  companies  authorized  to  operate  within  its  jurisdic- 
tion. All  of  the  more  important  companies  operate  in  the  larger  states 
and  while  there  are  many  small  companies  operating  locally,  the  total 
bulk  of  such  insurance  is  relatively  small.  Taking  the  companies 
reporting  to  the  State  of  New  York,  it  is  found  that  on  December  31, 
1912,  such  companies  had  a  total  of  $51,202,402,351  of  fire  insurance 
in  force.  To  this  must  be  added  insurance  carried  by  unauthorized 
companies  and  by  companies  operating  in  other  states-  but  not  in  New 
York.  If  we  may  assume  that  the  companies  operating  in  the  State 
of  New  York  carry  seventy-five  per  cent,  of  the  total  carried  in  the 
United  States,  then  the  total  amount  covered  by  insurance  would  be 
approximately  seventy  billion  dollars   ($70,000,000,000).     From  these 

iReport  of  the  Commissioner  of  Insurance,  Wis.,  1914,  p.  15. 
2N.  Y.  Insurance  Report,  1913.,  pt.  1,  p.  Ixv. 


1006  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

approximations  it  would  seem  that  the  risks  subject  to  destruction  by 
fire  are  fairly  well  covered  by  fire  insurance.^ 

The  reason  for  the  rapid  growth  of  fire  insurance  during  the  last 
seventy-five  years  is  not  difficult  of  explanation.  The  property  of 
each  individual  owner  is  subject  to  destruction  by  fire  at  any  time. 
For  the  whole  United  States  the  annual  fire  loss  has  averaged  about 
$225,000,000  for  the  past  ten  years,  and  in  one  of  these  years,  viz., 
1906,  the  total  loss  by  fire  was  over  $500,000,000.  This  annual  loss 
must  be  borne  by  someone.  Formerly  it  was  borne  by  the  owner. 
Now  most  property  owners  prefer  to  pay  an  annual  fire  insurance  tax 
and  be  relieved  from  the  risk  of  a  partial  or  total  loss.  Fire  insurance 
is,  in  fact,  a  great  cooperative  institution,  all  those  insured  contrib- 
uting to  a  common  fund,  and  all  the  insured  who  suffer  fire  losses 
drawing  out  an  amount  equal  in  general  to  their  individual  losses.  The 
annual  contribution  of  each  is  small  in  comparison  to  the  individual's 
income  from  which  it  is  drawn.  A  fire  loss  when  it  comes  is  liable 
to  represent  a  substantial  portion  of  the  savings  of  a  lifetime.  The 
sum  of  all  the  contributions  is  nearly  double  the  actual  losses,  but  so 
much  more  serious  is  a  total  or  nearly  total  loss  to  any  individual 
when  considered  from  the  standpoirit  of  his  economic  well-being  than 
a  series  of  comparatively  small  ones,  that  society  could  well  afford 
to  pay  even  more  than  it  does  now  rather  than  dispense  with  the  pro- 
tection afforded  by  fire  insurance. 

It  follows  from  this  that  fire  insurance  rates  might  be  raised  con- 
siderably above  their  present  level  and  still  the  individual  members  of 
society  would  find  it  to  their  advantage  to  carr}^  insurance.  Why  then 
do  not  insurance  companies  raise  their  rates? 

There  is  some  competition  between  the  standard  fire  insurance 
companies.  More  important,  however,  is  the  competition  of  the 
mutual  companies,  including  town  and  county  mutuals,  factory  mutu- 
als,  the  Lloyds  and  during  the  past  five  years  the  inter-insurers. 

The  town  and  county  mutuals  are,  however,  not  fitted  by  nature 
to  undertake  risks  subject  to  the  conflagration  hazard.  Therefore, 
their  competition  is  substantially  limited  to  country  districts  and  the 
smaller  towns.  The  factory  mutuals,  the  Lloyds  and  the  inter-insurers 
are,  on  the  contrary,  admirably  fitted  to  undertake  such  risks.  Con- 
flagrations are  unlikely  to  occur  in  several  cities  at  the  same  time. 
The  factory  mutuals,  the  Lloyds  and  the  inter-insurers  make  it  their 
policy  to  scatter  their  risks  and  so  avoid  to  a  large  extent  the  con- 
flagration hazard.  Moreover,  by  a  well-organized  system  of  inspec- 
tion, the  factory  mutuals  and  to  a  somewhat  smaller  extent,  the  inter- 
insurers,  have  so  encouraged  and  perfected  the  art  of  fire  prevention, 
that  their  burning  ratio  has  been  phenomenally  low  as  compared  with 
risks  insured  in  tlie  usual  way.  As  a  result,  fairly  active  competition 
has  been  maintained  inonany  lines  of  commercial  risks,  including  fac- 
tories, stores,  warehouses  and  the  like.  Such  insurance  has  not,  how- 
ever, been  developed  to  any  extent  among  property  owners  of  other 
classes  in  the  congested  districts.  In  such  cases,  competition  is  gen- 
erally ineffective  and  the  rates  are  likely  to  be  somewhat  above  the 
average. 

"See  U.  S.  Geological  Survey,  Bui.  418,  for  other  estimates. 


FIRE    INSURANCE   RATES 


1007 


METHODS  OF  CONDUCTING  THE  FIRE  INSURANCE  BUSINESS. 

There  are  three  methods  of  carrying  on  the  business  of  fire 
insurance : 

The  Mutual  Plan 

The  Stock  Company  Plan 

State  Insurance 

The  Mutual  Plan 

In  the  mutual  plan  of  carrying  on  insurance,  a  group  of  risks  are 
associated  under  an  agreement,  whereby  each  individual  member 
agrees  to  bear  such  a  portion  of  any  loss  that  may  come  to  any  of  the 
risks  associated  as  the  insured  value  of  his  property  bears  to  the  total 
insured  value  of  all  risks  insured.  Generally  speaking,  each  insured 
deposits  a  certain  stipulated  premium  and  guarantees  by  a  note  or 
other  evidence  of  his  responsibility  that  he  will  bear  any  additional 
assessments  that  may  be  made  by  the  proper  authorities  on  account  of 
additional  losses.  The  premium  deposited  is,  however,  usually  larger 
than  is  necessary  to  pay  the  prorated  share  of  the  losses  and  expenses, 
and  any  surplus  is  held  as  a  reserve  and  finally,  or  at  intervals,  dis- 
tributed according  to  the  plan  adopted  at  the  beginning  among  the 
insured.  In  mutual  insurance  the  rates  charged  are  not  important. 
The  important  features  are  : 

The  actual  fire  losses; 

The  expenses  of  conducting  its  business ; 

The  distribution  of  the  burdens— that  is,  the  share  that  each 
member  finally  bears. 

The  Stock  Company  Plan 

Notwithstanding  the  advantages  of  the  mutual  plan,  a  very  large 
proportion  of  all  fire  insurance  is  conducted  by  stock  companies  or 
by  individual  insurers  and  partnerships  for  profit : 

The  reasons  for  this  condition  are  as  follows : 

1.  The  conflagration  hazard  is  directly  connected  with  the 
building  of  wooden  structures  closely  adjoining  one  another  as  in  the 
modern  city.  Under  these  circumstances  it  is  inevitable  that  fires 
should  spread.  Occasionally  where  the  conditions  are  favorable,  con- 
flagrations result.  Such  was  the  case  in  Chicago  in  1871 ;  in  Boston  in 
1872 ;  in  Baltimore  in  1904  and  in  San  Francisco  in  1906.  Unless  the 
mutual  companies  are  so  large  as  to  be  unwieldy  from  the  administra- 
tive point  of  view,  or  the  risks  so  scattered  as  to  make  the  expense  of 
doing  business  prohibitory,  the  losses  to  the  individual  policy  holder 
are  liable  to  be  so  heavy  in  case  of  conflagrations  as  to  make  the  insur- 
ance a  burden  rather  than  a  help.  On  this  account  mutual  companies 
generally  have  confined  their  activities  to  the  country  districts,  or  to 
villages  and  have  left  the  congested  city  to  the  stock  companies. 

2.  The  object  of  a  mutual  company  is  to  save  money  to  the 
insured  by  reducing  the  cost  of  insurance  to  the  actual  expenses. 
While  it  is  quite  impossible  with  the  information  at  hand  at  the  pres- 
ent time  to  make  a  comparison  of  any  value,  it  is  often  stated  that  the 


1008  EFFICIENCY  AND   ECONOMY   COMMITTEE. 

fire  insurance  business  is  not  particularly  profitable.* 

Certainly  more  insurance  companies  have  failed  during  the  past 
fifty  years  than  have  made  financial  successes.  The  mutual  rate  is  gen- 
erally low — due  to  the  following  reasons:  (1)  Much  of  the  work  con- 
nected with  the  administration  is  not  paid  for  at  its  commercial  value ; 
and  (2)  the  mutuality  of  the  insurance  tends  to  reduce  the  actual  fire 
loss,  where  the  insured  are  closely  associated.  This  is  best  illustrated 
by  the  experience  of  the  factor}^  mutuals  where  the  fire  loss  has  been 
reduced  by  a  careful  inspection  and  the  dissemination  of  information 
to  a  fourth  and  in  some  cases  to  an  eighth  of  the  former  rate. 

3.  The  difficulties  connected  with  establishing  and  maintaining 
efficient  administration  of  mutual  companies  has  proved  a  marked 
obstacle  to  their  development.  This  obstacle  is  growing  less  each 
year  but  is  still  of  great  importance. 

4.  In  some  states  mutual  companies  are  encouraged  by  appro- 
priate legislation;  in  others,  the  state  occupies  a  neutral  position;  in 
still  others,  the  state  government  has  seemed  to  discourage  the  forma- 
tion of  mutual  companies,  and  to  favor  the  stock  plan.  Historically 
speaking,  Illinois  seems  to  have  adopted  the  policy  of  neutrality.  It 
seems  to  the  writer  that  the  state  ought  to  change  its  policy  in  this 
respect  and  adopt  that  of  encouraging  the  formation  and  operation 
of  mutual  companies  in  all  fields  of  insurance. 

State  Insurance 

As  stated  in  the  historical  introduction.  State  Insurance  was  tried 
in  London  as  early  as  1681,  but  was  soon  abandoned.  State  Insur- 
ance has,  however,  been  fully  developed  in  several  of  the  leading 
European  countries,  especially  in  Germany,  where  the  government 
has  played  a  leading  part  in  undertaking  industrial  activities  as  well  as 
in  regulating  those  owned  and  operated  by  private  individuals.  It  is 
in  New  Zealand,  however,  that  State  Insurance  has  been  promoted 
with  the  greatest  vigor.  There  it  has  been  used  as  a  means  of  regu- 
lating the  rates  of  the  stock  insurance  companies  rather  than  of  secur- 
ing a  revenue  to  the  government.  As  this  report  was  undertaken  f or 
the  purpose  of  comparing  fire  insurance  rates  in  Illinois  with  those  in 
other  states,  where  the  conditions  are  somewhat  similar,  it  would  be 
inconsistent  with  its  purpose  to  enter  upon  a  discussion  of  the  relative 
merits  of  the  three  plans  of  carr}dng  on  the  business  of  fire  insurance.^ 

HOW  RATES   ARE   MADE 

Competitive  Rates 

In  the  earlier  history  of  fire  insurance,  rates  were  made  by  indi- 
vidual fire  insurance  underwriters,  entirely  independent  of  the  others 
in  the  same  line.  Under  such  conditions  the  rates  were  sharply  com- 
petitive and  for  the  larger  risks  there  was  active  bidding.  Sometimes 
the  premiums  were  less  than  the  average  cost  of  the  fire  losses  and 
still  the  rates  were  maintained  on  the  same  general  level.  The  reason 
for  this  is  evident  when  one  considers  the  circumstances : 

(1)     Any  rate  above  the  direct  costs  of  placing  the  business— 

*The  "Spectator"  in  the  issue  of  June  4,  1914,  shows  that  the  losses  and  under- 
writing expenses  of  112  companies  for  a  period  of  1(J  years  ending  with  1913,  exceeded 
tlie  underwriitng  income  by  over  $20,000,000.  ^  ,,    ^.  ,  ,  xu     ^^,ito 

''See  Gephart,  State  Insurance  (N.  Y.  1913),  for  a  full  discussion  of  the  merits 
and  disadvantages  of  State  Insurance. 


FIRE  INSURANCE  RATES  1009 

that  is,  agents'  commissions,  etc. — is  likely  to  give  a  clear  profit,  as  the 
chances  are  strongly  in  favor  of  escaping  without  any  fire,  or  fire 
losses,  during  the  period  of  insurance. 

(2)  The  agents  who  place  the  insurance  are  primarily  interested 
in  writing  insurance  for  the  sake  of  obtaining  commissions,  conse- 
quently their  influence  is  in  favor  of  lowering  the  rate  in  special  cases 
where  the  business  would  otherwise  go  to  some  other  agent. 

(3)  Until  recent  years,  there  was  no  statistical  information  avail- 
able upon  which  to  make  a  rate  based  upon  the  average  fire  loss. 

As  a  result  of  the  above  conditions,  rates  tended  to  be  high  for  the 
small  owners,  or  for  those  unable  to  obtain  mutual  insurance,  and  low 
for  the  large  owners  and  those  able  to  form  or  take  advantage  of 
mutual  companies  already  in  existence. 

Competitive  fire  insurance  rate  making  thus  led  to  discrimina- 
tions" between  risks  of  essentially  the  same  general  character,  depen- 
dent upon  whether  the  owners  were  able  to  make  use  of  competition 
or  not.  Thus  some  rates  were  excessive  and  others  too  low.  Such  a 
condition  was  good  neither  for  the  companies  nor  the  policy  holders. 
Two  general  movements  were  ■  inaugurated  to  correct  the  evils,  one 
started  by  the  policy  holders,  the  other  by  the  companies.  We  shall 
discuss  the  plan  inaugurated  by  the  companies  first. 

Schedule  Rating 

Schedule  rating  is  an  attempt  to  measure  class  hazards  and  to 
base  the  general  rate  on  the  class  hazard.  In  addition,  there  is  a 
further  attempt  by  a  system  of  credits  and  demerits  to  fix  the  rate  on 
each  individual  risk  according  as  it  is  better  or  worse  than  the  class 
to  which  it  belongs. 

The  first  attempts  to  work  out  a  system  of  schedule  rating  dated 
from  the  period  just  following  the  Civil  war.  One  of  these  originated 
in  Philadelphia,  another  in  St.  Louis.  Neither  of  these  systems,  how- 
ever, was  much  used.  Each  proved  to  be  so  much  more  equitable  to 
all  parties  that  a  general  movement  was  inaugurated  under  the  general 
direction  of  Mr.  F.  C.  Moore,  to  prepare  a  schedule  that  might  be 
used  by  all  the  companies.  A  committee  was  appointed  representing 
the  leading  fire  insurance  companies  and  as  a  result  of  their  work  the 
Mercantile  Schedule  was  formulated  and  adopted.  Since  about  1890 
it  has  been  in  general  use  in  eastern  states  and  includes  some  of  the 
leading  cities  in  the  eastern  central  states. 

(1)  The  Mercantile  Schedule:  This  schedule  is  based  upon 
two  central  ideas :  ( 1 )  A  standard  city  and  a  standard  building,  and 
(2)  a  system  of  charges  and  credits  for  deviations  from  the  estab- 
lished standard.'^  The  base  rate  for  a  standard  building  in  a  standard 
city  was  fixed  at  twenty-five  cents.  To  obtain  the  key-rate  for  a  stand- 
ard building  in  any  other  city,  additions  were  made  on  account  of 
deficiencies  as  to  water  works,  fire  departments,  building  laws,  narrow 
streets.  To  the  key-rate  for  any  city,  charges  are  added  to  find  the 
rate  for  individual  buildings  on  account  of  deficiencies  from  the  speci- 
fications of  a  standard  building. 

"Zartman,  Discrimination  and  Co-operation  in  Fire  Insurance,  Tale  Readings  in 
Fire  Insurance. 

^Moore,  Fire  Insurance  and  How  to  Build;  The  Mercantile  Schedule. 


1010  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

(2)  The  Analytical  Schedule:  Soon  after  the  Mercantile 
Schedule  was  formulated,  Mr.  A.  F.  Dean  of  Chicago  began  working 
on  a  schedule  constructed  on  different  lines.  In  the  first  place,  the 
Dean  or  Analytical  Schedule^  classifies  cities  into  six  classes — depen- 
dent upon  water  protection,  fire  departments,  etc. ;  and  in  the  second 
place,  the  deductions  and  additions  are  on  a  percentage  basis  rather  than 
a  fixed  amount.  By  dividing  cities  into  classes,  the  work  of  rating 
individual  risks  is  somewhat  simplified;  by  making  the  charges  on 
account  of  individual  defects  or  excellences,  a  percentage  of  the  origi- 
nal base  rate,  the  principle  of  relativity  is  adopted,  viz.,  that  a  defective 
flue  in  an  inflammable  home  is  a  greater  hazard  than  an  equally  defec- 
tive flue  in  a  fire  proof  building — that  is,  each  added  defect  makes  the 
original  defect  worse. 

The  principle  of  schedule  rating  is  a  sound  and  equitable  one. 
Rate-making  thus  becomes  scientific  in  character  and  as  the  experience 
of  the  various  companies  becomes  wider  and  as  tlieir  records  become 
more  complete  and  extensive  the  schedule  rates  become  more  and  more 
equitable, — as  between  different  classes  of  risks  and  different  individ- 
uals insured.  It  is  evident,  however,  that  schedule  rating  in  itself  gives 
no  protection  against  a  high  level  of  rates. 
Cooperative  Agencies 

With  the  general  adoption  of  schedule  rating  it  became  desirable 
for  the  companies  to  cooperate  for  the  purpose  o-f  making  the  basic 
schedules,  and  having  entered  into  such  cooperation  it  was  of  course 
natural  to  observe  the  rates  tlius  made.  For  the  United  States  there 
are  two  important  rating  associations,  the  Western  Union  and  the 
Western  Insurance  Bureau. 

The  Western  Union  was  formed  soon  after  the  Dean  Schedule 
was  formulated  and  embraces  the  states  of  the  northern  portion  of  the 
Mississippi  Valley,  west  of  Pennsylvania,  north  of  Alabama  and  east 
of  Colorado,  Wyoming  and  north  to  the  Canada  line.  The  member- 
ship is  made  up  of  officers  and  agents  of  stock  companies  and  it  has 
jurisdiction  over  rates  and  commissions  for  all  those  who  are  members 
of  the  Union.  Its  administration  is  entrusted  to  a  committee,  but  the 
important  rules  and  regulations  are  made  by  the  Union  in  the  regular 
way — a  nine-tenths  vote  being  necessary  to  establish  new  regulations 
or  modify  old  ones.  All  members  must  observe  the  tariff  of  rates 
established  by  the  Union. 

The  actual  work  of  making  individual  rates  is  performed  by  local 
boards  and  inspection  bureaus.  For  Illinois,  the  Illinois  Inspection 
Bureau  operating  under  the  supervision  of  the  Western  Actuarial 
Bureau  and  subject  to  the  control  of  the  Western  Union  has  charge 
of  the  Dean  Schedule  and  keeps  it  up  to  date.  A  rating  book  is  pub- 
lished for  each  of  the  cities  and  villages,  and  the  agents  representing 
the  companies  belonging  to  the  Union  are  required  to  observe  the  rates 
as  published. 

The  Western  Insurance  Bureau:  Until  about  four  years  ago 
there  were  a  considerable  number  of  companies  that  for  various  rea- 
sons did  not  belong  to  the  Union.     Such  companies,   called  "Non- 

8Hess.    The  Philosophy  and  Method  of  Operation  of  the  Analytic  System,  Chi- 
cago, 1909. 


FIRE   INSURANCE   RATES  1011 

Board  Companies,"  generally  followed  closely  the  Dean  Schedule  of 
rates,  but  in  many  cases  were  paying  their  agents  a  higher  rate  of 
commission.  In  June,  1910,  a  large  portion  of  the  non-board  com- 
panies organized  the  Western  Insurance  Bureau  and  established  a 
uniform  rate  of  commission,  varying  from  fifteen  to  twenty-five  per 
cent.,  except  in  certain  preferred  risks  where  the  commission  is  as 
high  as  forty  per  cent. 

In  April,  1912,  the  Union  and  Bureau  entered  into  a  combination 
for  the  purpose  of  establishing  a  uniform  rate  of  commission  for  both 
organizations.  While  there  is  no  agreement  to  that  effect,  the  result 
of  this  combination  has  been  to  secure  the  adoption  of  a  uniform  rate 
of  premiums  for  writing  insurance  by  both  organizations. 

At  the  present  time  competitive  rate-making  between  stock  fire 
insurance  companies  in  fire  insurance  is,  generally  speaking,  a  thing 
of  the  past.  Whatever  competition  exists  is  between  the  mutuals,  the 
Lloyds,  the  inter-insurers  and  the  companies  comprising  the  Unions. 
Since  the  mutuals  are  by  their  nature,  and  to  a  certain  extent  by  law, 
prevented  from  entering  into  competition  in  centers  of  population 
where  there  is  danger  of  conflagrations,  a  considerable  part  of  the  fire 
insurance  business  is  not  subject  to  competitive  conditions. 

STATE   REGULATION    OF   INSURANCE 

While  the  companies  have  been  establishing  cooperative  agencies 
for  the  purpose  of  making  and  enforcing  non-competitive  rates,  the 
several  states  have  been  creating  State  Departments  of  Insurance  and 
authorizing  such  departments  to  supervise  the  activities  of  the  com- 
panies and  more  and  more  to  regulate  and  control  the  rates  promul- 
gated by  the  rate-making  associations. 

In  Illinois 

The  State  law  under  which  the  insurance  business  is  conducted  in 
Illinois  has  two  principal  objects :  to  prevent  insolvent  insurance  com- 
panies, associations,  etc.,  from  undertaking  risks,  and  to  secure  a 
revenue  from  the  insurance  business. 

The  law  covers  these  two  objects  in  a  satisfactory  way.  The 
Insurance  Superintendent  is  given  ample  power  and  is  provided  with 
an  office  force  sufficiently  large  to  enforce  the  law  fairly  wrell.  The 
Insurance  Superintendent  is,  however,  not  directly  authorized  to  exer- 
cise any  supervision  over  either  rates  or  rate-making  associations. 

Attention  should,  however,  be  called  to  two  clauses,  one  of  which 
gives  the  Superintendent  power  to  classify  risks  and  the  other  to  secure 
and  publish  information  as  to  the  actual  rates  in  force. 

Section  21  (paragraphs  37,  38,  40)  of  Chapter  II  of  the  Insurance 
Laws  (Edition  of  1911)  provides: 

It  shall  be  the  duty  of  the  Insurance  Superintendent  to  establish  a  classifi- 
cation of  risks  into  any  number  of  classes,  not  less  than  four,  according  to  the 
degree  of  hazard  of  such  risks;  and  the  Insurance  Superintendent  shall  require 
said  companies,  as  a  part  of  the  aforementioned  statement  (the  annual  statement 
required  by  law)  to  give  the  number  of  policies  in  force  covering  property 
embraced  in  each  class  and  the  aggregate  amount  at  risk  upon  property  in 
each  class. 

The  Insurance  Superintendent  is  hereby  authorized  and  empowered  to 
address    any    inquiries    to    any    insurance    company    or   the    secretary    thereof, 


1012  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

in  relation  to  its  doings  or  condition,  or  any  other  matter  connected  with  its 
transactions,  and  it  shall  be  the  duty  of  the  company  so  addressed  to  promptly 
reply  in  writing  to  such  inquiries. 

It  shall  be  the  duty  of  the  Superintendent  of  Insurance  to  cause  to  be 
prepared  and  furnished  to  each  of  the  companies,  printed  forms  of  the  state- 
ments required  by  this  Act;  and  he  may,  from  time  to  time,  make  such  changes 
in  the  form  of  such  statements  as  shall  seem  to  him  best  adapted  to  elicit  from 
the  companies  a  true  exhibit  of  their  condition  in  respect  to  the  several  points 
hereinbefore  mentioned. 

It  shall  be  the  duty  of  the  Insurance  Superintendent  to  cause  the  informa- 
tion contained  in  the  statements  required  by  this  section  to  be  arranged  in  a 
tabular  form  and  printed  in  his  biennial  report. 

It  will  be  noticed  that  the  Insurance  Superintendent  is  to  estabhsh 
a  classification  of  risks  into  any  number  of  classes,  not  less  than  four, 
according  to  the  degree  of  hazard;  he  is  further  authorized  to  inquire 
into  the  "doings"  of  all  insurance  companies ;  he  may  change  or  modify 
the  form  adopted  by  the  legislature  whenever  in  his  judgment  such 
changes  would  better  secure  the  desired  information,  and  finally  he  is 
required  to  publish  such  information  in  his  annual  report.  In  view 
of  the  above  provisions  of  the  law  it  is  evident  that  the  Insurance 
Superintendent  is  not  only  empowered,  but  it  is  made  his  duty  to 
secure  full  publicity  of  fire  insurance  rates,  by  establishing  classes  of 
risks  and  securing  information  in  regard  to  the  number  of  policies  in 
each  and  the  aggregate  amount  at  risk  upon  property  in  each  class. 
That  such  information  would  prove  of  the  very  greatest  value  hardly 
needs  argument.  It  has  all  the  merits  of  proper  publicity.  Its  chief 
value  would  lie  in  its  discouragement  of  discriminations  in  rates  against 
certain  classes  of  property.  It  is  possible  that  such  information  would 
have  little  efifect  upon  the  general  schedule  of  rates.  It  would,  how- 
ever, facilitate  a  comparison  of  rates  in  Illinois  with  rates  on  similar 
classes  of  risks  in  other  states,  and  thus  tend  toward  an  equalization  of 
rates  in  general. 

In  Other  States 

Up  to  the  present  time  sixteen  states  have  enacted  legislation 
providing  for  a  greater  or  less  supervision  of  fire  insurance  rates. 
These  states  in  the  order  in  which  the  legislation  was  enacted  are 
as  follows : 

New    Hampshire    1899  Kentucky 1912 

Montana    1903  Arkansas  1912 

South  Carolina  1904  New  Jersey   1912 

Oklahoma    1907  North  Carolina  1913 

Kansas    1909  New  York 1913 

Louisiana    (Repealed   1912)....  1910  Texas   1913 

Massachusetts    1911  Washington  1913 

Missouri    (Repealed   1913) 1911  West  Virginia  1913 

In  the  fourteen  states  where  state  regulation  of  rates  is  now  in 
force  the  power  of  the  State  through  the  courts  or  Department  of 
Insurance  varies  very  greatly.  Some  merely  prohibit  discriminations ; 
some  require  all  rates  and  schedules  to  be  filed  and  made  public  rec- 
ords ;  some  authorize  certain  authorities  to  hear  complaints ;  some 
authorize  the  insurance  department  to  change  rates  on  complaint  after 
an  investigation ;  and  one  provides  that  the  rates  and  schedules  shall 
be  made  by  a  state  commission. 


FIRE  INSURANCE  RATES  1013 

^■l  nti-Discrimination 

Montana  in'  1903  enacted  an  anti-discrimination  law,  which  pro- 
vides:  (Chapter  112,  Laws  of  1903) — "No  insurance  company  organ- 
ized under  the  laws  of  this  state,  or  doing  business  in  this  state  shall 
make  or  permit  any  discrimination  or  distinction  in  favor  of  individ- 
uals between  insurants  or  property  of  the  same  class  in  the  amounts  of 
premiums  or  rates  charged  for  policies  or  in  the  dividends  or  other 
benefits  payable  thereon."  Agents  violating  this  provision  are  made 
guilty  of  a  misdemeanor.  Companies  and  officers  are  liable  to  a  fine 
of  not  exceeding  $500  for  each  violation,  to  be  recovered  by  an 
action  in  the  name  of  the  state.  Further,  the  State  Auditor  is  required 
to  revoke  the  license  for  one  year  of  any  company  found  guilty  of 
disobeying  the  law. 

Oklahoma  has  a  similar  provision  in  the  anti-trust  law,  and  the 
State  Insurance  Commissioner  has  ruled  that  the  section  applies  to 
fire  insurance  corporations. 
Rates  To  Be  Filed 

Eight  states,  viz.,  Kansas,  Kentucky,  Arkansas,  New  Jersey,  New 
York,  North  Carolina,  Washington  and  West  Virginia,  require  rates 
and  schedules  to  be  filed  and,  generally  speaking,  to  be  open  to  public 
inspection. 
Hearing  Complaints 

Massachusetts  and  New  Hampshire  provide  that  any  person  or 
company  aggrieved  by  any  rating  of  any  insurance  company  may  file 
a  complaint  with  the  insurance  commissioner.  In  Massachusetts  the 
complaint  is  heard  by  a  board  composed  of  the  Insurance  Comrnis- 
sioner  or  a  special  deputy  appointed  by  the  commissioner  and  two  citi- 
zens appointed  by  the  Governor,  sitting  as  a  board  of  appeal  for  fire 
insurance  rates.  After  due  hearing  the  board  is  authorized  to  make 
a  finding  "as  to  whether  the  rate  is  excessive,  unfair  or  discriminatory, 
and  shall  make  a  recommendation."  The  finding  and  recommendation 
in  each  case  is  a  public  record,  open  to  inspection,  but  is  not  obligatory 
upon  the  companies.  In  New  Hampshire  the  commissioner  is  author- 
ized to  conduct  the  hearing  and  if  the  rates  appear  to  him  to  be  exces- 
sive, he  may  fix  a  reasonable  rate,  which  must  be  adhered  to  by  the 
companies.  Refusal  to  insure  property  at  the  rate  fixed  by  the  com- 
missioner after  a  hearing  is  punishable  by  a  fine  of  $200  for  each 
offense. 
Rate-Making  Associations  Authorised 

The  latest  development  in  state  legislation  concerning  fire  insur- 
ance is  connected  with  the  authorization  and  regulation  of  rate-making 
associations.  This  movement  seems  to  have  originated  in  Missouri  in 
1911.  Under  the  Missouri  Act  the  companies  operating  in  that  state 
formed  the  Missouri  Actuarial  Bureau  and  employed  a  force  of  expert 
raters  and  the  necessary  clerical  help,  under  the  general  direction  of 
Mr.  H.  M.  Hess,  one  of  the  leading  authorities  on  the  Dean  Schedule. 
Before  the  work  of  this  Bureau  was  completed,  the  legislature  of 
1913  passed  additional  legislation  making  it  illegal  for  any  company  to 
use  any  rates  prepared  by  any  rating  association.     W^iile  the  former 


1014  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

legislation  was  thus  negatived  and  the  work  of  the  Actuarial  Bureau 
rendered  useless  for  the  time,  the  idea  was  adopted  in  New  Jersey, 
New  York,  North  Carolina  and  Washington  and  seems  likely  to  spread 
over  a  wide  territory  in  the  immediate  future. 

The  New  York  legislation  is  the  most  comprehensive  and  there- 
fore its  principal  features  will  be  described  as  an  illustration  of  this 
type  of  regulation.  The  New  York  Act  provides  that  every  corpora- 
tion, association,  bureau  or  person  that  maintains  a  bureau  or  offices 
for  suggesting,  approving  or  making  rates  to  be  issued  by  more  than 
one  underwriter  for  insurance  on  property  or  risks  in  the  state  must : 
(1)  file  with  the  Superintendent  of  Insurance  a  copy  of  the  articles  of 
agreement,  etc.,  and  such  other  information  in  regard  to  its  organiza- 
tion as  may  be  required  by  the  Superintendent;  and  (2)  submit  to 
examinations  by  the  Superintendent  of  Insurance  as  often  as  he  deems 
expedient,  and  in  any  case  at  least  once  in  every  three  years.  The  Super- 
intendent is  required  to  make  public  the  results  of  such  examinations  in 
his  annual  reports  and  to  report  to  the  legislature  on  the  methods  of 
operation  of  such  organizations.  The  records  of  such  organizations 
are  made  public  records  and  the  companies  or  bureaus  are  required  to 
furnish  the  Superintendent  any  schedule  of  rates  or  other  information 
that  he  may  demand.  Such  bureaus  may  not  discriminate  between 
members  nor  may  they  make  rates  conditioned  upon  the  whole  or  any 
part  being  placed  at  such  rates  "or  with  subscribers  to  the  rating 
organization. 

This  legislation  is  the  most  important  step  in  the  right  direction 
that  has  been  taken  in  recent  years  in  the  supervision  of  insurance 
rates.  The  making  of  scientific  rates  cannot  be  undertaken  by  indi- 
vidual companies  on  account  of  the  enormous  expense.  It  must,  there- 
fore, be  done  either  by  the  companies  through  cooperating  rating 
bureaus  or  by  the  states.  From  the  scientific  point  of  view  the  rates 
should  be  made  by  experts  and  the  expense  should  be  borne  by  the 
companies  that  are  profiting  by  the  business.  Cooperation  in  making 
insurance  rates,  however,  prevents  competition  between  the  companies 
and,  therefore,  such  rates  naturally  become  monopolistic  in  their  char- 
acter. Consequently  such  rates  should  be  under  the  supervision  of 
some  public  authority.  This  condition  has  been  recognized  in  the 
New  York  legislation  and  the  proper  supervision  of  such  rates  pro- 
vided for  in  the  law. 

State  Fire  Insurance  Rate-Making 

On  the  sixth  of  September,  1910,  the  State  of  Texas  enacted  the 
first  general  State  Fire  Insurance  Rating  law  within  the  limits  of  the 
United  States.  Under  this  act  a  general  schedule  of  rates  based  upon 
the  Mercantile  System  was  promulgated.  In  1913  the  Act  of  1910 
was  repealed,  and  a  new  act  along  the  same  general  lines,  but  giving 
the  state  board  more  complete  control,  was  substituted  in  its  place. 

The  Act  of  1913  provides: 

(1)  For  a  State  Insurance  Commission  composed  of  the  Com- 
missioner of  Insurance  and  Banking  and  two  commissioners  to  be 
appointed  by  the  Governor  by  and  with  the  advice  and  consent  of 
the  Senate: 


FIRE  INSURANCE  RATES  1015 

(2)  The  State  Insurance  Commission  shall  exclusively  fix  and 
promulgate  maximum  rates  of  fire  insurance  premiums  to  be  charged 
and  collected  in  the  State.  Companies  writing  insurance  in  the  state 
are  not  permitted  to  charge  rates  higher  than  the  rates  promulgated 
in  the  schedule,  nor  to  charge  less  in  any  case  unless  they  make  such 
lesser  rate  applicable  to  all  risks  of  the  same  class  situated  in  the  same 
community. 

Under  the  authority  of  this  act  and  its  predecessor,  the  State 
Insurance  Commission  was  created  and  organized  in  Texas  in  1910 
and  promulgated  its  first  schedule  of  rates  on  July  15,  1911.  This 
Texas  Basic  Schedule,  in  accordance  with  the  principles  of  the  Mer- 
cantile Schedule : 

Defines  a  standard  city  and  provides  by  a  system  of  charges  and  credits 
for  deviations  therefrom.  The  application  of  the  charges  and  credits  gives  the 
key-rate  for  a  town; 

Makes  a  classification  of  buildings  based  upon  the  character  of  the  con- 
struction and  defines  a  standard  building  in  each  class,  with  a  series  of  charges 
and  credits  for  deviation  from  the  standard ; 

Provides  an  occupancy  table  for  various  commodities; 

Makes  specifications  of  charges  and  credits  for  various  kmds  of  expo- 
sure ;  and  . 

Describes  a  large  number  of  special  hazards  with  the  appropriate  rates  tor 
the  same. 

The  Board  schedules  are  contained  in  a  book  of  354  pages  and 
are  supplemented  from  time  to  time  with  amendments.  Changes  m 
any  of  the  foregoing  provisions  are  modified  by  order  of  the  com- 
mission. 

RATES  IN  ILLINOIS 

In  a  paper  read  before  the  National  Convention  of  Insurance 
Commissioners,  held  at  Burlington,  Vermont,  in  July,  1913,  the  Hon. 
F.  W.  Potter,  then  Insurance  Superintendent  of  Illinois,  stated^  that 
he  had  called  upon  the  stock  fire  insurance  companies  doing  business 
in  the  State  of  Illinois,  Kansas  and  Texas,  for  a  statement  of  their 
fire  premiums,  fire  losses  and  expenses  for  a  five-year  period  ending 
December  31,  1912. 

During  this  period  there  was  no  supervision  exercised  over 
rates  in  Illinois.  In  Texas  the  State  Rating  Board  had  been  in  exist- 
ence for  about  two  years ;  and  in  Kansas,  the  State  Insurance  Super- 
intendent had  been  exercising  authority  over  rates  for  a  period  of 
four  years. 

The  results  of  this  inquiry,  according  to  Mr.  Potter,  showed  that 
ninety-seven  companies  doing  business  in  Texas  had  suffered  an  under- 
writing loss  of  $3,435,745  and  of  approximately  $500,000  in  the  State 
of  Kansas.  Mr.  Potter  planned,  he  stated,  to  communicate  the  results 
to  the  State  Legislature,  with  a  recommendation  that  the  state  law  be 
amended  in  such  a  way  as  to  clothe  the  State  Superintendent  of  Insur- 
ance "with  sufficient  discretion  to  refuse  a  license  to  companies  desir- 
ing to  do  business  in  Illinois,  and  admitted  to  these  unprofitable  states, 
where  by  the  terms  of  the  law  or  its  necessary  effect,  the  rate-making 
function  is  taken  away  from  the  insurance  companies." 

•Proceedings  National  Convention  of  Insurance  Commissioners,  1913,  p.  57. 


1016  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

Instead  of  carrying  out  his  original  intention,  Mr.  Potter  pre- 
sented the  matter  to  the  National  Convention  of  Insurance  Commis- 
sioners, cliiefly  on  the  ground  that  it  was  a  matter  concerning  all  the 
State  Insurance  Departments  and  ought,  therefore,  to  be  first  dis- 
cussed by  that  body.  The  paper  of  Mr.  Potter  was  extensively  dis- 
cussed, but  no  action  was  then  taken.  Later  a  Committee  on  Rates 
was  appointed  and  the  Honorable  Herman  L.  Ekern,  Commissioner 
of  Insurance  of  Wisconsin,  was  made  Chairman.  This  Committee  has 
been  carrying  on  an  investigation,  but  has  not  yet  published  its  report." 
Mr.  Potter  very  properly  contends  that  no  State  should,  by  act  of 
legislation,  attempt  to  get  its  fire  insurance  at  less  than  its  share  of  the 
total  cost  for  the  country  as  a  whole,  and  that  where  a  state  persists 
in  so  doing  it  may  become  desirable  for  the  other  states  to  take 
concerted  action  to  remedy  the  situation. 

His  first  proposal,  that  of  excluding  companies  doing  business  in 
a  losing  state  from  transacting  business  in  a  profitable  state,  has  so 
many  disadvantages  that  it  cannot  be  seriously  considered  until  other 
methods  have  been  tried.  The  tendency  at  the  present  time  is  to  per- 
mit companies  to  join  together  for  purposes  of  making  scientific  sched- 
ules and  specific  rates  and  give  the  insurance  department  the  power  to 
prevent  discriminations  between  individual  risks  within  the  same  class. 
If  after  such  regulation  has  been  in  operation  for  a  period  sufficient 
to  give  it  a  thorough  test,  rates  as  a  whole  are  unduly  high,  then  it 
may  become  both  wise  and  necessary  to  clothe  the  state  departments 
with  the  power  to  raise  or  lower  general  schedules  as  in  Kentucky  and 
Kansas. 

The  statement  of  Mr.  Potter  was  intended  to  prove  that  the  busi- 
ness of  insuring  property  risks  is  more  profitable  in  some  states  than 
in  others  in  certain  years.  The  tables  published  by  the  various  insur- 
ance departments  show,  however,  that  while  certain  companies  con- 
duct business  at  a  loss  in  certain  states  during  certain  years,  the  com- 
bined business  is  usually  fairly  profitable,  especially  for  the  larger  and 
better  established  companies. 

To  find  whether  the  insurance  is  unduly  profitable  it  becomes 
necessary  to  compare  the  net  savings  with  the  capital  invested  and  at 
a  risk.  The  New  York  Report^^  made  an  investigation  of  the  actual 
earnings  on  capital  for — 

Class  1,  The  six  largest  U.  S.  companies 

Class  2.  The  six  medium  U.  S.  companies 

Class  3.  The  six  smallest  U.  S.  companies 

Class  4.  Six  new  companies. 

Class  5.  Six  foreign  companies. 

The  results  were  as  follows  : 

Per  cent. 

Class  1 — 20  years Average  rate  of  earnings       10.1 

Class  2 — 20  years  •. 6.6 

I'At  the  annual  convention  of  the  Insurance  Commissioners  held  at  Asheville, 
N.  C,  Sept.  15-18,  1914,  the  special  committee  on  fire  insurance  rates  and  rate-making 
reported  profjress,  and  asked  that  the  report  be  deferred  until  the  December  meeting. 
At  tlie  December  meeting,  a  preliminary  report  was  presented  with  a  statement  that 
the  full  report  would  be  presented  and  distributed  at  an  early  date. 

i^iReport  of  the  Joint  Committee,  1911,  page  56  et  seq.— 


FIRE   INSURANCE   RATES 


1017 


Class  3—20  years 4.5 

Class  4 — Company  1   28.5 

Company  2 —  2.3 

Company  3  5.1 

Company  4 —  2.6 

Company  5   8.7 

Company  6 —  1-6 

Class  5 — Company  1   9.3 

Company  2   —  4.7 

Company  3  6./ 

Company  4 5.1 

Company  5   —  1-1 

Company  6 — 14.8 

( — indicates  a  loss.) 
Attention  may  be  called  at  this  point  to  the  expense  ratio.  The 
New  York  Report  shows^^  that  for  every  dollar  received  in  premium 
38>4  cents  is  paid  out  for  expenses,  and  that  of  this  amount  21.5  cents 
is  paid  to  agents  in  the  form  of  commissions.  While  it  is  not  within 
the  scope  of  this  report  to  investigate  the  proper  expense  ratio  for  an 
insurance  company,  it  may  be  pointed  out  that  the  fire  insurance  busi- 
ness as  conducted  at  the  present  time  does  not  necessitate  an  extensive 
system  of  salesmen  and  solicitors  as  is  the  case  with  life  insurance; 
nevertheless  the  ratio  of  expense  to  premiums  is  much  higher  in  the 
case  of  life  insurance  business. 

The  question  of  especial  interest  to  the  citizens  of  this  State  is: 
Are  the  rates  relatively  higher  in  Illinois  than  in  the  United  States 
as  a  whole  or  in  other  states  similarly  situated  and  with  approxi- 
mately the  same  hazards?  This  question  is  not  easy  of  solution  with 
the  information  available  under  present  conditions.  A  comparison  of 
rates— that  is,  the  premium  paid  per  $100  worth  of  property  insured— 
is  obviously  of  little  or  no  value  in  this  connection.  It  is  well  known 
that  fire  insurance  rates  in  European  countries  are  exceedingly  low 
when  compared  with  those  in  force  in  the  United  States.  _  This  condi- 
tion is  due  chiefly  to  the  comparatively  small  fire  loss  in  European 
countries.  This  small  fire  loss  again  is  due  chiefly  to  two  causes : 
Building  Construction  and  Fire  Protection 

Frame  construction  is  almost  unknown  in  European  cities."  In 
the  United  States  it  is  the  rule,  except  in  restricted  areas  in  certain 
of  the  cities.  Fire  protection  in  many  of  the  cities  in  the  United 
States  is  comparable  with  that  afforded  in  Europe.  But  in  other  cities 
the  protection  afforded  is  entirely  inadequate  considering  the  risks 
involved;  as  a  result,  the  conflagration  hazard,  as  well  as  the  annual 
fire  loss,  is  small  in  European  cities  and  relatively  large  in  the  United 
States. 
The  Moral  Hazard 

The  moral  hazard  is  the  title  given  to  all  classes  of  hazards  that 
arise  out  of  circumstances  which  make  it  possible  for  persons  to  profit 
from  the  burning  of  insured  property.     For  example,  wherever  there 

i2page  91. 

i»U.  S.  Geological  Survey,  Bui.  418,  pp.  16-21. 


1018  EFFICIENCY  AND   ECONOMY  COMMITTEE. 

is  an  opportunity  to  recover  from  the  insurance  companies  compensa- 
tion in  excess  of  the  value  of  the  property  burned  a  moral  hazard 
emerges.  For  this  reason  the  valued  policy  is  universally  opposed  by 
insurance  companies  as  tending  to  create  an  artificial  and  unnecessary 
moral  hazard.  For  this  reason  also  the  coinsurance  principle  with 
the  usual  eighty  per  cent,  clause  is  generally  favored.  In  this  connec- 
tion it  may  be  noted  that  the  valued  policy  is  unknown  in  Europe,  and 
the  coinsurance  principle  is  practically  a  universal  one.  On  this 
account  the  fire  losses  due  to  the  moral  hazard  are  less  in  Europe  than 
in  the  United  States. 

There  is  still  another  factor  of  large  importance.  It  is  well 
known  that  every  building  situated  within  a  few  hundred  feet 
from  a  burning  building  is  under  considerable  risk  from  the  so- 
called  exposure  hazard.  The  exposure  hazard  varies  with  the 
inflammability  of  the  building  and  contents,  the  distance  from  the  burn- 
ing building,  the  direction  and  velocity  of  the  wind,  and  the  fire  pro- 
tection afforded  by  the  fire  department.  It  is  of  course  true  that  the 
exposure  hazard  is  independent  of  the  original  cause  of  the  fire.  The 
incendiary  who  burns  his  own  building  for  the  sake  of  the  insurance 
may  involve  a  city  in  an  extreme  conflagration.  The  man  who  care- 
lessly drops  a  lighted  cigarette  butt  in  a  lot  of  inflamable  material,  as 
in  the  case  of  the  Asch  building  in  New  York  on  the  24th  of  March, 
1911,  when  143  working  girls  lost  their  lives,  is  equally  as  dangerous 
and  ought  to  be  legally  responsible.  The  European  countries  have  rec- 
ognized this  danger  and  have  attempted  by  appropriate  legislation  to 
lessen  the  hazards  arising  therefrom.  This  result  is  partially  accom- 
plished by  laws  making  every  individual  responsible  for  loss  of  life 
or  property  caused  by  his  own  gross  carelessness  and  neglect.  As  a 
result  of  the  less  inflammable  buildings,  more  adequate  fire  protection, 
and  the  reduction  of  the  moral  hazards  by  appropriate  legislation,  the 
fire  loss  in  European  countries  is  relatively  small  and  the  rates  for  fire 
insurance  correspondingly  low. 

The  following  table,  compiled  by  the  Geological  Survey  and  the 
Bureau  of  Manufactures,  shows  the  fire  loss  per  capita  for  cities  of 
the  same  size  in  the  United  States  and  Europe.^* 

Population.                                  U.  S.                             Europe. 
Over    300,000  $2.24 65 

100,000-300,000   2.14  37 

50,000-100,000  2.47  1.67 

30,000-   50,000   3.28 .72 

10,000-   30,000   2.37   ■ 81 

Under  -   10,000  3.47   

For  certain  cities  of  approximately  the  same  size,  the  comparison 
•  is  as  follows  :^^ 

Loss  per  capita.  Loss  per  capita. 

1.  Paris   (1904)    47. ..  .Chicago   (1907)    1.43 

2.  St.  Petersburg  ( 1904)    1.42 ... .  Philadelphia  ( 1907)    1.45 

3.  Birmingham,  Eng.  ( 1904) 41 ... .  Baltimore    ( 1907) 1.66 

4.  Sheffield,  Eng.   (1904)    18. ..  .Cleveland  (1907)  1.12 

5.  Frankfort,  Ger.   (1904)    31. ..  .Cincinnati   (1907)    5.70 

6.  Bremen,  Ger.  (1904) 38 St.  Paul  (1907) 2.56 

7.  Toulon,  France  (1904) 55. . .  .Atlanta  (1907)   2.15 

i*U.  S.  Geological  Survey,  Bui.  418,  p.  24. 
"Ibid  p.  24. 


FIRE   INSURANCE   RATES 


1019 


The  National  Board  of  Fire  Underwriters  gathered  statistics  for 
1910,  relating  to  a  considerable  number  of  cities,  with  the  following 
results : 

Cities.    Population.    Loss  per  capita. 

United   States    297  29,996,720  $  2.39 

England   11  2.335,847  .44 

France    8  4,392,529  .92 

Germany    13  5,616.822  .99 

Ireland    2  657,680  .45 

Norway    1  244,000  .25 

The  average  annual  loss  by  fire  in  the  United  States  for  the  past 
ten  years  has  been  approximately  $225,000,000,^^  or  about  $2.50  per 
capita.  The  average  annual  loss  in  the  European  countries  durmg 
the  same  period  is  stated  by  Mr.  Roger  W.  Babson"  to  be  less  than 
fifty  cents  per  capita,  or  approximately  one-fifth  that  of  the  United 
States.  No  comparison  of  rates  prevailing  in  United  States  with  those 
prevailing  in  European  countries  is  of  practical  importance  unless 
taken  in  connection  with  fire  losses.  A  comparison  of  rates  to  be  of 
value  must  then  take  cognizance  of  conditions,  and  compare  states  and 
cities  similarly  situated  with  respect  to  the  fire  hazard,  or  failing  that,  to 
make  corrections  for  the  risk  involved.  While  the  conditions  vary  in 
the  several  states,  it  may  prove  of  value  to  make  some  comparisons, 
carefully  noting  in  connection  with  the  rates,  the  relative  hazards  as 
shown  by  the  annual  fire  losses.  For  this  purpose  the  following  states 
have  been  selected:  Illinois,  Iowa,  Massachusetts,  Michigan,  New 
Jersey,  New  York,  Texas  and  Wisconsin.  To  show  rates  and  losses 
"in  an  area  chiefly  urban  composed  largely  of  slow-burning  or  fire-proof 
construction,  and  protected  by  a  well-equipped  and  efficient  fire  depart- 
ment, the  District  of  Columbia  is  included. 

Table  I  shows  for  the  selected  states  and  the  District  of  Columbia: 

1.  The  total  insurance  written  (a)  for  each  of  the  years  from 
1909  to  1913,  (b)  for  the  five  year  period  1909-1913,  and  (c)  for  a 
period  of  approximately  forty  years— that  is,  from  the  first  year  for 
which  the  statistics  were  gathered  to  the  year  1913  inclusive. 

2.  The  total  premiums  received  for  the  corresponding  periods; 
and — 

3.  The  total  losses  on  account  of  fire  for  the  same  period. 
From  this  data  the  following  rates  have  been  calculated : 

(a)  The  average  premium  rate  in  dollars  per  hundred  dollars 
insured ; 

(b)  The  average  burning  rate  in  cents  per  one  hundred  dollars 
insured. 

(c)  The  ratio  of  losses  to  premiums,  expressed  as  a  percentage. 

I'Ibid  p.  13; 

I'N.  T.  Times,  Mar.  24,  1912. 


1020 


EFFICIENCY  AND  ECONOMY  COMMITTEE,- 


TABLE  I 

ILLINOIS  d!      " 

Ratio  of 
C  Loss     Loss  to 
Year  Risks  Premivuns  Losses  b  Rate  Ratio  Premiums 

1909  $  1,778,804,044    $  22,160,892    $    9,963,255    $1.24        55       40.4 

1910  1,853,261,576  22,589,580  10,871,966  1.22  58  47.2 

1911  2,017,379,703  24,396,372  12,244,015  1.21  60  50.2 

1912  2,102,364,885  25,369,047  12,867,136  1.21  61  50.7 

1913  2,268,882,603  26,011,348  14,277,051  1.14  62  54.8 

1909-13  $10,020,692,811    $120,527,239    $  60,223,423    $1.20       .60       49.9 

1869-13  $46,398,382,602    $547,704,869    $264,034,929    $1.15        .57       48.2 


lOWA^ 

1909  

...  $     487.7^ 

$    8,927/ 

$  2,501/ 

$1.83 

51 

28.8 

1910  

540.7 

7,464 

3,186 

1.38 

51 

42.6 

1911   

585.2 

7,479 

4,026 

1.27 

64 

53.8 

1912  

480.4 

5,549 

3,240 

1.16 

66 

57.9 

1913   

652.5 

7,012 

4,327 

1.07 
$1.21 
$1.66 

65 
62 
66 

61.7 

1909-13  

...  $2,746.5 
...  $11,207.1 

$  36.431 

$17,280 
$75,781 

50. 

1870-13  

$175,266 

43.8 

MASSACHUSETTS^ 

1909  

...  $  1,293 

$  12,905 

$  6,585 

$  .99 

51 

51.2 

1910  

. . .       1,354 

13,085 

7,014 

.96 

52 

53.8 

1911   

...       1,391 

13,457 

7,117 

.97 

52 

52.9 

1912  

, . . .       1,410 

14,154 

7,884 

1.00 

56 

65.7 

1913  

, . . .       1,479 

14,534 

9,191 

.98 

62 

63.4 

1909-13  

. . . .      6,917 

68,135 

37,791 

.98 

54.8 

55.5 

1872-13//... 

....     39,065 

397,960 

MICHIGAN  / 

206,351 

1.01 

53 

51.8 

1909  .... 

....  $     679.7 

$    7,998 

$  4,218 

$1.17 

59 

58.7 

1910  .... 

872.27 

8,203k 
10,878/ 

4,404 

.93 

50 

50.7 

1911   .... 

854.7 

8,649 

5,231 

1.04 

58 

61.3 

1912  .... 

. . . .       1,142.8/" 

9,236>t 
12,818/ 

4,998 

1.12 

54 

53.0 

1913   .... 

. . . .       1,320.8/ 

9,245 -t 

5,037 

1.01 

54 

60.3 

13,359/ 

1909-13   .... 

. . . .       4,870.2 

53,702 

23,888 

1.10 

55« 

55. 

1870-13   .... 

. . . .     15,863. 

196. 

101. 

1.23 

64 

51.9 

statistics  from  111.,  Ins.  Reports,  1910-1914 

In  Dollars  per  $100  at  risk 

In  Cents  per  $100  at  risk 
^Insurance  Age,  October,  1914 

«In  Millions  of  Dollars  in  all  tables  except  Illinois. 
fin  Thousands  of  Dollars  in  all  tables  except  Illinois. 
crlnsurance  by  States,  1914 
ABoston  fire  not  included. 


FIRE   INSURANCE   RATES 


1021 


1909 $  1,046 

1910   1,114 

1911 1,189 

1912   1,263 

1913   1,274 

5,886 
187(^13   21,140 

1909 $  5,369 

1910   5,682 

1911    5,554 

1911    •  5,835 

1913   7,099 

29,539 

1873-13    152,627 

1909 $  598 

1910  643 

1911    669 

1912   653 

1913   770 

1909-13 3,333 

1865-13   10,380 

1912 $     800 

1913   876 

1912-13    1,676 

1909 $  705 

1910    545 

1911    566 

1912    713 

1913    814 

1909-13    3,343 

1869-13    14,190 


Ratio  of 

Loss 

Losses  to 

Premiums 

;                 Losses 

Rate 

Ratio 

Premiums 

NEW 

JERSEY  7n 

10,000 

%  3,500 

$  .95 

33 

35. 

10,000 

4,750 

.99 

42 

46.5 

10,700 

4,330 

.90. 

n 

41.5 

11,300 

6,250 

.89 

49 

56.2 

11,500 

6,000 

.90 

41 

51.6 

53,500 
184,000 


24,830 
90,000 


NEW    YORK 


$  43,500 
45,500 
44,000 
46,750 
48,000 

227,750 

1,102,000 


;  8,750 
8,750 
8,750 
9,500 
10,000 

45,750 

159,250 


$  9,840 
10,000 

19,840 


$19,750 
21,000 
25,750 
26,000 
23,000 

115,500 

567,750 


$  6,500 
6,000 
6,000 
8,250 
5,500 

32,250 

99,500 


8,450 
5,200 


13,650 


WISCONSIN 


$  7,000 
6,750 
6,750 
7,250 
8,000 

35,750 

187,500 


$  3,000 
3,750 
3,333 
2,750 
2,500 

15,333 

93,000 


tReport  Insurance  Commissioner,  1910-1914 

./'Gross  Amount  at  risk 

/-•Net  Premiums 

iGross  Premiums 

^Statistics  from  Insurance  Age,  Oct.  1914,  unless  otherwi 

^Average  of  yearly  average  burning  ratio 

oTexas  Ins.  Board — Combined  Classification  totals. 


$  .91 


.80 
.79 
.80 
.67 

$  :]i 

%  .72 


$1.44 
1.36 
1.32 
1.47 
1.30 

$1.37 

$1.53 


$1,23 
1.15 

1.18 


1.23 
1.20 
1.02 


1.07 
1.32 


noted. 


35.7 
31 


110 
92 


120 
73 


105 
60 


81 


46.2 
52.1 


Zl  45.5 

37  46. 

46  58.3 

44  55.6 

32  48.2 


50.8 
51.5 


76.2 
67.9 

68.5 
85.8 

55.7 

70 
62.5 


85.9 
52.0 


68.8 


41.1 

55.8 
50.7 
38.2 
33.1 

43 

49.6 


1022 


EFFICIENCY  AND  ECONOMY  COMMITTEE. 


DISTRICT    OF    COLUMBIA 

1909 $     133            $       670           $     200           $  .50            15  31 

1910   138                    670                  250               .48            18  11 

1911    135                    650                  440               .47           32  67 

1912   130                    630                  390               .48           30  62 

1913   142                    710                  290               .49           20  41 

1909-13   678                  3,330               1,580           $  .49           23  47 

1883-13   2,553                15,000               5,890           $  .59           23  37 

In  order  to  show  more  clearly  the  fire  insurance  rate  situation  in 
Illinois,  three  tables  have  been  prepared   from  the  information  con- 
tained in  Table  I.    These  tables  are :    Table  11,  which  shows  the  burn- 
rate  for  each  of  the  geographical  areas,  and  the  relative  position  occu- 
pied by  Illinois  in  the  group.     Table  III,  which  shows  the  premium 
rate  in  each  area,  and  Table  IV,  which  shows  the  profits  to  the  com- 
panies derived  from  the  insurance  written  in  each  of  the«reas. 
TABLE  II 
CENTS  BURNED  PER  $ioo  INSURED 
1913  1909-1913  Period    Approx.   40  yrs. 

1.  Dist.  Col.                 20         1.  Dist.  Col.                 23.2       1.  Dist.  Col.  23 

2.  Wisconsin                30         2.  New  York                35.7       2.  New  York  31 

3.  New  York               32         3.  New  Jersey             42          3.  New  Jersey  42 

4.  New  Jersey             41         4.  Wisconsin                46         4.  Massachusetts  53 

5.  Michigan                  54          5.  Massachusetts         54.8       5.  Illinois  57 

6.  Massachusetts         62         6.  Michigan                  55          6.  Michigan  64 

7.  Illinois                     62.g       7.  Illinois                     6o         1.  W'isconsin  65 

8.  Iowa                         65          8.  Iowa                         62          8.  Iowa  66 

9.  Texas                       11         9.  Texas                       96          9.  Texas  96 

The  United  States.  1890-1907.«  63 
TABLE  III 
CENTS  PAID  PER  $ioo  INSURED 
1913                                       1909-1913                     Period    Approx.   40  yrs. 

1.  Dist.  Col.                 49         1.  Dist.  Col.                 49          1.  Dist.  Col.  59 

2.  New  York               67         2.  New  York                77         2.  New  York  72 

3.  New  Jersey             90         3.  New  Jersey             91          3.  New  Jersey  88 

4.  Massachusetts         98         4.  Massachusetts         98.7       4.  Massachusetts  101 

5.  Wisconsin                98         5.  Wisconsin              107          5.  Illinois  115 

6.  Michigan                101          6.  Michigan                110         6.  Michigan  123 

7.  Illinois                   114         7.  Illinois                   120         7.  Wisconsin  132 

8.  Texas                     130         8.  Iowa                      133         8.  Texas  153 

9.  Iowa                      174         9.  Texas                    137         9.  Iowa  156 

The  United  States,  1890-1907,  a  111 
TABLE  IV. 
CENTS  SAVED  PER  $100  RECEIVED 

40  year  Period 
1913  1909-1913  (Approx.) 

1.  W^isconsin                66.9       1.  New  Jersey              53.8       1.  Dist.  Col.  63.1 

2.  Dist.  Col.                 59         2.  Iowa                        53.2      2.  Iowa  56.2 

3.  New  York                51.8       3.  Wisconsin                53          3.  Illinois  51.8 

4.  New  Jersey             4«.4       4.  Dist.  Col.                  52.6      4.  Wisconsin  50.4 

5.  Illinois                     45.2       5.  Illinois                     50.1       5.  New  York  48.5 

6.  Texas                       44.3       6.  New  York               49.2       6.  Massachusetts  48.2 

7.  Michigan                 39.7       7.  Michigan                 45         7.  Michigan  48.1 

8.  Iowa                        38.3      8.  Massachusetts        44.7      8.  New  Jersey  47.9 

9.  Massachusetts        36.7      9.  Texas                      30         9.  Texas  37.5 
The  United  States  1890-1907.«  43.2 

Hess.  H.  M.     Philosophy  and  Method  of  Operation  of  the  Analytic  System,  p.  15. 


FIRE    INSURANCE   RATES  1023 

From  an  examination  of  Tables  II,  III  and  IV  it  will  be  noted: 

1.  For  the  forty-live  years  during  which  the  insurance  statistics 
have  been  gathered  in  the  state,  57  cents  w^orth  of  property  has 
been  burned  and  paid  for  by  the  insurance  companies  for  every  $100 
insured.  That  for  the  last  five  years  60  cents  wortli  has  been 
burned  and  paid  for ;  and  that  for  1913  the  burning  ratio  was  62.9  cents 
per  $100.  This  showing  is  better  than  the  average  for  the  United 
States,  1890-1907,  but  compares  unfavorably  with  the  fire  loss  in  the 
District  of  Columbia,  New  York,  New  Jersey  and  Massachusetts,  for 
the  total  period,  and  with  District  of  Columbia,  New  York,  New  Jer- 
sey, Wisconsin,  Michigan  and  Massachusetts  for  the  past  five  years. 
From  these  tables  it  would  seem  that  the  fire  loss  in  the  state  is 
unnecessarily  high  and  steps  should  be  taken  to  ascertain  the  causes 
and  apply  the  proper  remedy  or  remedies. 

2.  The  average  rate  paid  for  insurance  for  the  45-year  period 
is  $1.15  per  $100  insured.  It  will  be  noticed  that  Illinois  occupies  a 
middle  position  in  the  selected  group,  and  the  same  relative  position  in 
rates  that  it  does  in  the  fire  loss.  While,  however,  the  fire  loss  is  on 
the  average  a  little  below  that  of  the  United  States,  the  average  rate 
is  somewhat  higher.  In  the  face  of  a  steadily  increasing  fire  loss,  it  is 
of  course  unlikely  that  the  premium  rate  will  fall  by  voluntary  action 
of  the  companies  writing  the  insurance.  While  other  states  have  been 
gradually  reducing  their  fire  loss,  or  burning  ratio,  and  as  a  result 
their  average  premium  rate,  Illinois  shows  an  increasing  burning  rate, 
and  a  stationary  premium  rate.  For  the  4ast  five  years  and  for  the 
year  1913,  in  both  burning  ratio  and  premium  rate,  Illinois  has  dropped 
to  seventh  place,  only  Iowa  and  Texas  showing  a  more  unfavorable 
condition. 

3.  Table  IV  shows  the  proportion  of  the  premiums  received 
which  have  been  retained  by  the  companies.  It  may  be  desirable  to 
note  in  this  connection  that  out  of  the  premiums  received  the  insurance 
companies  pay — first,  the  fire  losses,  and,  second,  the  expenses  of  carry- 
ing on  the  business.  Whatever  is  left  after  paying  the  fire  losses  and 
expenses  goes  to  the  proprietors  of  stock  companies  in  the  form  of 
increased  surplus  and  dividends,  and  to  policy  holders  of  mutual  com- 
panies as  surplus  or  in  return  premiums,  often  erroneously  called  divi- 
dends. For  the  whole  United  States,  during  the  period  1887-1907,  for 
every  dollar  paid  into  the  insurance  companies,  56  cents  was  burned 
and  44  cents  was  retained  by  the  companies.  The  44  cents  was  used 
to  pay  expenses,  accumulated  a  "safety  fund"  and  the  remainder  was 
paid  out  in  dividends.  According  to  the  report  of  the  Joint  Committee 
of  the  Senate  and  Assembly  of  the  State  of  New  York,^^  published 
in  1911,  the  44  cents  was  divided  up  as  follows: 

i«Page  91. 


1024  EFFICIENCY  AND  ECONOMY   COMMITTEE. 

Salaries,  rent  and  general  administration 7.5  cents 

Commissions  to  agents 21. 

Taxes    2.5 

Special  agents — salaries  and  expense 3.5 

Inspections — local  boards   1-5      *| 

Printing — postage   2.00 

Total  expense   38.5 

Total  burning   56.0 

94.5      "^ 
Net  underwriting  profit 6.5 

This  net  profit  is,  it  should  be  observed,  a  net  saving  out  of  every 
dollar  received  in  premiums.  To  find  the  rate  of  profit  on  the  capital 
invested,  it  is  necessary  to  compare  the  total  net  annual  savings  with 
the  capital  invested. 

For  the  forty-five  year  period  the  rates  enforced  by  the  fire  insur- 
ance companies  in  Illinois,  uncontrolled  by  the  State,  show  a  saving 
from  the  premiums  received  considerably  above  the  average  for  the 
United  States  for  the  shorter  period  1890-1907.  And  in  only  two  of 
the  selected  areas,  viz..  District  of  Columbia  and  Iowa,  have  the  insur- 
ance companies  been  saving  a  larger  proportion  of  the  premiurns 
received.  For  the  five-year  period,  as  well  as  for  the  year  1913,  Illinois 
occupies  the  middle  position,  four  areas  being  more  profitable  to  the 
insurance  companies  and  four  less  so.  In  general,  the  State  of  Illinois 
has  been  tending  to  become  a  less  favorable  field  for  insurance  com- 
panies, not  because  of  a  decrease  in  the  premium  rate,  but  owing  to 
a  steady  and  persistent  increase  in  the  fire  losses.  This  is  a  serious 
situation  and  merits  the  attention  of  all  property  owners,  fire  insur- 
ance companies,  the  state  legislature  and  the  state  officials,  especially 
the  Department  of  Insurance  and  the  State  Fire  Marshal's  office.^^ 

COINSURANCE 

Coinsurance  is  best  defined  by  a  quotation  from  the  old  French 
clause  relating  to  that  feature  of  insurance.    It  states  that : 

If  at  the  time  of  the  fire  the  value  of  the  objects  covered  by  the  policy 
is  found  to  exceed  the  sum  total  of  the  insurance,  the  assured  is  considered 
as  having  remained  his  own  insurer  for  that  excess,  and  he  is  to  bear,  in  that 
character,  his  proportion  of  the  loss. 

i»The  writer  desires  in  this  connection  to  call  attention  to  the  exceedingly  un- 
satisfactory condition  of  fire  insurance  statistics  in  the  various  States  and  to  suggest 
that  the  State  Superintendent  of  Insurance  be  urged  to  use  his  influence  ^ylth  the  • 
State  Commissioners  at  tlieir  next  general  convention  in  favor  of  securing  uniformity 
in  the  reports  of  the  insurance  companies  in  the  several  States  and  especially  m  the 
method  of  compiling  the  results  in  each  State  for  the  summaries  generally  presented. 
Owing  to  the  lack  of  uniform  methods  among  the  several  States,  to  say  nothing  or 
the  variations  that  are  often  found  from  year  to  year  in  the  same  State,  the  writer 
has  little  confidence  in  the  tables  he  has  compiled,  except  as  showing  tendencies  and 
positions  of  the  several  States  in  a  most  general  way.  A  specific  example  may  be 
cited  to  illustrate:  The  State  of  Michigan  usually  presents  statistics  showing  the  net 
amount  at  risk  written  eacli  year.  For  the  years  1910,  1912,  1913,  the  gress  amounts 
only  are  reported.  For  the  years  1909  and  1911  the  net  amounts  only  are  given 
This  makes  it  impossible  to  obtain  the  burning  ratio,  and  the  premium  rate  obtained 
bv  comparing  the  gross  amounts  written  with  the  gross  premiums  is  not  likely  to 
be  identical  with  that  found  bv  comparing  the  net  amount  of  risks  with  the  net 
premiums  received.  By  the  concerted  action  of  the  State  Insurance  Commissioners, 
it  would  be  comparatively  easy  to  provide  for  uniformity  in  the  reports  of  Insurance 
Companies  and  consequently  of  securing  statistics  that  would  be  of  value  for  com- 
parative purposes. 


FIRE    INSURANCE   RATES  1025 

The  European  countries  generally  have  written  insurance  from 
the  earliest  times  under  the  coinsurance  principle.  The  practice  in  the 
United  States,  on  the  contrary  generally  follows  the  opposite  practice, 
and  in  some  of  the  states  coinsurance  is  prohibited  by  law.  The  effect 
of  coinsurance  is  to  make  the  owner  a  coinsurer  with  the  insurance 
company,  wherever  the  property  is  only  partially  insured.  When,  how- 
ever, the  property  is  fully  covered,  the  entire  risk  is  undertaken  by 
the  company  whether  the  loss  is  partial  or  complete.  Thus,  suppose 
A  insures  his  property  worth  $10,000  for  $5,000  and  the  policy  contains 
the  coinsurance  clause.  If  the  loss  is  total  A  recovers  $5,000,  the 
face  of  the  policy.  If,  however,  the  loss  is  only  $500  the  company 
is  responsible  for  that  proportion  of  the  actual  loss  denoted  by  the 
relation  of  the  face  of  the  policy  to  the  value  of  the  property.  In  this 
case  the  company  is  responsible  for  one-half  the  loss,  or  $250.  If 
the  policy  does  not  contain  the  coinsurance  clause  the  company  is 
responsible  for  the  total  loss  up  to  $5,000.  The  coinsurance  clause 
is,  therefore,  of  importance  only  where  the  loss  is  partial ;  but  most 
losses  are  partial.  The  New  York  Report  has  an  interesting  com- 
pilation bearing  upon  this  subject.  For  a  certain  class  of  buildings, 
for  every  $100  worth  of  property  insured, 

On  the  average,  out  of  every  100  fires — 

82  average    $2  loss,  or  a  total  of  $164 


6  "  14 

3  "  25 

2  "  35 

1  "  45 

1  "  55 

1  "  65 

1  "  75 

1  "  85 

2  "  99 


84 
75 
70 
45 
55 
65 
75 
85 
198 


100  A  total  of  $916 

If  all  these  houses  had  been  insured  for  their  full  value — $100 
each — the  loss  to  the  companies  would  have  been  $916,  or  9.16  per 
cent,  of  the  face  value  of  all  the  policies  issued.  If,  on  the  other 
hand,  each  one  had  been  insured  for  $10  the  total  amount  at  risk 
would  have  been  10  times  $100,  or  $1,000,  and  the  losses  to  the  insur- 
ance companies  would  have  been: 

82  losses  at  $2  equals  $164 
18       "       "    10      "  180 

$344 
or  34.4  per  cent,  of  the  amount  at  risk. 

That  is,  without  coinsurance  the  rate  should  be  a  degressive  one, 
increasing  as  the  amount  carried  on  any  property  decreases.    The  rate 
of  degression,  vvorked  out  on  the  basis  of  actual  experience,  is,  accord- 
ing to  the  New  York  investigation,  as  follows  :^° 
20Report  of  Joint  Committee,  Feb.  1,  1911,  p.  85. 


1026 


EFFICIENCY  AND  ECONOMY   COMMITTEE. 


Insurance  10%  of 

value 

Rate  - 

-  34% 

20" 

'    24" 

30" 

'    20" 

40" 

'    17" 

50" 

'    15" 

60" 

'    13" 

70" 

'    12" 

80" 

'    11" 

90" 

•    10" 

100" 

'     9" 

In  other  words,  in  order  to  get  an  equitable  adjustment  of  the 
burdens  of  the  cost  of  insurance,  the  rate  should  be  based  upon  the 
two  following  principles : 

1.  It  should  vary  with  the  hazards  of  each  building  insured; 

2.  It  should  also  vary  with  the  amount  of  insurance  carried, 
unless  the  coinsurance  principle  is  adopted. 

In  Illinois  as  a  general  principle  the  coinsurance  clause  is  not  in 
use,  neither  is  there  any  provision  for  a  degressive  rate  varying  with 
the  amount  of  insurance  carried.  The  result  is  to  favor  the  wealthy 
man  and  the  larger  corporations.  Both  of  the  latter  can  afford  to 
take  a  certain  share  of  the  risk  themselves.  The  poor  man  and  the 
smaller  business  cannot  afford  to  take  such  risks.  Consequently  the 
first  two  classes  insure  less  fully  and  are  in  most  cases- — that  is,  in  82 
out  of  every  hundred — amply  protected,  and,  carrying  less  insurance, 
their  expense  on  account  of  fire  protection  is  smaller.  The  last  two 
classes  ought  to,  and  probably  do,  carry  fuller  protection  and,  paying 
the  average  rate,  their  expense  for  protection  against  the  fire  hazard 
is  necessarily  heavier. 

The  coinsurance  system  ought  to  be  provided  for  by  legislation, 
but  since  there  seems  to  be  an  unwarranted  prejudice  against  this 
equitable  principle,  the  companies  should  be  required  to  make  their 
rates  degressive,  increasing  as  the  face  of  the  policy  decreases,  the 
rate  of  degression  to  be  determined  on  the  basis  of  actual  experience 
of  the  state  in  regard  to  partial  and  total  losses.  It  may  be  noted  in 
connection  with  coinsurance  that  it  is  the  normal  method  in  European 
countries  and  it  is  probable  that  this  condition  partially  accounts  for 
the  greater  attention  to  fire  protection,  the  lower  burning  ratio  and 
the  reduced  cost  of  insurance. 

SUMMARY  AND  CONCLUSIONS 

Fire  insurance  and  insurance  covering  property  risks  generally  is 
a  business  that  requires  cooperative  action  for  rate-making  purposes 
on  the  part  of  the  companies  undertaking  to  carry  the  various  hazards 
and  properly  to  protect  the  property  owners.  Otherwise  the  rates  are 
unstable  and  discriminatory,  and  changes  in  rates  and  discriminations 
are  likely  to  handicap  unduly  the  small  property  owner  and  favor  those 
who  are  better  able  to  protect  themselves. 

Moreover  cooperation  in  rate-making  is  a  very  great  economy, 
since  one  "book  of  estimates,"  as  the  rate  schedules  are  often  called, 
may  be  used  by  all  the  companies.  Indeed  it  is  practically  impossible 
for  the  small  companies  to  undertake  to  enter  the  business  of  writing 


FIRE   INSURANCE   RATES 


1027 


insurance  where  they  are  obliged  to  prepare  their  own  rate  books.  But 
rate-making  by  cooperative  action  permits  and  encourages  monopolis- 
tic rates.  This  is  especially  true  of  commercial  districts,  where  mutual 
companies  generally  find  it  undesirable  to  operate.  On  this  account 
cooperative  agencies  should  be  recognized  by  law  and  required  to 
operate  under  the  supervision  of  the  State  Insurance  Superintendent. 

The  primary  object  of  schedule  rating  is  to  adjust  the  premium 
to  the  risk.  Where  this  is  scientifically  done  there  is  no  discrimination 
in  rates.  Each  property  owner  pays  the  average  rate  for  his  class  of 
property  risks.  The  law,  therefore,  should  assist  the  cooperative  rating 
agencies  by  prohibiting  discriminations  and  authorizing  the  Insurance 
Superintendent  to  make  investigations  and  order  changes  wherever  it 
is  found  that  discriminations  actually  exist.  Whetherthe  State  Insur- 
ance Superintendent  should  be  given  the  power  to  raise  or  lower  rate 
schedules  as  a  whole  is  as  yet  a  controverted  question.  The  Kansas 
law,  enacted  in  1909,  has  recently  been  sustained  by  the  Supreme 
Court,2i  and  such  power  may,  therefore,  be  legally  granted. 

It  may,  therefore,  be  concluded  : 

First:  The  average  rate  paid  for  fire  insurance  in  the  State  of 
Illinois  is  higher  than  in  the  United  States  as  a  whole  and  higher 
than  in  some  states  even  where  the  fire  loss  has  been  relatively  greater. 

Second :  The  burning  rate  in  Illinois,  while  higher  than  it  ought 
to  be,  has  been  lower  than  in  the  United  States  as  a  whole  and  lower 
than  in  some  of  the  states  where  building  construction  is  of  the  same 
general  character. 

Third:  Rates  have  been  made  in  Illinois  for  many  years  by 
cooperative  associations  without  any  supervision  by  the  Insurance 
Department. 

Fourth:  Rate-making  by  cooperative  associations  of  companies 
writing  insurance  in  a  given  state  is  not  only  desirable,  but  necessary 
for  the  economical  making  of  rates ;  and  such  rate-making  is  essential 
for  equity  as  between  individual  risks  or  between  similar  classes  of 
risks,  unless  the  rate-making  function  is  delegated  to  the  Department 
of  Insurance,  as  in  Texas. 

Fifth:  Rate-making  by  the  state  through  the  Department  of 
Insurance  is  as  yet  in  the  experimental  stage.  If  the  state  should  make 
rates  for  insurance  companies  it  ought  also  to  make  rates  for  railroad 
corporations  and  all  forms  of  public  utilities.  Regulation  of  rates 
rather  than  the  making  of  rates  seems  to  be  the  wiser  course  at  the 
present  time. 

Sixth:  Rate-making  associations  are  controlled  by  insurance 
companies.  They  should  be  required  to  report  to  the  State  Insurance 
Department  and  should  be  subject  to  regular  examinations  as  insur- 
ance companies  are. 

Seventh:  Such  associations  by  whatever  name  called  should  be 
prohibited  from  making  discriminatory  rates : 

(a)  discriminating  between  risks  of  the  same  character  in  the 
State  of  Illinois ; 

2=German  Alliance  Insurance  Co.  vs.  Ike  Le\vis,  as  Superintendent  of  Insurance  for 
State  of  Kansas,  April  20,  1914. 


1028  EFFICIENCY  AND  ECONOMY  COMMITTEE. 

(b)  discriminating  between  classes  of  the  same  general  character 
in  the  State  of  Illinois;  or 

(c)  discriminating  against   Illinois  risks,   where   compared   with 
risks  of  the  same  general  character  in  other  states. 

Eighth :  The  State  Department  of  Insurance  should  be  clothed 
with  sufficient  power  by  an  amendment  to  the  insurance  law  to  enforce 
efifectively  the  above  recommendations. 

Ninth :  Since  the  department  would  be  clothed  with  considerable 
discretionary  power,  it  would  probably  be  wise  to  put  the  general  super- 
vision of  rates  under  a  commission,  whose  chairman  should  be  the 
chief  executive  officer,  or  the  Insurance  Department  should  be  united 
with  the  other  regulating  departments  for  purposes  of  control,  retain- 
ing the  Insurance  Superintendent  as  executive  officer. 

Tenth :  Coinsurance  should  be  permitted  by  law ;  and  where 
policies  are  written  without  coinsurance  the  rates  should  be  adjusted  as 
explained  in  the  section  on  coinsurance,  so  that  persons  protecting  their 
property  most  fully  would  be  required  to  pay  the  lowest  rate,  the  rate 
progressing  as  the  amount  of  the  insurance  carried  grows  less.  In 
order  to  prevent  the  emergence  of  the  moral  hazard,  as  the  amount  at 
risk  approaches  the  value  of  the  property  insured,  the  rate  ought  to 
be  degressive  until  approximately  eighty  per  cent,  of  the  value  of  the 
property  is  covered,  and  after  that  point  is  reached  the  rate  should 
become  a  fixed  one,  or  increase  in  some  geometric  ratio  as  the  face  of 
the  policy  approaches  the  value  of  the  property. 


COMPARATIVE  STATEMENT  OF 
APPROPRIATIONS 


MADE  BY  THE  GENERAL  ASSEMBLY, 
STATE  OF  ILLINOIS 

COMPILED  BY 

THOMAS  P.  WATERS 


COMPARATIVE    STATEMENT    OF    APPROPRIATIONS, 
1909,  1911  AND  1913 

(From  Auditors'  Appropriation   Statements.) 

RECAPITULATION. 

General     Assembly     and     State         1909  1911  1913 

Officers $  2,200,000.00    $  2,400,000.00  $  2,600,000.00 

Legislative  189,800.00  187,400.00  302,069.10 

Judiciary    136,531.64  135,230.00  167,553.72 

The  Governor  161,400.00  210,100.00  167,275.90 

Civil  Service  Commission 20,760.00  38,600.00  73,308.00 

Lieutenant  Governor  6,800.00  6,800.00  6,800.00 

Secretary  of  State  356,120.00  403,537.30  667,163.83 

Attorney     General      (Including 

Inheritance  Tax  Office) 232,040.00  290,613.25  483,103.21 

State  Board  of  Contracts 284,000.00  276,000.00  498,680.00 

Finance  Administration  248,000.00  333,500.00  457,700.00 

Military  Administration  904,942.00  1,272,475.83  1,784,495.65 

Control  of  Corporations 152,950.00  545,670.00  759,417.60 

Public  Health  and  Safety 215,500.00  548,330.00  599,039.25 

Labor  and  Mining  Bureaus....        185,980.00  275,764.45  348,685.00 

Agricultural   Interests    325,480.00  669,760.00  604,940.00 

Public   Education    5,659,880.49  9,369,872.12  12,416,414.24 

Charities    6,145,315.00  9,669,258.65  11,537,876.64 

Penal  and  Reformatory 2,113,900.00  2,074,560.00  1,719,809.64 

Public  Works,  Parks  and  Monu- 
ments           291,850.00  918,653.15  2,666,317.90 

Special  Appropriations  41,746.71  32,050.74  51,036.25 

Total $19,872,995.84    $29,658,175.49  a$37,91 1,757.93 


aThis  iotiil  (1013)  is  $3,700  less  than  the  total  shown  in  the  Appropriation  Statement. 


1032  EFFICIENCY  AND  ECONOMY  COMMITTEE 

1909  1911  1913 

GENERAL         ASSEMBLY         AND         STATE 

0FFICERS    $2,200,000.00  $2,400,000.00  $2,600,000.00 

General  Assembly  and  Legislative  Committees. 

Copying  Laws  and  Journals...  .      $       300.00  $       300.00  $       300.00 

Express    and    Postage 4,000.00  4,000.00  4,000.00 

Committee  Expenses  22,500.00  84,100.00  161,619.10 

Employes    130,000.00  80,000.00  85,000.00 

Incidental   Expenses    33.000.00  19,000.00  26,1:0.00 

$189,800.00  $187,400.00  $277,069.10 

Legislative  Reference  Bureau 25,000.00 

JUDICIAHY. 

Supreme  Court.  , 

Salaries    $30,291.64  $32.400  00  $36,720.00 

Incidental   Expenses    25,000.00  20,000.00  20,000.00 

Purchase   of   Books 10,000,00  10,000.00  10,000.00 

Costs-Case  People  vs.  Economy 

Light  and  Power  Co 3,350.00 

$65,291.64  $62,400.00  $70,070.00 

Sumpreme  Court  Reporter. 

Salary    $1,440.00  $1,440.00  $1,440.00 

Expenses,  Printing,  etc 2,400.00  2,400.00  2,400.00 


$3,840.00  $3,840.00  $3,840.00 


Appellate  Courts— First  District. 

Salaries    

Rent    

Incidental   Expenses    , 

Purchase  of  Law  Books 

Repairing  Books    

Furniture  and  Carpets 

Filing  Cases    


$  7,600.00 

$  7,600.00 

$13,600.00 

21,000.00 

21.000.00 

34,385.00 

4.000.00 

4.000.00 

8,000.00 

2,000.00 

2,000.00 

3,000.00 

500.00 

750.00 

750.00 

750.00 

225.00 

225.00 

Second  District 

Salaries    $  6,000.00 

Incidental   Expenses    5,975.00 

Purchase  of  Law  Books 1,200.00 

Repairing  Books    600.00 

Repairs  and  Improvements 


$36,075.00  $35,575.00  $59,735.00 


$  6,000.00 

$  6,000.00 

5,900.00 

5,000.00 

1,200.00 

1,200.00 

800.00 

1,000.00 

1,400.00 

1,380.00 

$13,775.00  $15,300.00  $14,580.00 


Third  District. 

Salaries    $4,800.00  $4,800.00  $4,800.00 

Incidental   Expenses    2,000.00  2,415.00  2,000.00 


$6,800.00  $7,215.00  $6,800.00 


APPROPRIATIONS  1033 


Fourth  District 

1909 
$  6,000.00 
3,500.00 

1,250.00 

1911 

$  6,000.00 
3,000.00 

1,900.00 

1913 

$  6,000.00 

3,000.00 

Purchase    and     Rebinding    Law 
Books       

1,600.00 

1,928.72 

Total— Judiciary   

THE  GOVERNOR. 

Executive  Office. 

$10,750.00 
$136,531.M 

$34,400.00 
12,000.00 
3,000.00 

$10,900.00 
$135,230.00 

$34,400.00 

16,000.00 

3,000.00 

3,000.00 

$12,528.72 
$167,553.72 

$34,400.00 

Incidental    Office    Expenses 

Expense,    Audit    Qerk 

Recarpeting    

16,000.00 
3,000.00 
3,000.00 

Contingent  Fund. 

$49,400.00 

$10,000.00 
80,000.00 

$56,400.00 

$10,000.00 
62,600.00 

40,000.00 

$56,400.00 
$10,000.00 

Examination  of  Books,  etc.,  I.  C. 

Cost      and      Expense,      Appeal 

People  vs.  E.  Lt.  &  Power  Co. 

49,875.90 
5,000.00 

$90,000.00 

$18,000.00 
4,000.00 

$22,000.00 

.  .$161,400.00 

.  .$    7,760.00 
13,000.00 

$20,760.00* 

$6,800.00 

$222,120.00 
10,000.00 

7,000.00 
10,000.00 

$112,600.00 

$36,000.00 
5,100.00 

$41,100.00 

$210,100.00 

$16,600.00 
22,000.00 

$38,600.00 

$6,800.00 

$230,720.00 
10,000.00 

5,000.00 
10,000.00 

91,000.00 

$64,875.90 

Executive  Mansion. 
Care  and  Maintenance     

$30,000.00 

Repairs   and   Improvements 

16,000.00 
$46,000.00 

Total  Governor  

Civil  Service  Commission. 

Salaries   

Expenses   

$167,275.90 

$32,780.00 
40,600.00 

J  ifiutpnnnt  C^mjcmnr                        . .  . 

$73,380.00 
$6,800.00 

Secretary  of  State. 
Office. 
Salaries    

$262,360.00 
10,000.00 

Expense,  Corporation  Dept 

Expense,  Foreign  Corp.  Dept... 
Numbers,  Tags,  etc.,  for  Auto- 

3,000.00 

150,000.00 

1,000.00 

Pnctacrp     Frpiprfit     etc 

58,000.00 

Traveling   Expenses,   Investiga- 

3,600.00 

Deficiency— Aut.    Dept 

Rent,  Light,  etc.   (Chicago) 

87,203.83 

2,800.00 

$249,120.00 

$346,720.00 

$577,963.83 

1034  EFFICIENCY  AND  ECONOMY  COMMITTEE 

Heating  and  Lighting.                       1909                    1911  1913 

Fuel  and  Repairs $21,000.00          $18,000.00  $29,000.00 

Operating   Light   Plant 5,000.00               3,000.00  2,000.00 


$26,000.00  $21,000.00  $31,000.00 


Incidental  Expenses. 

Secretary  of  State $17,000.00 

Repairing    State   House 5,000.00 

Purchase  of   Flags 200.00 

Printing  Blue  Book 2,000.00 

Senate  and  House  Chambers. .  .         29,500.00 

Filing  Cases,  etc 10,617.30     

Elevators  and  Toilets  30,000.00 


$10,000.00 

$10,000.00 

3,000.00 

2,000.00 

200.00 

200.00 

2,000.00 

2,000.00 

$53,700.00  $25,817.30  $44,200.00 


Supreme    Court   Reports    (Pur- 
chase of)    $27,300.00  $10,000.00  $14,000.00 


Total,  Secretary  of  State $356,120.00  $403,537.30          $667,163.83 

Attorney-General. 

Office 

Salaries    $63,440.00  $80,000.00          $110,200.00 

Office  Expenses  10,000.00  14,000.00              16,000.00 

Legal   Service    70,000.00     

Special  Counsel.  L  C.  Case....  55,000.00  70,000.00             136,615.20 
Exp.  Case,  People  vs.  111.  Steel 

Co 3,000.00     

Legal    Service— War    Claim....  12,400.00     

Taxes— Idaho  Lands  5,000.00              4,513.25     

Suits  in  U.  S.  Courts 48,000.00  70,000.00 

Exp.,   Submerged   Lands 25,000.00  38,548.01 


$218,840.00         $241,513.25  $371,363.21 


Inheritance  Tax  Office. 

Salaries  $  9,600.00          $25,200.00  $  73,400.00 

Rent  and  Expenses 3,6000.00              8,900.00  13,340.00 

Special  Investigation  12,000.00  16,000.00 

Office  Expense    3,000.00  5,000.00 

Cost  and  Exp.,  Disbarment  Pro 4,000.00 


$13,200.00  $49,100.00  $111,740.00 


Total,  Attorney-General   $232,040.00         $290,613.25  $483,103.21 

State  Board  of  Contracts. 

Printing  Paper  and  Stationery.      $  92,000.00         $120,000.00  $205,000.00 

Public  Printing   120,000.00           100,000.00  210,000.00 

Extra  Help,  account  of  Printing  7,000.00  6,000.00     

Binding    65,000.00            50,000.00  70,000.00 

Salary  of  Secretary  of  Board 600.00 

Printer  Expert    12,480.00 

Office  Expenses  and  Postage 600.00 


Total  State  Board  of  Contracts.  .$284,000.00         $276,000.00  $498,680.00 


APPROPRIATIONS 


1035 


1909  1911  1913 


FINANCE  ADMINISTRATION. 

Auditor  of  Public  Accounts. 

Salaries                                  ....       $  48,600.00  $163,500.00  $215,300.00 

OfficTExnense 9,000.00  9,000.00  16,500.00 

ExiSnse;  etc..   Registered   Bond         30,000.00  4,000.00  4,000.00 

Office  Furniture       4,400.00     1,700.00 

Traveling  E^enses    ' 23,000.00  23,000.00 

^tr^^':^''''^-''-''''  5,000.00  20,000.00 

Rent  and   Furniture    (Chicago) -AAAAA  tttm 

Cost  of   State   Suits 1.000.00  1,00000  1>000.00 

$93,000.00  $205,500.00  $285,500.00 

State  Treasurer. 

Salaries                 $  48,000.00  $  64,500.00  $  65,200.00 

Office  Expense   .:. sioOO.OO  8,000.00  8,000.00 

Expense,  Collecting  Inheritance                                      .nr^^nr^n 

Tax 25,000.00  25,000.00  60,000.00 

Expense,    Premiums    Employe's  .,  ^„„  «^  or,nr>An 

Bonds                           2,000.00  2,000.00  2,000.00. 

Furniture'  ■:::::::: 2,000.00  500.00  2,000.00 

Expense,  Handling  Collateral /,UUU.UU 

Expense     Account,     Registered 

Bonds    8,000.00  

Expense,  Collecting  Interest  On  „  ^^„  „«  or.Ar.nn 

Public  Funds  ..   30,000.00  8,000.00  8.00000 

$120,000.00  $108,000.00  $152,200.00 

State  Board  of  Equalisation. 

Salaries  and  Expenses $20,000.00  $20,000.00  $20,000.00 

Commissioners — Tax     Revision, 

Expenses,   Reports,   etc $15,000.00  

Total,  Finance  Administration.  .      $248,000.00  $333,500.00  $457,700.00 

MILITARY  ADMINISTRATION. 

Adjutant  General. 

Salaries           $20,280.00  $20,880.00  $20,880.00 

Office  Expense  3,000.00  3,000.00  3,400.00 

$23,280.00  $23,880.00  $24,280.00 

National  Guard. 

Ordinary  Expenses   $700,544.00  $    779,834.00  $    779,834.00 

Unifornis    81,495.00  11,534.30  12,000.00 

Emergency  Fund 50,000.00  50,000.00  50,000.00 

Expenses,  U.   S.   S.  Nashville..  7,673.00 

Armories  and  Improvements...         41,950.00  402,212.53  918,381.65 

Expenses,  Torpedo  Boat 5,015.00     

$881,662.00  $1,248,595.83  $1,760,215.65 

Total,    Military    Administration     $904,942.00  $1,272,475.83  $1,784,495.65 


1036  EFFICIENCY  AND  ECONOMY  COMMITTEE 

CONTROL  OF  CORPORATIONS.  1909  1911  1913 

Public  Utilities  Commission. 

Expenses,  etc 

R.  R.  and  Whsc.  Commissioners. 

Salaries     $20,400.00 

Office  Expenses 8,000.00 

Schedules    2,000.00 

Maps    4,000.00 

Investigation  of  Rates 

Expense  of  Suits 12,000.00 

Fees  of  Experts 

Expense   of   Commissioners 

Printing    


$43,400.00 
6,000.00 
4,000.00 
4,000.00 
4,000.00 
2,000.00 
5  000  00  . 

$120,000.00 

$45,120.00 
11,000.00 
2,000.00 
4,000.00 
3,000.00 
3,600.00 

8,000.00 
4,000  00 

9,000.00 
3,000.00 

$46,400.00  $80,400.00  $80,720.00 


Grain  Inspection  Dcpt.  (Chicago). 

Salaries                                               $280,220.00  $312,917.60 

Rent  andLight";::::  .:::■.■.: 16.000.00  18,000.00 

Sffke  Expense   : 10.000.00  14,150.00 

Miscellaneous  Expense  ^U.UiU.uu 

$306,220.00  $365,077.60 


Grain  Inspection  Dcpt.  (E.  St.  Louis). 

Salaries    $32,400.00  $33,480.00 

Rent  and   T  idht                                        1,000.00      

gmce^^^gj^s-;:::::;::::::: : 1:200.00  2,400.00 

$34,600.00  $35,880.00 


Grain  Inspection  Dept.  (Joliet). 

Salary    $1.80000 

Grain  Inspection  Dcpt.  (Kankakee). 

Salary $2.400.00 

Grain  Inspection  Dept.  (Decatur). 

Salary    $5.040.00 

Insurance  Department. 

Salaries        $  61,400.00  $  72,200.00  $  92,800.00 

Office  Expense   13,900.00  14,000.00  17.450.00 

Prosecutions  and  Legal  Services         20,000.00  14,000.00  14,000.00 

Expense,    Commissioners.     (At-  ^r«/x^ 

tending  National  Convention)               250.00  2^0.00  250.00 

For  Uncollected  Examinations..           2,000.00  2,000.00 

Printing                  2,000.00  2,000.00  4,000.00 

Per  Diem  of  Examiners 7,000.00  10,000.00     

For   Examinations   and    Investi-  ^„  ^^«  «« 

gations    10,000.00  20,000.00 

$106,550.00  $124,450.00  $148,500.00 


Total,  Control  of  Corporations..     $152,950.00         $545,670.00  $759,417.60 


APPROrRIATIONS 

PUBLIC  HEALTH   AND   SAFETY.                                   1909  1911 

State  Board  of  Health. 

Salaries    $  29,000.00  $  29,000.00 

Expenses,   Various    93,500.00  142,500.00 

$122,500.00  $171,500.00 

Lodging  House  Inspectors. 

Salaries  and  Expenses $30,000.00  $50,200.00 

Dental  Examiners. 

Salaries    $7,200.00 

Expenses   4,500.00 

$11,700.00 

Board  of  Pharmacy. 

Salaries    $20,560.00 

Expenses    11,000.00 

$31,560.00 

Barbers'  Examiners. 

Salaries    $25,600.00 

Expenses   8,650.00 

$34,250.00 

Examiners  of  Registered  Nurses. 

Salaries    $6,200.00 

Expenses    3,840.00 

$10,040.00 

Food  Commissioners. 

Expenses,  Rent,  etc $62,000.00  $110,400.00 

Fire  Marshal. 

Salaries    $54,400.00 

Expenses    54,700.00 

$109,100.00 

Illinois  State  Firemen's  Assn. 

Printing,  Expenses,  etc $1,000.00  $1,500.00 

Examiners  of  Architects. 

Salaries    $6,300.00 

Per     Diem     and     Expenses     of 

Members    5,600.00 

Expenses    5,880.00 

Examination    Fees   Withdrawn 300.00 

$18,080.00 

Total,  Public  Health  and  Safety     $215,500.00  $548,330.00 


1037 


1913 


$  58,140.00 
182,394.25 

$240,534.25 


$20,815.00 


$  8,200.00 
5,850.00 

$14,050.00 


$22,400.00 
11,000.00 

$33,400.00 


$11,200.00 
8,420.00 

$19,620.00 


$  6,600.00 
3,660.00 

$10,260.00 


$100,600.00 


$  83,860.00 
60,000.00 

$143,860.00 


$2,000.00 


$  5,400.00 

4,000.00 

4,380.00 

120.00 

$13,900.00 

$599,039.25 


1038  EFFICIENCY  AND  ECONOMY  COMMITTEE 

LABOR  AND   MINING  BUREAUS.  1909  1911  1913 

Commissioners  of  Labor  Statistics. 
Clerk  Hire  and  Expenses $22,000.00  $18,000.00  $22,155.00 

Inspection  of  Private  Employment  Agencies. 
Clerk  Hire  and  Expenses $7,840.00  $8,540.00 

Free  Employment  Offices. 
Chicago   (North  Side). 

Salaries    $4,600.00  $4,800.00  $5,000.00 

Rent  and  Expenses 4,500.00  4,500.00  4,500.00 


$9,100.00  $9,300.00  $9,500.00 


Chicago   (South  Side). 

Salaries    $  6,040.00  $  6,240.00  $  6,440.00 

Rent  and  Expenses  4,600.00  4,600.00  4,600.00 


$10,640.00  $10,840.00  $11,040.00 


Chicago   (West  Side) 

Salaries    $4,600.00  $4,800.00  $5,000.00 

Rent  and  Expenses 3,600.00  3,600.00  3,600.00 


$8,200.00  $8,400.00  $8,600.00 


East  St.  Louis. 

Salaries    $2,640.00  $2,640.00  $2,640.00 

Rent  and  Expenses 3,200.00  3,600.00  3,600.00 

$5,840.00  $6,240.00  $6,240.00 


Peoria. 

Salary  $1,440.00  $1,440.00  $2,160.00 

Rent  and  Expenses 3,000.00  3,600.00  2,850.00 


$4,440.00  $5,040.00  $5,010.00 


Springfield. 

Salary $1,440.00  $1,440.00              $2,640.00 

Rent  and  Expenses 2,000.00  2,000.00                2,000.00 

Furniture    320.00     


$3,760.00  $3,440.00  $4,640.00 


Rockford. 

Salary    $2,240.00 

Rent  and  Expenses   200000 

Furniture   200.00 


$4,440.00 

Total,  Free  Employment  Offices       $41,980.00          $43,260.00  $49,470.00 
State  Board  of  Arbitration. 

Expenses    $10,000.00  $10,000.00     


APPROPRIATIONS  1039 

Factory  Inspectors.                                  1909  1911  1913 

Sal-iries                                $14,000.00  $16,400.00  $24,320.00 

Office  Expense 10,000.00  20,000.00  10,000.00 

Inspectors'    Expenses    20,000.00  28,000.00  32.000.00 

Re.rand  Light     .    4,000.00  5,000.00  10.000.00 

$48,000.00  $69,400.00  $76,320.00 


Employers'  Liability  Commission. 
Expenses    $1,264.45 

Occupational  Diseases  Commission. 
Clerk  Hire  and  Expenses $15,000.00     


State  Mining  Board. 

Salaries  and  Expenses $12,000.00  $26,000.00  $25,400.00 

Aline  Inspectors'  Expenses 12,000.00  30,000.00  24,000.00 

$24,000.00  $56,000.00  $49,400.00 


Miners'  Examining  Board. 

Salaries  and  Expenses  $7,200.00 

Mine  Rescue  Station  Commission. 

Clerks,  Equipment  and  Expense  $60,000.00  $70,000.00 

Mining  Investigation  Commission       $25,000.00          $10,000.00  $10,000.00 

Industrial  Board. 

Salaries    v $15,600.00 

Expenses    40,000.00 

$55,600.00 


Total,       Labor       and       Mining  ^     ^  ^^^  ^^ 

Bureaus   $185,980.00        $275,764.45  $348,685.00 


AGRICULTURAL  INTERESTS. 

State  Board  of  Agriculture. 

Salaries $  16,040.00  $  14,400.00  $  21,400.00 

Expenses                            27,600.00  37,600.00  42,600.00 

Aid  of  County'  Fairs 100,000.00  120,000.00  170,000.00 

Buildings  and  Improvements 215,000.00  10,000.00 

Outstanding  Notes  85,000.00 

$143,640,00  $387,000.00  $329,000.00 


Farmers'  Institutes. 

Salaries    $10,000.00  $15,000.00  $  5,800.00 

Office  Expenses   2,000.00  3,000.00  6,000.00 

Expenses— Speakers  and  Judges  6,000.00  12,000.00  12,000.00 

Expenses  of  Members 10,000.00  10,000.00  10,000.00 

Expensesof  County  Institutes..  14,000.00  15,000.00  15,000.00 

$42,000.00  $55,000.00  $48,800.00 


Inspectors  of  Apiaries. 
Salaries $3,000.00  $4,000.00 


1040  EFFICIENCY  AND  ECONOMY  COMMITTEE 

State  Horticultural  Society.  1909  1911  1913 
Advancing   Growth    and    Devel- 
opment            $10,000.00           $10,000.00             $10,000.00 

State  Dairyman's  Association. 
Printing,  Expenses,  etc $5,000.00  $5,000.00  $5,000.00 

Ilinois  Poultry  Association. 
Printing,  Expenses,  etc $2,000.00  $2,000.00  $2,000.00 

State  Bee  Keepers'  Association. 
Printing,  Expenses,  etc $2,000.00  $2,000.00  $2,000.00 

Milk  Producers'  Institute. 

Expenses,  etc $1,000.00  $1,000.00     

Live  Stock  Breeders'  Association. 

Printing,  Expenses,  etc $  1,000.00  $1,000.00  $3,000.00 

Commissioners  to  Investigate  Tuberculin  Test. 

Expenses    $10,000.00     

Live  Stock  Commissioners. 

Salaries    $45,840.00  $50,200.00  $50,280.00 

Expense  11,000.00  12,000.00  10,000.00 

Per  Diem  and  Expense  of  State 

Veterinarian    7,000.00  1,000.00     ..." 

Damages    for  Animals    Slaugh- 
'tered    27,000.00  25,000.00  25,000.00 

Total,     Live     Stock     Commis- 
sioners           $90,840.00  $88,200.00  $85,280.00 

Biological  Laboratory. 

Salaries         $    8,000.00  $  12,000.00          $  12,800.00 

Purchase  of  Land 4,000.00     

Equipment  of  Laboratory 6,000.00  23,000.00               12,000.00 

Purchase  of  Hogs  for  Labora- 
tory     45,000.00             67,000.00 

$108,840.00         $168,200.00  $177,080.00 

Veterinary  Examiners. 
Per  Diem  and  Expenses $2,100.00  $1,600.00 

Stallion  Registration  Board. 
Salaries  and  Expenses ...:.....    $33,460.00  $22,460.00 

Total,  Agricultural   Interests...      $325,480.00         $669,760.00  $604,940.00 

PUBLIC   EDUCATION. 

State  School  Fund. 

Salaries    $   380,800.00  $   380,800.00  $   380.800.00 

Expenses    1,619,200.00  3,619,200.00  5,619,200.00 

Interest  on  State  School  Funds        114,000.00  114,000.00  114,000.00 

$2,114,000.00      $4,114,000.00        $6,114,000.00 


APPROPRIATIONS 


1041 


Superintendent  of  Public  Instruction.      1909  1911  1913 

c^i^Hes                                $19,000.00  $28,800.00  $46,800.00 

Office  and  TraVeling '  Expenses          9,000.00  9,000.00  12.000.00 

^SSor^'..":!"^^':^"^!          5.000.00  5,000.00  1.000.00 

Expense,   Certifying  Law J,500.0U     

Expense,    Conducting    Examin-  3  60000 


ations 


$33,000.00  $46,300.00  $63,400.00 


Normal  Schools. 

State  Normal  University. 

Ordinary  Expenses             ....  $166,000.00  $217,200.00  $260,000.00 

Retirs^an^d^lX^^^^^^^^  '  29! 500. 00  4,600.00  87,000.00 

Interest  on  College  Fund.  . .  .  12.987.12  12,987.12  12,987.12 

Training  School  Building.  . . .    ^^^,000.00 

$208,487.12  $359,787.12  $359,987.12 


Eastern  Normal. 

Ordinary  Expenses $122,000.00  $146,000.00  $160,000.00 

Repairs   and   Improvements..          12.500.00  8,500.00  5,000.00 

Model   School  Building ^^,000.00  20,UU0.0U 

$134,500.00  $229,500.00  $185,000.00 


Northern  Normal. 

Ordinarv  Expenses                  ..      $162,000.00  $162,000.00  $180,000.00 

£pairs^andZ;?ovementV...          19.312.25  22,200.00  12.500.00 

For  Training  School  Building         75.000.00  

Water  Rents    1,500.00     •■■■■-     

Equipment  of  New  Building 6,000.00     -;AAA-AA 

Women's  Dormitory   .^^^^^^^^^^^^^  1^^'""""" 

$257,812.25  $190,200.00  $317,500.00 


Western  Normal. 

Ordinary  Expenses   $120,000.00  $130,000.00  $140,000.00 

gStk":: ....""°"  _=  _J^ 

$131,000.00  $215,500.00  $158,500.00 


Southern  Normal. 

Ordinary  Expenses       $110,000.00  $137,612.88  $160,000.00 

interest  on  CoUeTe  Fund   ...         12  987.12  12,987.12  12,987.12 

Repafrs  ^and   Improvements. .           7;il4.00  18,985.00  17,500.00 

Women's  Building  75.000.00     ^^.^^.^ 

Heatmg  Plant  

$130,101.12  $244,585.00  $240,4«7.12 


Total,  Normal   Schools $861,900.49      $1,239,572.12        $1.261,474.24 


1042  EFFICIENCY  AND  ECONOMY  COMMITTEE 

University  of  Illinois.                               1909                    1911  1913 

Maintenance,      Equipment     and 

General   Operating   Expenses.   $1,905,500.00       $2,279,500.00  $3,200,000.00 
Purchase   of    Lands    and    Erec- 
tion of  Buildings 398,000.00        1,224,800.00  1,300,000.00 

Interest  on  Endowment  Fund..         65,000.00             65,000.00  65,000.00 

Miners' and  Mechanics'  Institute   30,000.00 

U.  S.  Gov.  Appropriation 80,000.00           130,000.00  100,000.00 


$2,448,500.00      $3,699,300.00        $4,695,000.00 


Scientific  Investigation. 
State  Geological  Survey. 

Clerk  Hire  and  Expenses....        $50,000.00  $50,000.00  $50,000.00 

Surveys    7,500.00  7,500.00  7,500.00 

Maps  and  Reports 5,000.00  5,000.00  10,000.00 

Studv  of  Coal  Mining 9,000.00  9,000.00 


$62,500.00  $71,500.00  $76,500.00 

State  Entomologist.  

Expenses    $46,000.00  $54,000.00  $51,000.00 


Laboratory  Natural  History. 

Expenses     $16,000.00  $16,000.00  $16,000.00 


Water  Survey. 

Salaries    $26,000.00 

Expenses    $10,000.00  $45,000.00  17,000.00 


$10,000.00  $45,000.00  $43,000.00 

Total,    Scientific   Investigation.  ..  .$134,500.00         $216,500.00  $186,500.00 


Libraries  and  Museum. 
State  Library. 

Salaries    $10,400.00  $12,800.00  $14,600.00 

Purchase  of  Books 4,000.00  4,000.00  4.800.00 

Expense,      Extension      Com- 
mission    3,000.00  3,600.00  8,840.00 

Furniture     1,000.00 


$17,400.00  $20,400.00  $29,240.00 

Historical  Library.  

Salaries    $  9,680.00  $  6,200.00  $  6,200.00 

Expense,  Purchase  of  Books, 

etc 20,000.00  27,500.00  32,000.00 

Printing   8,000.00  8,000.00  8,000.00 


$37,680.00  $41,700.00  $46,200.00 


Natural  History  Museum. 

Salaries    $10,200.00  $12,000.00  $  5,600.00 

Expenses   1,200.00  1.600.00  2,000.00 

Books,  etc 1,500.00  3,500.00  3,000.00 


$12,900.00  $17,100.00  $10,600.00 


Total,  Libraries  and  Museum..       $67,980.00  $79,200.00  $86,040.00 


APPROPRIATIONS  1043 


Education  Building  Commission. 
Expenses     

1909 

1911 
$5,000.00 

$9,369,872.12 

$  9,800.00 
15,500.00 

1913 
$10,000.00 

Total,   Public   Education 

CHARITIES. 

Charities  Commission. 
Salaries            

$5,659,880.49 

$27,200.00 
5,000.00 

$12,416,414.24 
$  8,200.00 

Expenses                  

15,500.00 

$32,200.00 

$32,800.00 
28,000.00 

$25,300.00 

$23,700.00 

Board  of  Administratiou. 

Salaries                        

$     48,260.00 

6,988,148.00 

674,700.00 

500,000.00 
10,000.00 
8,000.00 

$     51,360.00 

7,151,337.42 

Rpnairi;    nnrl     Tmnrnvempnts 

781  300  00 

Site   and   Plans    for   New   Hos- 
pital 

Instruction  of  Adult  Blind 

10,000.00 

61,565.18 

Home  Visitors. 

$60,800.00 

$8,229,108.00 

$  6,600.00 
14,000.00 

$8,055,562.60 
$  6,800.00 

$11,000.00 
$11,000.00 

$475,000.00 
40,500.00 

20,000.00 
4,500.00 

4,000.00 

10,000.00 

Anna  State  Hospital. 
Ordinary  Expense? 

$20,600.00 

$16,800.00 

Repairs   and    Improvements.... 
Buildings     and     Other     Capital 

$  5,000.00 
238,200.00 

$133,392.35 
62,881.92 

Machinery  and   Live   Stock 

Improvment  of  Grounds 

2,000.00 

2,400.00 

Chester  State  Hospital. 

Ordinary   Expenses    

Repairs  and  Improvements 

Miscellaneous,   Equipment,   etc.. 

$544,000.00 

$80,000.00 
4,000.00 
2,400.00 

$243,200.00 

$200,674.27 

$4,000.00 

$500.00 

Chicago  State  Hospital. 
Buildings 

$86,400.00 

$4,000.00 
$110,000.00 

$500.00 
$755,666.21 

60,300.00 

Machinery   

15,000.00 

Repairs 

1,000.00 
$111,000.00 

$830,966.21 

Alton  State  Hospital. 

Buildings,   Other  Improvements 

and   Supervision    

Purchase    of    Site,    Plans    (Re- 

$205,000.00 
295,119.19 

$500,119.19 

1044                             EFFICIENCY  AND  ECONOMY  COMMITTEE 

CHARITIES— (Com.)  1909  1911                    1913 
Elgin  State  Hospital. 

Ordinary  Expenses $425,000.00     

Buildings    56,000.00  $95,000.00          $151,500.00 

Repairs   and   Improvements....  57,000.00            29,000.00     

Live  Stock   2,000.00              4,000.00     

Farm    Implements    2,500.00     

Miscellaneous  Equipment 5,500.00               3,800.00     


$548,000.00        $131,800.00  $151,500.00 


Jacksonville  State  Hospital. 

Ordinary  Expenses    $450,000.00     

Repairs   and    Improvements....  60,000.00  $15,500.00             $13,450.00 

Live  Stock  and  Improvements.  1,500.00     

Furniture   and    Equipment 3,000.00               1,500.00     

Building  and  Land 55,000.00  44,500.00                 7,740.00 

$569,500.00  $61,500.00            $21,190.00 


Kankakee  State  Hospital. 

Ordinary  Expenses    $  800,000.00     

Live  Stock   $7,350.00  $4,500.00 

Repairs   and    Improvements....  97,000.00  6,600.00               43,050.00 

Buildings    70,000  33,000.00            242,348.90 

Equipment,    Furniture,    etc 7,000.00             10,700.00     

Psvcopathic   Institute    28,500.00     


$1,002,500.00  $57,650.00  $289,898.90 


Peoria  State  Hospital. 

Ordinary  Expenses    $480,000.00  $  20,000.00     

Repairs  and  Improvements 30,000.00  3i;i00.00  $22,200.00 

Buildings    71,000.00  90,752.68  71,000.00 

Heating  Plant   20,000.00  50,000.00  42,500.00 

Land    17,000.00 

Equipment    12,000.00  11,500.00 

Live  Stock   5,000.00  8,000.00  1,500.00 


$606,000.00         $211,852.68  $165,700.00 


Watertown  State  Hospital. 

Ordinary  Expenses    $350,000.00     

Repairs  and  Improvements 30,000.00  $9,500.00           $22,800.00 

Land   7,000.00     22,000.00 

Buildings    75,000.00             154,500.00 

Heating  Plant   18,000.00 

Equipment     2,000.00     


$389,100.00  $84,500.00  $217,300.00 


Lincoln  State  School  and  Colony. 

OrdinarA'  Expenses    $400,000.00     

Repairs 'and   Improvements....         35,500.00  $9,000.00  $13,500.00 

Buildings    23,500.00  50,000.00  78,000.00 

Heating  Plant   23,000.00     

Equipment    3.500.00  5,800.00  10,500.00 

Live  Stock   1,200.00     


$462,500.00  $89,000.00  $102,000.00 


APPROPRIATIONS  1045 

CHARITIES— (Cont.)  1909  1911  1913 

Industrial  Home  for  the  Blind. 

Ordinary  Expenses    $50,000.00 

Repairs  and  Improvements 5,000.00 

Buildings     

Equipment    

Working  Capital  15,000.00 

$70,000.00 

School  for  the  Blind. 

Ordinary  Expenses $105,000.00 

Repairs  and  Improvements 19,000.00 

Buildings 

Library     2,000.00 

Heating   System    1,500.00 

Equipment  and  Miscellaneous..  1,000.00 

$128,500.00 

School  for  the  Deaf. 

Ordinary  Expenses    $250,000.00 

Repairs  and  Improvements 30,000.00 

Machinery    4,000.00 

Library   and    Equipment 1,500.00 

$285,500.00 

Soldiers'  Widoivs'  Home. 

Ordinary  Expenses    $45,000.00 

Repairs  and  Improvements 5,500.00 

Buildings     

Fire  Protection   500.00 

$51,000.00 

Soldiers'  and  Sailors'  Home. 

Ordinary  Expenses    $400,000.00 

Repairs  and  Improvements 40,000.00 

Buildings   arid   Land 26,000.00 

Fire  Protection   

Equipment,  etc 14,900.00 

$480,900.00 

Soldiers'  Orphans'  Home. 

Ordinary   Expenses    $135,000.00 

Repairs   and    Improvements....  18,615.00 

Buildings     

Library,  Equipment,  etc 2,800.00 

$156,415.00 

Charitable  Eye  and  Ear  Infirmary. 

Ordinary  Expenses    $100,000.00 

Repairs   and    Improvements....  11,000.00 

Library-  and  Miscellaneous 7,000.00 

$118,000.00 


$  7,852.97 

$  2,250.00 
10,000.00 

3,500.00 

25,500.00 
$33,352.97 

120,000.00 
$135,750.00 

$  1,200.00 

6,500  00 

$1,000.00 

1,600.00 

1,600.00 
$2,600.00 

3,400.00 
$12,700.00 

$2,000.00 

$4,000.00  . 

$4,000.00 

$2,000.00 

$23,950.00 

$1,000.00 

$23,950.00 

$1,000.00 

$25,200.00 
15,100.00  . 

$15,780.00 

3,10000  

1,400.00  

$44,800.00 

$15,780.00 

$  2,895.00 
10,350.00 

$19,800.00 
2,500.00 

$13,245.00 

$22,300.00 

$3,500.00  

1  200  00    

$4,700.00  

1046  EFFICIENCY  AND  ECONOMY  COMMITTEE 


CHARITIES— (Cont.) 

St.  Charles  School  for  Boys. 

1909 

$185,000.00 

12,000.00 

2,000.00 

55,000.00 

25,100.00 

1911 

.      1913 

Repairs    and    Improvements.... 

$18,500.00 

3,000.00 

38,300.00 

36,800.00 

$    6,500.00 

Buildings     

Furnishing,  Equipment  and  Mis- 
cellaneous     

186,500.00 
13,500.00 

$279,100.00 

$96,600.00 

$206,500.00 

Training  School  for  Girls. 

$190,000.00 
16,000.00 
29,000.00 

29,000.00 

Repairs   and    Improvements.... 
Buildings     

$  15,000.00 
75,000.00 

11,500.00 

$22,250.00 
24  000  00 

Furnishing,  Equipment  and  Mis- 
cellaneous     

19  685  47 

$264,000.00 

$101,500.00 

$60,000.00 
15,000.00 

$65,935.47 

Surgical  Institution  for  Children. 
Building     

Furnishing     

$75,000.00 

State  Colony  for  Epileptics. 

Purchase     of     Site,     Drawings, 
Plans    and    Preliminar\-    Con- 
struction  of   Buildings 

$500,000.00 

Total,    Charities    

$6,145,315.00 

$9,669,258.65 

$11,537,876.64 

PENAL  AND  REFORMATORY. 

Illinois  State  Penitentiary. 

Ordinarv  Expenses   

$530,000.00 
20,000.00 
12.500.00 

$530,000.00 
20,000.00 
50,000.00 

$530,000.00 
?0  000  00 

Parole   Expenses    

Repairs    and    Improvements.... 

Dynamos,     Motors     and     Other 

Equipment     

23,000.00 
>q  000  00 

Illinois  Southern  Penitentiary. 
Ordinarv  Expenses    

$562,500.00 

$360,000.00 

10,000.00 

700.00 

24,000.00 
$394,700.00 

$600,000.00 

$390,000.00 

10,000.00 

700.00 

$600,000.00 

$400,000.00 
10  000  00 

Parole  Expenses   

Library-   and    Chapel    

Building     

700.00 
6,000.00 

1 1  000  00 

Repairs,  Furnishing,  Equipment, 
etc 

70,000.00 

$470,700.00 

$360,000.00 
20,000.00 
20,500.00 
18,900.00 

2,000.00 

$427,700.00 

Illinois  State  Reformatory. 

Ordinarj^  Expenses    

Parole    Expenses    .... 

$400,000.00 
20,000.00 
18,500.00 
19,300.00 

3,500.00 

$340,000.00 
90  000  00 

Repairs    and    Improvements.  . .  . 
School,  Library,  Lectures,  etc..  . 
Machinery-,  Equipment  and  Mis- 
cellaneous     

11,650.00 
18,900.00 

10,900.00 

$461,300.00 

$421,400.00 

$401,450.00 

APPROPRIATIONS 


1047 


PENAL  AND  REFORMATORY— (  Coilt.  )  .  1909 

Commissioners — Penitentiary  Building. 
Locating  Site  and  Construction 


1911 


1913 


Conveying  Convicts,  etc. 

Expense,  Conveying  to  I'eni- 
tentiary    

Expense,  Conveying  to  Reform- 
atory  

Expense,  Conveying  to  St. 
Charles  School  for  Boys..... 

Expense,  Conveying  to  Training 
School  for  Girls 

Expense,  Transferring  to  and 
from  Asylum  for  Insane 
Criminals    

Expense,  Transferring  to  and 
From  General  Hospital  for  In- 
sane     


Fugitives  and  Reivards. 
Expenses    


$500,000.00 

$400,000.00 

$117,859.64 

$  40,000.00 

$  40,000.00 

$  40,000.00 

30,000.00 

20,000.00 

20,000.00 

14,000.00 

30,000.00 

30,000.00 

14,000.00 

16,000.00 

16,000.00 

2,000.00 

2,000.00 

2,000.00 

2.000.00 

$57,000.00 


State  Board  of  Pardons. 

Salary   

Expenses    


$2,400.00 
2,000.00 


$4,400.00 

State  Board  of  Prison  Industries. 

Salaries    ■•  • 

Expenses    $32,000.00 

$32,000.00 


$42,000.00 


$5,460.00 
3,000.00 

$8,460.00 


$19,200.00 
4,800.00 

$24,000.00 


$102,000.00         $108,000.00  $108,000.00 


$52,000.00 


$2,400.00 
2,000.00 

$4,400.00 


$5,400.00 
3,000.00 

$8,400.00 


Total,  Penal  and  Reformatory.  .  $2,113,900.00      $2,074,560.00        $1,719,809.64 


PUBLIC   WORKS,   PARKS   AND   MONUMENTS. 

State  Highway  Commission. 

Salaries    

Building  and  Maintaining  State 

Aid  Roads   $130,000.00 

Experimental       Road        Work, 

Plans,  etc 


$200,000.00 


Canal  Commissioners. 
Improvements  and  Expenses. 


$35,000.00 


$57,500.00 


$     61,000.00 
1,107,500.00 

i39,bbo.66 


$130,000.00         $200,000.00        $1,307,500.00 


$50,000.00 


Internal  Improvement  Commission. 
Removing   Dams   and    Obstruc- 
tions in  Little  Wabash  River       $30,000.00 


1048  EFFICIENCY  AND  ECONOMY  COMMITTEE 

PUBLIC  WORKS,  PARKS  AND  MONUMENTS — (Cont.). 

Rivers  and  Lakes  Commission.               1909                    1911  1913 

Salaries    $  19,200.00 

Repairing  Levees   342,000.00 

Expenses   $30,000.00  45,200.00 


Committee  on  Public  Lands. 
Clerks  and  Expenses $15,000.00 


Trustees — Lincoln  Home. 


Salary . 

Improvements  and  Repairs. 
Expenses    


Fort  Massac  Trustees. 

Salary    

Care  and   Improvements 

Building  Pavilion  and  Walls.  . .  . 


$30,000.00  $406,400.00 


Game  and  Fish  Conservation  Commission. 

Salaries    $8,000.00  $152,760.00  $205,200.00 

Expenses   50,000.00  199,400.00  156,500.00 

Emergency   66,759.54       


$58,000.00         $418,919.54  $361,700.00 


Illinois  Park  Commission. 

Salaries    $1,200.00 

Purchase  of  Land $150,000.00  45,000.00 

Expenses   (Improvement,  etc.).          $1,000.00               1,000.00  14,000.00 


$1,000.00         $151,000.00  $60,200.00 


,000.00 

$3,000.00 

$3,000.00 

600.00 

1,033.61 

600.00 

550.00 

550.00 

1,300.00 

$3,150.00  $4,583.61  $4,900.00 


Trustees — Lincoln  Monument. 

Salary    $2,000.00  $2,400.00  $3,000.00 

Repairs    250.00  500.00 

Fuel  and  Care  of  Grounds 3,500.00  3,500.00  3,500.00 


$5,500.00  $6,150.00  $7,000.00 


$1,200.00 

$  1,200.00 

$1,200.00 

5,000.00 

5,000.00 

5,000.00 

3,000.00 

5.000.00 

1,500.00 

,200.00  $11,200.00  $7,700.00 


Commissioners — Monuments. 

Indian  Creek  Monument $1,000.00     

Vicksburg  Park  Monument...  .  2,000.00     

Gen.    Lawler    Monument ,    $5,000.00       

Madison  Co.  Anniversary  Monu- 
ment      5,000.00       

Shabbona  Park  Monument 1,000.00       

Kenesaw  Mt.   Monument 20,000.00  $19,617.90 

Perry  Centennial    50,000.00 

Altgeld  Monument  25.000.00 

Carlin  Monument  5,000.00 


$3,000.00  $31,000.00  $99,617.90 


APPROPRIATIONS  1049 

State  Art  Commissioners.  1909  1911  1913 

Expense,   Lincoln   Statute $10,000.00 

Expense,   Douglas   Monument 1,000.00 

$11,000.00 

Commissioners — Fort  Chartres. 
Rebuilding  Walls   $4,000.00 

Commissioners — Fort  Edwards. 
Expenses $2,500.00 

Grand  Army  of  the  Republic. 
Expenses    $2,000.00  $2,000.00  $2,000.00 

Grand  Army  Hall  and  Memorial  Association. 

Salaries    $2,000.00  $4,000.00 

Expenses    1,800.00  2,200.00 

$3,800.00  $6,200.00 

Illinois-Andersonville  Commission. 
Expenses   $600.00 

Panama-Pacific  Exposition  Commission. 
Expenses    $2,500.00  $300,000.00 

Centennial  Commission. 
Expenses    $10,000.00 

Negro  Emancipation  Anniversary. 
Expenses   $25,000.00 

$2,500.00  $335,000.00 

Total,     Public     Works,     Parks 
and  Monuments   $291,850.00         $918,653.15        $2,666,317.90 


1050 


EFFICIENCY  AND  ECONOMY  COMMITTEE 


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